Spirit Airlines

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"Spirit Air" redirects here. It is not to be confused with Air spirit.
Spirit Airlines
IATA
NK		 ICAO
NKS		 Callsign
SPIRIT WINGS
Founded 1980 (as Charter One)
Operating bases
Fleet size 40
Destinations 49
Company slogan The Ultra Low Cost Airline For The Americas
Parent company Indigo Partners & Oaktree Capital Management
Headquarters Miramar, Florida, USA
Key people
Website spirit.com

Spirit Airlines, Inc. (NASDAQ: SAVE) is a United States ultra low-cost carrier operating scheduled flights throughout the Americas. The airline is headquartered in Miramar, Florida, in the Miami metropolitan area.[3] Spirit currently maintains bases in Fort Lauderdale, Florida; Detroit, Michigan; Las Vegas, Nevada; Chicago, Illinois; and Dallas, Texas. Over half of the airline's flights are to destinations in the Bahamas, Caribbean, and Latin America.

Contents

[edit] History

Spirit Airlines was founded in 1980 in Macomb County, Michigan, as Charter One,[4] 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. 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.[5] Prior to the decision to move the headquarters to Miramar, Spirit considered Atlantic City, New Jersey and Detroit, Michigan.[6] 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.[7] 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.[8] 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 discontinued service to Denver, but will begin service again on May 3, 2012.

In the Fall of 2003, Spirit resumed flights to Washington, D.C.’s Reagan National Airport, which had been suspended after the September 11 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 started delivery in March 2010.

[edit] 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 and 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 "à la carte" pricing option. As of October 1, 2007, Spirit is charging $3 for all drinks and $3 for bottled water.SpiritAir.com In 2007, Spirit became the largest air traffic carrier at Fort Lauderdale-Hollywood International Airport.[9]

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.[10][11]

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.[12] A Bureau of Transportation Statistics report concluded that in 2008 Spirit had the highest number of complaints per passenger among U.S. airlines that carry more than 5 million passengers.[13] 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.[14] 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.[15][16] 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.[17] 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 included compensation, work rules and benefits. At that time, Spirit pilots were 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.[18] However, the Jamaica Observer reported on 5 July that the airline had not been sold as yet.[19] However in April 2010 it was announced that Air Jamaica would be sold to Caribbean Airlines [20] and began a merged airline May 1, 2010[21]

On Thursday September 17, 2009, the Federal Aviation Administration fined Spirit Airlines $375,000 for violating the agency's consumer protection regulations.[22]

On April 6, 2010, USA Today reported that Spirit will start to charge for carry-on 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.[23]

As of October, 2011, Spirit reduced the weight limit for checked luggage from 50 pounds per bag to 40 pounds per bag, charging $25 for the first 9 extra pounds, and up to $100 for bags approaching 59 pounds over the 40 pound limit.[24]

Pilot Strike: June 12, 2010

On June 12, 2010, Spirit grounded its flights when its unionized pilots walked out on strike, stranding thousands of passengers.[25] The ultimately successful pilot 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 Air Line Pilots Association 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 the Spirit pilots' compensation and benefits in line with comparable U.S. Airbus operators. Spirit announced that flights would resume on June 18.[26] Of particular note, is that this was the first legal industrial action (strike) by U.S. ALPA represented pilots since 2005 (Polar Air Cargo), and the first passenger airline strike by U.S. ALPA represented pilots since 2001 (Comair).

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.[27]

On June 21, 2011, Spirit announced a new fee of $5 to passengers who have their boarding passes printed by the check-in agent.[28]

On November 16, 2011, Spirit Airlines announced that they would be establishing a crew and maintenance base at McCarran International Airport in February 2012.[29]

[edit] 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, Detroit Metropolitan Wayne County Airport, McCarran International Airport in Las Vegas, O'Hare International Airport in Chicago, and Dallas/Fort Worth International Airport.

[edit] 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.[30]

[edit] Fleet

[edit] Current

Spirit Airlines Airbus A319 at Toussaint Louverture International Airport
Spirit Airlines Airbus A321 leaving Fort Lauderdale

The Spirit Airlines all-Airbus fleet consists of the following 40 aircraft (as of March 2012):[31]

Spirit Airlines fleet
Aircraft In Fleet Orders Seats Notes
Y+ Y Total
Airbus A319-100 26 0 10 135 145
Airbus A320-200 12 58 4 174 178
Airbus A320neo 0 45
TBA
Airbus A321-200 2 0 4 214 218 Expected to leave the fleet
Total 40 103


As of March 2012, Spirit’s average fleet age was 4.4 years old.[32] Spirit has the third youngest Airbus fleet in the Americas[33] after Virgin America, and the Mexican airline, Volaris.[34]

On November 15, 2011, Spirit entered a non-binding agreement for an order of 75 Airbus A320s, including 45 A320neo or new engine option aircraft, to be delivered between 2016 and 2021. This is in addition to an existing order of 33 A320 aircraft scheduled for delivery from November 2011 through the end of 2015.

