Spirit Airlines Swot Analysis
1. Spirit Airlines, Inc. – Company Background
Headquartered in Miramar, FL, Spirit Airlines, Inc. (Spirit) is an ultra-low-cost, low-fare airline that offers affordable travel to budget-conscious customers. With a route network centered in Fort Lauderdale, FL and an all-Airbus ‘Fit Fleet’ – the youngest of any major U.S. airline – Spirit is positioned to offer more than 400 daily flights to 59 destinations in the United States, Caribbean and Latin America. Spirit is the first of its kind; the pioneer in the fast-growing ultra-low-cost carrier (ULCC) air travel segment. The business model offers budget-conscious travelers an unbundled, stripped down Bare Fare which is then supplemented with ancillary revenue additions for historically bundled …show more content…
While Spirit is the cheapest offering to travelers (in aggregate), this occurrence is not a rare and presents a major flaw in Spirit’s vision, market positioning and growth strategy.
In some ways, Spirit’s culture appropriately matches the company’s business model. Their corporate headquarters follows the same “no-frills” mantra they provide to their passengers. The concept of “low-cost” is spread throughout the company. However, one may expect the fun, modern and witty persona infused into the marketing campaign to translate to the out-bound side of the value chain, but it often doesn’t. Frequent complaints about customer service, flight attendants and logistical delays could lead one to speculate whether the ethos has spread universally.
Long-Term Goals and …show more content…
Measured by revenue passenger miles, American Airlines (19.1%) currently maintains the market share leadership position in the U.S. with Southwest (18.3%), Delta (16.9%) and United (14.5%) following closely behind – Figure 1 (right) shows the breakdown of the major U.S. airlines and their share as of December 2016. The market has historically been highly fragmented, mainly due to regulation to spur monopolistic trends and promote a competitive landscape. Therefore it is uncommon to see airlines with share greater than
Headquartered in Miramar, FL, Spirit Airlines, Inc. (Spirit) is an ultra-low-cost, low-fare airline that offers affordable travel to budget-conscious customers. With a route network centered in Fort Lauderdale, FL and an all-Airbus ‘Fit Fleet’ – the youngest of any major U.S. airline – Spirit is positioned to offer more than 400 daily flights to 59 destinations in the United States, Caribbean and Latin America. Spirit is the first of its kind; the pioneer in the fast-growing ultra-low-cost carrier (ULCC) air travel segment. The business model offers budget-conscious travelers an unbundled, stripped down Bare Fare which is then supplemented with ancillary revenue additions for historically bundled …show more content…
While Spirit is the cheapest offering to travelers (in aggregate), this occurrence is not a rare and presents a major flaw in Spirit’s vision, market positioning and growth strategy.
In some ways, Spirit’s culture appropriately matches the company’s business model. Their corporate headquarters follows the same “no-frills” mantra they provide to their passengers. The concept of “low-cost” is spread throughout the company. However, one may expect the fun, modern and witty persona infused into the marketing campaign to translate to the out-bound side of the value chain, but it often doesn’t. Frequent complaints about customer service, flight attendants and logistical delays could lead one to speculate whether the ethos has spread universally.
Long-Term Goals and …show more content…
Measured by revenue passenger miles, American Airlines (19.1%) currently maintains the market share leadership position in the U.S. with Southwest (18.3%), Delta (16.9%) and United (14.5%) following closely behind – Figure 1 (right) shows the breakdown of the major U.S. airlines and their share as of December 2016. The market has historically been highly fragmented, mainly due to regulation to spur monopolistic trends and promote a competitive landscape. Therefore it is uncommon to see airlines with share greater than