Spirit Floats Government Stake to Avoid Possible Liquidation (1)

Spirit Aviation Holdings Inc. has floated offering the US government an equity stake in the discount carrier to help stave off its potential liquidation, according to people familiar with the matter.

The airline is seeking an infusion of cash from the US government during a spike in jet fuel prices, said the people, who asked not to be named given the discussions are confidential. The proposal comes after the White House brokered a deal last year to become one of the biggest shareholders in Intel Corp. in a bid to bolster the investment-grade chipmaker’s domestic initiatives.

The Air Current first ...