Originally Posted by BKbigfish

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).

Originally Posted by DrSteveBrule

Need to first repair public image. Legitimate national ad campaign imo. Play up who Spirit helps, why does Spirit exist? They talk about hitting back and controlling narrative but i gotta feeling these announcements will just be more fodder for the media. Play a "safest airline in the USA" card, feature the airbus as a talking point. Boeing is down and people dont need much push to want to avoid Boeing operators. Make it hard to make fun of Spirit.

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.

Originally Posted by nene

Maybe if enough progressives get elected they'll throw the ULCC model a lifeline by getting their bill through to a law.

Progressives want to outlaw any points/cash/miles/stuff as spending rewards on CC'rds to make it more "fair" for those who don't/won't/can't

If that becomes law of the land, it will dramatically shift the US airline market/revenue picture.

Originally Posted by FlyGuy2021

If there was a purchase and merger, the seniority list merger would likely be with an owned regional, not the mainline carrier. It would be much, much cheaper this way. Why put pilots on the list at higher pay levels when Delta can buy them and merge them with Endeavor, or AA with Envoy. Most pilots would not take it and leave, which would be fine. No way a legacy airline would ever merge senioirty lists again. It is massively expensive for the parent airline to do this.

There are plenty of street hire pilots available (or there will be soon enough) that will start at year 1 pay. In a purchase, pilots are not a benefit, but rather a liability. They purchase gate space/slots, airplanes, engines, etc... They don't care about employees.

Originally Posted by 8JRMfortheyear

Ch11 is the only solution.

Originally Posted by sailingfun

How does that lower costs at a airline like Spirit?

Originally Posted by Thrust Hold

Another opportunity for a "Paid In Full" t-shirt for the ex-Pinnacle guys in regards to the loyalty bonds.

Originally Posted by 8JRMfortheyear

Concessions.

Originally Posted by BKbigfish

Won’t be enough to move the needle. There is effectively no way for smaller budget airlines to compete against gigantic legacies subsidized by CC revenue. This is why the decision was so short sighted. ULCC’s will be forced to abandon the model and raise prices or go out of business. The only way there will be any meaningful competition in the airline industry again is if the DOJ breaks up the big 3 (not going to happen) or the smaller players are allowed to consolidate.

Originally Posted by WhyIFly

Even in ULCCs raise their prices, can they really match the network and frequency that the legacy airlines provide? The only real thing that they had going for them was price. If they cost the same, what is the incentive to fly on Spirit as opposed to Delta?