The 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.
Applying the statute to a commercial airline would likely face legal and political scrutiny. It’s unclear what national-security rationale the Trump administration would use to justify ...