ORLANDO, Fla. — Low-cost carriers Frontier Airlines and Avelo Airlines are seeking approximately $2.5 billion in financial aid from the federal government.
This request comes as negotiations continue concerning a possible bailout for Spirit Airlines, with the proposal suggesting the government could receive a stake in the companies in exchange for support.
The airlines’ pursuit of federal assistance is a direct response to increasing operational costs that are impacting their financial stability.
The potential aid package would allow the government to acquire an ownership interest in these companies.
Airlines across the industry are currently grappling with a surge in operational expenses, which include fuel prices, labor costs, and maintenance.
Reports indicate that while the general concept of the government taking a stake has been floated, the precise terms and extent of this potential government ownership have not yet been finalized.
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