Spirit of NKS
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Joined: Dec 2009
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From: Narrow/Left Wide/Right
Because they need a way to make comparisons, and Ben addressed that in the latest call.
I don't think he's particularly worried about American or any other legacy matching our prices. We go after different customers. We are not going to steal their business customers who need frequency, we're not taking their international customers, the leisure travelers who travel on their miles or perks either. We're not going to get the government customers or those who fly to destinations we don't serve. There won't be any price matching on those flights.
So, you look at the type of customer we serve, the discretionary traveler. Of those 300 flights a day we do, how much overlap is there with American? And of those, how many of the seats on those flights will be priced to match or beat Spirit's? Even if it's a whopping 10% of the seats on a flight (I'd guess it's be more like 5%), that's roughly 10-15 seats per flight that are competing with us on price. I don't think it's a worry.
The worry is more on the legacies continuing their collusion to limit capacity. Yes, I think the Justice Dept. has something there. That's where we could run into trouble is once all three legacies decide to turn their eye towards us because of our growth.
I don't think he's particularly worried about American or any other legacy matching our prices. We go after different customers. We are not going to steal their business customers who need frequency, we're not taking their international customers, the leisure travelers who travel on their miles or perks either. We're not going to get the government customers or those who fly to destinations we don't serve. There won't be any price matching on those flights.
So, you look at the type of customer we serve, the discretionary traveler. Of those 300 flights a day we do, how much overlap is there with American? And of those, how many of the seats on those flights will be priced to match or beat Spirit's? Even if it's a whopping 10% of the seats on a flight (I'd guess it's be more like 5%), that's roughly 10-15 seats per flight that are competing with us on price. I don't think it's a worry.
The worry is more on the legacies continuing their collusion to limit capacity. Yes, I think the Justice Dept. has something there. That's where we could run into trouble is once all three legacies decide to turn their eye towards us because of our growth.
Lastly, the majors are hiring at a brisk pace and adding planes and routes to their operations, granted not at an irresponsible rate, and somehow that is collusion to limit capacity? GMAFB!
Gets Weekends Off
Joined: Feb 2014
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I am much more concerned about Southwest than any of the big 3. Since the Wright Amendment expired they have really put a hurting on everyone in the DFW market. They also have a large expansion planned for FLL and if they do the same thing there it could get ugly.
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Sent from my SAMSUNG-SM-N910A using Tapatalk
On another note, does anyone know why I was charged $18 for "travel" on my pay stub? I used a buddy pass, but paid for that by credit card when booking it. Do they charge twice now?
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Joined: Jun 2006
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I am much more concerned about Southwest than any of the big 3. Since the Wright Amendment expired they have really put a hurting on everyone in the DFW market. They also have a large expansion planned for FLL and if they do the same thing there it could get ugly.
Sent from my SAMSUNG-SM-N910A using Tapatalk
Sent from my SAMSUNG-SM-N910A using Tapatalk
This was discussed earlier in the year, posts 11628 & 11632 (Pages 1163/1164). Seems plausible, at least from my limited understanding of running an airline.
Gets Weekends Off
Joined: Jan 2014
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From: A320 Left
Imputed income. They charge you in one section of the pay stub and then credit you in another. For tax implications I was told.
You werent 'charged' $18. It was withheld income tax on imputed income from a taxable benefit. Spirit was the last airline to comply with the IRS requirement. Its done that way so you know the value of the gift if you give a buddy pass to someone.
RK
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Happy last day contract 2010.
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From: CA
Mr. Full of Luv
The credibility of one's argument may be increased drastically by proper use of the language in which it's conducted.
<iframe width="560" height="315" src="https://www.youtube.com/embed/Jn8kB1WK-7c" frameborder="0" allowfullscreen></iframe>
The credibility of one's argument may be increased drastically by proper use of the language in which it's conducted.
<iframe width="560" height="315" src="https://www.youtube.com/embed/Jn8kB1WK-7c" frameborder="0" allowfullscreen></iframe>
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