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Investigative Research Essay
I have been assigned a corporation to investigate (
Investigative Research Essay
I have been assigned a corporation to investigate (Spirit Airlines). My assigned corporation has been determined to have had past issues with some aspect of “social responsibility.” Hence, the investigation should focus on addressing one aspect of “responsibility.”
Consider the following questions as you begin your preliminary research:
In what respect, has the corporation failed to practice/employ socially-responsible business practices? What factors have contributed to labeling a corporation as “irresponsible? Have they made significant strides in improving their irresponsibility in this area (not another area), or do they seem to continue “bad practices?” According to the objective evidence, are their attempts at reparations inconsequential, incomplete, or progressive?
Check the following links to articles about “most hated companies in America 2020” which will serve as an overview of my corporation:
https://finance.yahoo.com/news/10-most-hated-companies-america-100021771.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMGhyZVbsXxry7EhWIGG5qJkG-fNr5WC5nr7rH0X0MfmQUpUiKozh118PuCrQK0fMZ7zdmauiqQgLELqaCz1TH6D3qdVjseEk6xqm8nm0O1Ha2izwesJTP_CuTZfV48MD2znJhcZUHTlm8eyOkvhIStaiECQP8-7TzY-qio5_rCh (Links to an external site.)
https://www.usatoday.com/story/money/business/2018/02/01/bad-reputation-americas-top-20-most-hated-companies/1058718001/Links to an external site.
Spirit Airlines have had past issues with some aspect of “responsibility.” Your investigation will focus on addressing one aspect of “responsibility.”
The question: In what respect, has the corporation failed to practice/employ socially-responsible business practices? What factors have contributed to labeling a corporation as “irresponsible?”
Consider the following area of social responsibility that my corporation should embrace:
The customers (mis-information in the products or service they sell, passing off inferior products, disregarding fair treatment of consumers, etc.,)
For my researched investigation, you will focus on a narrowed topic investigating a specific topic related to the assigned corporation. In no way, your research and support should result in a generalized research paper, lacking sufficient evidence to support it. A topic such as Consumer issues could target “mis-labeling product contents,” “exploitative and untruthful sales tactics,” food recalls,” etc.,
2. Your narrowed topic should take the form of a specific question to further guide your research: i.e., “”Do they disguise the poor quality of their products to cheat consumers?”
3. The paper needs to incorporate research (evidence) from a minimum of 8 legitimate sources. Only 1 of those sources can be from the corporation itself. Do not attempt to support your argument by using the corporation itself (which would lack credibility, since it is biased). Just because the company claims they practice a “good customer care” does not mean they actually do. For the sake of public relations, corporations may show “good will” in some area (donations for college scholarships) too offset the bad PR they have acquired for other practices (environmental pollution, mistreatment of workers, etc.,) .
4. You should first view their website to read their mission statement and what they claim to do to fulfill their corporate responsibility. However, do not accept such claims coming exclusively from the corporation. Explore more “objective” sources” to research your question.
Since my corporation (Spirit Airlines) have had a past history of “irresponsibility” in some respect, your task is to examine such a controversy. Do not cheerlead for the corporation by focusing on the “good” they have done while ignoring the disregard for consumer complaints that they have lengendarily practiced. Focus on a primary issue of “irresponsibility” that your research provides. Ultimately, you may determine that in the past few years they have made significant changes to alter their past harmful practices, but do not sweep their past history away; that is the task of your investigation:
In what respect, has the corporation failed to practice/employ socially-responsible business practices? What factors have contributed to labeling a corporation as “irresponsible? Have they made significant strides in improving their irresponsibility in this area (not another area), or do they seem to continue “bad practices?” According to the objective evidence, are their attempts at reparations inconsequential, incomplete, or progressive?
This corporation have received media attention for their infractions, ending up on a list of “worst offenders” so, although your research might show that they have improved their practices, the purpose of the research is NOT to extoll the virtues of the company according their own website or company spokespeople. Seek evidence from more objective critics of the company’s practices, in order for your argument to have any credibility. This is an investigation, not an infomercial for the company. Where have they shown prior negligence on their “socially-responsible” report card? Look beyond the surface. The first concern that comes up in research, may just be the most obvious, not necessarily the most significant or interesting to research. There may be other areas where the company has faced charges of negligence.
