He said millions of customers were willing to put up with how bad they suck. I’d like to correct that a bit. Millions were willing to tolerate the mess one time
That is exactly what happened to me. My wife booked a flight on spirit and I’m entirely too large to fit in those seats because I’m 6’4. I told her that I would never fly spirit again.
This analysis was a cut above the ones you guys normally do, and I’m super blown away it by it. Funny enough despite the ridiculously complex breakdown, I think you can say that Spirit making their customers unhappy as a business model was probably not a good idea. As soon as their competitors offered something similar it was game over.
@@ccash3290 The core idea is good but they went too hard on it and it became bad long term. Spirit went too far with cost cutting and became symbol of shit flight experience that people started avoiding it like a plague as soon as they can afford other airlines. It was over for them as soon as big 3 and other smaller airlines found line thats competitive to them but not as egregious as them on service.
@@ccash3290 they aren't copying Spirit Airlines, they are doing something that offers cheap prices like sprit but still a comfortable ride with good service. So Spirit Airlines cant compete
@@ccash3290 Oh but the bare bones tickets were a good idea. It's just that the legacy carriers found that they could shoehorn them onto normal flights at very similar prices, while still offering much better service than Spirit. Those tickets didn't even strictly need to be profitable in themselves if they helped fill their planes to capacity, without cannibalizing their existing higher margin customers.
You forgot to mention 2 things: 1. Frontier Airlines was originally supposed to acquire Spirit Airlines 2-and-a-half years ago before JetBlue came in with a much higher offer, which Spirit Airlines’ shareholders accepted over Frontier Airlines’ offer. 2. Over a month ago, both Frontier Airlines and Spirit Airlines had reignited renewed merger talks after the US Department of Justice had blocked JetBlue’s acquisition of Spirit Airlines, but this time, Frontier Airlines had walked away from acquiring Spirit Airlines, presumably due to their massive debt load, which thus caused Spirit Airlines to file for Chapter 11 Bankruptcy.
I flew Spirit once. Knowing they were budget, I actively looked for a place to pre-pay for my carryon but only saw an option for checked bags, so I figured I was good. But when I arrived for the flight, they said I needed to pay $100 for my carryon because I didn't pre-book. I told them there was no option to pre-pay, and they admitted it was because they weren't properly integrated with Kayak. When I asked to just pay the regular pre-booking carryon rate since the error was on their end, I was told no. So I asked for a supervisor and he literally shrugged and said "You can miss your flight or pay $100. Doesn't matter to me." So I paid the ransom and never even considered flying them again. (And told my friends.)
Judge strikes down merger between jet blue and spirit because spirit not being around would lead to hire ticket prices. Obviously the Judge didn’t account for what if spirit airlines disappears anyways
its crazy cause the merger wasn't even meant to increase ticket prices but instead just get spirit landing slots. if spirit and southwest or spirit and frontier wanted to merger, i could understand the "monopoly" claim. But spirit and blue are just not playing the same game.
Judge made the correct decision. It's survival of the fittest in a free open market. If Spirit fails, the competitive companies will battle, which will naturally decide the future of the industry. Any form of competition is good for consumers.
My family used spirit once and it was very unpleasant experience. Service was worse and their carry-on limit was abysmal so it wasn't even cheaper after extra fees (we had standard carry-on size that requires no extra fee in most other airlines not giant one that has to be tagged). As a result, we auto filtered out spirit after that and never used them again. I bet a lot of people went through the same experience where you get inticed by price initially but never revisits the airline after bad experience.
@@allhailderpfestor4839 I just booked a flight to south America. I only travel with a backpack two pairs of jeans a few pairs of short a couple of t shirts some socks and underwear it cost me 89$ for a one way ticket. I love it
I flew spirit airlines once after having flown ryan airlines and it being a tolerable experience. Spirit literally told us they don't know where our plane is for our return flight back. People talk about the nickle and dime issue, but the real reason people hate them is that they shoestring their routes with timing dependencies that are too strict to be a reliable carrier. The entire logistics network breaks down whenever variation is introduced into the system.
Judge made the correct decision. It's survival of the fittest in a free open market. If Spirit fails, the competitive companies will battle for former Spirit customers, which will naturally decide the future of the industry. Any form of competition is good for consumers.
@@zarbon700 This is the opposite of competition. The big three starved out spirit and drove it to bankruptcy. JetBlue was blocked from upsizing by acquiring Spirit to compete with the oligopoly in the industry. Thanks to the judge's decision, consumers lose AND JetBlue/Spirit lose.
@@zarbon700 This is the opposite of competition. Spirit was driven to bankruptcy and out of the market by the big three airlines, and JetBlue was prevented from upsizing by acquiring Spirit to compete with the oligopoly in the industry. Thanks to the judge's decision, consumers lose AND JetBlue/Spirit lose.
After watching this video, my opinion of Spirit pretty much completely changed. I appreciate what they were trying to do now- even if it did end with a lot of viral, unsavory incidents at Spirit ticket counters.
I find this channel has the best and most interesting explainers ever. Even if I watched a topic I still want to watch it here, not to mention all the interesting topics that I didnt even know I wanted to hear about!
The biggest problem with Spirit airlines was people thinking that the $39 one way would get the same exact perks as the $99 one way on delta. You can't expect the same exact perks on a a la carte ultra low-cost carrier versus the big carriers. The next and biggest issue with spirit and frontier is that no one reads the terms and conditions, it clearly states when you're purchasing the tickets that the seats bags and anything else will be an extra cost as to why the price is so low, so why pay that low price and then get upset that you're not getting a bigger seat and checked bags like the bigger carriers.
