Spirit Airlines

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Spirit Airlines
Spirit Airlines logo.svg
IATA ICAO Callsign
NK NKS SPIRIT WINGS
Founded1983 (1983) (as Charter One)
Commenced operations1990 (1990)
AOC #GTIA770S[1]
Operating bases
Frequent-flyer programFree Spirit[2]
Fleet size168[3]
Destinations83
Traded as
HeadquartersMiramar, Florida, U.S.
Key people
  • Ted Christie, CEO
  • Scott M. Haralson, Senior Vice President & CFO
  • John Bendoraitis, Executive Vice President & COO
  • Matt Klein, Senior Vice President & CCO
RevenueIncrease US$3.23 billion (2018)[4]
Operating incomeDecrease US$350.91 million (2018)
Net incomeDecrease US$155.75 million (2018)[4]
Total assetsIncrease US$5.165 billion (2018)
Total equityIncrease US$1.929 billion (2018)
Employees8,938 (2020)[5]
Websitewww.spirit.com

Spirit Airlines, Inc. (stylized as spirit), is an American ultra-low-cost carrier headquartered in Miramar, Florida, in the Miami metropolitan area. Spirit operates scheduled flights throughout the United States and in the Caribbean and Latin America. Spirit is the eighth largest passenger carrier in North America, as well as the largest ultra-low-cost carrier in North America.

History[edit]

Establishment 1964–2006[edit]

The company initially started as Clippert Trucking Company in 1964.[6][7] The company changed its name to Ground Air Transfer, Inc., in 1974. The airline service was founded in 1983 in Macomb County, Michigan, by Ned Homfeld as Charter One Airlines, a Detroit-based charter tour operator providing travel packages to entertainment destinations such as Atlantic City, Las Vegas, and the Bahamas.[6]

1990s[edit]

In 1990, Charter One began scheduled service from Boston and Providence, Rhode Island, to Atlantic City. On May 29, 1992, Charter One brought jet aircraft into the fleet and changed its name to Spirit Airlines.[6][8] Scheduled flights between Detroit and Atlantic City began on June 1, 1992.[8] Scheduled flights between Boston and Providence began on June 15, 1992.[8]

On April 2, 1993, Spirit Airlines began scheduled service to Orlando, Fort Lauderdale, and St. Petersburg, Florida.[8] Flights between Atlantic City and Fort Myers, Florida, began on September 25, 1993.[9] Service at Philadelphia began in 1994.[10] During the next five years, Spirit expanded further, increasing service from Detroit and adding service in new markets such as Myrtle Beach, Los Angeles, and New York City.

In the summer of 1994, Spirit Airlines overbooked flights, and 1,400 customers' tickets were canceled.[11] The overbooking occurred because Spirit Airlines had given incorrect instructions to travel agents, causing those tickets not to be valid, even though the customers had paid for the flights.[11] In response to criticism, Spirit Airlines said it would make sure all paid customers would always be able to fly to their destination, even if Spirit Airlines had to book them on a competitor's airline.[11]

In 1996, Janet Patton became Spirit Airlines' first woman pilot, and in 1998 she became the first woman captain. At the time Spirit was utilizing DC-9 and MD-80 aircraft.

Spirit initially had their headquarters in Eastpointe, Michigan (formerly East Detroit) in Metro Detroit.[12] It relocated its headquarters in November 1999, moving to Miramar, Florida, in the Miami Metropolitan Area.[6][13] Prior to the decision to move the headquarters to Miramar, Spirit considered Atlantic City, New Jersey and Detroit, Michigan.[14]

2000s[edit]

In 2000, the US Federal Aviation Administration (FAA) fined Spirit Airlines $67,000 for allegedly violating federal regulations on cabin and seat markings and placards.[15] Discrepancies were found in the marking and placarding of emergency equipment, passenger seats, storage areas and doors on eight of Spirit's DC9 and MD80 aircraft.[16][17]

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.[18]

