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Spirit airlines case study summary
Spirit airlines case study summary
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Spirit Airlines obtains a name that has deceived many people and did not just stop there. It stands as the cheapest airline with tickets priced at just a little over 100 dollars, but only holds a two star rating from Skytrax, a very popular World Airline and Airport Star Ranking website. No one ever has to worry about a delayed flight for hours with no explanation or lost luggage because “it fell out of the luggage cart” with any other airline like people do with Spirit. In 1964, Spirit started as Clipper Trucking Company and was later founded in 1980 as an airline service. Spirit currently travels to 57 destinations throughout the United States, South America, Central America, and the Caribbean. Spirit Airlines equivalent to that one theater …show more content…
The normal routine for any airline: taking off shoes, pulling all electronics with hard drives from carry-on bags, remove any medal that would go off in the detector. Upon completing the security check, then starts the hunt for their gate, which often times is really nearby. Once finding the gate and an available seat to wait for their flight to be called they look around to see no place full of taste to get something to eat. The thought of ordering a salty snack and an icy water sweat cup beverage on the flight crosses their mind. Nearly half an hour later, a Spirit employee voice bellows over the intercom “I am sorry to inform those of you who are flying on flight 673 that it is being delayed an hour.” Another hour in a place with no food, only the view of airplanes, news channel they put on their television, and no explanation. This happens often and sometimes more than once. In some instances the flight might even get cancelled and they will not manage to give you another flight until sometimes three or four days later. Spirit Airlines does not team up with another airline to get them a flight as soon as possible like some other airlines …show more content…
Flight 673 is now boarding.” A Spirit employee calls hours after the original flight time. Getting in the designated line with 151 people who have inhabited the airport for hours, they start to board the plane. At the front of the line, the Spirit employee takes the plane ticket and scans in before allowing the passenger to pass through and onto the plane. As soon as they step foot on the plane, they are welcomed by a flight attendant and set out on a search for their seat. Once locating their seat, the passenger shimmies their way in, their behinds or fronts in other passengers faces. Arm rest close to their sides and feet shoved half way under the seat in front of them, the passenger attempts to get as comfortable as possible. After everyone has boarded, the flight attendant begins to give the mandatory instructions, speaking at a million words per minute as all the passengers just nod and pray their plane makes it to their destination safely. The flight attendants begin to come around and ask if anyone would like anything, once the plane settles in the air. Picking up the menu, the passengers will see that all cool beverages, including water, sell for three dollars and snacks ranging anywhere from two to four dollars. Noticing the “Value Meal” deals, they debate the worthiness of purchasing more to save up to four dollars at most. Their stomach roaring like thunder, they decide to order a lightly salted snack and cup sweating beverage.
They provide guests with a virtual network of more than 900 destinations worldwide. Alaska Airlines has been the leader in the industry for on-time performance among major airlines for the past seven years. They earned record financial results in 2016, marking the 13th consecutive annual profit on an adjusted basis. Spirit Airlines is an ultra-low cost, low fare airline. Compared to Alaska Airlines, Spirit Airlines pricing is much lower. Both Spirit Airlines and Alaska Airlines have steady financials in both favorable and more difficult economic times.
The Attendant then notifies the Person that he will be outside the room the entire time. The Person then asks “Is it boring?” (544). The Attendant replies with a simple answer. He said
Many people have issues with flying. Some are nervous that the plane might not make it to its destination while others think of flying as an overpriced, uncomfortable, and unpleasant experience. Than there are those who can afford to make their flight experience much more luxurious which are the passengers flying in business class or in first class. These are passengers that get the champagne in the plastic glasses and the chairs that stretch all the way out. David Sedaris is able to paint this picture of entitlement and lack of comfort throughout his article “Journey into Night.”
Spirit makes our fares so low because they know that draws in the attention of the consumer. Once they have your attention you’re shocked at the price so you go for the deal, oblivious to the fact that you walked into their trap. Southwest’s symbol for shareholders is LUV while Spirit’s is SAVE. They are not the only companies to start to enter into these paths. Hotels, rental cars and cruises are all faced with the same choice to embrace the LUV or the thriftiness with SAVE (Elliot
Spirit addresses “price” by attempting to get the lowest possible fair for their potential customers. They have instituted their “unbundling” strategy that essentially removes all the conveniences that other airlines afford. Fees for checked bags, fees for flight changes, and no complementary in-flight beverages are just a few of the cost-trimming techniques employed. This strategy allows Spirit to come up with impossibly low fares. It also conforms to customers who just want to get from point A to point B without paying extra for services they don’t use. This strategy, coupled with an in-your-face “promotion” ploy, has made Spirit Airlines “the most profitable airline in the U.S.” (Nicas, 2012).
