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Spirit Airlines Is Winding Down All Operations

spiritrestructuring.com

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Re: Spirit Airlines Is Winding Down All Operations

#51

Post by avazhi »

robin_reala wrote: post #46
avazhi wrote: post #41

Earlier quoted context omitted.

[flagged]

Small regional airline failing isn’t a big news story in my typical parts of the internet.

No, Spirit is/was not a 'small regional'.

You asked if this was caused by or related to bad customer service. This was 100% caused by the increase in jet fuel prices due to the war in Iran. Obviously huge swings in jet fuel prices affect budget carriers more than, say, United or American or Lufthansa or Singapore Airlines, which have many (many) more options when jet fuel prices rise.

Many countries, including many third world countries, have regional airlines. It has nothing to do with America in particular, and the usage of that term is not an American-ism. A good non-American example is Qantas and QantasLink, the latter being a regional airline, and the Aussies refer to it as such.

Re: Spirit Airlines Is Winding Down All Operations

#52

Post by vrganj »

rvz wrote: post #2

Too bad. Capitalism working as it should and no last minute government bailouts for failing companies. The market should decide and determines winners and losers, not the government. So compete.

Other than ideology, in what way is this a good outcome? For passengers? For workers?

Re: Spirit Airlines Is Winding Down All Operations

#53

Post by danaris »

epistasis wrote: post #4

This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.

In addition to the human cost that others mention, the big problem is that in our current system, this doesn't lead to fresh blood coming in and being able to compete on an even footing: it leads to the giant incumbents schlorping up the pieces and becoming even bigger and stronger.

Your statement might be true in a system with healthy safeguards ands competition, but that isn't the system we have in the real world today.

Re: Spirit Airlines Is Winding Down All Operations

#56

Post by riffraff »

vrganj wrote: post #25
epistasis wrote: post #4

This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.

That sounds more like religious dogma than thought out argument. The capital will probably go to further the AI bubble, I really don't see how that would be more useful than enabling travel.

While it's fair to criticize how this screwed up customers (and perhaps workers), airline shutdowns are often good things, route/airport slots gets freed for example, and airlines with better value (cost or quality wise) can take over.

I don't live in the US but spirit has been the butt of jokes for years.

Re: Spirit Airlines Is Winding Down All Operations

#57

Post by matwood »

gizmo686 wrote: post #17
epistasis wrote: post #4

This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.

Bankcruptcy and corporate death in general are important. However, the details of how that is managed can vary wildly, and not all implementations are equal. In this case, the bankcruptcy was handled by cancelling all flights with 1 day of notice. This level of ugliness is not necessary.

“How did you go bankrupt? Two ways. Gradually, then suddenly.” -Hemmingway

Re: Spirit Airlines Is Winding Down All Operations

#58

Post by chrisandchris »

avazhi wrote: post #51
robin_reala wrote: post #46

Earlier quoted context omitted.

Small regional airline failing isn’t a big news story in my typical parts of the internet.

No, Spirit is/was not a 'small regional'. You asked if this was caused by or related to bad customer service. This was 100% caused by the increase in jet fuel prices due to the war in Iran. Obviously huge swings in jet fuel prices affect budget carriers more than, say, United or American or Lufthansa or Singapore Airlines, which have many (many) more options when jet fuel prices rise. Many countries, including many t…

That really sounds line the US is the only country in the world. Considering the world is bigger, I would call Spirit maybe regional, but not small. Ask some europeans, basically no one will know Spirit - as US people may not know e.g. Wizz.

Re: Spirit Airlines Is Winding Down All Operations

#60

Post by [deleted] »

chrisandchris wrote: post #58
avazhi wrote: post #51

Earlier quoted context omitted.

No, Spirit is/was not a 'small regional'. You asked if this was caused by or related to bad customer service. This was 100% caused by the increase in jet fuel prices due to the war in Iran. Obviously huge swings in jet fuel prices affect budget carriers more than, say, United or American or Lufthansa or Singapore Airlines, which have many (many) more options when jet fuel prices rise. Many countries, including many t…

That really sounds line the US is the only country in the world. Considering the world is bigger, I would call Spirit maybe regional, but not small. Ask some europeans, basically no one will know Spirit - as US people may not know e.g. Wizz.

[deleted]
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