In the fall of 2003, Spirit resumed flights to Washington, D.C.'s Ronald Reagan Washington National Airport, which were suspended after the September 11 attacks. 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.[citation needed]

In 2006, Spirit exercised options to order 30 Airbus A320-200 aircraft for further expansion. Deliveries began in March 2010.[19]

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 their San Juan and LaGuardia crew bases.[20] In September 2008, Spirit began placing advertisements on the side of aircraft, overhead bins, tray tables, seatback inserts and bulkheads.[21]

In May 2009, after more than four years of inconclusive negotiations between the airline and the Air Line Pilots Association (ALPA), Spirit pilots overwhelmingly (98% of votes) voted in favor of strike action over compensation, work rules, and benefits. At that time, Spirit pilots were among the lowest-paid Airbus pilots in the United States. On June 12, 2010, Spirit grounded its flights when its unionized pilots walked out on strike, stranding thousands of passengers. This was the first passenger airline strike by American ALPA-represented pilots since Comair in 2001.[22][23] On June 15, negotiations between the airline and ALPA resumed, and a tentative agreement was reached late in the evening on June 16. The tentative agreement, which Spirit pilots later ratified by a 74% margin, brought Spirit pilots' compensation and benefits in line with comparable Airbus operators in the US. Flights eventually resumed on June 18.[24]

In 2007, Spirit Plus was rebranded as "Big Front Seat" and business class service was discontinued. For an additional fee, a person could choose "Big Front Seat", or upgrade at the airport. In December 2010, Spirit Airlines introduced the Free Spirit World MasterCard.[25]

2010s[edit]

In April 2010, Spirit Airlines became the first U.S. airline to charge passengers for carry-on bags.[26] They were later followed by Allegiant Air and Frontier Airlines.[27]

In April 2012, citing the airline's strict refund policy, Spirit Airlines representative Misty Pinson announced that the airline would not issue a refund to dying veteran Jerry Meekins, who had purchased a non-refundable ticket between Florida and Atlantic City.[28] The 76-year-old Vietnam veteran and Marine tried to get his $197 back after learning his esophageal cancer was terminal and being told by his doctor not to fly.[29] The decision caused outrage among veterans' groups and the general public, some of whom threatened to boycott Spirit unless both a refund and apology were issued. On May 4, Spirit CEO Ben Baldanza apologized for how the situation was handled and personally refunded Meekins' ticket. Additionally, the airline made a $5,000 donation to the Wounded Warrior Project in Meekins' name.[30]

In August 2013, Spirit reached an agreement on a new five-year deal with the Transport Workers Union of America, who represent the airline's flight dispatchers.[31]

In November 2014, Morgan Stanley named Spirit the top growth airline pick for investors.[32]

In January 2016, former AirTran CEO Robert L. Fornaro replaced Baldanza as CEO.[33] This prompted rumors of a merger with Frontier Airlines,[34] which would have created the largest ultra-low-cost carrier in the Americas.[35] Fornaro announced the airline would be teaming up with the Disney Institute to “create a common purpose and a fresh set of service standards”, and changing policies internally to create a more welcoming environment.[36]

In November 2017, Spirit's on-time performance was second in the country, behind only Delta Air Lines, a significant improvement from December 2015, when it ranked last among thirteen airlines with 68.7% of flights arriving on time.[37] In February 2018, Spirit was the only airline in North America to make the list of the top 10 safest in the world.[38]

In May 2018, Spirit announced that they would be the first ultra-low-cost carrier to fit their aircraft with high-speed WiFi access that started in fall 2018. All of their aircraft were expected to be equipped with WiFi by summer 2019.[39]

On December 23, 2019, Spirit Airlines announced its intention to purchase 100 new Airbus A320neo family aircraft.[40]

2020s[edit]