In Ft Lauderdale, Spirit’s gate was divided from all others by a glass wall. At the entrance there was a woman performing the awful job of spot charging every customer with a carry-on $50 via hand held card reader. Some people said this is BS. Others said F-you and forced their way past.
European business models don't work in America. As socialists, Europeans are accustomed to 3rd world travel. Americans are accustomed to luxury. European are accustomed to small cramp seats in their cars. Americans drive huge comfortable Sport Utility Vehicles. Europeans use more public transportation than Americans, who are accustomed to the luxury of not sharing space with strangers. Europeans are very different consumers than Americans.
@fabiokaya202 Great. The more losers leave the better. Millions of people left that backwards shitbox, but plenty belong back in that gutter of socialist mediocrity. Enjoy all the fast food we are exporting. Europe is desperate to imitate all things American. To bad they will never have the technical innovation that comes with freedom.
From a former airline pilot and airline passenger sales manager - Thanks for a well researched and presented video. For the same price or a little more money: Would you rather "Catch the Spirit!" or fly with a legacy carrier? With its superior comfort in even the worst seat, and more options if one's flight is cancelled? History repeats - The "basic economy" matching by Legacy carriers is exactly how Kiwi out of EWR was killed in the 90s. United matched any Kiwi fare to ORD departing within 30 mins of a UA flight.
Most of the people who I know of that tried Spirit only flew on it once, and immediately decided that they'd much rather pay AA/United/Delta the extra cost to not get crammed into a cattle car where being rude and loud seemed to be a passenger requirement. That said, I've never heard anyone say anything bad about their pilots or flight attendants so there's that at least.
I think the creator looked too far out to book tickets when comparing pricing. Spirit pricing tends to be more expensive if you book more than 3 months out. Typically legacy carriers pricing is 2 to 3x more expensive I am a loyal spirit customer been flying them since 2005.. They get a bad rap mostly because some customers try to cheat the system. I have only been delayed 4 times and I have a pleasant experience each time. I am also a gold member which means I don’t pay for any extras. Once you figure out how to fly spirit air you won’t go back to a legacy airline
@@johnl.7754 slots belong to the government, that regulates the airspace, gates belong to the airport operator, they may or may not be transferrable in bankruptcy court
JET blue flies to the same vacation destinations as Spirit on the east coast, Caribbean and Central America. What Jet blue wanted was Spirit fleet of aircraft to reposition and better compete on the west coast while maintaining current or slightly higher utilization on the east coast. Basically to get slighter bigger than they are currently.
I never flew with them, usually fly with Jet Blue, American or United. Lower price wasnt enough to put up with their crazy long layovers, weird schedules and cross country routes rather than a point to point trip.
I remember flying spirit in 2012 my leg was in the isle because the leg room is non existent I’m surprised it was even legal. I decided to never fly it again and never have.
I flew Spirit twice. The first time was great. The second time my scheduled flight home was delayed for 6 hours, then finally completely cancelled. Received no compensation. That was it for me.
The interesting thing about Delta and United being the most on time is that they both operate the oldest fleets than any of the others.. honestly great maintenance programs at both airlines.
I use them because they are cost effective and fly direct where I need to go. I have never experienced a delay with them and I frequently do with United. The seats are small so I will buy the big seats if they are reasonable. It’s still cheaper than flying other airlines.
spirit is a good airline if you're just taking a trip for one or two days and you don't need a lot. my family flew spirit a lot and the key is pack only the barest of essentials, and stay somewhere where you can wash your clothes. essentials can fit in a personal item easy. its not the most comfortable, but in some cases it's better than not taking the trip at all! i actually hope they get out of bankruptcy because they're the best way for me to fly personally lmao
Yeah, I never knew what people were always complaining about. I’ve gone on 4-5 trips on spirit with all my stuff in a backpack. Not sure why so many people need to bring all their worldly possessions on a quick trip to Cancun 🤷🏾♂️
@@dvoicer6785perhaps, but JBU will need to weigh the opportunity cost of having to wait over a year later that it had hoped to get the planes. The revenue it failed to generate from not being able to get the aircraft now may easily wipe out any savings from buying the aircraft later in liquidation.
@paulsz6194 They have a LOT of customers like that. It's funny how there's so much negativity towards them, yet every fight I have taken on Spirit has been a full fight. I can't say that about other airlines.
Time is money. Amtrak from NY to Florida is 18 hours. A flight is 3 hours. The train costs more. Economically it’s not viable. Even with HSR the train would still take at least 6 hours and the ticket would need to be heavily subsidized to be even close to being economically competitive to flying. And that’s a big pill to convince taxpayers to swallow
It's a bit weird to say the business model doesn't work while in Europe many airlines with the same model exist. ryanAir is one of Europe's most profitable airlines
Would have been more accurate to say the model doesnt work in the US. US market and European market are fundamentally different as the premium US market is humongous due to business traveler while Europe has very few in comparison
There a was (at least originally) a different proposal from european low cost airlines. When Ryanair was growing like crazy, they didn’t advertise on price alone, they were one on the top of the airlines with least delays and canceled flights. This is a proposal that works for both the European Protestant northerners who love to pay less for something that works (even with less comfort) and penny pinching southerners. No experience with spirit, but that’s significantly different from “its cheap and you get what you’re paying for” I just heard on this video.
