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Spirit does Ryanair

Reaction to Spirit Airlines' starting to charge for baggage and soda has been generally negative, despite the airline's PR in the guise of "liberating customers from being forced into paying for services they do not desire or use." After all, Spirit is not exactly a household name across the USA. They are going to have a tough time making this stick.

The airline says it will cut fares by as much as 40% and impose the new fee system for all flights operating from June 20. This is straight out of the Ryanair play book. And we agree 100% with Bob Mann who says the idea is "dead on arrival." AP quotes Spirit CMO Barry Biffle saying "As customers have told us over and over, it's all about the fare." Really?

Well of course it is if you're operating an LCC. But that does not mean you can make your ideas stick. The US is a mature LCC market – only if Southwest approves of this idea and copies it, will it stick. Southwest makes the rules, not Spirit. We bet Spirit backs down because Southwest is unlikely to follow this course.

If they don't back down, they might get away with their policies for a while because they do not operate in many highly competitive markets. But by doing this, they invite in competition to any of these markets (hello ExpressJet?). All for the price of a soda and a bag.

Spirit does Ryanair

Reaction to Spirit Airlines' starting to charge for baggage and soda has been generally negative, despite the airline's PR in the guise of "liberating customers from being forced into paying for services they do not desire or use." After all, Spirit is not exactly a household name across the USA. They are going to have a tough time making this stick.

The airline says it will cut fares by as much as 40% and impose the new fee system for all flights operating from June 20. This is straight out of the Ryanair play book. And we agree 100% with Bob Mann who says the idea is "dead on arrival." AP quotes Spirit CMO Barry Biffle saying "As customers have told us over and over, it's all about the fare." Really?

Well of course it is if you're operating an LCC. But that does not mean you can make your ideas stick. The US is a mature LCC market – only if Southwest approves of this idea and copies it, will it stick. Southwest makes the rules, not Spirit. We bet Spirit backs down because Southwest is unlikely to follow this course.

If they don't back down, they might get away with their policies for a while because they do not operate in many highly competitive markets. But by doing this, they invite in competition to any of these markets (hello ExpressJet?). All for the price of a soda and a bag.

America gets its Gamblers' Express

This has to be an amusing flight – imagine the in-flight conversations. Spirit announced nonstop service between Atlantic City and Las Vegas beginning May 3, 2007.

Not to be left out of the spin opportunity -

"This new direct nonstop flight is exciting news for the Atlantic City market and for the Las Vegas market, pairing these two entertainment and convention cities is a win-win for everyone and underscores the vitality of our region," said Bart R. Mueller, Executive Director of the South Jersey Transportation Authority. "Spirit Airlines is offering Atlantic City the same opportunity as the metro airports in providing flights to and from the most desired travel destinations."

"The investments we are making continue to pay off in a big way for southern New Jersey travelers who will now have a greater choice of nonstop service from Atlantic City than ever before," said SJTA Chairman Frank Spencer, noting that the airport is in the midst of a major expansion and renovation program that has dramatically expanded parking and other customer amenities. "The pairing of these two extremely popular destinations is a sure bet for our market," added Spencer.

"Considering the casino operators have exceptional facilities in both destinations, this nonstop service will benefit inbound visitors offering them Vegas with an Ocean View and provide convenient business travel between the two popular entertainment and convention cities," stated Joe Kelly, President of the Atlantic City Regional Chamber of Commerce.

Whatever. The market size is 5 PDEW without stimulation or “steal” from the PHL area. We don't think US Airways is going to worry much about this move.

America gets its Gamblers' Express

This has to be an amusing flight – imagine the in-flight conversations. Spirit announced nonstop service between Atlantic City and Las Vegas beginning May 3, 2007.

Not to be left out of the spin opportunity -

"This new direct nonstop flight is exciting news for the Atlantic City market and for the Las Vegas market, pairing these two entertainment and convention cities is a win-win for everyone and underscores the vitality of our region," said Bart R. Mueller, Executive Director of the South Jersey Transportation Authority. "Spirit Airlines is offering Atlantic City the same opportunity as the metro airports in providing flights to and from the most desired travel destinations."

"The investments we are making continue to pay off in a big way for southern New Jersey travelers who will now have a greater choice of nonstop service from Atlantic City than ever before," said SJTA Chairman Frank Spencer, noting that the airport is in the midst of a major expansion and renovation program that has dramatically expanded parking and other customer amenities. "The pairing of these two extremely popular destinations is a sure bet for our market," added Spencer.

"Considering the casino operators have exceptional facilities in both destinations, this nonstop service will benefit inbound visitors offering them Vegas with an Ocean View and provide convenient business travel between the two popular entertainment and convention cities," stated Joe Kelly, President of the Atlantic City Regional Chamber of Commerce.

Whatever. The market size is 5 PDEW without stimulation or “steal” from the PHL area. We don't think US Airways is going to worry much about this move.