In 2020, due to the COVID-19 pandemic, Spirit Airlines received $334 million in aid in the form of grants and loans via the Coronavirus Aid, Relief and Economic Security Act (CARES); the money was used to fund employees until September 30. In July of that same year, the company announced that it would put 20%-30% of its employees on leave of absence in October.[5] In August, some pilots agreed to take a voluntary leave of absence or have their work schedule temporarily reduced to avoid layoffs.[41]

In July 2020, a passenger died of COVID-19 on a Spirit Airlines flight.[42] Spirit Airlines claimed it notified the Centers for Disease Control but there was no record of the contact. Passengers on the flight were not informed that they were around an infected individual.[42]

Corporate affairs[edit]

Ownership[edit]

Spirit Airlines, Inc. is a Delaware corporation[43] that is publicly traded on the New York Stock Exchange (NYSESAVE).

Business trends[edit]

The key trends for Spirit Airlines are (years ending December 31):

2014 2015 2016 2017 2018 2019
Turnover ($m) 1,932 2,141 2,320 2,644 3,323 3,831
Net profit after tax ($m) 225 317 263 416 156 335
Number of employees (average FTE) 3,722 4,326 5,159 6,100 7,110 8,077
Number of passengers ('flight segments')(m) 14.3 17.9 21.6 24.2 29.3 34,5
Passenger load factor (%) 86.7 84.7 84.7 83.1 83.9 84.4
Number of aircraft (at year end) 65 79 95 112 128 145
Notes/sources [43][44] [43][45] [43][45] [43] [43] [46]

Headquarters[edit]

Spirit has its headquarters at 2800 Executive Way, Miramar, Florida,[43] having moved there from its previous Eastpointe location in 1999. As of 2016 there were 600 located in the office. Chris Sloan of Airways Magazine stated that the building was "nondescript low slung".[47] Sloan added that the interior, prior to a 2014 renovation, was, "To put it charitably, [...] a dump", but that employees felt ownership over the office.[47]

In 2019 the airline announced that it would move to a new headquarters of up to 500,000-square-foot (46,000 m2) in the Dania Pointe development in Dania Beach, Florida, spending $250 million. The airline anticipates that it will house 1,000 employees.[48]

Business model[edit]

Under CEO Ben Baldanza, Spirit began a transition to an ultra-low-cost carrier, following a fare model involving charging for amenities that are often included in the base ticket price of traditional carriers. Passengers who wanted to customize their itinerary or seat selection paid an add-on fee for each additional feature, which enabled the carrier to earn ancillary revenue in excess of 40% of total revenue.[49] These included having an agent print a boarding pass at check-in versus doing it online or at a kiosk,[50] for any large carry-on or checked bags, progressive fees for overweight bags, selected seat assignments, travel insurance, and more.[51]

Controversy[edit]

Spirit Airlines has been the subject of complaints, and to punitive actions by the United States Department of Transportation (DOT). Most of the claims against the company were for allegations of deceptive advertising practices, customer service, and the airline's policies for charging additional fees at the time of purchase:

  • In November 2011, the DOT fined Spirit $43,900 for alleged deceptive advertising practices. The complaint claimed that the airline had been running an advertising campaign which promoted specific discounted fares on billboards, posters, and Twitter, but did not disclose full details regarding extra fees added onto the advertised rates.[52][53]
  • In January 2012, the DOT fined Spirit $100,000 for mishandling of complaints related to its treatment of customers with disabilities.[54][55]
  • In 2013, and again in 2015, the DOT received more passenger complaints about Spirit than any other airline; the rate of complaints was "dramatically higher" than the overall rate for the industry.[56][57]
  • On April 5, 2021, a Spirit Airlines flight attendant confronted a family on board a plane scheduled to fly from Orlando to New York because their 2-year-old child was not wearing a mask.[58]
  • On August 3, 2021, Spirit Airlines cancelled 40% of its flights, leaving travelers stranded because Spirit Airlines has no arrangements with other airlines to book its passengers on other airlines' flights. Spirit Airlines said, "We're working around the clock to get back on track in the wake of some travel disruptions over the weekend due to a series of weather and operational challenges. We needed to make proactive cancellations to some flights across the network, but the majority of flights are still scheduled as planned."[59] By August 10, Spirit Airline's schedule was stabilizing.[60]

