Spirit Airlines, Inc. (NYSE: SAVE) is an American ultra-low-cost carrier headquartered in Miramar, Florida. It is the 7th largest commercial airline in the US. Spirit operates scheduled flights throughout the United States and in the Caribbean, Mexico, Latin America, and South America. The airline operates bases at Atlantic City, Chicago-O'Hare, Dallas/Fort Worth, Detroit, Fort Lauderdale, and Las Vegas. In recent years Spirit has been embattled by a number of class action lawsuits and punitive actions by the US DOT, including allegations related to deceptive advertising practices, the airline's non-ticket passenger fee policies, data security, and handling of complaints by customers with disabilities.
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History
Early years (1964-2006)
The company initially started as Clipper Trucking Company in 1964. The company changed its name to Ground Air Transfer, Inc., in 1974. The airline service was founded in 1980 in Macomb County, Michigan, by Ned Homfeld as Charter One, a Detroit-based charter tour operator providing travel packages to entertainment destinations such as Atlantic City, Las Vegas, and the Bahamas. In 1990, Charter One began scheduled service from Boston and Providence, Rhode Island, to Atlantic City. On May 29, 1992, Charter One brought jet aircraft into the fleet and changed its name to Spirit Airlines. Scheduled flights between Detroit and Atlantic City began on June 1, 1992. Scheduled flights between Boston and Providence began on June 15, 1992.
On April 2, 1993, Spirit Airlines began scheduled service to Orlando, Fort Lauderdale, and St. Petersburg, Florida. Flights between Atlantic City and Fort Myers, Florida, began on September 25, 1993. Service at Philadelphia began in 1994. During the next five years, Spirit expanded further, increasing service from Detroit and adding service in new markets such as Myrtle Beach, Los Angeles, and New York City.
In the summer of 1994, Spirit Airlines overbooked flights, and 1,400 customers' tickets were canceled. The overbooking occurred because Spirit Airlines had given incorrect instructions to travel agents, causing those tickets not to be valid, even though the customers had paid for the flights. In response to criticism, Spirit Airlines said it would make sure all paid customers would always be able to fly to their destination, even if Spirit Airlines had to book them on a competitor's airline.
Spirit initially had their headquarters in Eastpointe, Michigan (formerly East Detroit) in Metro Detroit. It relocated its headquarters in November 1999, moving to Miramar, Florida in the Miami Metropolitan Area. Prior to the decision to move the headquarters to Miramar, Spirit considered Atlantic City, New Jersey and Detroit, Michigan.
In 2000, the US Federal Aviation Administration (FAA) fined Spirit Airlines $67,000 for allegedly violating federal regulations on cabin and seat markings and placards. Discrepancies were found in the marking and placarding of emergency equipment, passenger seats, storage areas and doors on eight of Spirit's DC9 and MD80 aircraft.
In November 2001, Spirit inaugurated service to San Juan, Puerto Rico, and implemented a fully integrated Spanish-language customer service plan including a website and dedicated reservation line.
In the fall of 2003, Spirit resumed flights to Washington, D.C.'s Ronald Reagan Washington National Airport, which were suspended after the September 11 attacks. Spirit also began service to Grand Cayman, San Francisco, and Boston in 2006, and in 2007 filed DOT applications to offer service to Costa Rica, Haiti, the Netherlands Antilles and Venezuela.
In 2006, Spirit exercised options to order 30 Airbus A320-200 aircraft for further expansion. Deliveries began in March 2010.
Transition to ultra low cost carrier (2007-present)
On March 6, 2007, Spirit began a transition to an ultra low-cost carrier, following a fare model that decoupled amenities that are often included in the base ticket price of traditional carriers. Passengers who wanted to customize their itinerary or flight experience paid an add-on fee for each additional feature, which enabled the carrier to earn ancillary revenue in excess of 40% of total revenue. These included having an agent print a boarding pass at check-in versus doing it online or at a kiosk, for any large carry-on or checked bags, progressive fees for overweight bags, selected seat assignments, travel insurance, and more. In 2011, Spirit Airlines became the first U.S. airline to charge passengers for carry-on bags. They were later followed by Allegiant Air and Frontier Airlines.
On June 3, 2008, Spirit Airlines made a WARN (Worker Adjustment and Retraining Notice) application to potentially relocate or lay off hundreds of pilots and flight attendants, and the closure of their San Juan and LaGuardia crew bases. In September 2008, Spirit began advertising on the side of aircraft, overhead bins, tray tables, seatback inserts and bulkheads.
