Spirit Airlines’ network changes have been more subtle than dramatic under new CEO
When a new CEO took the helm at Spirit Airlines during 2016 the immediate reaction was speculation that the move was a first step to merging with fellow ULCC Frontier. Eventually the excitement over consolidation in the US ULCC sector died down, and Spirit outlined more subtle strategy changes.
The most significant was Spirit’s assessment that opportunities existed in small to medium sized markets, which was a pivot from its strategy of competing with bigger US airlines in some of their largest and most important markets.
In order to support the shift in its network strategy Spirit has made changes to its fleet composition during 2016, including retaining more smaller-gauge Airbus A319s and converting 10 A321neos scheduled for delivery in 2019 to A320neos. The fleet changes also help Spirit improve its financial structure through a higher number of owned aircraft.
So far, Spirit has only announced one new smaller market in 2016, with the addition of Akron-Canton to its route map. The remainder of its route additions have been in larger markets in competition with the larger US airlines. Perhaps more clues to the airline’s long-term network strategy will emerge in 2017.
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