Spirit is a Ultra Low Cost Carrier

[saviboy]

http://biz.yahoo.com/bw/070306/20070306005463.html?.v=1

In this article, Spirit' Ceo describes the company as a Ultra Low Cost Carrier.

It is the first time I read this term. Are there any other airlines using the same designation?

He also says that: Our new cost structure is among the lowest in the world,
"

Is that true?

 

[Shrek]

I CRINGED when I read that........ 2 other airlines say the same thing - Skybus and Ryan.

 

[McNugget]

Yet, we purchased cheaper tickets to ORD on Delta. They beat Spirit and UniTed.

 

[Groucho]

The question is not how low your costs are but can you make money. JetBlue has low costs but has trouble in certain markets due to low yield.

You can't reduce you costs to profitability if you can't control your yield. Spirit is going into the Carribean and other areas where yield is good and still there earnings do not reflect their low cost status. They have posted some losses, but I believe they are making money now.

Low costs are important but if you give the tickets away the employees can work for free and you still end up in chapter 11.

 

[Lowpayisgreat]

this is something to be proud of

Hey dipsh&ts, ultra low cost equals ultra low wages, IE used car salesmen make more money then you.

 

[flyboycmsu]

Just like the wages at Ryan & Southwest? i.e. industry leading...
I dont like charging people for everything but the precedence is already set; -and wages are the key issue in our contract negotiations.

 

[pilotyip]

They are copying Allegiant, who really has low cost figured out.

 

[SKC]

Just like the wages at Ryan & Southwest? i.e. industry leading...
I dont like charging people for everything but the precedence is already set; -and wages are the key issue in our contract negotiations.

I'm assuming you're referring to Ryanair, the Irish carrier.

 

[Shrek]

Hey pilotyip your boy is in my class......he said to say hello.

Maybe your anti-union stance there is the reason it is falling apart.

 

[flyboycmsu]

you are correct on the assumption SKC.