The potential Spirit deal stands in stark contrast with the US government’s 10% stake in Intel, which was a good business move for Americans. Getting involved with Spirit is not.

Intel’s government infusion was a great deal for Americans, Commerce Secretary Howard Lutnick said at Semafor World Economy last week. For one, it bolstered America’s domestic chipmaking capabilities at a time the US is desperately trying to keep China at bay. It also sent a strong message to Wall Street that the US wouldn’t let Intel fail, providing cover for other investors to pile into the stock and for companies to sign partnership agreements with the chipmaker.

It was a happy convergence of partisan, economic, and policy interests — that also came with some ROI for the US government.

“Why don’t we get something for it?” Lutnick said of the decision to transform Intel’s $10 billion grant into an investment, which served as a template for other transactions in rare earth and defense industries.

Core to national security, though, Spirit is not. Its outdated business model, exorbitant levels of debt, and years of general mismanagement is unloved by investors and out of step with what the market demands today — more premium seating targeting affluent and business travelers.

The Trump administration is driven by a desire to score an affordability win and sell a story about saving the American people money at a time when Trump’s approval ratings have crumbled.

But it’s making the same mistake the Biden administration made when it blocked the merger of JetBlue and Spirit in the name of maintaining competition among ultra low-cost carriers and keeping prices down. At this point Spirit is so diminished, and such a small part of the airline industry, that keeping the airline alive will have little impact on airline prices.

Says United CEO Scott Kirby: “Spirit was going to fail because the business model doesn’t work.”

And since Spirit’s problems can’t be solved by a $500 million infusion — it’s contending with an unwieldy debt load, surging fuel costs, and customer dissatisfaction — it will just end up costing the American taxpayer more money.