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Spirit to start charging for bags and drinks..

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Frequency

Well-known member
Joined
May 23, 2002
Posts
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Look like they are heading the way of Skybus...

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Airline To Start Charging For Bags, Soft Drinks

March 8, 2007 04:36 PM CST

Spirit Airlines said it will take the unusual step of charging for all checked baggage and for drinks such as coffee and soda on flights starting in June, while also cutting fares by up to 40 percent.

The Miramar-based low-cost carrier that flies domestically and to Latin America and the Caribbean said Tuesday it is cutting fares from 10 to 40 percent system wide, and on last-minute fares as well.

Spirit - which has a hub in Detroit - also will charge for each checked bag for flights taking place June 20 or after, according to its Web site.

Customers will still be allowed one carry-on bag for free, but one or two checked bags will cost $5 each if passengers make flight reservations on the carrier's Web site. The fee will be $10 each for one or two bags if passengers don't use the Web site for reservations. The charge is $100 for the third bag and on.

The airline currently allows one checked bag for free and $10 for a second checked bag.

Also starting June 20, soft drinks, juices, coffee and tea - which are now free - will cost $1. Water will still be free.

Most large U.S. carriers allow a carry-on bag and up to two or three checked bags at no additional charge per passenger. However, U.K.-based Ryanair charges a fee for each item of checked baggage, according to its Web site. Air Canada offers customers the option of saving $5 if they don't check any baggage.

With drinks, carriers usually charge for alcoholic beverages on domestic flights. But sodas, coffee and juice are usually free.

Bob Harrell, a travel consultant in New York, said airlines that cater to leisure travel such as Spirit often adjust fares, raising or lowering them 25 percent or more from one week to another in some cases. But airlines also are seeking ways to offset baggage handling costs, and lowering prices may be a way for Spirit to justify the move to charge for checked bags, Harrell said

"The baggage and the soda changes are new," said Harrell, of Harrell Associates. "If they're not exclusively new, then it's certainly unusual."

However, Harrell added that while it's possible that the major airlines would be looking at the success or failure of Spirit's changes, "You wouldn't see a lemming type of match from the larger carriers."

The move also reflects a strategy where services for baggage handling and beverages are "a la carte," or pay-as-you-go, said Robert Mann, an airline industry analyst with R.W. Mann & Co. Inc. in Port Washington, N.Y.

At Fort Lauderdale-Hollywood International Airport, Naomi Berger waited for a return flight to New York's Laguardia Airport. She said the airline told her of the $10 charge for a second checked bag by e-mail, and that she was OK with the extra charge because she paid $85 for her round trip ticket from New York to visit a relative in Miami Beach with her daughter and husband.

"If they keep the fares down, people use them," said Berger, who lives on Long Island.

But her husband, Robert Berger, was more critical of the charges. He said airlines are more interested in just getting travelers to their destinations and making short-term profits, rather than building a customer base by providing good service.

"Only an airline with no pride would charge you for a cup of soda," said Robert Berger, who is in the telecommunications business. "We'll pay them for the $10 for baggage and $1 for soda because we're still ahead of the game" on ticket prices, he said.

Spirit also plans to eliminate first-class service and free alcoholic drinks. The former first-class seats will be called "Big Front Seats" and sell at premium prices.

The airline is offering 1 cent fares, plus fees and taxes, to and from select cities in March, April and May. Customers have until Wednesday to book those flights.

Spirit, which is privately owned, offers service to 33 cities in the United States, Latin America and the Caribbean. Spirit has hubs in Detroit and Fort Lauderdale. Its competitors include JetBlue, Northwest Airlines and Southwest Airlines.
© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
 
Ryanair (Europe) already does all this and more - look for charges for absolutely anything you use, wheelchairs included. Also advertising on overhead bins and seats that don't recline! The public may get just what they want - zero frills, low airfares, no apologies.
 
I was reading on Flight International that Ryan Air told Boeing that they no longer want window shades (weigh too much) or pockets in the seat backs of their chairs (collect trash).

It's coming..................
 
Ryanair also charges their crews for water or sodas. Niiiiice.


Bye Bye--General Lee
 
Taking a dump will be free but expect to pay $1 a square.

Man, I thought that Ryan Air already put the quarter slots (I guess euro slots) outside of the can. And that someone would also be in the can handing out mints and cologne and other variuous toiletries....ahhhh, that also would require at least a few Euros there too. Over all, to snap one off on Ryan Air is gonna cost yah about 5 bucks as a bare bones minimum. You get cologne/perfume/mints/candy from the can man and your way over that figure.
 
We joke about it but this is the eventual reality that we all face. Spirit mgt has decided that they can not compete with the likes of SWA and B6. So in a price driven market how does one effectively grab market share? Be the cheapest.

Airlines like SWA and B6 don't need to do this to compete but if this works expect Airtran and Frontier to follow rather quickly and expect them to try and out do Spirit.
 
