Let's Buy Spirit Air
letsbuyspiritair.com360 points by bjhess 11 hours ago
360 points by bjhess 11 hours ago
Fundamental problem: Flights don't make money. Airlines actually make all of their money through loyalty programs and credit card payments. They basically should have turned into regulated utilities long ago, but loyalty program revenue saved them.
Unless this initiative will turn into a credit card company (which nobody likes or wants to do) it won't go anywhere
Private equity will likely sell the company for parts. There is no operational improvements for cash flow that they can do.
Useful watch (skip to 2:20): https://youtu.be/ggUduBmvQ_4?si=cyysP7aH_CIEDZRq
Why does any of this imply they should become a regulated utility? This seems like a textbook case of the free market pushing prices down to cost. Having alternative revenue streams pushed that minimal price down; but even without that, there is no reason to think the market would have done anything other than push prices to the lowest level possible in that environment as well.
Company makes too much money: "they're extracting monopolist rents! They need to be a regulated utility!"
Company makes too little money: "there's no money in this industry! They need to be a regulated utility!"
A more fair assessment would be: company runs a utility => they need to be a regulated utility!
The core part of air travel doesn’t really feel any different to a bus or metro or train. Off the tarmac then yes it absolutely feels like a Verizon store, as does some of the in-flight service, but there’s always been this weird feeling as a traveler that every carrier is basically the same thing but with different decals on it. Airline alliances are surely the ultimate example of this.
Have you ever flown spirit or any of the other ultra low cost carriers?
It very much is a different experience than flying a legacy domestic mainline carrier. I’m not alone amongst people i know who will happily fly the cheap seats on United/Delta/AA but won’t even look at a ticket from Spirit or Frontier even at a significant discount.
Compare it to a flag carrier like Singapore air and it is a shockingly different product.
All that’s an aside: we know what regulated airlines look like since we already tried it, much more expensive, with airlines competing not on price but on amenities.
I’ve flown Spirit and Frontier several times, and Southwest many times (I know they’re not quite in the same category, especially after their recent changes). I genuinely don’t know what you’re referring to regarding the experience being wildly different. Other than a few quirks about what they do and don’t charge for and how they board and assign seats, I feel like there’s almost no meaningful difference between these and legacy carriers like United and American. I honestly don’t even feel like the prices are consistently that different.
The two main differences are more armchair lawyering required to avoid fees (legacy carrier is often not going to put your bag in the dimension bin, but the Spirits and Frontiers of the world certainly will) and having to sit through three sales pitches instead of one on the legacy airlines. I think Delta is the only legacy carrier in the States that doesn't do obnoxious sales pitches - only the food cart upsell. Ryanair will come through with their hands out minimally three times since last time I rode them (though it's been several years, is it four now?)
One other difference I can think of is that carry-ons are more rarely included in the base fare in the budget airlines than the legacy airlines, though maybe that has also gone away since the changes where bags must be included in the listed price that Southwest pushed for.
> having to sit through three sales pitches instead of one
I’m not from the US and have never flown any of the airlines being discussed here.
I’ve never heard of this, is there some YouTube videos you can point me to.
Ryanair (EU) also does this, but the US is indeed pretty obnoxious here.
United even has commercials before the safety video; combined with the "if you're watching explicit content on this flight, please mind the children" announcement, those flights onestly honestly felt pretty surreal to me.