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Spirit Airlines

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"Spirit Air" redirects here. Not to be confused with Air spirit.
Spirit Airlines
IATA ICAO Callsign
NK NKS SPIRIT WINGS
Founded1980 (as Charter One)
Operating bases
Note: Spirit Airlines refers to Fort Lauderdale and Detroit as "Bases"
Fleet size35
Destinations43
Parent companyIndigo Partners & Oaktree Capital Management
HeadquartersMiramar, Florida
Key peopleBen Baldanza (President/CEO)
David Lancelot (Sr. Vice President and CFO)
Barry Biffle (Sr. Vice President Marketing
Ken Mckenzie (COO)
Tony Lefebvre (Sr Vice President Airport and Inflight Operations)
Websitewww.spirit.com

Spirit Airlines (Nasdaq: SAVE) is a United States low-cost carrier operating scheduled flights throughout the Americas. The airline is headquartered in Miramar, Florida, in the Miami metropolitan area. Spirit currently maintains a base in Fort Lauderdale, Florida. Over half of the airline's flights are to destinations in the Bahamas, Caribbean, and Latin America. As the WSJ reported, Spirit's latest fee gimick is to charge passengers $5 if they fail to print boarding passes prior to check-in.[1]


History

Spirit Airlines was founded in 1980 in Macomb County, Michigan, as Charter One,[2] a Detroit-based charter tour operator providing travel packages to entertainment destinations such as Atlantic City, Las Vegas and the Bahamas. In 1990, Charter One began scheduled service from Boston and Providence, R.I., to Atlantic City. Pam Maurer, the first Manager of all stations, a friend of the owner and founder Ned Homfeld, contributed greatly to the start-up success of Charter One and then Spirit Airlines. Pam worked relentlessly to plan, organize, initialize and manage the operations of all stations and associated employees. On May 29, 1992, Charter One brought jet equipment into the fleet, changed its name to Spirit Airlines and inaugurated service from Detroit to Atlantic City.

In April 1993, Spirit Airlines began scheduled service to destinations in Florida. During the next five years, Spirit expanded rapidly, increasing service from Detroit and adding service in new markets such as Myrtle Beach, S.C.; Los Angeles and New York.

Spirit relocated its headquarters in November 1999, moving from Eastpointe, Michigan, to Miramar, Florida.[3] Prior to the decision to move the headquarters to Miramar, Spirit considered Atlantic City, New Jersey and Detroit, Michigan.[4] Expansion continued with the addition of the Chicago market as well as coast-to-coast service to Los Angeles.[citation needed]

In November 2001, Spirit inaugurated service to San Juan, Puerto Rico, and implemented a fully integrated Spanish-language customer service plan including a website and dedicated reservation line.

On June 24, 2002, Spirit launched Spirit Vacations in conjunction with GOGO Worldwide Vacations.[5] The service offers air, hotel, and activities similar to many other vacations sites. The service is offered to many destinations in the United States and several of the most popular in the Caribbean and Latin America.[6] The vacation brand is now operated solely by the Mark Travel Corporation.

In 2002, Spirit started new service to Denver, Colo., and Las Vegas, Nevada, and expanded service to many of its existing markets. The airline has since discontinued service to Denver.

In the Fall of 2003, Spirit resumed flights to Washington, D.C.’s Reagan National Airport, which had been suspended after the 9/11 terrorist attacks, and began service to Cancún, Mexico.

In 2004, the airline added Santo Domingo and Providence to its network. In 2005, Spirit Airlines launched its biggest expansion effort yet, adding numerous destinations in the Caribbean and Bahamas. By February 2006, Spirit’s portfolio of destinations in the region totaled ten. Spirit also began service to Grand Cayman, San Francisco, and Boston in 2006, and in 2007 filed DOT applications to offer service to Costa Rica, Haiti, the Netherlands Antilles, and Venezuela.

In 2006, Spirit announced it would exercise options and order 30 Airbus A320-200 aircraft for further expansion.The aircraft stared delivery in March 2010.

First ultra-low-cost American carrier

On March 6, 2007, Spirit announced their transition to become the first ultra-low-cost carrier in the United States. Their initial plan is to begin charging US$10 per checked bag for the first two bags ($5 if bags are pre-reserved online prior to the flight), in addition to charging $1 for drinks which were previously complimentary. Starting June 20, Spirit Plus was rebranded as BIG FRONT SEAT will no longer provide business class service. For an additional fee, a person can choose BIG FRONT SEAT, or upgrade at the airport. The airline models its business plan and operating style to that of ultra low-cost carriers Ryanair and Air Asia yet has added numerous innovations to further the "ala carte" pricing option. As of October 1, 2007, Spirit is charging $2 for all drinks and $2 for bottled water.SpiritAir.com In 2007, Spirit became the largest air traffic carrier at Fort Lauderdale-Hollywood International Airport.[7]

On September 26, 2007, Spirit announced a new branding image for the airline that updates the look of its aircraft. Spirit stated that this new image will save money by being lighter weight and thus burning less fuel in flight. The new image is white background with accents in colors most represented in Caribbean and Latin American countries, consistent with Spirit’s route network. This new image will affect the carrier’s aircraft, uniforms, airports, and website.

