I just checked my email too...lost set of keys in an airplane that doesn't exist and another uniform change? Twilight zone.

 

So what are the odds we lose out on or don't bid on any of the available gates from the US Air/AA merger? I know we could use another gate in ORD….. L11 is going to be awesome this winter!

 

Looks like DCA has the biggest opportunity but I don't think we did well there?

 

Watch SWA move some flights from BWI to DCA, NKS might fill in gaps at BWI...

 

We did fine there- we just didn't fit there. Plus, we had no room to grow since it's slot controlled. BWI has a greater growth potential as SWA may pull down there as the merger completes (AirTran is/was a big presence there too). BWI probably makes more sense with the business model since it has more to do with accessibility for the masses rather than convenience for the business traveler.

Hard to figure LGA; maybe it's seen as the most accessible to the masses even though it is slot controlled. I'm guessing it's a "bite the bullet" approach just to be in the center of the market. Spirit has pulled out of Islip twice in it's history (including once under this model) so the best guess there is we don't fit in that far out on Long Island.

Wouldn't be a surprise if NK made a run at a gate or two in ORD and a few slots in LGA. The cash is there ($540m at the end Q3), this group just spends it thriftily (is that even a word?).

 

I would imagine an attempt at more slots at BWI. I wish we'd get a little aggressive, sorta like we're seeing JetBlue, with getting some space and gates.

 

No such thing as slots at BWI.
You can grow there as much as Southwest lets you.

 

JetBlue has a very different spending and capacity growth strategy than Spirit- and it's one that some investors don't like much. In addition to the "frivolous" expenses (remember the Taylor Swift performance at T5 in JFK? Me either...), JB has engaged into some capacity increase practices that some scratch their head at, especially Mike Boyd...namely the "100 departures out of FLL" campaign. Some don't see the demand for it.

Maybe it works for them as they're much more concerned with branding/image, but it certainly doesn't fit well in the ULCC model. Even though Spirit is growing at a 15-20% YOY clip, we're still focusing wisely on the low-hanging fruit. JB likes to make a "splash", Spirit likes to focus on cost management. For example, it sounds like JB has already made a play at the new T4 in FLL; Spirit will gladly relocate to T3 and let JB eat the higher cost. With the new bridge between the two terminals international flow will be possible in/out of T3, albeit with a little greater walk. Cost is the focus here, not image and passenger convenience...if the passenger wants that they can pay the higher cost and ride on JB.

That said, Spirit will spend the money if it makes good sense; like them or not, these guys haven't gotten this far with us without some forward-thinking savvy. If it benefits the growth plan then they'll make a play at some of the gates/slots- but don't expect to see us in a bidding war with JB/VA. We'll chug along and wait for the next opportunity.

 

Yes, and SWA gave us 5 gates at BWI(from a reliable source) with the sale of our gate at DCA.. We can grow at BWI as much as Spirit wants to...

 

A few points.

JetBlue does very much care about the image of the airline and does like to spend money. Concerts are one thing but it is also being spent on infrastructure. From a new International terminal in JFK which saves us on customs fees (as well as keeping people in one terminal) to more gates in Boston by taking over Uniteds gates, to buying as many DCA and LGA slots as we can because they don't come up often, to getting as much as we can in Fll before someone else does ( I think our ELT is worried about Southwest and wants to protect the Caribbean operation)as well as a launching off point to S. America.)and to building a reservation center in Orlando mainly Spanish speaking.
So while we like to make a "SPLASH" there are a lot of strategic moves going on. You are right Wall St is not happy but capping the 190s and getting 321's will help cut the Casm down and raise the Rasm.
Spirit and jetBlue are two totally different models but I would be careful not to underestimate jetBlue.