Destinations[edit]

Spirit currently flies to 83 destinations throughout Central America, the Caribbean, South America, and the United States. As of May 2021, It maintains crew bases at Atlantic City, Chicago–O'Hare, Dallas/Fort Worth, Detroit, Fort Lauderdale, Las Vegas, and Orlando.[61][62]

Fleet[edit]

A Spirit Airlines Airbus A321-200 in the current "Bare Fare" livery, introduced in 2014
A Spirit Airlines Airbus A319-100 in the earlier blue paint scheme, used from 2007 until 2014
A Spirit Airlines Airbus A319-100 painted in the grayscale livery used from 2002 until 2007

Current fleet[edit]

As of August 2021, the Spirit Airlines fleet consists entirely of Airbus A320ceo and A320neo family aircraft.[63] February 2020 fleet plan outlines 293 aircraft planned by 2027.[64] An order of 100 additional aircraft with 50 options was announced in October 2019.[65][66]

Spirit Airlines fleet
Aircraft In
service
Orders Passengers Notes
C Y Total
Airbus A319-100 31 10 135 145
Airbus A319neo 25 TBA To be the first Airbus A319neo operator in the United States.
Airbus A320-200 64 8 174 182
Airbus A320neo 43 70
Airbus A321-200 30 8 220 228
Airbus A321neo 30 TBA
Total 168 125

Historical fleet[edit]

The following aircraft formerly operated in the Spirit Airlines fleet:

Spirit Airlines historical fleet
Aircraft Total Introduced Retired Replacement
McDonnell Douglas DC-9-21 3 1995 1997 Airbus A320 family
McDonnell Douglas DC-9-31 6 1992 2003
McDonnell Douglas DC-9-32 7
McDonnell Douglas DC-9-41 2 1996
McDonnell Douglas MD-81 6 1999 2005
McDonnell Douglas MD-82 15 1998 2007
McDonnell Douglas MD-83 15 2010
McDonnell Douglas MD-87 1 2000 2009

Services[edit]

Frequent-flyer program[edit]

Spirit Airlines Frequent-flyer program is called Free Spirit, entitled as such due to the state of persons who travel using Spirit Airlines (a spirit).[67] Spirit has a three-tier frequent flyer status program. The tiers are Free Spirit Member, Silver (Earn 2,000 status qualifying points in a calendar year), and Gold (Earn 5,000 status qualifying points in a calendar year).

See also[edit]

References[edit]

