How Spirit Airlines With American Airlines Essay

951 WordsOct 6, 20154 Pages
WHY I CHOSE THIS COMPANY Founded in 1964, Spirit Airlines actually began operations in the trucking industry under the name “Clippert Trucking Company,” based in Michigan. In subsequent years the firm encountered many changes in name, headquarters, as well as shifted into different industries entirely. In 1983, the company branched out into the charter tour operating sector, as “Charter One.” Particularly, they provided tours to entertainment destinations such as Las Vegas, Atlantic City, and the islands to the southeast of Florida known as The Bahamas. Almost three decades late in 1992, the company officially changed its name to the ultra-low cost passenger carrier company we all know today as Spirit Airlines, which is based in Fort Lauderdale-Hollywood International Airport, under CEO Ben Baldanza. These series of changes in industry, in combination with the fact that I am an avid “Spirit flyer,” definitely sparked my interest in further investigating the financial stance of the company. PURPOSE The purpose of this study is to compare Spirit Airlines with American Airlines using the financial ratios of liquidity, activity, debt, profitability and the market, and to derive some concrete conclusions about the financial nature of Spirit Airlines. According to Spirit Airlines (2015) “Historic Stock Lookup,” from 2011 to 2014, the year-end stock prices have increased by 79.4%, which is outstanding. Thus, Spirit Airlines will be used as a benchmark in terms of comparing

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