Originally Posted by
mudpie
Can someone explain to me how Spirit got here with the speculation of bankruptcy? 10 years ago it had pretty much the highest profit margin in the industry. The fares really were never that cheap compared to everyone else after fees, just like now.
The plane issues, I'd imagine lost revenue is covered 100% by manufacturer.
Attrition, always had it, but hiring was always able to keep up with attrition, like now.
I always thought the Jetblue merger was because JetBlue needed Spirit to grow in order to compete and not that Spirit needed JetBlue to survive.
Why is Spirit all of sudden in apparently bad shape? I don't get it, what has changed?
It seems like after this contract round everyone else have had. Spirit ought to have a massive cost advantage.
1. Pratt is paying leases on down airplane. They are not paying for lost revenue. Spirit will have to sue them for it. That’s a big hit.
2. You are right about the initial reason for the merger.
In the interim when spirit thought they would become profitable post Covid the engine issues started and demand for the ULCC product went in the toilet. Passengers do not want what we are selling. Those that do can find select “basic” seats on legacy airlines and not deal with the trashy ULCC airlines. Also big four have predated on Spirit by adding capacity at a loss on our routes to squeeze us. I’m years past they didn’t have the resources to do that. They do now and are doing it. The exact reason for the merger, be able to compete with the big 4. Right now they can just put anyone out of business that becomes a threat.