[edit] 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 notes
Airbus A321-200 4 2008 Airbus A320 Family All Leased
McDonnell Douglas MD-81 1 2006 MD 80 Family Also operated the DC-9
McDonnell Douglas MD-82 8 2006 Airbus A320 Family Also operated the DC-9
McDonnell Douglas MD-83 5 2006 Airbus A320 Family Also operated the DC-9

[edit] 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. Spirit Airlines will automatically charge you to renew the fair club, upon the end of the one year agreement. They have a 100% no refund policy once it has been charged. Rates can vary from the previous year.[35]

[edit] In-flight services

Spirit has Skymart, a buy on board program that offers drinks and snacks for purchase.[36]

[edit] 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.[37]

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.[38] 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.[39]

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 MILF was popularized in the movie. This controversy was covered on CBS and ABC News, Countdown with Keith Olbermann, and The O'Reilly Factor.[40]

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."[41]

2009

On January 8, 2009, the airline announced the return of the MILF Special, described as meaning "Many Islands, Low Fares".[42][43]

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.[44]

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.[45]

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.[46]

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 Valentine's 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 man's 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?"

[edit] References

  1. ^ a b http://ir.spirit.com/releasedetail.cfm?ReleaseID=649408
  2. ^ http://finance.yahoo.com/news/spirit-airlines-opens-crew-maintenance-213000832.html
  3. ^ "Investor Relations." Spirit Airlines. Retrieved on December 24, 2011. "Headquarters Spirit Airlines, Inc. 2800 Executive Way Miramar, FL 33025"
  4. ^ Spirit Airlines – cheap tickets, cheap flights, discount airfare, cheap hotels, cheap car rentals, cheap travel. Spiritair.com (1992-05-29). Retrieved on 2011-10-21.
  5. ^ Spirit Airlines Honored as 'Good Corporate Citizen of the Year'; Miramar Business Appreciation 2003. Business Wire. February 13, 2003. Retrieved on December 17, 2009.
  6. ^ 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.
  7. ^ Spirit Airlines Launches Spirit Vacations With GOGO Worldwide Vacations. Business Wire. June 12, 2002
  8. ^ Travel Packages, Cheap Vacation Packages, Vacation Packages to Cancun, Las Vegas Deals, All Inclusive Caribbean, Orlando Package Deals. Spirit Vacations (2011-08-23). Retrieved on 2011-10-21.
  9. ^ [1][dead link]
  10. ^ [2][dead link]
  11. ^ New York Business News – Business, Money, Financial & Corporate News Business News | NBC New York. Wnbc.com. Retrieved on 2011-10-21.
  12. ^ Travel News & Deals Blog – travel news, travel advice, travel deals, discounts airfares, bargain airfares – latimes.com – latimes.com. Travel.latimes.com. Retrieved on 2011-10-21.
  13. ^ Segal, David. (2009-03-28) Don’t Come Crying to This Airline – NYTimes.com. Travel.nytimes.com. Retrieved on 2011-10-21.
  14. ^ Spirit Airlines – cheap tickets, cheap flights, discount airfare, cheap hotels, cheap car rentals, cheap travel. Spiritair.com (2011-04-08). Retrieved on 2011-10-21.
  15. ^ SeatGuru Seat Map Spirit Airlines Airbus A321 (321). Seatguru.com. Retrieved on 2011-10-21.
  16. ^ Doing the math on Spirit’s new seat assignment fees. Tripso.com (2008-07-02). Retrieved on 2011-10-21.
  17. ^ Airline Fee Charts. Airfarewatchdog. Retrieved on 2011-10-21.
  18. ^ Report: Spirit Airlines buys Air Jamaica. Usatoday.Com (2009-07-06). Retrieved on 2011-10-21.
  19. ^ Air Jamaica not sold yet, say Gov't officials. Jamaica Observer. July 5, 2009
  20. ^ Air Jamaica. Air Jamaica. Retrieved on 2011-10-21.