@dylanjimenez1952 no way I'm definitely not selling especially because trump is becoming president he will allow a merger. Biden administration were clueless. Spirit stock will be 20$ a share in two years. This is the opportunity of a lifetime time. Don't hesitate buy buy buy and keep buying
I flew spirit in college for your average low cost college trip. We upgraded to the big seats cause we weren’t broke. Man it was like flying united economy
that merger blocking was ridiculous. The big airlines were allowed to do it, and now have so much money to lobby they can do whatever they want. A lower cost, competitive airline tries it and now look at what happens
First of all, great video! Secondly, the summary for me is that spirit can in 20 years ago with Rick bottom prices then the other big 3 lowered prices too and that was the end for spirit. 😂 ultimately, we all want ultra low cost airlines operating so that the big 3 don’t raise prices.
Since no one else said it; the worst part about Spirit is the customers. Fat, smelly, rude, no manners, stains on clothes, sweatpants on an airline, talk loud, and complain about everything. After one flight with that crowd, saving $50 just doesn’t seem appealing at all.
The causes for the demise of „hyper efficient companies“ are quite well expressed in Black Swan. Once you chase higher and higher efficiencies, you become vulnerable. People with MBAs think selling one kidney is smart because you have 2 and just need one and thus 2 are a waste.
We need a change of mindset in current society, a massive one. Consumerism at this point just enabled price dumping to an extend it's not healthy anymore. Yes I like a good offer too, but not one that is so "good" it will inevitably ruin businesses. Which just leads to a monopoly which is just bad. But hey, everything has to be ultra cheap, no matter the quality, just make it even cheaper as consumers must consume no matter what.
@@biometal770yes by people who don’t understand tariffs are in large part excellent leverage to force negotiations and deals…America carries a large stick. Instead of overthrowing governments and using force to be the policeman of the world we should be forcing deals and using economics to incentivize change.
@@ssssaintmarcus yes that’s right. This country doesn’t seem to understand that China, and other countries, need us, we don’t need them. And the cheapest price comes with a cost (namely sacrificing jobs to other countries). It doesn’t matter if we can buy a cheap product if we have no jobs that pay salaries to purchase said products.
Great analysis but you missed the issue increased interest rates had post covid on the airlines debt. Also the engine issue is a huge factor due to the sheer percentage of their fleet that was affected.
It's not just the planes. JetBlue wanted to acquire Spirit for it's airport slots as well. It was kinda sad that the merger didn't push through, although it's another thing to say if JetBlue will be burdened with Spirit's baggage. Makes me wonder if they can attempt a merger again, especially at that discount, or can JetBlue do it while Spirit is under bankruptcy protection.
I liked flying with them from Niagara Falls to Myrtle Beach. It was cheap and quick with modern planes. I knew going in that everything additional had to be paid. I once upgraded to first class (yes, they did have a first class about twelve years ago) for only 25 bucks.
(Spirit). In January, the U.S. District Court for the District of Massachusetts blocked the transaction because it violated “the core principle of antitrust law: to protect the United States' markets - and its market participants - from anticompetitive harm.” Still don't understand how the Justice Department sees this as a win for the US consumers with Spirit going into bankruptcy. Seems that JetBlue will get a lot of these assets through the bankruptcy process.
I have never flown Spirit, but clearly the should allow free carry-on for everyone, just raise the ticket price slightly and it still would be cheaper than basic economy. Also they should reconfigure to allow for some extra leg room seats at a charge, that is a good profit center. Not that would fix Spirit but maybe break even.
There's another caveat around legacy carrier Basic Economy: there are easy ways to mitigate some of the compromises. At least on American, if you have the credit card, you still get preferential boarding and a free checked bag, so the downsides for Basic Economy ends up just being the restrictions on changing your flight and not being able to select a seat for free.
You must have used them the wrong way. Spirit is not for families at all, or for normal voyagers. Spirit is for day travelers so to say with no or little luggage. Much better than SW which is a zoo.
Good! I hate spirit airlines. Its like one of those horrible restaurants where they can only capitalize to new customers because existing ones will never come back.
foreigner i have never heard anyone say a good thing about Spirit Airlines besides their low prices. but it is -famous- notorious enough to even make it to our local tv game shows.
It seems like every Spirit flight I’ve been on there was some kind of drama either at the gate or on board, the passengers don’t know how to behave. Won’t miss it even though our fares will increase.
Spirit doesn't have a first class. They have a Big Front Seat. However, their new Go Big option in their new Go series of ticket choices is a lot like first class.
I like your video. Just some constructive feedback. Your reading of the script sounds so robotic that I presumed this was AI. I encourage you to listen to your video and look for opportunities to relax while using your more natural voice.
I'm curious to know why you think liquidation is the most likely result when they have secured a supermajority support from creditors like citadel (who actually helped Hertz through a chapter 11 scenario). They have DIP financing along with secured debt reductions being transferred into equity. The pre-arranged nature of this bankruptcy does not at all scream "liquidation" imho.
Ryanair has a poor reputation - but in reality it offers great reliability and is very clear about what you get and don’t get - it’s like a very reliable bus with one of the best on time records. That is the critical part - it’s when you don’t do what it says on the tin that it fails - with near absolute reliability I think Frontier would be in the money!
I presume Southwest are still doing ok though? I know it's not exactly the same business model but must be similar. I always found Southwest to be brilliant - cheap fares and easily the best customer service of any airline I've flown with.
