VX at the top, Spirit at the bottom

[Jetjockey]

Midwest Express was a perennial number one rated airline............in the end it didn't matter one bit. It's all about the cheap airfare.

 

[bri5150]

Midwest Express was a perennial number one rated airline............in the end it didn't matter one bit. It's all about the cheap airfare.

I love the blanket statement about every single American just looking at price. Then why is there even first class passengers? Why is anyone even flying on any other airline than Spirit? I agree there is a large segment of the United States population that shops based on price, but please, give the blanket statements a break. There are passengers that shop based on price, there are passengers that shop based on departure times and non-stop service, and there are passengers that shop based on the experience they have had previously on airlines. This is one of the reasons Virgin America switched their philosophy to business people. They are higher yield and are more loyal based on the experience they have had. It is unfortunate it took so long to come to this realization. This is also the reason Virgin America is becoming more successful. I would say, in general, Californian business folks are willing to pay a little more for an experience and higher quality product (notice I say a little more). I said it earlier in this thread. There is room for Spirit, Virgin America, and other airlines in this industry.

 

[Caddaddy]

The problem with the VX model is whenever there's a hiccup in the economy or oil prices rise a new crisis happens as business travelers cut back on their travel and in person meetings.

The NK model makes money regardless of each. People who wouldn't normally travel by air will fly on NK for price and families who can't or won't pay for the frills will fly NK in order to afford a family vacation. It's been proven and will continue to expand.

 

[bri5150]

The problem with the VX model is whenever there's a hiccup in the economy or oil prices rise a new crisis happens as business travelers cut back on their travel and in person meetings.

The NK model makes money regardless of each. People who wouldn't normally travel by air will fly on NK for price and families who can't or won't pay for the frills will fly NK in order to afford a family vacation. It's been proven and will continue to expand.

If you are referring to the biggest economic crisis since the Great Depression as a hiccup, then yes, every time the economy hiccups we will probably be in trouble. How does oil prices effect business travel? We have a new contract with IBM. Before booking travel, will the IBM businessman check oil prices before booking their ticket? Holy crap, VX is paying over $3 per gallon, I better stay home and telecommute!! Also, our new routes are making oil prices much less volatile for us. We used to be much more susceptible to oil, but adding shorter routes is evening it out a bit.

You are probably right about Spirit. Everyone knows the Spirit model makes money. :beer: Not every airline could or should be the same model though, right (see my post above)?

 

[suupah]

No sure what writing you speak of from a couple years ago because we are still here. I don't need management propoganda. Every survey/ranking we are involved in we are at the top. Maybe the strategy will fail. We will see.

Didn't Midwest express have the highest ratings as well?

 

[bri5150]

Didn't Midwest express have the highest ratings as well?

Yup. The good news is we have coach as well as business/first class. That is a huge difference between Midwest and VX. As a huge generalization, I wouldn't guess Milwaukee was an extremely high yield city either. Certainly not as high as SFO or LAX. I could totally be wrong on that though. Also, read the last two sentences of what you quoted me on.

 

[NEDude]

One of the things to look at with VX is that when the company launched the business model was the company would not turn the corner financially until it got to at least 50 airplanes. Interestingly now that VX has reached the 50 aircraft threshold the finances are turning around and some operational profits are being realized. Of course the current leadership at VX will not point to this is a factor, after all they (well he - DC) are the ones who stopped growth at 28 airplanes for a few years for the 'good' of the company. The original business plan had called for over 100 airplanes and over 30 cities at this point.