Quote:
Originally Posted by Al Czervik
No high horse here. Start up/LCC's either become large/successful with high overhead or they die off. Not saying anything about spirit other than your advantageous cost structure will change. Look at SWA.
I disagree. Spirits not a LCC. It's a ULCC. Spirit compared to SWA is apples and oranges. There's a difference. Spirit has revolutionized the airline industry in creating additional revenue streams besides just the ticket sale. It's not just the ULCC's taking advantage of the revenue streams either. Bought a ticket on AA lately? I have, many times. Every ticket I've bought on them in the last three years only allows me to buy a window or aisle seat for each leg. Otherwise your dumped in a middle seat.
Tried to buy a ticket on SWA lately? I have numerous times. I don't consider them a LCC any longer. They are restricted in revenue streams. No baggage fees, no soda fees, no reserve a seat fees, no first class uncharged. They're ticket prices reflect it too. Without adding those additional revenue stream to their business model they are boxing themselves into a corner of increased labor cost and only recouping it on the actual ticket sale.