On June 3, 2008, Spirit Airlines made a WARN (Worker Adjustment and Retraining notice) application to potentially relocate or lay off hundreds of pilots and flight attendants, and the closure of its San Juan crew base and LaGuardia crew base, with no change of flying at those stations.[8][9]

Starting in September 2008, Spirit aircraft became “air billboards.” Plans for advertising on the overhead bins, tray tables, seatback inserts and bulkheads is being rolled out at present. US Airways and Ryan Air are the first airlines to start advertising in the airplane, as well as the now defunct Skybus Airlines that also sold "branded airplanes" as full-body advertisement along the fuselage.[10] A Bureau of Transportation Statistics report concluded that in 2008 Spirit had the highest number of complaints per passenger among U.S. airlines that carries more than 5 million passengers.[11] On April 14, 2009, Spirit raised the price of the first checked baggage paid online from $15 to $19 for tickets booked after December 16, 2008; customers continue to pay $25 at the airport. The second checked bag still costs $25, and 3-5 bags at $100 each. Other baggage fees apply for special items.[12] Spirit has been consistently changing fees, including seat fees: middle from $5 to $7, aisle from $10 to $12, while exit has remained at $15, and window has decreased from $15 to $12.[13][14] Also, other fees that have changed include non-refundable ticket cancellation/re-booking from $80 to $100 online ($90 to $110 otherwise), unaccompanied minors from $75 to $100, and pet in cabin from $85 to $100. However, some of these fees are lower than other airlines in the industry.[15] In May, 2009, Spirit pilots overwhelmingly voted in favor of strike action (98% of votes) due to stalled contract negotiations with management. Areas of dispute include compensation, work rules and benefits. Talks are currently undergoing federal mediation. Spirit pilots are among the lowest paid Airbus pilots in the United States.

On 4 July 2009, The Jamaica Gleaner reported that Spirit Airlines had reached an agreement with the Jamaican government to acquire Air Jamaica.[16] However, the Jamaica Observer reported on 5 July that the airline had not been sold as yet.[17] However in April 2010 it was announced that Air Jamaica would be sold to Caribbean Airlines [18] and began an merged airline May 1, 2010[19]

On Thursday September 17, 2009, the Federal Aviation Administration fined Spirit Airlines $375,000 for violating the agency's consumer protection regulations.[20]

On April 6, 2010, USA Today reported that Spirit will start to charge for carryon bags on flights starting August 1, 2010, purchased after April 6, 2010. Bags that fit under the seat and measure 16"x14"12" are still free but passengers wishing to place larger bags destined in the overhead bin are charged.[21]

On June 12, 2010, Spirit grounded its flights when its pilots walked out on strike, stranding thousands of passengers.[22] The strike came after more than four years of inconclusive negotiations between the airline and the Airline Pilots Association (ALPA), which represents Spirit's pilots. On June 15, negotiations between the airline and the ALPA resumed, and a tentative agreement was reached on June 16. Spirit announced that flights would resume on June 18.[23]

On February 25, 2011, Spirit awarded Dustin Zacks One Million Free Spirit Miles.[1]

In May 2011, Spirit announced terms for its upcoming IPO. The company plans to raise $300 million by offering 20 million shares at a price range of $14 to $16.[24]

Destinations

Main article: Spirit Airlines destinations

Spirit Airlines currently flies to 43 destinations throughout Central America, the Caribbean, South America, and the United States. It maintains bases at Fort Lauderdale-Hollywood International Airport and Detroit Metropolitan Wayne County Airport.

New service to Dallas, TX (DFW) from Chicago (ORD) starts August 18th, 2011.

New service to Detroit, MI (DTW) from Chicago (ORD) starts August 18th, 2011.

New service to New York, NY (LGA) from Chicago (ORD) starts August 18th, 2011.

New service to Boston, MA (ORD) from Chicago (ORD) starts August 18th, 2011.

New service to Portland, OR (PDX) from Las Vegas (LAS) starts September 22nd, 2011.

New service to Orlando, FL (MCO) from Chicago (ORD) starts November 12th, 2011.

