The White House is considering using the Defense Production Act to try to rescue Spirit Aviation Holdings Inc., CBS News reported on Friday, citing United States officials with knowledge of the matter.
The Act grants the United States president authority to compel private businesses to put government contracts at the forefront in order to boost necessary supplies. It further makes it possible for government loans to be provided to the companies in question. Officials detailed that such a move would have to be greenlighted by Spirit's creditors.
US President Donald Trump previously confirmed his administration was looking into options that would help the airline. Sources revealed that the government could lend $500 billion to Spirit "at a reasonable rate interest," while becoming the top debtor. The company's excess capacity would be used by the Pentagon for troops and military cargo transporting, as well as other missions.
https://breakingthenews.net/Article/WH-may-use-Defense-Production-Act-to-save-Spirit/66148261
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