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
Deregulation for 16 years (1978) has resulted in an icnrease of domestic carriers from 36 in 1978 to 100 in 1985.
Southwest has comprehensive strategy and they work with harmony. They are low cost airlines which make the customer feel like royalty. Southwest have a winning strategy is proven by their profit year after year even thought they had economy crisis. Since 1973 Southwest reported a profit each year even when they lost billions of dollars from the year 1980 to 2009 because of the low operating cost strategy, low fares and customer service. Since the start of Southwest they have stay faithful of keeping low cost across the industry. Their value in corporate culture reflected through their prices and customer service.
For years, Southwest Airlines has been experiencing stable costs, low fares and traffic stimulation. However, the latest changes in the marketplace (See Exhibit 1: SWOT Analysis), including the higher energy costs and the entrance of new low fare/cost carriers are threatening the future of the airline. As a result, LUV needs to decide whether or not to acquire the slots and gates from the bankrupt ATA Airlines at LaGuardia (LGA) terminal in New York City (NYC) in order to expand its capabilities.
2002 was a very hard year for airlines, and this trend will continue for a long time. It is true that since September 2002, we have seen double digit passenger growth rates again, but these figures are deceiving as they only compare current rates with figures taken after September 11th. Neither do we expect a substantial growth in the market in 2003. Attacks in Iraq add to the skepticism. This also entails the food industry for airline industry, which is also known as the airline catering. Sky Chefs was initially firmly incorporated in 1942 as a wholly owned subsidiary of American Airlines. The Company’s principal functions were, and carry through to be, the provision of in-flight food and beverage catering services to the airlines. In 1986, the Parent Corporation of American Airlines AMR Corporation sold Sky Chefs to Onex Capitol Corporation (Onex). In 1993, LSG, a wholly owned subsidiary of Lufthansa German Airlines, acquired twenty-three percent of Sky Chefs, and brought into a worldwide marketing alliance pinning down Sky Chefs as “LSG Sky Chefs.” In 1999, LSG extended its ownership to more or less forty-eight percent with the option to purchase the leftover shares by the end of 2003. Sky Chefs a short while ago employs almost 14,000 employees in the United States, and services more or less 109 airline customers at very nearly eighty stations. These airline-catering accounts are ninety-eight percent of Sky Chefs domestic business, and the hourly employees carrying out this work consist of around 90% of its U.S. workforce. Roughly ninety-eight percent of Sky Chefs domestic business is airline-catering accounts. Similarly, around ninety-eight percent of its U.S.-based hourly employees work for the airline contracts. Wherever...
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007). The company also provides opportunities for learning and personal growth to each employee. Creativity and innovation is very important and highly encouraged, for the purposes of improving effectiveness. Employees are to be provided the same concern, respect, and caring attitude within the organization that the employees are expected to share with the customer. Southwest Airlines was initially created to be a low-cost alternative to high price of intra-Texas air carriers (Freiberg, 1996). Southwest’s fares were originally supposed to compete with car and bus transportation. It was a little airline, and it would withstand the test of time. As a discount, no-frills airline, it would provide stiff competition for larger airlines. Their strategy was to operate at low cost, offering no food, no movies, no first class, and no reserved seats. They created their own market and provided increased turnaround times at the gate, by avoiding hub-and-spoke airports and opting for short-haul, direct flights. Through this market approach, Southwest has a majority of market share in the markets they serve.
to major airports but later it went down as PE try to grow faster and
I'm not sure if its excitement or dread, probably a little of both. Anyways I think I understand now why airline food is such a comedy clique. I think the chicken and rice they served me here on the plane was cat food and wet sand. I tried a bit of the chicken, and let's just say it's not chicken, or probably even meat. I don't know how but Harry ate all of his.
It is Friday 2 AM and I am up still packing for my flight to Las Vegas departing at 5:10 AM. I finally tuck all my shoes, clothes and hair products into my two suit cases and I am praying they are not over the 50 lb limit. I lay down for what seems to be two seconds and the next thing I know I am en route to the airport. My group and I rush to the check in counter, we check our bags and a slight nervous feeling comes over me as they weigh my bag, 5 lbs under the limit, I am good! We speed off to security check and happy to see there is no line, what do you expect when your flying so early in the morning. We finally hear the announcement over the intercom, Flight 17 to Las Vegas now boarding. With everyone all accounted for we are off