Ben Baldanza

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Ben Baldanza
Born Basil Ben Baldanza
(1961-12-03) December 3, 1961 (age 56)
Rome, New York
Education Syracuse University, B.S., 1984
Princeton University, MPA, 1986
Website benbaldanza.com

Basil Ben Baldanza (born December 3, 1961) is an economist and the former CEO and president of Spirit Airlines from 2005 to 2016, a period in which he transformed the company into an ultra-low-cost carrier.

Biography[edit]

Early life[edit]

Baldanza was born on December 3, 1961, in Rome, New York. In his youth, he played the trombone and briefly imagined a professional musical career.[1] He later attended Syracuse University and graduated with a bachelors in economics in 1984. He earned his Master of Public Affairs degree at Princeton University in 1986.[1][2]

Career[edit]

In 1986, Baldanza began his career in the airline industry working for the American Airlines Group[3] until 1991. He was later employed by Northwest Airlines and after that briefly worked at the United Parcel Service. In 1994,[1] he was hired by Continental Airlines as head of pricing.[4] By 1997,[1] he left Continental to serve as the managing director[5] and COO of TACA Airlines. He also served on the board of directors of Frontier Airlines. In the early 2000s, he served as senior vice president of marketing for US Airways[6] during a troubling period when the company filed bankruptcy twice in as many years.[7]

Baldanza left US Airways to become president and COO of Spirit Airlines in January 2005.[8][6] He became CEO of Spirit in 2006. At the time, the company was recording yearly losses of $79 million.[9] During his tenure, Baldanza was “the public face of Spirit’s transformation into a more extreme version of a discount airline.” He designed a plan to transform it into an ultra-low-cost carrier. The company implemented a “Bare Fare” model,[3] opting to charge airline fees for many services included in traditional airline fares.[10][11] This included fees for the option to select a desired seat,[12] food and drink, carry-on and checked baggages.[13] On July 14, 2010, Baldanza testified in a U.S. Congress hearing in which he defended the airline’s unpopular “policy to unbundle services not essential to passenger transport.”[12] He has faced significant criticism stemming from transformation of the airline into an ultra-low-cost carrier. Baldanza has been largely unapologetic about his company’s new pricing policy.[2][14] He was even been featured in a 2010 video in which he placed himself inside an overhead bin to defend the airlines new policy on carry-on fees by saying “Had we not implemented this, there’s no telling what people would try to put in an overhead bin”.[15][16]

The most reported criticism of Baldanza stemmed from his handling of customer complaints, especially his initial refusal to refund the fare of a terminally-ill military veteran in May 2012.[17] The Vietnam veteran was diagnosed with cancer and was recently informed that it was terminal and that he was unfit to travel by plane. He requested for a refund and was refused. Baldanza later explained the decision by stating that the customer purchased a nonrefundable fare with no insurance and therefore the company does not owe him a refund as that would be unfair to other customers.[18] He faced criticism from veterans organizations including a social media campaign to boycott Spirit Airlines. Baldanza eventually apologized for failing to “demonstrate the respect or the compassion that [he] should have, given [the customer’s] medical condition and his service to [his] country.” He announced he would return the price of the fare from his own funds[19] and that Spirit Airlines would make a donation to a veteran’s group.[17][20]

During his tenure, the airline had become profitable in “a period in which many airlines struggled to stay in business.”[2] As of 2011, “Spirit earned 40% more per airplane than any other U.S. airline”.[17] Baldanza and other executives at Spirit were paid less than others in the industry and but instead owned shares in the company.[21] Baldanza has often promoted terms such as “a bus with wings” and “dollar store of the sky” to describe the airline. He has pushed for ways of offsetting costs by selling advertising spaces where ever available on the plane, including flight attendant aprons, seatback trays, overhead bins, napkins, cups and motion sickness bags.[22] His company used advertising that often went viral instead of relying on a large marketing budget. Their advertisements often contained sexual innuendo as well as topical subjects in pop culture and politics.[22][23]

In January 2016, Baldanza resigned from his position as CEO and president of Spirit, after serving in the position for nearly a decade.[9] The resignation was described by several news organizations as unexpected and abrupt. However, Baldanza stated that the move was part of “an orderly succession plan.”[3][24] Spirit said that Baldanza had recently moved his family to Washington, D.C. He was replaced by Robert Fornaro, a member of the board since 2014.[3]

Baldanza currently serves on the board of JetBlue.[25] He also appears as a guest on CNBC.[26][27][28] As an adjunct faculty member at George Mason University, he currently teaches a class on airline economics.[29][30]

Personal life[edit]

Baldanza is married to Marcia Baldanza and they have a son.[6] In 2015, the family moved from Fort Lauderdale, Florida[31] to the Washington metropolitan area.[3][9]

Baldanza also owns a collection of thousands of board games which he enjoys playing.[32]

References[edit]