Expect Airtran and Frontier to follow quickly?? Good way to stir the pot, either that or your a moron...
 
We joke about it but this is the eventual reality that we all face. Spirit mgt has decided that they can not compete with the likes of SWA and B6. So in a price driven market how does one effectively grab market share? Be the cheapest.

Airlines like SWA and B6 don't need to do this to compete but if this works expect Airtran and Frontier to follow rather quickly and expect them to try and out do Spirit.

Price driven is all relative. If you are starting new service in a market served by others, you have to offer lower fares. SWA does it too. They take a loss until the passenger traffic is established then discontinue the "specials". Fares even go a little higher when they dominate an airport. How else would the company afford to enter a new market and take losses on the new service for a little while? That said, SWA still keeps all fares relatively low. Mainly to keep the market from being challenged and for customer loyalty.

Recent observations from friends and family:

Corporate refundable fares (RJ service) less than 700 miles into/out of CVG (Delta super fortress hub) are $700+. For MEM (NWA hub with a little competition) its $250-$400. For a SWA served city pair $65-140.
 
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Expect Airtran and Frontier to follow quickly?? Good way to stir the pot, either that or your a moron...

The Frontier pilots showed us all what a huge set of man berries they have with that contract extension.

Frontier is having trouble gaining market share. So let's see they can increase their service and customers will come with check books in hand.

Or they can lower their costs. Humm..............

They can ask the pilots for more (LMAO), pay less for fuel or pay the lessors less every month.....Hummm. None of the above will happen, (except the pilots caving again)

Or they could follow the likes of Spirit (if it works) and gain market share without having to do any of the above. Humm.....

You have a better plan?

If this works for Spirt, they will follow.
 
Price driven is all relative. If you are starting new service in a market served by others, you have to offer lower fares. SWA does it too. They take a loss until the passenger traffic is established then discontinue the "specials". Fares even go a little higher when they dominate an airport. How else would the company afford to enter a new market and take losses on the new service for a little while? That said, SWA still keeps all fares relatively low. Mainly to keep the market from being challenged and for customer loyalty.

Recent observations from friends and family:

Corporate refundable fares (RJ service) less than 700 miles into/out of CVG (Delta super fortress hub) are $700+. For MEM (NWA hub with a little competition) its $250-$400. For a SWA served city pair $65-140.

How else would the company afford to enter a new market and take losses on the new service for a little while?

You answered your own question. Based upon price. If (and when) a US carrier takes the Ryan Air approach, they WILL gain market share.

This isn't rocket science. Ryan Air has taken the SWA model one step further and proved that they can make money. The model is already there. This is not a revelation. The problem is, no airline has been able to effectively market, "being the cheapest, is the best". Every LLC has taken on an approach of providing value and low costs. No one has come out directly and said, we are going to be the cheapest, to heck with service.

Spirt has decided that they are going to be the first to copy Ryan Air in the US. If it works, expect the others to follow (they won't have a choice).
 
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My point was Spirit needs to be attacking certain competitors in higher yield markets. If they hope to compete against SWA they are already behind the 8 ball. SWA has lots of higher yield markets to shield them from a price war in a couple of Spirit markets.

If Spirit attacks the high yield legacies they have a chance, but the legacy's profitable networks can make up the difference elsewhere. At least Spirit doesn't have to go ultra low fare to make it work. This is a tough call and has led many a carrier to ruin in market conditions like these.

Airtran, Frontier and JetBlue may be their best bet to challenge in a price war. They may not be able to hang long with the "lowest" fare Spirit challenge.

To me, Spirit looks desperate and wild eyed. A risky move meant to make something good happen for them.

But what do I know. I just drive'em
 
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Any body think that maybe the reason Spirit is trying something new is because their old business model wasn't working?? I really have no idea since they are a private company, BUT, if it works, don't fix it, and they are fixing things. To me it seems like a desperate shot at trying to get pax on their planes.... It might work, but it might not. As far as Frontier goes, there is a lot of things company's can do to lower the costs. I just noticed that Frontier recieved the lowest rating of all the LCC's in a poll done by somebody (it was on Flightinfo but I'm not gonna go try to find it). Hell, Frontier has a better product than AAI and SWA, but they got the lowest rating of all the 4 LCC's. F9 has to do it better than SWA and UAL or they will not be around in 10 years, and right now, it doesn't seem like they are doing it.. Simple rule, make passengers happy and they will come back, if you don't, your out of business.. SWA has been the best at making pax happy for years...
 
You can't go head to head with LUV on a particular "high yelid" market. They could afford to fly it for a loss and you would eventually have to cave in.

That's the problem. Luv has such a strong presence that comepting with them on price is fruitless.
 
Expect Airtran and Frontier to follow quickly?? Good way to stir the pot, either that or your a moron...

Let's refrain from name calling and keep this in perspective.
The article states Spirit is actually reducing the cost of extra baggage from their current policy. Either way, it's smart business and they know exactly what they're doing. Any airline which follows suit will also benefit.

