Spirit Airlines Ch.11
#151
Other than the “business class” option, it’s really just the same Spirit with bundle fares. Still the same 1 random flight option VS the 10 other options on legacy carriers. Who’s flying on Spirt to fly business class anyways. They need to just lower costs and become a niche airline, people still want to fly for cheap.
#152
Gets Weekends Off
Joined APC: Feb 2018
Posts: 314
I hope this works and we install more big front seats. Didn’t 588 and 587 have 10 big front seats like a 319? Or was it 8?
#153
#155
Gets Weekends Off
Joined APC: Jan 2023
Posts: 183
I think Chimpy is on the money. What else can be done? These new class additions won’t do anything to fix the fundamental issues with the company. Who wants to pay premium for a big front seat just to be yelled at by a contracted gate agent?
#157
I dont think the company would do any of this, being historically staunchly anti-national advertising, and none of this matters anyway if the 2020 loyalty bonds remain due in 13 months and with no end to falling revenue and net losses in sight. PRNewswire is not advertising. Commercials on during NFL football games is advertising.
Then they have to ensure the integrity of routes and fleet, and im not sure how they plan to do that down 70 aircraft in just a few months?
I believe they waited way too long to adapt. Everyone working the line could tell the ulcc model was failing back in 2022. Oops.
#158
Gets Weekends Off
Joined APC: Jul 2017
Posts: 242
There is no way to cut costs enough to compete with the legacies on their “basic economy” because the legacies can just run their domestic networks at a loss subsidized by CC revenue. The 3 headed oligopoly of the US airline industry is now almost completely impenetrable due to CC revenue. Hence why NK is now being forced to compete on the product and not just price. NK can’t make money selling $30 seats anymore. They have to increase revenue and the only way to do that is to increase the quality of the product. Depending on whether or not they can renegotiate the debt this pivot could be successful, or this could all just be maneuvering to attempt another M&A (my guess is that it’s a little of both).
#159
There is no way to cut costs enough to compete with the legacies on their “basic economy” because the legacies can just run their domestic networks at a loss subsidized by CC revenue. The 3 headed oligopoly of the US airline industry is now almost completely impenetrable due to CC revenue. Hence why NK is now being forced to compete on the product and not just price. NK can’t make money selling $30 seats anymore. They have to increase revenue and the only way to do that is to increase the quality of the product. Depending on whether or not they can renegotiate the debt this pivot could be successful, or this could all just be maneuvering to attempt another M&A (my guess is that it’s a little of both).
#160
There is no way to cut costs enough to compete with the legacies on their “basic economy” because the legacies can just run their domestic networks at a loss subsidized by CC revenue. The 3 headed oligopoly of the US airline industry is now almost completely impenetrable due to CC revenue. Hence why NK is now being forced to compete on the product and not just price. NK can’t make money selling $30 seats anymore. They have to increase revenue and the only way to do that is to increase the quality of the product. Depending on whether or not they can renegotiate the debt this pivot could be successful, or this could all just be maneuvering to attempt another M&A (my guess is that it’s a little of both).
It's unfortunately too little, too late. This airline will never be able to shake its reputation (or we'll run out of time before it does) as a late night punchline. Changing the cabin product won't draw premium customers and it'll potentially alienate the ones that actually do like Spirit for what it is/was. A merger or drastically shrinking after cleaning up the books through Chapter 11 (or by some miracle, debt refinancing) will be the only things that will allow this place to survive.
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