Awards

The International Business Council of Florida (IBCF) has presented Spirit Airlines with its prestigious "Florida Business Award" for best company in the airline category for 2009. Spirit was among a select group of finalists nominated by the IBCF's strategic alliance partners, including leading business organizations and chambers of commerce from throughout the state. American, Delta, Southwest and United were the other candidates.[25]

Fleet

Current

Spirit Airlines Airbus A319
Spirit Airlines Airbus A321 leaving Fort Lauderdale

The Spirit Airlines all-Airbus fleet consists of the following 35 aircraft (as of February 2011):[26]

Spirit Airlines Fleet
Aircraft In Fleet Orders Passengers
(Big Front Seat/Deluxe Leather) 		Notes
Airbus A319-100 26 0 145 (10/135)
Airbus A320-200 7 33 178 (4/174)
Airbus A321-200 2 0 218 (4/214)
Total 35 33

As of September 2009, Spirit’s average fleet age was 3.3 years old.[27] Spirit has the second youngest Airbus fleet in the Americas[28] after the Mexican airline, Volaris.[29] Spirit Airlines currently plans to operate a total fleet of 68 Airbus aircraft.

Retired

The following planes no longer operate in the Spirit Airlines fleet, or are being leased:

Spirit Airlines Retired Fleet
Aircraft Total Year retired Replacement
Airbus A321-200 4 2008 Airbus A320 Family
McDonnell Douglas MD-81 1 2006 Airbus A320 Family
McDonnell Douglas MD-82 8 2006 Airbus A320 Family
McDonnell Douglas MD-83 5 2006 Airbus A320 Family

Frequent flyer program

In 2006, Spirit launched a frequent flyer program called "Free Spirit". The three status tiers for members are Somebody, Elite, and VIP, offering progressively increasing benefits. In common with many frequent flyer programs, the level of membership increases as the member accumulates additional frequent flyer miles.[30]

In-flight services

Spirit has Skymart, a buy on board program that offers drinks and snacks for purchase.[31]

Controversial advertisements

Spirit CEO Ben Baldanza says Spirit has cut its marketing and distribution expenses by more than 80% during the last three years "by using edgy, viral marketing." The savings have resulted in very inexpensive fares, he says. Spirit's advertising "may be more colorful than some," but it isn't "out of the norm" when compared with many retailers' ads, Super Bowl commercials and the content of TV series, Baldanza says.[32]

2006

In 2006, the airline released a “Hunt for Hoffa” advertising campaign with the tagline “Help us find Hoffa with our Hunt for Hoffa game and enjoy fares from just $39 each way.” The point of the game was to dig for Jimmy Hoffa’s body by clicking grids on the airline’s website, and “winners” were taken to another webpage, saying "You found Hoffa!" thanking them for assisting the National Spirit Sale Center find the union leader’s body.[33] Within hours after the promotion debuted, the airline received many complaints, and the promotion was taken down immediately and changed to another promotion, simply titled “Happy Sale.” This promotion was later listed as #8 on CNN Money’s 101 Dumbest Moments in Business.[34]

2007

In December 2007, the airline released a sale with the acronym MILF, standing for “Many Islands, Low Fares.” Online and TV media picked up on this and noted that M.I.L.F. was popularized in the movie American Pie as an acronym for "Mom I'd Like to Fuck." This controversy was covered on CBS and ABC News, Countdown with Keith Olbermann, and The O'Reilly Factor.[35]

2008

In April 2008, the airline sent an email to its marketing subscription list announcing “We’re having a threesome. Join us in the fun.” Offering "three sales in one," the email repeatedly proposes the "threesome."[36]

2009

On January 8, 2009, the airline announced the return of the MILF Special, described as meaning "Many Islands, Low Fares".[37][38]

On December 2, 2009, shortly after a well publicized car accident involving golfer Tiger Woods, Spirit launched lowered fares in a promotion called the "Eye of the Tiger Sale". Imagery for the campaign featured an SUV crashing into a fire hydrant, with a tiger leaning out the driver's side window.[39]

2010

On February 2, 2010, the airline offered the "Many Unbelievably Fantastic Fares (MUFF) to Diving Destinations" promotion. Many of their prominent Caribbean or Floridian destinations were featured.

On June 22, 2010, the airline offered the "Check Out The Oil On Our Beaches" promotion. The ad was in reference to Deepwater Horizon oil spill, the largest in United States history.[40]

On August 12, the airline offered the "Don't Be Blue, Slide Down To Low Fares with Double Fisted Savings". The ad was in reference to a jetBlue flight where a flight attendant deployed an emergency slide and left the aircraft with two bottles of beer. Imagery for the ad featured an opened aircraft door and a flight attendant going down an emergency slide with two beer bottles.[41]

2011

Spirit made a "Go south" Valentine's Day themed ad showing a woman in a bikini and placed a candy heart with the initial "VD" on her crotch, poking fun at venereal disease.