POR filed will have a debt for equity swap with convertible bondholdwrs. Company will stay around for another year or two-don’t think they’ll be liquidated ever. And their loyalty programs r still a very valuable asset that they can keep loaning against
I’m surprised. Actually quite surprised. I thought Spirit was the “Ryanair” of the USA. Last I checked Ryanair was kicking the butt over everything else. Though Ryanair uses Boeing.
I hope this video talks about how the big three subsidized their domestic flights with the billions they made off their loyalty program revenue to strategically compete with low-cost carriers. Well, at the same time lobbying to have the merger between JetBlue and Spirit denied.
Can you do a video on the Currupt Board of Directors of Spirit who intentionally destroyed the company and we're paid retention & incentive bonuses over 5+ million to do so 2 weeks prior to filing chapter 11 bankruptcy. All of the common share holders lost all equity.
Ironically enough if the merger went through, the landscape might have been more competitive as JetBlue might be a more viable alternative to the big three. Some of these judges clearly don't know how to judge. Remember hearing the news of the blocking of the merger, pissed me off.
I enjoy flying spirit. I’m just trying to get from A to B. Flying across country for under $200 let me see family and friends I might not have been able to do otherwise.
Not for many of us. Their fares were easily 2-3 times what Spirit charged. I don’t need to pay that much for “2 free checked bags” when I can fit everything I need to go to Cancun for 4 days in a backpack.
He said millions of customers were willing to put up with how bad they suck. I’d like to correct that a bit. Millions were willing to tolerate the mess one time
That is exactly what happened to me. My wife booked a flight on spirit and I’m entirely too large to fit in those seats because I’m 6’4. I told her that I would never fly spirit again.
Spirit put pressure on other airlines. That's valuable
This analysis was a cut above the ones you guys normally do, and I’m super blown away it by it.
Funny enough despite the ridiculously complex breakdown, I think you can say that Spirit making their customers unhappy as a business model was probably not a good idea. As soon as their competitors offered something similar it was game over.
If their business model of bad cheap flights was a bad idea other airlines wouldn't copy it, lol
@@ccash3290 The core idea is good but they went too hard on it and it became bad long term. Spirit went too far with cost cutting and became symbol of shit flight experience that people started avoiding it like a plague as soon as they can afford other airlines. It was over for them as soon as big 3 and other smaller airlines found line thats competitive to them but not as egregious as them on service.
@@ccash3290 they aren't copying Spirit Airlines, they are doing something that offers cheap prices like sprit but still a comfortable ride with good service. So Spirit Airlines cant compete
@@ccash3290 Oh but the bare bones tickets were a good idea. It's just that the legacy carriers found that they could shoehorn them onto normal flights at very similar prices, while still offering much better service than Spirit. Those tickets didn't even strictly need to be profitable in themselves if they helped fill their planes to capacity, without cannibalizing their existing higher margin customers.
@@ccash3290Exactly 💯%
The funny thing is whatever else one can say about Spirit, it has an excellent safety record.
Might have something to do with only flying with airbus planes and no boeings.
@@serioserkanalname499 The A320 family is a pretty rock solid aircraft from what I've heard, so not too surprising on that front.
You forgot to mention 2 things:
1. Frontier Airlines was originally supposed to acquire Spirit Airlines 2-and-a-half years ago before JetBlue came in with a much higher offer, which Spirit Airlines’ shareholders accepted over Frontier Airlines’ offer.
2. Over a month ago, both Frontier Airlines and Spirit Airlines had reignited renewed merger talks after the US Department of Justice had blocked JetBlue’s acquisition of Spirit Airlines, but this time, Frontier Airlines had walked away from acquiring Spirit Airlines, presumably due to their massive debt load, which thus caused Spirit Airlines to file for Chapter 11 Bankruptcy.
I flew Spirit once. Knowing they were budget, I actively looked for a place to pre-pay for my carryon but only saw an option for checked bags, so I figured I was good. But when I arrived for the flight, they said I needed to pay $100 for my carryon because I didn't pre-book. I told them there was no option to pre-pay, and they admitted it was because they weren't properly integrated with Kayak. When I asked to just pay the regular pre-booking carryon rate since the error was on their end, I was told no. So I asked for a supervisor and he literally shrugged and said "You can miss your flight or pay $100. Doesn't matter to me."
So I paid the ransom and never even considered flying them again. (And told my friends.)
wow, just wow. they are sick!
Judge strikes down merger between jet blue and spirit because spirit not being around would lead to hire ticket prices. Obviously the Judge didn’t account for what if spirit airlines disappears anyways
😅
the saddest part? he actively did, he commented on spirits financial issues and possible bankruptcy numerous times during the trial. Denied it anyway.
its crazy cause the merger wasn't even meant to increase ticket prices but instead just get spirit landing slots. if spirit and southwest or spirit and frontier wanted to merger, i could understand the "monopoly" claim. But spirit and blue are just not playing the same game.
Judge made the correct decision. It's survival of the fittest in a free open market. If Spirit fails, the competitive companies will battle, which will naturally decide the future of the industry. Any form of competition is good for consumers.
They won’t disappear though they will just have stock holder take the losses. This is the way capitalism works in the USA.
Spirit's customers were people taking trips they couldn't really afford. That ended with low interest rates
My family used spirit once and it was very unpleasant experience. Service was worse and their carry-on limit was abysmal so it wasn't even cheaper after extra fees (we had standard carry-on size that requires no extra fee in most other airlines not giant one that has to be tagged). As a result, we auto filtered out spirit after that and never used them again. I bet a lot of people went through the same experience where you get inticed by price initially but never revisits the airline after bad experience.
