Originally Posted by
bluespoon
At the end of the day ULCC is a business model that’s based on filling as many seats as possible. Without fees, it has to be full. Why pay spirit fees when you can go to the big 4 for similar prices. In order to survive, they’re going to have to restructure their costs and they might have to rebrand. The spirit name is synonymous with passenger brawls and a cheap greyhound experience.
They also have to have high utilization per day. Having an asset in revenue service for 18 hours a day is 50% more than having one in service for 12 hours a day.
Few years ago Spirit “bought” their D0 numbers by lowering utilization and not driving turn and burn so hard. Before that they were maxing fleet utilization by selling unrealistic schedules and just taking the tardy’s. It is sort of unproven if Spirt can maintain a respectable D0, and have the utilization to maintain a profit.
The tacked on legs that Southwest has and that forces mostly AM or PM trips is what helps their utilization and profitability so much.
The big 3 can add a hub bank, or delete one and stretch the sits to cover the larger footprints of an available “travel day” and help poach the early/late travelers that are suppose to be utilization gravy profit.