Shortly afterwards, spirit made another valentines themed ad comparing a diamond ring to vacation packages while saying "Why not slip her a big package" then showing a gift box directly in front of a mans crotch.

On June 7, amidst the Anthony Weiner twitter photo scandal , Spirit offered "The Weiner Sale: With Fares Too HARD To Resist." The email promotion included the subject line "Want To See Our Weiner?"

References

Notes
  1. ^ http://online.wsj.com/article/SB10001424052702303936704576400210833335244.html
  2. ^ Spirit founded as "Charter One"
  3. ^ "Spirit Airlines Honored as ``Good Corporate Citizen of the Year; Miramar Business Appreciation 2003." Business Wire. February 13, 2003. Retrieved on December 17, 2009.
  4. ^ Hemlock, Doreen. "Spirit Airlines to Relocate from Detroit Area to South Florida." Knight Ridder/Tribune Business News. March 17, 1999. Retrieved on December 17, 2009.
  5. ^ PR Announcement of Spirit Vacations Established With GOGO Vacations
  6. ^ Spirit Vacations Destinations
  7. ^ Spirit the Largest Carrier at FLL
  8. ^ MiamiHerald.com
  9. ^ Spirit Airlines Announces Massive Layoffs
  10. ^ LAtimes.com
  11. ^ NYtimes.com
  12. ^ SpiritAir.com
  13. ^ Seatguru.com
  14. ^ Tripso.com
  15. ^ AirFairWatchdog.com
  16. ^ Report: Spirit Airlines buys Air Jamaica
  17. ^ Air Jamaica not sold yet, say Gov't officials
  18. ^ http://www.airjamaica.com/News/AIR%20JAMAICA%20FLIGHTS%20CONTINUE%20U.aspx
  19. ^ http://www.airjamaica.com/News/Air%20Jamaica%20and%20Caribbean%20Airl.aspx
  20. ^ Frogameni, Bill. "Spirit Airlines hit with record fine." Atlanta Business Journal. Friday September 18, 2009. Retrieved on September 20, 2009.
  21. ^ Jones, Charisse (2010-04-07). "Spirit Airlines to charge a $20-$45 fee for carry-on bags". USA Today. Retrieved 2010-12-13.
  22. ^ Arnoult, Sandra (14 June 2010). "Shutdown continues after Spirit pilots reject 29% base pay increase". Flightglobal.com. Flight International. Retrieved 18 June 2010.
  23. ^ Ranson, Lori. "Spirit pilots plan to return to work on 18 June". Flightglobal.com. Flight International. Retrieved 18 June 2010.
  24. ^ "Airline company Spirit Airlines sets IPO terms". Renaissance Capital. 12 May 2011. Retrieved 12 May 2011.
  25. ^ DominicanToday.com
  26. ^ CH-aviation.ch
  27. ^ Airfleets.net
  28. ^ Spirit Air Youngest Fleet
  29. ^ Volaris.com.mx Volaris.com.mx
  30. ^ Spiritair.com
  31. ^ "Drinks, Snacks and More." Spirit Airlines. Retrieved on September 20, 2009.
  32. ^ USAtoday.com
  33. ^ "Airline scraps online 'Hoffa' game". USA Today. 2006-07-19. Retrieved 2007-04-27.
  34. ^ Horowitz, Adam. "8. Spirit Airlines". 101 Dumbest Moments in Business. CNNMoney.com. Retrieved 2007-04-27. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  35. ^ "Fort Lauderdale's Spirit in the sky*". anna.aero. 15 August 2008.
  36. ^ Gorell, Robert (2007-04-01). "Spirit Airlines Proposes a Threesome With Me". Spirit Airlines Proposes a Threesome With Me. Future Now (grokdotcom.com). Retrieved 2008-04-20.
  37. ^ "Over the Line?". The O'Reilly Factor. 2007-12-11. Fox News Channel. {{cite episode}}: External link in |transcripturl= (help); Unknown parameter |serieslink= ignored (|series-link= suggested) (help); Unknown parameter |transcripturl= ignored (|transcript-url= suggested) (help)
  38. ^ Spiritair.com
  39. ^ Huffington Post, "Spirit Airlines' Tiger Woods Ad"
  40. ^ "Spinning the spill, for fun and profit". Yahoo News. 2010-06-23. Retrieved 2010-06-23.
  41. ^ http://marketing.spiritair.com/sales/air.php?s=368#pg=p1
Sources


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