@@allhailderpfestor4839 I just booked a flight to south America. I only travel with a backpack two pairs of jeans a few pairs of short a couple of t shirts some socks and underwear it cost me 89$ for a one way ticket. I love it
@allhailderpfestor4839 same degeneracy as every Chinese brand
Spirit airlines, our cargo hold is our first class
I flew spirit airlines once after having flown ryan airlines and it being a tolerable experience. Spirit literally told us they don't know where our plane is for our return flight back. People talk about the nickle and dime issue, but the real reason people hate them is that they shoestring their routes with timing dependencies that are too strict to be a reliable carrier. The entire logistics network breaks down whenever variation is introduced into the system.
I was shocked that I didn't even hear about spirit going bankrupt! Thanks for this video. Love the comparisons between major companies like this.
Great ruling by that judge driving spirit into the bankruptcy really protected consumers with that one.
instead spirits assets will be gobbled up by the big 3 at auction prices, great for competition 👍
Judge made the correct decision. It's survival of the fittest in a free open market. If Spirit fails, the competitive companies will battle for former Spirit customers, which will naturally decide the future of the industry. Any form of competition is good for consumers.
@@zarbon700 dumb take
@@zarbon700 This is the opposite of competition. The big three starved out spirit and drove it to bankruptcy. JetBlue was blocked from upsizing by acquiring Spirit to compete with the oligopoly in the industry. Thanks to the judge's decision, consumers lose AND JetBlue/Spirit lose.
@@zarbon700 This is the opposite of competition. Spirit was driven to bankruptcy and out of the market by the big three airlines, and JetBlue was prevented from upsizing by acquiring Spirit to compete with the oligopoly in the industry. Thanks to the judge's decision, consumers lose AND JetBlue/Spirit lose.
After watching this video, my opinion of Spirit pretty much completely changed. I appreciate what they were trying to do now- even if it did end with a lot of viral, unsavory incidents at Spirit ticket counters.
First class vs. basic economy is like the only time trickle down economics actually kinda worked
😂
😂 good one
I find this channel has the best and most interesting explainers ever. Even if I watched a topic I still want to watch it here, not to mention all the interesting topics that I didnt even know I wanted to hear about!
The biggest problem with Spirit airlines was people thinking that the $39 one way would get the same exact perks as the $99 one way on delta.
You can't expect the same exact perks on a a la carte ultra low-cost carrier versus the big carriers.
The next and biggest issue with spirit and frontier is that no one reads the terms and conditions, it clearly states when you're purchasing the tickets that the seats bags and anything else will be an extra cost as to why the price is so low, so why pay that low price and then get upset that you're not getting a bigger seat and checked bags like the bigger carriers.
In Ft Lauderdale, Spirit’s gate was divided from all others by a glass wall. At the entrance there was a woman performing the awful job of spot charging every customer with a carry-on $50 via hand held card reader. Some people said this is BS. Others said F-you and forced their way past.
There is a something you have forgotten, DYNAMIC PRICING. The prices you set in the example for the big three could easily be much higher.
Meanwhile Air Canada is eliminating free carry on bags to take a page from Spirits playbook
Ugggh. West jet is just as bad now too.
In Europe we have plenty of low-cost airlines. E.g. Wizzair, Easyjet and Ryanair use the same business model of Spirit for more than 20 years.
Yep.
European business models don't work in America. As socialists, Europeans are accustomed to 3rd world travel. Americans are accustomed to luxury. European are accustomed to small cramp seats in their cars. Americans drive huge comfortable Sport Utility Vehicles. Europeans use more public transportation than Americans, who are accustomed to the luxury of not sharing space with strangers. Europeans are very different consumers than Americans.
@RamonVelazquez-w5f living in europe beats living in US by FAR. And this is from an american.
@fabiokaya202
Great. The more losers leave the better. Millions of people left that backwards shitbox, but plenty belong back in that gutter of socialist mediocrity. Enjoy all the fast food we are exporting. Europe is desperate to imitate all things American. To bad they will never have the technical innovation that comes with freedom.
@fabiokaya202
Perhaps that is true for the peasant class.
From a former airline pilot and airline passenger sales manager -
Thanks for a well researched and presented video.
For the same price or a little more money:
Would you rather "Catch the Spirit!"
or
fly with a legacy carrier?
With its superior comfort in even the worst seat,
and more options if one's flight is cancelled?
History repeats -
The "basic economy" matching by Legacy carriers is exactly how Kiwi out of EWR was killed in the 90s.
United matched any Kiwi fare to ORD departing within 30 mins of a UA flight.
Most of the people who I know of that tried Spirit only flew on it once, and immediately decided that they'd much rather pay AA/United/Delta the extra cost to not get crammed into a cattle car where being rude and loud seemed to be a passenger requirement. That said, I've never heard anyone say anything bad about their pilots or flight attendants so there's that at least.
I think the creator looked too far out to book tickets when comparing pricing. Spirit pricing tends to be more expensive if you book more than 3 months out.
Typically legacy carriers pricing is 2 to 3x more expensive
I am a loyal spirit customer been flying them since 2005.. They get a bad rap mostly because some customers try to cheat the system. I have only been delayed 4 times and I have a pleasant experience each time.
I am also a gold member which means I don’t pay for any extras. Once you figure out how to fly spirit air you won’t go back to a legacy airline
JetBlue also wanted Spirits' airport slots. Iirc, JetBlue can't fly to LAX because there are no slots, but Spirits do have a few.