I think G4GWhizz has a bone to pick with airlines because he got shooed away. He certainly has nothing to be ashamed of. Not everyone has what it takes to make it through the process. I've know doubt he's an excellent corporate pilot and valueable assest to General Aviation.
 
Let's refrain from name calling and keep this in perspective.
The article states Spirit is actually reducing the cost of extra baggage from their current policy. Either way, it's smart business and they know exactly what they're doing. Any airline which follows suit will also benefit.

I think G4GWhizz has a bone to pick with airlines because he got shooed away. He certainly has nothing to be ashamed of. Not everyone has what it takes to make it through the process. I've know doubt he's an excellent corporate pilot and valueable assest to General Aviation.


Man you could not be further from reality. Been there done that and I have an ample supply of halloween costumes to choose from.

FYI, I turned down Jetblue to go to NWA from which I quit to go to DAL, then onto AA. I am currently furloughed AA and have zero intension of going back anytime soon (always leave the door open).
 
NWA to DAL to AA? Really GWhizz, it's sounds like the airline industry gave you every opportunity. What would you "leave the door open" for?
 
SWA does it too. They take a loss until the passenger traffic is established then discontinue the "specials". Fares even go a little higher when they dominate an airport. How else would the company afford to enter a new market and take losses on the new service for a little while?

I view this as predatory pricing but what do I know?
 
NWA to DAL to AA? Really GWhizz, it's sounds like the airline industry gave you every opportunity. What would you "leave the door open" for?

Jumping can be very profitable...Or very painful. Must be planned well and entails a lot of guesswork. Not for the weak at heart.

I don't criticize anyone who does it. But I caution everyone on the practice.
 
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FYI, I turned down Jetblue to go to NWA from which I quit to go to DAL, then onto AA. I am currently furloughed AA and have zero intension of going back anytime soon (always leave the door open).

Maybe that's the problem......you jump around too much.
 
Maybe that's the problem......you jump around too much.

C'mon mega, if you had been hired by JetBlue and had a UPS interview sometime in the last year, what would you have done?? Would you really have stayed at JetBlue? (One of the few hiring the last couple of years)

Not the same circumstance, but if presented with what appears to be a much better career, what would you do???
 
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C'mon mega, if you had been hired by JetBlue and had a UPS interview sometime in the last year, what would you have done?? Would you really have stayed at JetBlue? (One of the few hiring the last couple of years)

Not the same circumstance, but if presented with what appears to be a much better career, what would you do???

Of course I would leave JetBlue.....BUT.....I SAY BUT.....when looking at NWA, then DAL, then AA....I would say that's too much jumping around. When I left my commuter to go to USA 3000, I narrowed down the job wish list to FedEx or UPS. Basically, I said I was going to roll the dice at USA3000 until either UPS or FedEx called because I didn't want to be a junior FO somewhere in 20 years. FedEx was my first choice mainly because I thought I had a better shot at getting the job there. Well, guess who called first? Then, three months after I got done with training, FedEx called. I really didn't want to jump around and mess with a good thing, so I declined the interview. I just don't think jumping around is a good idea. I have never heard a success story come out of it.
 
Good point. It was probably tempting to jump UPS for FedEx. But seniority at a similar company is nothing to sneeze at. There is an argument for either option and yours is a good one.
 
“Airline To Start Charging For Bags, Soft Drinks”

In my opinion, had a major airline tried this approach the headlines would say


”Delta/United/AA/CAL/USAirways to lower their fares by 40% and also to Start Charging for Bags, Soft Drinks”


Maybe it’s me but sometimes I feel as if the media likes to omit any “good” news regarding LCCs (such as major ticket price reductions in this case) and focus on the negative. Of course, I’m sure others feel it’s the other way around.
 
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Before anyone offers an opinion on Spirit's pricing policy, they need to study Spirit's business plan. I'm no NKoolaide drinker, but I do believe that the plan just might work. In short, when one looks at the publically available information regarding Spirit, they will find that Spirit is focusing of the islander/southAmerican/centralAmerican immigrant to Florida and the heavily urban areas of the east coast. Those passengers don't read the local business news, or even the internet news. The immigrants only want a cheap ticket to visit home and the islanders/etc only want a cheap way to get to the States and shop. Spirit thinks that the new business plan can succeed in this demographic.

Spirit doesn't really care what the American leisure crowd thinks.

Neither do they care about what the pilots think.

I doubt that Spirit's business practices carry much threat to the domestic centered LCC.

I only want to get paid what I'm worth.
 
Spirit has probably decided to step out ahead of Skybus, which is going to introduce a Ryan Air clone operation very soon now, based on ultra cheap or even free fairs, but passengers will pay for everything beyond their seat, including calling a 900 number to talk to a human, checked and carryon bags, drinks, inflight entertainment, and anything and everything else they can think of.
 

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