I was okay with most of the skimping with spirit airways, but what really annoyed me was their delays. I can plan ahead not to bring luggage and to sit cramped. But arriving at my destination 5 hours later was a deal breaker for me. I don't know if there are statistics for how delayed they are vs competitors, but after my second flight with them, I decided to fly with airlines that are more punctual.
Let's Buy Spirit Air
91–100 of 628 posts
Re: Let's Buy Spirit Air
#92I am not sure what the site intends to do, but doesn’t spirit have eight billion in debt with about one billion in payments due immediately.
The planes and other assets belong to the debt holders. Unless this site plans to raise a couple of billion, I don’t think they are buying any airline .
Re: Let's Buy Spirit Air
#93Can someone help me understand the argument that the FTC blocking the merger was bad?
The argument I have seen is that blocking it resulted in Spirit dying and people losing their jobs and there being less competition.
Wouldn’t the same exact thing have happened regardless? Am i supposed to believe that Jet Blue would have kept all of those employees? There would be one less competitor anyway, and in the merger case they’re even more powerful now meaning competing is harder.
It seems to me it’s just that creditors want to be paid out by a merger rather than paid our for cents on the dollar when it died on it’s own.
Re: Let's Buy Spirit Air
#94Fundamental problem: Flights don't make money. Airlines actually make all of their money through loyalty programs and credit card payments. They basically should have turned into regulated utilities long ago, but loyalty program revenue saved them. Unless this initiative will turn into a credit card company (which nobody likes or wants to do) it won't go anywhere Private equity will likely sell the company for parts.…
Why does any of this imply they should become a regulated utility? This seems like a textbook case of the free market pushing prices down to cost. Having alternative revenue streams pushed that minimal price down; but even without that, there is no reason to think the market would have done anything other than push prices to the lowest level possible in that environment as well.
Re: Let's Buy Spirit Air
#95Maybe it is better to let the airline that treats people like adversarial cattle to die; maybe it is a good signal that that is a bad business model.
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Re: Let's Buy Spirit Air
#96Earlier quoted context omitted.
Sounds like the industry is extremely efficient. Why would we want to turn this into regulated utilities?
sounds like it's not efficient at all? it's barely functional as a business and is only surviving on grifty addons?
This is a textbook case of competition pushing profits down to 0. That's an ideal case scenario. Why would you want to change this?
Re: Let's Buy Spirit Air
#97Can someone help me understand the argument that the FTC blocking the merger was bad? The argument I have seen is that blocking it resulted in Spirit dying and people losing their jobs and there being less competition. Wouldn’t the same exact thing have happened regardless? Am i supposed to believe that Jet Blue would have kept all of those employees? There would be one less competitor anyway, and in the merger case…
The straw that broke the camel's back is the fuel spike due to the Iran War. That drained the remaining liquidity.
No idea if the extra time "normal" fuel prices would have allowed Spirit to find a way to stay afloat, but the fuel price spike stole any time they had to figure it out.
Re: Let's Buy Spirit Air
#98Can someone help me understand the argument that the FTC blocking the merger was bad? The argument I have seen is that blocking it resulted in Spirit dying and people losing their jobs and there being less competition. Wouldn’t the same exact thing have happened regardless? Am i supposed to believe that Jet Blue would have kept all of those employees? There would be one less competitor anyway, and in the merger case…
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Re: Let's Buy Spirit Air
#99Earlier quoted context omitted.
Or they could actually charge ticket prices that cover the cost of doing business and stop treating their passengers like a it's a time-share sales pitch the whole way.
Consumers only look at bottom line. There is basically two markets with airlines, higher end market with credit cards and premium seating; lower end where consumer solely looks at ticket price.
A huge number of businesses survive on whales, it's becoming really apparent. I'm kinda surprised how common it is.
I wonder if this will be the next "market" to exploit if ad revenue ever dies down too much, or if it's one that's always been there, and I've simply never been a part of.
Re: Let's Buy Spirit Air
#100Sorry, why would I invest in a failed airline with an anonymous collective with no defined leadership? How could it do anything but fail?
It's almost always better to create a new airline ex-nihilo as you get brand new planes, which are better than older ones.
Good luck trying to get any planes with the current backlog. Unless you enjoy flying in the 737 Max.