Wonder if JetBlue (or other airlines) can now purchase those slots in bankruptcy court.
Just flew to LAX from New York 2 weeks ago on JetBlue.
@@johnl.7754 slots belong to the government, that regulates the airspace, gates belong to the airport operator, they may or may not be transferrable in bankruptcy court
JET blue flies to the same vacation destinations as Spirit on the east coast, Caribbean and Central America. What Jet blue wanted was Spirit fleet of aircraft to reposition and better compete on the west coast while maintaining current or slightly higher utilization on the east coast.
Basically to get slighter bigger than they are currently.
@@JeanClaudeCOCOJetBlue acquiring spirit would be bad for south Florida market and would’ve raised prices
Loved the infographics. Please do more like this it’s amazing
I never flew with them, usually fly with Jet Blue, American or United. Lower price wasnt enough to put up with their crazy long layovers, weird schedules and cross country routes rather than a point to point trip.
Thank God for you sir I really needed someone to explain this to me!
Spirit Airlines is a true blessing. The prices were very low and flights frequent from Atlanta, Georgia to Fort Lauderdale, Florida.
Spirit airlines, the Greyhound of the skies.
more like trainways LOL
More like ghetto
I remember flying spirit in 2012 my leg was in the isle because the leg room is non existent I’m surprised it was even legal. I decided to never fly it again and never have.
I flew Spirit twice. The first time was great. The second time my scheduled flight home was delayed for 6 hours, then finally completely cancelled. Received no compensation. That was it for me.
😂😂😂😂
To be fair, their economy seat pitch is the same as frontier, Allegiant etc
They are doing an essential job of keeping prices down 👊
The interesting thing about Delta and United being the most on time is that they both operate the oldest fleets than any of the others.. honestly great maintenance programs at both airlines.
Spirit and Breeze canceled routes out of LAX this year. Even with paying for luggage, Spirit was still so much cheaper than the others. I miss it!
I use them because they are cost effective and fly direct where I need to go. I have never experienced a delay with them and I frequently do with United. The seats are small so I will buy the big seats if they are reasonable. It’s still cheaper than flying other airlines.
spirit is a good airline if you're just taking a trip for one or two days and you don't need a lot. my family flew spirit a lot and the key is pack only the barest of essentials, and stay somewhere where you can wash your clothes. essentials can fit in a personal item easy. its not the most comfortable, but in some cases it's better than not taking the trip at all! i actually hope they get out of bankruptcy because they're the best way for me to fly personally lmao
It’s a good flight to take to Vegas from Los Angeles
Yeah, I never knew what people were always complaining about. I’ve gone on 4-5 trips on spirit with all my stuff in a backpack. Not sure why so many people need to bring all their worldly possessions on a quick trip to Cancun 🤷🏾♂️
This is gonna be good..time to buckle up. Im here for the fighting videos
Jet Blue failing to acquire Spirit seems like a blessing in disguise in retrospect
Yeah, JetBlue is getting those planes much more cheaply now
@@dvoicer6785perhaps, but JBU will need to weigh the opportunity cost of having to wait over a year later that it had hoped to get the planes. The revenue it failed to generate from not being able to get the aircraft now may easily wipe out any savings from buying the aircraft later in liquidation.
@@dvoicer6785Except Jetblue doesn't have much money and the other airlines could buy it before they can
It was the right call to break up that deal. Spirit isn't going anywhere.
I flew Spirit a few months back. As soon as I realized I was on an Airbus, not a Boeing, nothing else mattered, and I was happy.
Spirit needs more customers like you…😂😂
@paulsz6194 They have a LOT of customers like that. It's funny how there's so much negativity towards them, yet every fight I have taken on Spirit has been a full fight. I can't say that about other airlines.
Shhhhhh…..We don’t want anything to happen to you talking bad about the aerospace co that shall not be named.
Statistically youre wrong. Boeing safety is the same and Spirit delays are real.
@@jesdadotcom Fascinating! Oh hey statistically speaking, what do you think the chances are of you have a sense of humor?
Spot-on analysis
Chef kiss. Thank you for the video!
Trains. We needs trains.
@@kapilchhabria1727 they will never turn a profit outside New York Megaopolis. I bet my life upon it
@@samsonsoturian6013 nyc subway operates at a profit loss too
And windmills trains and windmills the technology of the future if man were meant to fly God would have given him wings.
@@EventHoriXZ0n Exactly
Time is money. Amtrak from NY to Florida is 18 hours. A flight is 3 hours. The train costs more. Economically it’s not viable. Even with HSR the train would still take at least 6 hours and the ticket would need to be heavily subsidized to be even close to being economically competitive to flying. And that’s a big pill to convince taxpayers to swallow
Basic economy is “well, I guess the poors need to get places also.”
Or small people since it's like first class to them anyway.
It's a bit weird to say the business model doesn't work while in Europe many airlines with the same model exist. ryanAir is one of Europe's most profitable airlines
Would have been more accurate to say the model doesnt work in the US. US market and European market are fundamentally different as the premium US market is humongous due to business traveler while Europe has very few in comparison
There a was (at least originally) a different proposal from european low cost airlines. When Ryanair was growing like crazy, they didn’t advertise on price alone, they were one on the top of the airlines with least delays and canceled flights. This is a proposal that works for both the European Protestant northerners who love to pay less for something that works (even with less comfort) and penny pinching southerners. No experience with spirit, but that’s significantly different from “its cheap and you get what you’re paying for” I just heard on this video.
