Major US carrier United Airlines is making network additions designed to exploit the potential operational collapse of Spirit Airlines, or at least its withdrawal from several domestic markets.
United executives, including CEO Scott Kirby, have been consistently outspoken in their belief that a low-cost model relying on rapid growth cannot be sustained, and are likely watching the most recent struggles of twice-bankrupt Spirit with great interest.
Patrick Quayle, United’s senior vice-president of Global Network Planning and Alliances, was straightforward on 4 September about the Chicago-headquartered carrier’s network strategy should Spirit stop operating.
“If Spirit suddenly goes out of business it will be incredibly disruptive, so we’re adding flights to give their customers other options if they want or need them,” he says.
Spirit has maintained in recent days it will continue flying passengers through its second Chapter 11 bankruptcy in less than a year, and that it will re-emerge from restructuring in a better financial position. Company executives say the airline will fly for “years to come”.
But Spirit also admits that competition from major US carriers such as United, American Airlines, Delta Air Lines and Southwest Airlines – along with Pratt & Whitney engine repairs and an aircraft-leasing default dispute with Irish lessor AerCap – has weighed heavily on it in recent months.
The Florida-headquartered ULCC disclosed on 3 September it will discontinue service to 11 US cities starting in October, including Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Columbia, South Carolina; Oakland, Sacramento, San Jose and San Diego in California; Portland, Oregon; and Salt Lake City.
The total number of market withdrawals rises to 12 when accounting for Macon, Georgia, where Spirit no longer plans to launch service.
Enter United, which recently published a winter schedule that overlaps with some of the 11 cities being removed from Spirit’s schedule. It is also targeting large markets where Spirit has long flown head-to-head against major US carriers.
United is adding flights to 15 cities starting in January – including Spirit’s stronghold in Fort Lauderdale.
The expanded schedule also includes new routes from Newark to Columbia and Chattanooga, as well as additional frequencies to Houston, Orlando, Las Vegas, New Orleans, Atlanta, Baltimore and Miami.
Denver-based ULCC Frontier Airlines, meanwhile, is tightening screws on Spirit by ramping up flights to international destinations in Central America, Mexico and the Caribbean – another critical slice of Spirit’s market.
Notably, Frontier has made several bids to acquire ailing Spirit, though its advances to date have been rebuffed.
Both United and Frontier have openly courted the customers of Southwest, seeking to lure those potentially turned off by new baggage fees and Southwest switching from open seating to assigned seats.
