Governor Gavin Newsom (D-CA) took a swing at President Donald Trump on Sunday, blaming his handling of the Iran war for the collapse of Spirit Aviation Holdings Inc. (OTC:FLYYQ), which grounded its fleet over the weekend.
Newsom Blames Trump for Spirit's Collapse: 'Affordability Is a Hoax'
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'Affordability Is a Hoax,' Says Newsom
In a post on X on Monday, Newsom's official Press Office account quoted an NBC News report that Spirit ceased operations due to geopolitical factors driving up fuel prices. "Wow. Trump destroyed America's largest low cost carrier. Affordability is a hoax!" the post said.
Spirit Sparks GOP vs. Democrats Debate
The budget airline's collapse has reignited a political fight. GOP lawmakers are blaming Sen. Elizabeth Warren (D-Mass.) and former President Joe Biden's Transportation Secretary Pete Buttigieg for opposing a merger between Spirit and JetBlue Airways Corp (JBLU) back in 2024. That merger might have saved Spirit after its creditors rejected a $500 million funding package Trump had touted.
Warren, however, pointed the finger at Trump's Iran war policies for the aviation industry's woes, citing rising fuel costs. Meanwhile, a fan-led fundraiser, spearheaded by Hunter Peterson, is trying to buy Spirit under a community-owned model.
Fuel Costs Spark Concern Amid Iran War
Rising fuel prices are hitting both consumers and companies. Sen. Bernie Sanders (I-VT) accused oil companies of profiting from the Iran conflict, comparing gas prices under President Barack Obama to today's prices during Trump's second term.
Newsom also criticized Trump as California gas prices hit $6.114/gallon, calling the extra cost Trump's "Iran war tax." Trump, meanwhile, warned Iran of dire consequences if U.S. ships are attacked near the Strait of Hormuz.
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