Europe is very small compared to the us. That probably makes it easier to operate a airline like this.
@@Pltr03 and since taxes are almost at 50% while wages are low compared to the us most europeans cant even afford expensive airlines
I brought 3000$ worth of spirit stock two weeks ago for 0.15$ cents a share I think today it closed at 0.65$ cents a share. 💵💵💵💵💵💵💵💵💵🙏
sell 😂
@dylanjimenez1952 no way I'm definitely not selling especially because trump is becoming president he will allow a merger. Biden administration were clueless. Spirit stock will be 20$ a share in two years. This is the opportunity of a lifetime time. Don't hesitate buy buy buy and keep buying
HOLD!!
I did the same. As soon as I saw they are allowing stock to be purchased again, I loaded up. 🤑
good explanation of airline economics, ad yes - the DOJ made a mistake.
Breaking up the JetBlue/Spirit acquisition was the right call for America and their consumers. Ticket prices would have gone up a lot.
I like Spirit Airlines. They have been nothing but good to me.
Me too!
I flew spirit in college for your average low cost college trip. We upgraded to the big seats cause we weren’t broke. Man it was like flying united economy
When you try to disrupt economics, usually the only thing disrupted is your payroll.
Shut up commie, what are you even doing on a finance UA-cam video??
that merger blocking was ridiculous. The big airlines were allowed to do it, and now have so much money to lobby they can do whatever they want. A lower cost, competitive airline tries it and now look at what happens
First of all, great video! Secondly, the summary for me is that spirit can in 20 years ago with Rick bottom prices then the other big 3 lowered prices too and that was the end for spirit. 😂 ultimately, we all want ultra low cost airlines operating so that the big 3 don’t raise prices.
Spirit Airlines' customer vanished into the night. Their prices were a steal but was under the hood wasn't good.
Their customers haven't vanished. I flew Spirit this week and the flight was full. Every flight I take with Spirit is full.
Since no one else said it; the worst part about Spirit is the customers.
Fat, smelly, rude, no manners, stains on clothes, sweatpants on an airline, talk loud, and complain about everything.
After one flight with that crowd, saving $50 just doesn’t seem appealing at all.
The Straggle, Hick and Redneck Airline.
Thanks for the information . I’m a JetBlue flight attendant and we certainly disagree for the blocked merger .!
The causes for the demise of „hyper efficient companies“ are quite well expressed in Black Swan. Once you chase higher and higher efficiencies, you become vulnerable. People with MBAs think selling one kidney is smart because you have 2 and just need one and thus 2 are a waste.
We need a change of mindset in current society, a massive one.
Consumerism at this point just enabled price dumping to an extend it's not healthy anymore.
Yes I like a good offer too, but not one that is so "good" it will inevitably ruin businesses. Which just leads to a monopoly which is just bad.
But hey, everything has to be ultra cheap, no matter the quality, just make it even cheaper as consumers must consume no matter what.
This is why tariffs are viewed as bad. Cheapest price is all that matters. Very myopic viewpoint.
@@biometal770yes by people who don’t understand tariffs are in large part excellent leverage to force negotiations and deals…America carries a large stick. Instead of overthrowing governments and using force to be the policeman of the world we should be forcing deals and using economics to incentivize change.
@@ssssaintmarcus yes that’s right. This country doesn’t seem to understand that China, and other countries, need us, we don’t need them. And the cheapest price comes with a cost (namely sacrificing jobs to other countries). It doesn’t matter if we can buy a cheap product if we have no jobs that pay salaries to purchase said products.
Great analysis but you missed the issue increased interest rates had post covid on the airlines debt. Also the engine issue is a huge factor due to the sheer percentage of their fleet that was affected.
use antitrust lawsuits to Block the Kroger merger. they will also raise grocery prices
Spirit kinda deserves to go under with the bs they pull
It's not just the planes. JetBlue wanted to acquire Spirit for it's airport slots as well. It was kinda sad that the merger didn't push through, although it's another thing to say if JetBlue will be burdened with Spirit's baggage. Makes me wonder if they can attempt a merger again, especially at that discount, or can JetBlue do it while Spirit is under bankruptcy protection.
It wasn't a merger.
Which AI do you use for the narration? Sounds really good
I liked flying with them from Niagara Falls to Myrtle Beach. It was cheap and quick with modern planes. I knew going in that everything additional had to be paid. I once upgraded to first class (yes, they did have a first class about twelve years ago) for only 25 bucks.
Spirit was the reason I could get home for the holidays during college and once I started working I vowed to never use them again
(Spirit). In January, the U.S. District Court for the District of Massachusetts blocked the transaction because it violated “the core principle of antitrust law: to protect the United States' markets - and its market participants - from anticompetitive harm.”
Still don't understand how the Justice Department sees this as a win for the US consumers with Spirit going into bankruptcy. Seems that JetBlue will get a lot of these assets through the bankruptcy process.
I have never flown Spirit, but clearly the should allow free carry-on for everyone, just raise the ticket price slightly and it still would be cheaper than basic economy. Also they should reconfigure to allow for some extra leg room seats at a charge, that is a good profit center. Not that would fix Spirit but maybe break even.
Spirit actually charges more for a carry-on than for a checked bag on most flight which makes sense in some ways as it speeds up the boarding process.
It’s important this airline keeps flying. Otherwise we who travel on other airlines will have to deal with those types of customers
I appreciate Spirit for making the other airlines better/more-generous, if nothing else. Basic Economy sounds almost like charity.
