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Spirit Airlines is in trouble, And this may be in part because the major airlines co-opted the airline’s business model and beat it at its own game.
Major US carriers such as Delta Air Lines and United Airlines have co-opted strategies that made budget airlines like Spirit profitable before the Covid-19 pandemic, which shook the airline industry, the new York Times Report. Now, the soul – which is filed for bankruptcy twice in one more year Set to furlough about a third of its flight attendants — and similar budget airlines are struggling to compete with mainstream airlines, according to the outlet.
Spirit, which became a low-cost carrier in 2007, was a pioneer in the budget airline industry. Spirit and similar no-frills carriers offered low fares while charging for extras that were, at one point, usually included in the overall ticket cost. Times Report. But it wasn’t long until Delta, United, and American Airlines all started adopting somewhat similar tactics.
Now, almost every major airline in the US charges fees for checked bags, seat selection, and other services. Some airlines also sell “basic economy” tickets, which are cheaper but more restrictive. These tickets have greater appeal to customers because major airlines fly to more cities more frequently than budget carriers like Spirit, Times Report.
“The mainline carriers have effectively figured out how to compete — with higher costs and better service,” Dan Akins, an economist at the aviation consulting firm FlightPath Economics, told the paper.
Independent Spirit Airlines, Delta Air Lines and American Airlines have been contacted for comment. United Airlines declined to comment.
Spirit Airlines filed for bankruptcy for the second time in a year in August. The airline also announced last month that it would furlough about 1,800 of its 5,200 flight attendants by December.
“We recognize the impact of this decision on the affected team members, and we are committed to treating them with care and respect during this process,” it said in a statement.
Spirit COO John Bendoraitis said in a memo to flight attendants that the company initially avoided involuntary furloughs by allowing employees to take voluntary leave, according to,TimesHe said that currently more than 800 flight attendants are on leave.
The Association of Flight Attendants-CWA, which represents Spirit flight attendants, told its members that the airline will look for employees who will voluntarily take six-month or one-year furloughs starting Nov. 1, and then move on to involuntary leaves based on seniority.
“The problem is that a significant reduction in aircraft and flying hours requires a very significant reduction in force and the company has been clear that a furlough is necessary,” the union said.