Dhaka, April 26 -- The Trump administration is reportedly in advanced discussions over a potential financial rescue package for Spirit Airlines, as the budget carrier continues to face severe financial distress and the risk of liquidation, according to reports.

Under the proposed structure, the government could inject roughly USD 500 million in senior financing to stabilize the airline. In return, officials could potentially secure a controlling equity position-reportedly as high as 90 percent-placing the state ahead of other investors if the airline's finances are restructured, reports said.

Spirit, long known for its low-cost model, has been under pressure for years due to higher operating costs, shifting passenger demand, and earlier...