Additional
We had prior discussions where I wrote this:
The subject of my investigation will focus on the unfair treatment of passengers, specifically examining Spirit Airlines, which ranked 95th in the recent Harris Poll. My preliminary research indicated that Spirit Airlines has faced significant fines and consumer complaints related to customer service issues. Moreover, according to a newsletter article that I found, the U.S. Department of Transportation fined Spirit Airlines $375,000 for violating consumer protection regulations, including failure to provide compensation for bumped passengers, delayed baggage claims, and misleading airfare advertisements (Giovis, par. 1-3). By struggling with on-time performance in the past, with a higher rate of flight delays and cancellations compared to other airlines, Spirit Airlines contributed to negative perceptions of irresponsibility or lack of accountability. It has garnered a reputation for poor customer service, including long wait times, unresponsive staff, and difficulty resolving issues, leading to frustration and dissatisfaction among passengers. The question guiding my investigative research will be: “Does Spirit Airlines disregard fair treatment of passengers by failing to provide adequate compensation as evidenced by the significant fines imposed by the U.S. Department of Transportation?” This question will help focus my research on specific instances of consumer mistreatment and regulatory violations by Spirit Airlines.
Giovis, Jaclyn. “Spirit Airlines Fined a Record $375,000 for Customer Service Issues.” McClatchy – Tribune Business News, Sep 18, 2009.
Professor feedback:
Yes. Appropriate focus. Again, in order to keep the argument current, the question should consider whether they have moved forward since these issues have come to light.
Discussion questions to address:
How would you evaluate the corporation that you have researched to this point? In what respect, do you feel that they are lacking or have been successful in the various areas of responsibility? What has your research demonstrated? In this post, you should focus on your intended argumentative claim and provide a summary of some of the essential evidence that is leading you towards that particular conclusion.
My response:
After thoroughly examining various sources, including articles, annual reports, and customer satisfaction indices, my evaluation of Spirit Airlines reveals that the company has faced significant challenges in the past; however, it has shown some improvements over time. One notable aspect of Spirit Airlines’ recent performance is its American Customer Satisfaction Index (ACSI) score of 67, which represents a three-point increase from the previous year and marks the highest score recorded since 2015. This uptick in customer satisfaction indicates a positive trend in the company’s efforts to enhance the passenger experience. Throughout my research, I’ve uncovered a history of difficulties for Spirit Airlines, ranging from civil penalties, such as the $375,000 fine, to being labeled as the most complained-about carrier. However, despite these setbacks, the company has demonstrated resilience and a commitment to improvement. Greg Meyer, the spokesperson for Spirit Airlines, has acknowledged customer concerns, such as lobby congestion and long wait times, attributing these issues to the airline’s rapid growth. This suggests that Spirit is actively listening to customer feedback and taking steps to address their needs. Overall, as I delve deeper into my research, Spirit Airlines’ philosophy of “you get what you pay for” recently raised several questions for me regarding consumer behavior and their criticism; after all, it’s not only one side of the coin, if it is truly that bad, why does everyone still use it? These are the ideas I came up with recently, and I will continue to refer to them in my further research.
No feedback yet
Discussion question to address:
“My conclusions” consider how their questions might impact your intended claim and how you might adjust or move forward given the overview provided by your other group members
My response:
My conclusions:
Taking into account not only the feedback I received but also the insights shared by my peer and his post’s subsequent feedback, I’ve arrived at several conclusions regarding Spirit Airlines and its overall evaluation.
Firstly, it’s evident that Spirit Airlines has been marred by a series of operational and customer service challenges. Issues such as flight cancellations, excessive fees, and poor communication have undoubtedly tarnished the airline’s reputation among consumers.
Secondly, by considering Art’s questions about Spirit’s business model and operational practices, I realized that it’s crucial to delve deeper into aspects such as crew training and maintenance standards. While Spirit may excel in certain areas of cost efficiency and business strategy, ensuring the safety and comfort of passengers should remain paramount. Exploring these facets further could provide a more comprehensive understanding of the airline’s performance and shed light on potential areas for improvement. Overall, I think there is a need to refine and potentially adjust my argumentative claim regarding Spirit Airlines. It’s essential to consider the broader context of the aviation industry to develop a more nuanced evaluation of the corporation.
