Spirit Airlines CEO: Squeezing Seats on Our Planes Pays Off
*By Carlo Versano*
When Spirit Airlines CEO Ted Christie flies, he flies his own ultra-low-cost carrier ーin coach. Such is the attitude at Spirit, where cost efficiencies are the very principle on which the airline does business.
Christie, who started in the role as Spirit Airlines ($SAVE) CEO this year, said that the business model is simple: its very low-cost structure drives low fares, which drive demand. Spirit, which is notorious for its no-frills cabin experience, even manages to pack more seats onto each aircraft, which helps the company diffuse fuel costs when they spike.
While Spirit takes its share of licks from passengers on social media, Christie said the airline's success has more to do with stimulating travel "off the bottom" ー reaching travelers who wouldn't otherwise fly, rather than frequent travelers looking to save a few bucks.
That is "untapped and unconstrained" demand, Christie said.
Even still, it's paying customers who demand some level of reliability, service, and comfort, even at the low price points. Spirit placed last in the 2018 American Customer Satisfaction Index of airlines.
"We're working hard on it," Christie said of the customer satisfaction metrics.
But value is its own satisfaction metric. Clean planes that are on-time, with friendly staff and bags that don't get lost ー for a $59 ticket ー is the value proposition Spirit wants its customers to consider.
The airline is adding some amenities to its flights: notably, high speed internet, which will cost between $6 and $10 per flight, Christie said, and be available across the fleet this year.
For full interview [click here](https://cheddar.com/videos/new-spirit-airlines-ceo-on-the-quest-for-high-value-low-fare-product-to-drive-loyalty).
Whether it’s a deepfake video of actor Tom Cruise discovering gum in a lollipop or President Joe Biden discouraging people from voting via telephone, you’ve likely come across a deepfake video, photo or audio recording.
Tensions in the South China Sea, Apple moving to India, and banning TikTok? The podcast ‘Face Off: The U.S. Versus China’ helps explain how we got here.
Cust2Mate is a leading innovator in retail technology, aiming to revolutionize the shopping experience. By implementing smart cart technology, the tech company addresses the issue of theft while enhancing the shopper's journey.
The Biden administration has unveiled a plan, Plan B, to address the student loan debt crisis. It offers to cancel up to $20,000 in interest for borrowers enrolled in income-driven repayment plans. This proposal aims to reset balances for those facing growing debt due to unpaid interest, benefiting low—and middle-income borrowers. An estimated 25 million borrowers are eligible for some form of interest forgiveness.
As we head into the second quarter, there’s an argument in favor of buying Boeing stock. Why? As one expert says, ‘there’s nowhere else to get planes.’
With inflation and prices still on the rise, it might be worth considering a carpool app. One of them, Singapore-based Ryde, just went public in the U.S.
