Spirti Air to drop DCA service

This route must really be going badly for them if they're giving up two daily DCA landing slots and turning them back to the gov't.

Even if the loads aren't great, the yields on this route should be well above their system average. Also, they have the ability to connect passengers to LAS, LAX, and SFO via DTW. DCA-DTW should work for Spirit. Surprising to see that it doesn't.
 
Hardly surprising. They have no pricing power in the market.

Honestly, I don't think Spirit is doing to well. Being privately held, there'd be no way of knowing for sure.
 
This route must really be going badly for them if they're giving up two daily DCA landing slots and turning them back to the gov't.

Even if the loads aren't great, the yields on this route should be well above their system average. Also, they have the ability to connect passengers to LAS, LAX, and SFO via DTW. DCA-DTW should work for Spirit. Surprising to see that it doesn't.

I don't know what the fares are/were on Spirit, but NW and SW were offering $49 one-way from DC-area (DCA, IAD, BWI) to Detoilet.
 
Yes they fly to FLL from DCA. They need the planes for other destinations. NWA would match their fares in similar times while continuing to price higher at other times. Now the people of DTW can resume complaining about the high fares to DCA.
 
No one (the public) knows Spirit's financials. Not very good, I suspect. Rumors that Virgin America will acquire are on hold til VA gets it's ownership issue resolved.
 
Yup, you heard it here first! Rhino suspects the financials and financial backing are not very good as 30 aircraft arrive on top of those already scheduled...
 
I was under the impression DCA made them give up the slots... it was a part of their contract with DCA. I read an interview somewhere a few months back stating Spirit is breaking even/turning a small profit.
 
I was under the impression DCA made them give up the slots... it was a part of their contract with DCA. I read an interview somewhere a few months back stating Spirit is breaking even/turning a small profit.

Yea, they were time-limited slots. Washington Airport Authority made them return them. They will go to FL, who will in turn use them to increase DCA-ATL frequency.

Losing bidders were US (DCA-OKC), DL (DCA-LIT), YX (DCA-MKE).
 
Spirit dropped the route because it was only allowed to fly one flight a day due to slot restrictions. It made operational efficiencies a challenge and prevented Spirit from having a competitive schedule. These challenges were coupled with the fact that they had an opportunity cost with much better opportunities in Latin America.

Spirit is doing well, they are getting very efficient with really low costs as a result.
 
A few months ago, an internal memo was leaked from Spirit called "Cheap, Friendly, Clean."

The idea is Spirit will offer more of those penny fares, but offer no (free) amenities except a smile and a clean plane (which management admits will be tough with tight turn times and not really expected).
 

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