In May 2009, after more than four years of inconclusive negotiations between the airline and the Air Line Pilots Association (ALPA), Spirit pilots overwhelmingly (98% of votes) voted in favor of strike action over compensation, work rules and benefits. At that time, Spirit pilots were among the lowest paid Airbus pilots in the United States. On June 12, 2010, Spirit grounded its flights when its unionized pilots walked out on strike, stranding thousands of passengers. This was the first passenger airline strike by American ALPA-represented pilots since Comair in 2001. On June 15, negotiations between the airline and ALPA resumed, and a tentative agreement was reached late in the evening on June 16. The tentative agreement, which Spirit pilots later ratified by a 74% margin, brought Spirit pilots' compensation and benefits in line with comparable Airbus operators in the US. Flights eventually resumed on June 18.
On June 20, 2010, Spirit Plus was rebranded as "Big Front Seat" and business class service was discontinued. For an additional fee, a person could choose "Big Front Seat", or upgrade at the airport. In December 2010, Spirit Airlines introduced the Free Spirit World MasterCard.
In February 2012, Spirit Airlines established a crew and maintenance base at McCarran International Airport in Las Vegas, Nevada. On December 1, 2012, the airline opened a flight attendant and pilot crew base at Dallas-Fort Worth International Airport.
In April 2012, citing the airline's strict refund policy, Spirit Airlines representative Misty Pinson announced that the airline would not issue a refund to dying veteran Jerry Meekins, who had purchased a non-refundable ticket between Florida and Atlantic City. The 76-year-old Vietnam veteran and Marine tried to get his $197 back after learning his esophageal cancer was terminal and being told by his doctor not to fly. The decision caused outrage among veterans' groups and the general public, some of whom threatened to boycott Spirit unless both a refund and apology were issued. On May 4, Spirit CEO Ben Baldanza apologized for how the situation was handled and personally refunded Meekins' ticket. Additionally, the airline made a $5000 donation to the Wounded Warrior Project in Meekins' name.
On Monday, July 1, 2013, a Spirit Airlines jetliner came within two miles of a skydiving aircraft, but was found by the FAA to be in full regulatory compliance.
In August 2013, Spirit reached an agreement on a new five-year deal with the Transport Workers Union of America, who represent the airline's flight dispatchers.
In November 2014, Morgan Stanley named Spirit the top growth airline pick for investors.
In January 2016, Baldanza stepped down as CEO in order to relocate from Florida, and was replaced by former Air Tran CEO Robert L. Fornaro. This prompted rumors of a merger with Frontier Airlines; if the carriers were to merge, it would create the single largest ultra-low cost carrier in the Americas. Fornaro led an effort to change the company and improve working conditions as well as the guest experience, implementing multiple changes such as teaming up with the Disney Institute to create new service standards and changing policies internally to create a more welcoming environment.
In September 2017, Spirit temporarily moved their Operations Center from their Fort Lauderdale hub to the Detroit hub, as part of the evacuation for Hurricane Irma.
As of 2018, Spirit Airline charged a minimum of $50 each way for any bag where any dimension exceeded 18 x 14 x 8 inches.
Maps Spirit Airlines
Service expansion
On August 7, 2014, Spirit began new service out of Kansas City, Missouri to five destinations.
In January 2017, Spirit announced a major expansion into Pittsburgh, which became the 61st city in the carrier's network. Spirit's first Pittsburgh flights launched May 25, when it began daily service to both Dallas/Fort Worth and Myrtle Beach, S.C. The carrier added seven more routes - to Fort Lauderdale, Houston Bush Intercontinental, Las Vegas, Los Angeles, Tampa, Ft. Myers and Orlando - by July 13. Spirit began flying from Hartford with two routes to Florida and one to Myrtle Beach. Spirit's first flights from Hartford began April 27 when it launches daily flights to Orlando and four-times-a-week service to Myrtle Beach. Daily service to Fort Lauderdale started June 15. The Florida routes were intended to operate year-round; the South Carolina service to be seasonal.
On Nov 10, 2016 Spirit announced new service to begin in Akron, Ohio via the Akron-Canton Airport creating six new routes, their flights launched November 10, when it began daily service to Fort Lauderdale, Orlando, Tampa, and Fort Myers. Along with seasonal routes to Tampa, Las Vegas, and Myrtle Beach starting on April 27,2017.