No feedback yet.
Submitted my Bibliography with narrowed question
Narrowed Question: In what ways has Spirit Airlines’ response to past consumer complaints and regulatory fines regarding fair treatment of passengers evolved, and to what extent does this response address concerns of social irresponsibility in their customer service practices?
Professor feedback:
Question has a clear focus and the sources seem relevant with format and attached URLS. Off to a good start!
Submitted my sentence outline
Preliminary Sentence Outline: Investigative Research Essay
Thesis: Spirit Airlines’ response to past consumer complaints and regulatory fines has evolved to address concerns of social irresponsibility in their customer service practices, demonstrating a commitment to improving operational performance and enhancing passenger satisfaction.
I. Spirit Airlines faced criticism for its poor customer service reputation and regulatory fines, indicating a need for adherence to consumer protection regulations.
II. Its fee-heavy model and tight seating configurations have contributed to negative perceptions among passengers.
III. Consumer expectations and regulatory requirements were periodically at odds with Spirit Airlines’ business model, which prioritized low fares and ancillary revenue streams.
IV. To address consumer concerns and its commitment to fair treatment of passengers, Spirit enhanced transparency in pricing and service offerings.
V. The airline responded to regulatory fines and consumer complaints through upgrades in computer systems, partnerships, and initiatives to improve on-time performance, reflecting a dedication to addressing concerns of social irresponsibility and ensuring passenger satisfaction.
Professor feedback:
I. II. III. deal with past breeches, while IV. & V. show adjustment to the issues. Thesis should slightly adjust to emphasize that progression in your argument. Your thesis emphasizes IV. & V. but ignores I. II. III. A slight revision of wording would help.
My Bibliography
Since the essay should mainly cite sources taken from my institution’s library below are the full articles.
1. Elmore, Charles. “Spirit Airlines Earns Bottom Spot in Rankings; but does it Deserve it?” TCA Regional News, Apr 06, 2016.
South Florida’s Spirit Airlines entered an airline ranking this week at dead last in a billowing cloud of complaints — while carrying some passionate, if perhaps cramped and slightly thirsty, defenders.
Can a carrier be a gripe leader and still a welcome option for informed consumers? Fans say absolutely.
“This particular survey looked at a variety of areas except the one area that customers consistently say is the most important to them when choosing an airline — price,” Spirit spokesman Paul Berry told The Palm Beach Post.
To some travelers, Miramar-based Spirit unquestionably represents the worst in modern airlines — awful legroom and add-on fees that can bonk first-time users like a bag falling out of an overhead compartment.
“Where do I begin,” goes one complaint on consumeraffairs.com. “Terrible customer service, flights are hardly ever on time with very long delays, they charge you an arm and a leg for both carry-on and checked luggage, seats are uncomfortable, no complimentary drinks or snacks, no in-flight entertainment …”
Others stoically tolerate all this and more — provided they know what to expect and they save money. At a time when many airlines are banking profits from lower fuel prices rather than discounting fares aggressively, they want Spirit doing its thing.
“Quit your (whining),” defender Rich Thomaselli once advised complainers online. “You. Get. What. You. Pay. For.”
The rankings this week come from the 26th annual Airline Quality Rating, a joint research project from Wichita State University and Embry-Riddle Aeronautical University.
Spirit was included for the first time after it reached minimum requirements to report certain data to the government — data the universities use to help compile their rankings.
“We struggled with our on-time performance because we are very aggressive with our schedules,” Spirit’s Berry acknowledged. “We put very little to no pad in our schedules, to save our customers money on airfare. Unfortunately, if there is a delay in departure from the airport, it creates a delay when we arrive at the arrival city, and down the chain of that particular aircrafts route for the day. We are currently looking at several areas of our operation where can improve our on-time performance.”
As for gripes, Berry said, “our goal is to have zero complaints. But history shows any time an airline comes into the market with a new model, it takes a few years for the consumers to embrace it.”