I did not know that the costly airlines owned oil refineries. That got me. 😂
There's another caveat around legacy carrier Basic Economy: there are easy ways to mitigate some of the compromises. At least on American, if you have the credit card, you still get preferential boarding and a free checked bag, so the downsides for Basic Economy ends up just being the restrictions on changing your flight and not being able to select a seat for free.
we need a ALDIair
Yea
I never really liked discount Airlines
You end up paying for it in other ways
You must have used them the wrong way. Spirit is not for families at all, or for normal voyagers. Spirit is for day travelers so to say with no or little luggage. Much better than SW which is a zoo.
Yes, let companies that need to fail, fail.
Spirit isn't going away.
Good! I hate spirit airlines. Its like one of those horrible restaurants where they can only capitalize to new customers because existing ones will never come back.
foreigner i have never heard anyone say a good thing about Spirit Airlines besides their low prices. but it is -famous- notorious enough to even make it to our local tv game shows.
I do GREAT with the AXP Delta SkyMiles card.
If Spirit goes the big 3 will raise their ticket prices because here in Boise it means there's less options.
Fly high
Fall low
oh no
It seems like every Spirit flight I’ve been on there was some kind of drama either at the gate or on board, the passengers don’t know how to behave. Won’t miss it even though our fares will increase.
Miss it? Spirit isn't going away.
My thoughts are that the government will assist Frontier in acquiring Spirit in order to keep fares lower.
JetBlue itself is unprofitable, so I don’t see how a merger would help
There was never any merger with JetBlue and Spirit.The merger was with Frontier.
@ ah, got mixed up
Never had a problem with Spirit. Everyone watches too many youtube airline videos. Every wants golden toilets on their flights.
It's my favorite airline. I fly a lot, and I can't remember the last time I chose a different airline.
Spirit does in fact have a "first class." Big Front Seats, the service isn't any better, but it is a business recliner and everything is included.
Spirit doesn't have a first class. They have a Big Front Seat. However, their new Go Big option in their new Go series of ticket choices is a lot like first class.
I like your video. Just some constructive feedback. Your reading of the script sounds so robotic that I presumed this was AI. I encourage you to listen to your video and look for opportunities to relax while using your more natural voice.
I'm curious to know why you think liquidation is the most likely result when they have secured a supermajority support from creditors like citadel (who actually helped Hertz through a chapter 11 scenario). They have DIP financing along with secured debt reductions being transferred into equity. The pre-arranged nature of this bankruptcy does not at all scream "liquidation" imho.
Hopefully Frontier is next. A terrible experience. Never again.
🤣 I mean, just don't use them😅.
Really? The more budget airlines the better. Do you really want Spirit customers on your Delta flights?
Idea for your next story: Check out KTM or Pierre Mobility Group
great video
Ryanair has a poor reputation - but in reality it offers great reliability and is very clear about what you get and don’t get - it’s like a very reliable bus with one of the best on time records. That is the critical part - it’s when you don’t do what it says on the tin that it fails - with near absolute reliability I think Frontier would be in the money!
Can you make a video on Ryanair?
I presume Southwest are still doing ok though? I know it's not exactly the same business model but must be similar. I always found Southwest to be brilliant - cheap fares and easily the best customer service of any airline I've flown with.
Southwest is in trouble too. I think it's because of the planes they fly and not their business model.
Love how anytime the government steps in it’s just a disaster.
POR filed will have a debt for equity swap with convertible bondholdwrs. Company will stay around for another year or two-don’t think they’ll be liquidated ever. And their loyalty programs r still a very valuable asset that they can keep loaning against
I’m surprised. Actually quite surprised. I thought Spirit was the “Ryanair” of the USA. Last I checked Ryanair was kicking the butt over everything else.
Though Ryanair uses Boeing.
Pointing out that most of spirits customers don't have a high enough credit score for a credit card is unintentionally hilarious lol
I hope this video talks about how the big three subsidized their domestic flights with the billions they made off their loyalty program revenue to strategically compete with low-cost carriers. Well, at the same time lobbying to have the merger between JetBlue and Spirit denied.
Can you do a video on the Currupt Board of Directors of Spirit who intentionally destroyed the company and we're paid retention & incentive bonuses over 5+ million to do so 2 weeks prior to filing chapter 11 bankruptcy. All of the common share holders lost all equity.
Ironically enough if the merger went through, the landscape might have been more competitive as JetBlue might be a more viable alternative to the big three. Some of these judges clearly don't know how to judge. Remember hearing the news of the blocking of the merger, pissed me off.
There was never any merger with Jetblue. The merger was with Frontier.
Can you do a video on the new airline Breeze?
4:23 That should be standard at any business IMO.
I enjoy flying spirit. I’m just trying to get from A to B. Flying across country for under $200 let me see family and friends I might not have been able to do otherwise.
Exactly 💯%. I love Spirit! They are my go-to airline.
In my opinion spirit is a try it once then go back to Delta
Any business that has a business model in which a loss on every sale can be made up for in volume is destined to eventually fail
Southwest is the best ❤❤❤🎉
I was just about to type the same thing. SW gets me around perfectly. No fuss no muss.
Not for many of us. Their fares were easily 2-3 times what Spirit charged. I don’t need to pay that much for “2 free checked bags” when I can fit everything I need to go to Cancun for 4 days in a backpack.
So much for the spirit in the sky !!
Spirit isn't going away.