Spirit Airlines is in trouble, and it could be in part because major airlines co-opted the airline’s business model and beat it at its own game.
Major U.S. carriers like Delta Air Lines and United Airlines have co-opted strategies that made budget airlines like Spirit profitable before the COVID-19 pandemic, which rocked the airline industry, The New York Times reports. Now, Spirit — which has filed for bankruptcy twice in a year and is set to furlough about one-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 fliers low fares while charging for extras that were, at one point, usually included in the overall ticket cost, the Times reports. But it wasn’t long until Delta, United and American Airlines all began adopting some similar tactics, according to the outlet.
Now, nearly every major airline in the U.S. charges for checked bags, seat selection and other services. Some airlines even sell “basic economy” tickets, which are cheaper but more restrictive. These tickets have appealed more to customers because major airlines fly to more cities more frequently than budget carriers like Spirit, the Times reports.
“The mainline carriers have effectively figured out how to compete — with higher costs and better service,” Dan Akins, an economist with the aviation consulting firm Flightpath Economics, told the paper.
The Independent has contacted Spirit Airlines, Delta Air Lines and American Airlines 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 will be furloughing about 1,800 of its 5,200 flight attendants by December.
“We recognize the impact of this decision on affected team members, and we are committed to treating them with care and respect during this process,” a Spirit spokesperson said in a statement.
Spirit COO John Bendoraitis said in a memo to flight attendants that the company initially avoided involuntary furloughs by having employees taking voluntary leave, according to theTimes. More than 800 flight attendants are currently on leave, he noted.
The Association of Flight Attendants-CWA, which represents Spirit flight attendants, told its members the airline will look for employees who will voluntarily take a six-month or one-year furlough starting November 1, and then move on to involuntary leaves based on seniority.
“The problem is that the significant reduction of aircraft and flight hours requires a much higher reduction in force and the company is clear that a furlough is necessary,” the union said.
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