The vast majority of complaints about Spirit come from first-time users who booked on a third party travel site such as Expedia or Priceline, he said.
“When a customer books on Spirit.com, or they have flown us previously, the complaint rate is very low,” he said. “When someone books on a third-party site they are very happy about our low fares, but they do not receive the same level of information about Spirit’s a la carte model. So when they arrive at the airport they are surprised and angry that Spirit operates differently.”
The airline spokesman allowed “we still have some work to do in the area of customers who book on third party travel sites.”
In this week’s report, six of 13 U.S. airlines evaluated improved their marks this past year, six declined and one, Spirit, was new to the ratings. The scoring takes into account everything from consumer complaints to rates of on-time performance, denied boardings and mishandled baggage.
Virgin America held on to the top spot. Among the gainers, JetBlue jumped from No. 4 to No. 2. Delta held steady at No. 3. American slipped from 7 to 10.
So relax, recline your seat, order a nice beverage and decide for yourself. Actually, don’t try this on Spirit. See if the savings are worth it instead.
2. Giovis, Jaclyn. “Spirit Airlines Fined a Record $375,000 for Customer Service Issues.” McClatchy – Tribune Business News, Sep 18, 2009.
Spirit Airlines was fined $375,000 today for violating a raft of consumer protection regulations. It was a record amount for violations of that type, the U.S. Department of Transportation said in announcing the civil penalty.
The sanction follows a $40,000 fine last year for failure to include certain fees in the advertised base fare on its Web site.
The Miramar-based airline failed to comply with rules governing denied boarding compensation, fare advertising, baggage liability and other consumer protection requirements, the government agency said.
Spirit spokeswoman Misty Pinson said the company experienced some “growing pains” with its low-cost business model a few years ago.
“We have addressed all the core issues that caused customer experience challenges a few years ago including upgrading our computer systems and utilizing a new reservations partner,” Pinson said, in a written statement.
The DOT’s investigation involved a review of consumer complaints filed with the department as well as inspections at airports and a review of records at Spirit headquarters.
Spirit bumped passengers from oversold flights but did not provide compensation or a written notice of their rights to compensation, as required by DOT rules. It also failed to resolve baggage claims within a reasonable period, on one occasion taking 14 months to provide compensation.
Linda Rhyne can attest to such problems with Spirit. Her carry-on bag was gate-checked (because overhead bins were full) and then lost on a May 2008 flight from Boston to Fort Lauderdale. Rhyne, a Fort Lauderdale resident, said it took nearly a year to get partly reimbursed for about $3,000 worth of clothing, jewelry, cosmetics and medicines in her bag.
“I think it’s fabulous,” Rhyne said of Spirit’s penalty. “They need to be reprimanded — big time.”
The DOT faulted Spirit for providing compensation for delayed baggage only for the outbound leg of round-trip flights and only for purchases consumers made more than 24 hours after arriving at their destination. In addition, Spirit erred by refusing to accept responsibility for missing laptop computers and certain other items it accepted as baggage on international travel.
Other violations included misleading airfare ads and improperly providing disability information.
The company also cited DOT and Federal Aviation Administration regulations when responding to consumer complaints even though the complaints did not concern those rules. Spirit also did not properly maintain consumer records, the DOT said.
In July, Delta Air Lines was assessed a $375,000 penalty for violating denied boarding rules, but the carrier only had to pay an initial amount of $175,000. Spirit must pay an initial payment of $215,000. The carrier is only responsible for paying the rest if it commits additional violations within a year.
The DOT will conduct a follow-up investigation of Spirit during the coming year.
3. Ina, Paiva C., and Toluse Olorunnipa. “Spirit Airlines’ Quick Growth Poses Problems.” McClatchy – Tribune Business News, Jul 14, 2007.
“That is a total rip-off,” said Marion Ramcharan, a Miramar nurse flying with her husband to Kingston, Jamaica. “I had to pay for each ticket and then they even add more fees.”
“We agree with the customers that that lobby area needs to get fixed,” she said. “Sometimes that line can go out the door, and we are not happy about that at all. It does create a situation with disgruntled passengers, and frankly a disgruntled airline.”
