Originally Posted by flensr

I still don't think Spirit is going to displace those regardless, because I'm not convinced Spirit can fly a c-series cheaply enough to displace everyone else servicing those markets. The regionals have been flying small planes on small profit margins for quite a while so trying to out-small the smaller operators doesn't seem to be an attractive business strategy no matter who's selling the tickets. Just because Spirit is super-efficient with the A320 doesn't make me assume that they'll be so efficient with a smaller plane that they can create a new market at the low end or displace existing smaller plane operators.

Spirit lists their payscale and "juniority" as a CASM "tailwind" in their investor presentation. How much below regional payscales do they think they can go, and are they planning on flying them with crews somehow "more junior" than other small operators, to maintain that CASM competitive advantage? I don't see maneuvering airspace down on that end of the costs equation, so where's the compelling business advantage to justify adding an airframe type to either open up a new market or capture an existing one?

Of course, my MBA was mail order so I'm probably full of crap. I just don't see the business model where it makes sense for spirit to buy a new type of smaller planes, thats all. I could be wrong, I'm totally the new guy, and this is just bar talk for discussion...