  1. ^ "Federal Aviation Administration - Airline Certificate Information - Detail View". av-info.faa.gov. Retrieved 2019-06-27.
  2. ^ "Join - Free Spirit". www.spirit.com. Retrieved 10 February 2019.
  3. ^ "Spirit Airlines Fleet Details and History". Planespotters.net. Retrieved 8 June 2020.
  4. ^ a b "SAVE-2018.12.31-10K iXBRL" (PDF). ir.spirit.com. Archived (PDF) from the original on 2018-04-09. Retrieved 2019-05-26.
  5. ^ a b Arrojas, Matthew (July 30, 2020). "Spirit Airlines prepares to furlough 20% to 30% of employees". South Florida Business Journal. Retrieved August 14, 2020.
  6. ^ a b c d "Spirit Airlines – History" (PDF). Spirit Airlines, Inc. 2011-08-01. Archived (PDF) from the original on 2016-09-23. Retrieved 2018-04-08.
  7. ^ Nicas, Jack (May 12, 2012). "A Stingy Spirit Lifts Airline's Profit". The Wall Street Journal. pp. A1, A12.
  8. ^ a b c d Wittkowski, Donald. "Small Airline Expands A.C. Flights with Jets". The Press of Atlantic City. May 30, 1992.
  9. ^ "Spirit Expands Fla./Atlantic City Air Service". The Press of Atlantic City. September 5, 1993.
  10. ^ Belden, Tom. "Atlanta-based Line Plans Phila. Flights". The Philadelphia Inquirer. April 12, 1994.
  11. ^ a b c Sangiacomo, Michael. "Spirit Airlines Pledges That Anyone With Ticket Will Fly". The Plain Dealer (Cleveland, Ohio). June 8, 1994.
  12. ^ "World Airline Directory". Flight International. March 25–31, 1998. p. 92. Archived from the original on 2014-07-18 – via Flight Global/Archive. Spirit Airlines: 18121 East 8 Mile Road, Eastpointe, 48021, Michigan, USA
  13. ^ Spirit Airlines Honored as 'Good Corporate Citizen of the Year'; Miramar Business Appreciation 2003. Business Wire. February 13, 2003. Retrieved on December 17, 2009.
  14. ^ 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.
  15. ^ "- SPIRIT AIRLINES INC | Violation Tracker". violationtracker.goodjobsfirst.org. Archived from the original on 2018-04-08. Retrieved 2018-04-08.
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  38. ^ "Airline Safety Ranking 2018". www.jacdec.de (in German). Archived from the original on 2018-04-19. Retrieved 2018-04-08.
  39. ^ "Spirit is first budget airline in the US to offer WiFi". 11 May 2018. Archived from the original on 2018-05-21. Retrieved 2018-05-20.
  40. ^ "Spirit Airlines to buy 100 Airbus A320neo family aircraft". CNBC. 2019-12-23. Retrieved 2020-01-12.
  41. ^ "Spirit Airlines Reaches Deal With Pilots to Avoid Layoffs". TravelPulse.
  42. ^ a b Duncan, Ian (31 October 2020). "A woman died of coronavirus on a plane. Her fellow passengers were never notified". The Washington Post. Washington DC. Retrieved 31 October 2020.
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  48. ^ Pounds, Marcia Heroux (2019-10-17). "Spirit Airlines to invest $250 million in new headquarters and move 1,000 employees". South Florida Sun Sentinel. Retrieved 2019-10-23.
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  51. ^ "Our optional fees". Spirit Airlines. Archived from the original on 2013-05-09. Retrieved 2013-05-12.
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  54. ^ "DOT Fines Spirit Airlines Over Handling of Disability Complaints". US Department of Transportation. 2012-01-27. Archived from the original on 2018-05-09. Retrieved 2018-05-09.
  55. ^ Martin, Hugo (January 27, 2012). "Spirit Airlines fined $100,000 over disabled passengers' complaints". Los Angeles Times. Archived from the original on 2017-07-23. Retrieved 31 May 2018.
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  58. ^ "Spirit Airlines Kicks Family Off Flight Because Child Wasn't Wearing a Mask". www.yahoo.com. Retrieved 2021-04-05.
  59. ^ Torres, María Paula Mijares; Rosenberg, Amy S. (2021-08-03). "Philadelphia-area travelers are left stranded as Spirit Airlines cancels flights across the country". inquirer.com. Retrieved 2021-08-03.
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  63. ^ "Spirit Airlines Fleet Details and History". www.planespotters.net. Archived from the original on 2017-08-12. Retrieved 2017-08-12.
  64. ^ "Fleet Plan – Spirit Airlines, Inc". ir.spirit.com/resources/fleet-plan. Spirit Airlines, Inc. 2020-06-20. Retrieved 2020-06-20.
  65. ^ "Spirit Airlines to buy 100 Airbus A320neo family aircraft". Reuters. 2019-12-23. Retrieved 2020-06-20.
  66. ^ "Spirit Airlines finalises order for 100 Airbus A320neo Family aircraft". Airbus. Retrieved May 10, 2020.
  67. ^ "Spirit Airlines - Free Spirit".

External links[edit]