“We can’t create space out of nowhere,” [Greg Meyer] said. “Their incredible growth has happened very fast, and we can’t create the space overnight.”
4. McCartney, Scott. “At Spirit Airlines, Airfares Come with Asterisks; Fees–and Complaints–Pile Up Fast, but Budget-Conscious Passengers Keep Coming.” Wall Street Journal (Online), Feb 25, 2015.
What does it say that the most profitable, fastest-growing U.S. airline is also the most-complained about U.S. airline? Fliers care most about cheap fares.
Spirit Airlines makes no apologies. The ticket price is just the bait on the hook to get travelers onto planes. Then the airline reels in the fees for everything else.
If you want a seat assignment, a carry-on bag or even a cup of water, you pay extra. Buy a ticket with a credit card and you’ll pay a “passenger usage fee.” The fee for checking your first bag can be as high as $100. You might have to pay $25 more if you exceed the 40-pound weight limit because you’re used to other airlines’ 50-pound limit. Forget to print a boarding pass? That’s $10 to have an agent do it for you. There’s no fee to recline the thin seats–they don’t recline because legroom is so cramped.
“No one goes to Chick-fil-A and complains they can’t get a burger. And people shouldn’t come to Spirit if they want lots of legroom,” Spirit Chief Executive Ben Baldanza says. “Judge us for who we are.”
It’s a strategy that is working well, because other airlines have raised prices so much. Spirit, based in Fort Lauderdale, Fla., is expanding nationwide into routes connecting big cities. Earlier in February it announced nine additional routes from Atlanta and three new routes from Los Angeles. It has already grown to be the second-biggest airline at Dallas-Fort Worth International Airport. Delta Air Lines has created a new ultracheap, no-perk fare class to combat Spirit in markets where they overlap.
Spirit, which increased its capacity a whopping 19% last year, comes in with just one or two flights a day on a route. Other carriers have limited their capacity growth during the economic rebound and raised prices, flying full airlines with record profits. Now Spirit is picking up passengers left behind.
But the airline will undergo new scrutiny in March. The Transportation Department will begin including Spirit in rankings of airlines by on-time arrivals, baggage handling, bumping passengers and consumer complaints. Previously, Spirit had been too small for required reporting and didn’t report voluntarily. (A few other airlines that size do.)
Mr. Baldanza expects the airline to score well in many operational measures, such as on-time arrivals and mishandled bags, but not in consumer complaints. “Our complaints will be higher than the rest of the industry. We understand that,” he says.
Spirit is trying to better communicate its fee-for-all strategy to travelers in hopes of reducing complaints. Last May, it decided it needed more transparency for travelers, so it started labeling its fares as Bare Fares on its website, and all add-ons as “frills.” The website takes customers through various fees, such as baggage and assigned-seat fees. But customers who buy elsewhere, such as from online travel agencies, often get enticed by the advertised low fare, not realizing that basic services will raise the price substantially.
The average ticket on Spirit is $73 each way, and passengers pay, on average, another $55 in fees and in-flight purchases.
Some passengers are all too familiar with Spirit’s fees. A trip to Las Vegas was so cramped that Emily Alayyan of Port St. Lucie, Fla., called the airline to book the “big front seat”–a wider seat with extra legroom in the front row Spirit offers for a fee. Spirit also charged her $15 for talking to an agent on the phone. Ms. Alayyan vowed never to fly Spirit again, then found herself lured back by a low fare for a spur-of-the-moment trip earlier in February to Houston with a friend.
At check-in, her friend’s bag weighed more than 40 pounds and she had to jam her clothes into Ms. Alayyan’s bag. They forgot to book the bag online in advance, so they had to pay extra at the airport. Assigned seats cost another $11–the cheapest available–for each person, each flight.
“They attract people with cheap flights and then overcharge for everything,” Ms. Alayyan says. “If you know you’re taking Spirit, be ready for an awful ride.”
But Susana Farias of Fort Lauderdale says she’s “very, very happy with Spirit.” She’s been able to travel a lot more because of Spirit than she could when she was a regular on United Airlines. Ms. Farias uses a Spirit-backed credit card that gets her bonus miles perks. She belongs to Spirit’s $9 Fare Club. She pays a $70 annual subscription to get access to the cheapest fares. On her recent trip to Houston, she paid $120 round-trip.