  1. ^ a b c d Associated Press (2011-07-12). "Spirit Airlines CEO Ben Baldanza bio". The Seattle Times. Retrieved 2017-10-09. 
  2. ^ a b c Mayerowitz, Scott (July 12, 2011). "Meet America's king of airline fees". The San Diego Union-Tribune. Retrieved 2017-10-09. 
  3. ^ a b c d e Carey, Susan (January 5, 2016). "Spirit Airlines Names Industry Veteran Fornaro as New CEO". Wall Street Journal. Retrieved 2017-10-09. 
  4. ^ Boisseau, Charles (April 16, 1995). "Continental Admits Flub, Turns Off Lite Struggling Airline Decides To Halt Ill-Conceived No-Frills Operation". The Spokesman-Review. Retrieved 2017-10-09. 
  5. ^ Rohter, Larry (1998-04-15). "International Business; A Home-Grown Giant Of Central America". The New York Times. Retrieved 2017-10-09. 
  6. ^ a b c Stoller, Gary (2009-06-21). "Spirit Airlines is cheap, and CEO Ben Baldanza's proud of it". ABC News. Retrieved 2017-10-09. 
  7. ^ Alexander, Keith (September 15, 2004). "US Airways". The Washington Post. Retrieved 2017-10-09. 
  8. ^ Compart, Andrew (May 9, 2005). "In the Hot Seat: Ben Baldanza: Travel Weekly". www.travelweekly.com. Retrieved 2017-10-09. 
  9. ^ a b c Satchell, Arlene (January 13, 2016). "Former Spirit CEO Baldanza could get $1M in severance plus airline tickets for life". Sun Sentinel. Retrieved 2017-10-09. 
  10. ^ Satchell, Arlene (January 5, 2016). "Ben Baldanza out as CEO at Spirit Airlines". Sun Sentinel. Retrieved 2017-10-09. 
  11. ^ Weber, Harry R. (April 19, 2010). "5 U.S. airlines say no to carry-on fees". SFGate. Retrieved 2017-10-09. 
  12. ^ a b Mayerowitz, Scott (July 14, 2010). "Airline CEO: Bags 'Not Essential'". ABC News. Retrieved 2017-10-09. 
  13. ^ Khan, Huma (May 7, 2010). "Paying for Using Plane Bathrooms? Spirit Air CEO Says No But Doesn't Discount New Fees". ABC News. Retrieved 2017-10-09. 
  14. ^ Saporito, Bill (December 11, 2013). "The Budget Deal Is Going to Jack Up Your Airfare". Time. Retrieved 2017-10-09. 
  15. ^ Sharkey, Joe (2010-08-23). "Carry-Ons and Courtesy Need to Co-Exist". The New York Times. Retrieved 2017-10-09. 
  16. ^ Tuttle, Brad (May 3, 2012). "See That Flight Price? Add $103 to It". Time. Retrieved 2017-10-09. 
  17. ^ a b c Nicas, Jack (2012-05-12). "A Stingy Spirit Lifts Airline's Profit". Wall Street Journal. Retrieved 2017-10-09. 
  18. ^ Miller, Joshua Rhett (2012-05-03). "Spirit Airlines CEO: Dying vet has himself to blame for no refund". Fox News. Retrieved 2017-10-09. 
  19. ^ Elliott, Christopher (2012-11-29). "The Insider: A Tale of Two Airlines". National Geographic Traveler. Retrieved 2017-10-09. 
  20. ^ Miller, Joshua Rhett (2012-05-04). "Spirit bows to pressure: Airline CEO to refund dying veteran's fare". Fox News. Retrieved 2017-10-09. 
  21. ^ Kristof, Kathy (July 2013). "Coping With a Moody Market". Kiplinger. Retrieved 2017-10-09. 
  22. ^ a b Tuttle, Brad (March 12, 2014). "At Long Last, Your Company Can Advertise on Airline Barf Bags". Time. Retrieved 2017-10-09. 
  23. ^ Malone, Kenny (September 3, 2013). "Spirit Airlines Sees Business Take Off With Raunchy Ads". NPR. Retrieved 2017-10-09. 
  24. ^ "Brash, fee-happy CEO of Spirit Airlines abruptly replaced". Chicago Tribune. January 5, 2016. Retrieved 2017-10-09. 
  25. ^ "JetBlue Announces Board of Director Appointments". Business Wire. August 15, 2018. 
  26. ^ "Balance between price and quality in the airline industry: Former Spirit CEO". CNBC. July 19, 2017. Retrieved 2017-10-09. 
  27. ^ "CEOs had to walk away from Trump to protect their brands: Former CEO". CNBC. August 17, 2017. Retrieved 2017-10-09. 
  28. ^ "Ben Baldanza: Cancelled flights a net negative for airline earnings". CNBC. September 11, 2017. Retrieved 2017-10-09. 
  29. ^ Karuppur, Abhiram (May 1, 2017). "Ben Baldanza GS '86 pilots airlines through turbulent times". The Princetonian. Retrieved 2017-10-09. 
  30. ^ "Faculty and Staff: Basil Ben Baldanza". George Mason University. Retrieved 2017-10-09. 
  31. ^ Owers, Paul (June 9, 2015). "Spirit CEO Ben Baldanza puts Fort Lauderdale home on the market". Sun Sentinel. Retrieved 2017-10-09. 
  32. ^ O'Donnell, Paul (2014-02-06). "Spirit Airlines' ruthless strategist wants to change how we pay to fly". Dallas News. Retrieved 2017-10-09. 

External links[edit]