Spirit and fuel hedging

[saviboy]

The kool-aid was being served yesterday in FLL, Paul O was serving and loads of folks were slamming it.

what was P.O. serving yesterday?

I heard though the grapevine :135 furloughs at 45 / month. and reduction by 7 planes

 

[Wino]

It probably wasn't a net gain in that context. The $9 fare is a marketing tool.

Rather than spending thousands of dollars on billboards or newspaper ads, the $9 fare draws attention to Spirits service in a particular market.

actually a 9 dollar fare by itself doesn't attact attention to a particular market unless the person was already planning on going there and was looking at flights there. Otherwise how would they know about it unless they had already plugged in a trip to see what it costs. If they were already looking at going there then you just cost yourself money

That sort of marketing has to be COMBINED with expensive billboards and whatnot. And here is the problem, most of the people you cater to are one off flyers. How often are people going on vacation in the caribbean? Once a year? If you are trying to build up a route with those fares, it will be a long time before you see the peeps again.... IF you are trying to introduce them to the Spirit Airlines experience, do u believe your experience is better than your competition? IF it is worse to be a pax on spirit than say USair, or Southwest, or whoever you are competeing with, then you will NEVER get them back at a reasonable fare. You just confirmed them as never agains...


Cheers
Wino

 

[troll565]

Miramar-based Spirit Airlines has been fined $100,000 for paying the Cuban government for permission to use the island's airspace, constituting a violation of the long-standing U.S. embargo against the island.


According to a report by the Office of Foreign Asset Control of the Treasury Department, Spirit Airlines made several money transfers to Cuban government accounts from September 2004 to March 2007 without a valid license for such activity.


The fine imposed on the airline, which has its main hub at Fort Lauderdale-Hollywood International Airport, is the largest such penalty imposed by the agency during the fiscal year that began last October.


Spirit is the second Florida corporation fined this year for violating the embargo, following the $7,500 fine imposed on Fort Lauderdale's BankAtlantic in February.


`NOT PREMEDITATED'
Spirit Airlines told El Nuevo Herald that the violation occurred ''in an unpremeditated manner,'' a company spokeswoman said.


''During the beginning of 2007, Spirit Airlines realized that the permit required by [the Treasury agency] for authorizing flights over Cuba for the use of their airspace had not been renewed,'' said Spirit's spokeswoman, Misty Pinson.


``Spirit Airlines never had the intention of violating any requirements or laws to carry out its international operations.''
Spirit accepted blame. ''Because of this unintentional violation, our company quickly presented itself before the Treasury Department to provide all information regarding this matter, and following the meeting we agreed to pay the fine,'' Pinson said.


Founded in 1980, Spirit Airlines is the nation's largest private airline.


The company offers a wide range of domestic flights and promotional prices that start at $9.
The company also provides service to 22 destinations in the Caribbean, and Central and South America.


It is routine procedure and within the regulations of civil aviation for U.S. carriers to pay other nations for the use of their airspace during international routes, just as the federal government charges carriers for use of U.S. airspace.


Payments of this sort destined for Cuba require a special license from the Treasury Department, as part of the laws of the embargo.

 

[Mike man]

Miramar-based Spirit Airlines has been fined $100,000 for paying the Cuban government...

Spirit management = total and utter incompetence, even more idiotic than other airline management.

 

[ultrarunner]

Miramar-based Spirit Airlines has been fined $100,000 for paying the Cuban government for permission to use the island's airspace, constituting a violation of the long-standing U.S. embargo against the island.

Bummer...should have had AirRouting our Universal do it for 'em.

Those two outfits are a pretty good conduit for getting money to Cuba to use their airspace.

U.S. Embargo...what a crock of $hit!

 

[Mike man]

Bummer...should have had AirRouting our Universal do it for 'em.

That would cost too much money...since we have to do everything in the most crappy, cheap and shoddy way.

 

[KigAir]

Marketing strategies are intended to put buts in seats at a profit. $9 fares fill seats that would otherwise remain unsold. Look at it this way, a seat sold for $9 is $9 more than you would make if you closed the door with the seat empty.

What do the $0 fares achieve?