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Spirit Airlines Case Study

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: On average, over 8 million people fly around the world daily and over 2 billion fly in the United States daily. Everyone wants non expensive flights, comfortable seating, and on-time flights. Spirit Airlines is an airline that prides themselves on provided very low costs to customers and they strive to be the most cost efficient airline in regards to their competitors. “Spirit Airlines was founded in 1964 as a Clippert Trucking Company” (https://www.spirit.com/history.aspx) and has grown to servicing beyond coast –to- coast and has transitioned to low-cost carrier and ultra-low cost carrier. Spirit Airlines transitioned to Airbus fleet and consists of A319s, A320s, and A321. The A319s has seats 145 customers, the A320 seats 174 customers,…show more content…
In the game, the players must build a network of cities, purchase oil, and buy power plants, garbage, etc.to electrify the cities. This game takes lots of concentration, careful planning, cunning and ruthlessness. They use this strategy also when attempting to expand Spirit Airlines. As Baldanza notes, “connect the cities in the most efficient way” (Mayerowitz, CEO runs Spirit Airlines like strategy game). Spirit Airlines business strategy is that they do not believe customers should have to pay for amenities unless they are absolutely going to utilize them and the services they chose shouldn’t subsidize other passengers. Spirit believes, they can offer a cheap flight with no amenities and each added amenity will be a cost. In the end, the lower fares will stimulate air travel by attracting customers who would have used on-ground…show more content…
Virgin Island, Puerto Rico, etc. Spirit operates in Mexico, Latin America and Caribbean and U.S. which allows them to increase their revenues with customer loyalty. Provides their customers with many vacation destination at a cheap rate has been something Spirit customers particularly like. With Spirit only offering three different types of planes, repairs are not as expensive as other airlines which offer many different types of planes. On the downside, Spirit airlines do not have a lot of leg room for their customer comfort. Yes, Spirit airlines are relatively cheap; however, for each amenity they offer which include bag carry on, beverages, and food there is a price added to the airfare price. Spirit also does not have any entertainment aboard their flights for their customers’ enjoyment. This has made customers opt with flying with Spirit. In order for Spirit to perform successfully in the industry, they would need to construct innovative ways to keep prices low but offer all the amenities which their competitors have. When flying, customers like to relax and will definitely compare which airline has the best amenities. Also, Spirit will need to continue to expand to other
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