US Considers Using Defense Production Act for Spirit Bailout
Spirit Airlines airplanes at Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida.
Photographer: Eva Marie Uzcategui/BloombergThe Trump administration is weighing whether to invoke the Defense Production Act to support a potential bailout of Spirit Aviation Holdings Inc. according to a person familiar with the matter who requested anonymity because the talks are private.
The 1950 law, enacted at the outset of the Korean War, gives the US president broad emergency powers to direct production of goods and services deemed critical to national defense, including extending loans and making investments.