  21. ^ Air Jamaica. Air Jamaica. Retrieved on 2011-10-21.
  22. ^ Frogameni, Bill. "Spirit Airlines hit with record fine." Atlanta Business Journal. Friday September 18, 2009. Retrieved on September 20, 2009.
  23. ^ Jones, Charisse (2010-04-07). "Spirit Airlines to charge a $20–$45 fee for carry-on bags". USA Today. http://www.usatoday.com/travel/flights/2010-04-06-spirit-carry-on-fee_N.htm. Retrieved 2010-12-13. 
  24. ^ Spirit Airlines – cheap tickets, cheap flights, discount airfare, cheap hotels, cheap car rentals, cheap travel. Spirit.com. Retrieved on 2011-10-21.
  25. ^ Arnoult, Sandra (14 June 2010). "Shutdown continues after Spirit pilots reject 29% base pay increase". Flightglobal.com. Flight International. http://www.flightglobal.com/articles/2010/06/14/343253/shutdown-continues-after-spirit-pilots-reject-29-base-pay.html. Retrieved 18 June 2010. 
  26. ^ Ranson, Lori. "Spirit pilots plan to return to work on 18 June". Flightglobal.com. Flight International. http://www.flightglobal.com/articles/2010/06/17/343364/spirit-pilots-plan-to-return-to-work-on-18-june.html. Retrieved 18 June 2010. 
  27. ^ "Airline company Spirit Airlines sets IPO terms". Renaissance Capital. 12 May 2011. http://www.renaissancecapital.com/ipohome/news/Airline-company-Spirit-Airlines-sets-IPO-terms-9586.html. Retrieved 12 May 2011. 
  28. ^ "Spirit Air's New First: Levying Fee for Passes". Wall Street Journal. 22 June 2011. http://online.wsj.com/article/SB10001424052702303936704576400210833335244.html. Retrieved 22 June 2011. 
  29. ^ http://www.lvrj.com/business/spirit-airlines-to-establish-crew-maintenance-base-in-las-vegas-133923333.html
  30. ^ [3][dead link]
  31. ^ CH-Aviation – Airline News, Fleet Lists & More. Ch-aviation.ch. Retrieved on 2011-10-21.
  32. ^ Fleet age Spirit Airlines | Airfleets aviation. Airfleets.net. Retrieved on 2011-10-21.
  33. ^ Spirit Airlines – cheap tickets, cheap flights, discount airfare, cheap hotels, cheap car rentals, cheap travel. Spiritair.com. Retrieved on 2011-10-21.
  34. ^ Volaris. Volaris. Retrieved on 2011-10-21.
  35. ^ Spirit Airlines – cheap tickets, cheap flights, discount airfare, cheap hotels, cheap car rentals, cheap travel. Spiritair.com. Retrieved on 2011-10-21.
  36. ^ Drinks, Snacks and More. Spirit Airlines. Retrieved on September 20, 2009.
  37. ^ Stoller, Gary. (2009-06-22) Spirit Airlines is cheap, and CEO Ben Baldanza's proud of it. Usatoday.Com. Retrieved on 2011-10-21.
  38. ^ "Airline scraps online 'Hoffa' game". USA Today. 2006-07-19. http://www.usatoday.com/travel/flights/2006-07-19-hoffa-promotion_x.htm. Retrieved 2007-04-27. 
  39. ^ Horowitz, Adam; David Jacobson, Tom McNichol, and Owen Thomas. "8. Spirit Airlines". 101 Dumbest Moments in Business (CNNMoney.com). http://money.cnn.com/galleries/2007/biz2/0701/gallery.101dumbest_2007/8.html. Retrieved 2007-04-27. 
  40. ^ "Fort Lauderdale’s Spirit in the sky". anna.aero. 15 August 2008. http://www.anna.aero/2008/08/15/fort-lauderdales-spirit-in-the-sky/. 
  41. ^ Gorell, Robert (2007-04-01). "Spirit Airlines Proposes a Threesome With Me". Spirit Airlines Proposes a Threesome With Me. Future Now (grokdotcom.com). http://www.grokdotcom.com/2008/04/01/spirit-air-threesome/. Retrieved 2008-04-20. 
  42. ^ "Over the Line?". The O'Reilly Factor. Fox News Channel. 2007-12-11. Transcript.
  43. ^ http://marketing.spiritair.com/sales/current.php?p=1
  44. ^ Spirit Airlines' Tiger Woods Ad (PHOTOS). Huffingtonpost.com. Retrieved on 2011-10-21.
  45. ^ "Spinning the spill, for fun and profit". Yahoo News. 2010-06-23. http://news.yahoo.com/s/ynews/ynews_ts2800. Retrieved 2010-06-23. 
  46. ^ Spirit Airlines – cheap tickets, cheap flights, discount airfare, cheap hotels, cheap car rentals, cheap travel. Marketing.spiritair.com. Retrieved on 2011-10-21.

[edit] External links

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