In November 2017, Spirit announced a new service expansion in Columbus, Ohio via the John Glenn Columbus International Airport announcing seven new routes for the city - to Fort Lauderdale, Las Vegas, and Orlando year round. Also providing seasonal service to Fort Myers and Tampa. They will offer flights to Myrtle Beach and New Orleans three times per week with service to begin on February 14th, 2018 .
Also in November 2017, Spirit announced service to Richmond, VA through Richmond International Airport beginning March 15, 2018 announcing that passengers will be able to connect through either Fort Lauderdale or Orlando to 11 other destinations, including New Orleans and Tampa as well to international destinations like San Jose, Costa Rica; Managua, Nicaragua; and Lima, Peru. On March 18th, 2018 Spirit began service by holding drawings at the airport for complimantary same day vacations on the inaugural flight to Orlando.
Destinations
Spirit currently flies to 65 destinations throughout Central America, the Caribbean, South America, and the United States. As of April 2018, It maintains crew bases at Atlantic City, Chicago-O'Hare, Dallas/Fort Worth, Detroit, Fort Lauderdale, and Las Vegas.
Controversies & Lawsuits
Spirit airlines has been the target of a number of controversial class action lawsuits and punitive actions by the US Department of Transportation. Most of the claims against the company are for allegations of deceptive advertising practices, customer service, and the airline's policies for charging additional fees at the time of purchase.
In 2009 the US DOT fined Spirit a record $375,000 for allegations of false advertising, adding additional fees to its fares, and mishandling of compensation of passengers for lost baggage and .
In 2011, the US DOT fined Spirit $50,000 for alleged deceptive advertising practices. The complaint claims that the airline had been running an advertising campaign which promoted specific discounted fares on billboards, posters, and Twitter, but did not disclose full details regarding extra fees added onto the advertised rates.
In August 2012, A federal racketeering class action lawsuit was filed against the airline for violations of the US "RICO Act" for its collection of up to $40 million in "Passenger Usage Fees". The suit claims customers were mislead to believe these fees were actually part of the required government taxes and fees, rather than one charged by the airline itself. Plaintiffs said the placement of these fees on the confirmation page of its ticket-purchasing web platform "was a coordinated effort to conceal the true nature of the fee by leading customers to believe that it was an official government tax or sanctioned fee". The case was eventually dismissed on a technicality.
In January 2012, the US DOT fined Spirit $100,000 for mishandling of complaints related to its treatment of customers with disabilities.
In November 2015, the airline settled a class action lawsuit filed against them for alleged violations of FACTA (Fair and Accurate Credit Transactions Act). The suit was filed over claims that more than the allowed last 5 digits of the customers' credit card numbers were displayed on the company's receipts. The settlement was for $7.5 million, one of the largest payouts in FACTA history.
In February 2017, A class action was filed against Spirit alleging the company used "Bait and Switch" pricing tactics. Specifically, the complaint alleges that the airline misleadingly represents that it is a "low-cost, low-fare airline" offering affordable travel when, according to plaintiffs, customers pay more than the advertised price because the airline charges additional fees that are not adequately disclosed.
In February 2018, A class action was filed against the airline, again over allegations of deceptive advertising practices. Plaintiffs claim Spirit advertised discounted fare prices through 3rd party websites, but did not disclose a number of additional fees charged for "optional" services until after tickets were purchased. The claim alleges these fees "annihilated" any savings obtained by choosing Spirit Airlines over competing airlines
Public criticism has arisen over allegations of poor customer service and reliability. Spirit Airlines had the highest rate of cancelled flights during 2016 and 2017 among the 13 largest air carriers. The airline's complaint rate was over 4 times the industry average in 2015, 2016, and 2017. They have been previously rated "the most hated airline" by Fox News Travel, Business Insider, Wall Street, CBS Money Watch, and Fortune. One high profile controversy emerged when former CEO Ben Beldanza inadvertently mass replied to a customer complaint email saying, "We owe him nothing as far as I'm concerned. Let him tell the world how bad we are. He's never flown us before anyway and will be back when we save him a penny."
Fleet
Current fleet
As of March 2018, the Spirit Airlines fleet consists entirely of Airbus A320 family aircraft.
Historical fleet
The following aircraft formerly operated in the Spirit Airlines fleet:
References
External links
Media related to Spirit Airlines at Wikimedia Commons
- Official website
- Spirit Vacations official website
Source of the article : Wikipedia
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