Today’s advice comes from Spirit Airlines CEO Ben Baldanza’s interview with the AP:“In 2006, we decided we were going to run Spirit as an airline that competes on the basis of price and price alone. Making that decision made it easier for us to make other decisions about how to run the business that are probably very difficult for other airlines.”
Adding more seats to planes, charging passengers for carry-on luggage, and offering higher fees for aisle seats are compromises passengers are willing to pay for because of cheaper ticket prices.
“You start asking yourselves why would I put fewer seats on the aeroplane than the aeroplane can hold? At some point you’ve got to get tired of losing money.”
Baldanza says Spirit Airlines became successful after they grouped airlines into two buckets: extremely high premium airlines, or extremely low-cost ones. This way they found a niche in the middle, he says.
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