The airlines picked destinations that were near by to the main operating base and was of tourist interest. (Flouris; Oswald, 2006) Its low cost fare made it ideal for the short tour traffic
The revenues of the company are also generated from advertisement inside the flight. (Longenecker; Petty; Palich; Moore, 2009) Let us now discuss about the niche and prospects
Spirit airlines carved a niche within the low cost niche by becoming the 'king of cheap' and transforming the company to fill a new slot that can be called the ultra low cost carrier and reversing the charges by charging almost nothing on the flight cost but charging for everything except the seat in the flight. (Shenkar, 2010) The uniqueness of the charges of the Spirit Airlines which insists that passengers must pay $45 for bags that do not fit under the seat is also likely to be challenged
Due to its novel operations the company gained a lot of market and also financial backing from investors and financiers and thus initially there was no need to go public and most equity was held by the financiers. (Snyder, 2010) The company in 2004 gained $125 million in capital with new investment from partners
What has happened to the company since the IPO? Delivering differentiated and new values to the customers and the market especially for selected customer groups in the market is the latest strategy to remain the market leaders which translates to further expansion and gains. (Treacy; Wierseman, 1997) Just before the IPO was started by April 2010 Spirit Airlines published what it called the PENNY PLUS reducing the checked bag fees for the $9 Fare Club members
Spirit Airlines is the leading Ultra Low Cost Carrier in the United States, the Caribbean, the Bahamas and Latin America. Serving 39+ destinations, we liberate you ...
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Fourteen commercial passenger airlines service the Minneapolis-St. Paul International ... KLM Royal Dutch Airlines; Spirit Airlines; United Airlines; Airline: Air Canada.
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