New Delhi, May 1 -- Discount carrier Spirit Airlines, a subsidiary of Spirit Aviation Holdings Inc., is moving toward a total shutdown of operations following its failure to garner necessary creditor support for a federal bailout, according to a Friday report by The Wall Street Journal.

In the wake of this news, Spirit's stock price cratered by up to 74%, whereas competitors such as JetBlue Airways Corp. and Frontier Group Holdings Inc. saw their share prices rally.

Earlier this week, Bloomberg News reported that negotiations regarding a possible $500 million government-backed rescue package had reached a stalemate. A key group of lenders, including Citadel, reportedly opposed the proposed terms, as the deal would likely have resulted i...