On May 2, Spirit Airlines ceased operations after it failed to get the US government to bail it out of the latest in a series of untenable situations — at least two of which the US government put it in to begin with.
As of 2023, Spirit was the seventh largest air passenger carrier in North America, and largest in the “ultra-low cost” category.
Like many businesses, Spirit had taken some hard knocks during the COVID-19 panic, and like many businesses it had availed itself of government grants and loans to stay afloat. By way of recovery, the company explored possible mergers, first with Frontier and then with JetBlue.
The former deal didn’t work out. The latter, which would have made the combined companies the fifth largest US airline, worked out just fine … until the US Department of Justice sued, predicting “higher fares, fewer seats, and harm [to] millions of consumers.” A judge agreed.
Spirit’s stock price tanked. The company filed for Chapter 11 bankruptcy protection twice in two years, reducing the size of its fleet and the number of people it employed in a desperate race to achieve solvency and remain in business. All because the US government decided it, rather than the market, knew what the market needed.
Then, on February 28, the US regime attacked Iran — and, by way of an attendant massive increase in fuel prices, attacked Spirit Airlines yet a second time. That attack proved fatal.
Maybe Spirit would have failed even absent the massive jet fuel price increases.
Perhaps the proposed merger with JetBlue would have dragged that airline down, too, instead of profitably folding Spirit’s assets into a more efficient operating environment.
And maybe all of Ted Bundy’s victims were mere moments away from choosing suicide when he strangled them to death instead.
We’ll never know, will we?
What we do know is that the US government’s murder of Spirit Airlines will almost certainly result in (checks notes) “higher fares, fewer seats, and harm [to] millions of consumers.”
Airlines come and airlines go. Some of the brands I grew up with — Pan Am, TWA, Northwest — have gone under or merged with others in the 21st century alone.
It’s not always as obvious that government was behind those disappearances as it is responsible for the death of Spirit, but you can always count on government to reduce your choices and increase your costs — while claiming to do the opposite.
Thomas L. Knapp (X: @thomaslknapp | Bluesky: @knappster.bsky.social | Mastodon: @knappster) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.
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