Spirit of NKS
09-25-2015 | 08:53 AM
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From: Narrow/Left Wide/Right
When fuel is low, labor is more of a factor in expense. When fuel is high, labor is a smaller factor in expense.
Throw in the ability to hedge with the larger companies (which lately hasn't helped squat), and you have kind of an ability to provide "fuel price insurance".
Of course a rapidly rising fuel price usually puts the brakes on the economy as well, so it doesn't help anyone, but in general I think the LCC's are more affected.
JMHO
As far as why NK's stock has sunk now..... no idea.
09-25-2015 | 09:31 AM
Line Holder
Joined: Apr 2007
Posts: 388
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From: A320 CA
It seems that (historically) recessions affect LCCs (and discount-based businesses) somewhat less than others. This is because many times said discount-based businesses become all people can afford during said recession.
09-25-2015 | 11:04 AM
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I know what opinions are like.... but I'd say in general a rapidly rising fuel price will hurt Spirit (or any other LCC) harder than a major.
When fuel is low, labor is more of a factor in expense. When fuel is high, labor is a smaller factor in expense.
Throw in the ability to hedge with the larger companies (which lately hasn't helped squat), and you have kind of an ability to provide "fuel price insurance".
Of course a rapidly rising fuel price usually puts the brakes on the economy as well, so it doesn't help anyone, but in general I think the LCC's are more affected.
JMHO
As far as why NK's stock has sunk now..... no idea.
When fuel is low, labor is more of a factor in expense. When fuel is high, labor is a smaller factor in expense.
Throw in the ability to hedge with the larger companies (which lately hasn't helped squat), and you have kind of an ability to provide "fuel price insurance".
Of course a rapidly rising fuel price usually puts the brakes on the economy as well, so it doesn't help anyone, but in general I think the LCC's are more affected.
JMHO
As far as why NK's stock has sunk now..... no idea.
And everyone else, SWA included, pretty much practiced "capacity discipline".
.....Past performance is not indicative of future results.......
09-25-2015 | 01:21 PM
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From: Airbus
"The United States Department of Transportation defines a major carrier or major airline carrier as a U.S.-based airline that posts more than $1 billion in revenue during a fiscal year.[1] The term "major carrier" or "major airline" can also refer to traditional legacy carriers, distinguishing them from startup and low-cost carriers."
Last edited by Green Giant; 09-25-2015 at 01:59 PM.
09-25-2015 | 02:24 PM
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From: Airplane
Spirit Airlines is a Major Airline by definition. True we are what people would call a LCC; however Spirit is a Major Airline. Spirit is not a Legacy Airline but you don't need to be a Legacy to be a Major. Operating Revenue is the determining factor on how the DOT lists the airline.
"The United States Department of Transportation defines a major carrier or major airline carrier as a U.S.-based airline that posts more than $1 billion in revenue during a fiscal year.[1] The term "major carrier" or "major airline" can also refer to traditional legacy carriers, distinguishing them from startup and low-cost carriers."
"The United States Department of Transportation defines a major carrier or major airline carrier as a U.S.-based airline that posts more than $1 billion in revenue during a fiscal year.[1] The term "major carrier" or "major airline" can also refer to traditional legacy carriers, distinguishing them from startup and low-cost carriers."
Of course, if it wasn't for bankruptcy restructuring of some of those legacies, they wouldn't be in business either.
09-25-2015 | 02:32 PM
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Looks like we're in it for the long haul. At least the quick upgrade will take some of the sting away from it.
09-25-2015 | 02:33 PM
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From: A-320
09-25-2015 | 02:35 PM
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From: Airplane
Yeah, I'm guessing no TA in the forseable future. I was optimistic, still am, but this update didn't sound like there was much hope.
09-25-2015 | 02:37 PM
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From: A320 Captain
And Bendo wants departures and A14 to improve
09-25-2015 | 02:38 PM
A religion of "peas"!
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