Stephen Hopkins, chief operating officer of a Dallas energy company, has platinum status on American Airlines but uses Spirit for last-minute trips. He, too, belongs to the $9 Fare Club, splurges for the big front seat and still saves money. A trip to Fort Lauderdale from Dallas and back, booked one week before departure, cost $153 plus about $120 in fees, round-trip.
“That’s still less than half the price of American. My company would pay it, but I’m just not going to pay $800 for the same two-and-a-half-hour flight,” he said.
I booked Spirit flights from Houston to Fort Lauderdale, then to Dallas. For the first leg, Spirit’s website offered a Bare Fare of $117.59 if I became a member of the $9 Fare Club, or $191.59 if I didn’t. The flight to Dallas was offered at $198.09–no $9 Fare Club deal available.
The $9 Fare Club is a misnomer–Spirit doesn’t offer $9 fares anymore, but did when the promotion started in 2007. The fine print shows that it automatically renews every year unless you call to cancel. Once paid, there are no refunds. Mr. Baldanza likens it to a Costco or Sam’s Club membership.
Joining the club would pay for itself on this trip, but I really don’t want to pay again a year from now when I forget to cancel. I take the standard fare. Then Spirit asks about bags: one carry-on for me, at $35 each way. Then what about reserving a seat? The flight from Houston offers most anything in the back of the plane for $11, up to a “big front seat” for $35. Feeling burned on bags, but not wanting to risk Spirit assigning me a middle seat, I take an aisle seat for $11 in the back. The Dallas flight has an array of choices from $10 to $25. I go for mid-cabin aisle for $14. That’s how my $389.68 fare grew to $484.68.
At the airport, Spirit typically starts boarding flights 45 minutes ahead of departure. At big airports, if you’re not checked in 45 minutes before your flight, Spirit will assume you won’t make the plane, cancel your reservation and charge a fee to rebook. The airline says that’s because it maximizes use of its planes, which fly on average more than 13 hours a day, to keep costs low.
By 30 minutes before departure, most everyone is on board my flight from Houston. The captain speed-reads an announcement, saying he appreciates our flying. “Sitbackandrelaxandenjoy the ride to Fort Lauderdale.”
With my knees knocking the seat in front, I notice most passengers have legs splayed into the aisle. Each Spirit row is 2 to 3 inches tighter than comparable coach seats on other airlines. US Airways has 150 seats on its Airbus A320s. Spirit has 178. Cramming more seats on the plane means Spirit can offer lower fares, Mr. Baldanza says.
In the air, a passenger behind me asks for soda. “That will be $3,” a flight attendant says.
“You charge for soda?”
“The only thing free on our airplanes is our smile.”
“What about water?”
“We charge for that, too.”
“Pass.”
5. McCartney, Scott. “The Middle Seat: With Low Fares, Furor Over Carry-on Fees Wanes — Despite Grumbling, Passengers Pay the $30-$45 Surcharge; Spirit Airlines Cites Revenue Boost and Speedier Operations.” Wall Street Journal, Oct 14, 2010.
At Spirit Airlines’ Fort Lauderdale hub, boarding is quick and there are fewer delays from gate-checking bags. Overhead-bin space is plentiful — even for the last-minute passengers on full flights.
And yet, many fliers are furious because the swift boarding and ample bin space come at a hefty price: as much as $45 per carry-on bag.
Nevertheless, they’re adjusting, often saying they factor the fees into buying decisions and still find Spirit cheaper than other carriers. For its part, Spirit has boosted its revenue, sped up its operations and cleaned out its overhead bins, since checked bags are $5 cheaper than carry-ons.
“Everyone is trying to nickel-and-dime in this economy. It’s unfortunate. It’s disappointing. But it just reflects companies trying to take advantage of consumers,” said Frank Bernal, a first-time Spirit flier from New Jersey who paid to carry on his bag for a trip to Colombia. He saw the charge when he booked his ticket.
“The fare was so much lower, it was enough for me to just pay the fee,” he said.
While airlines around the world have embraced fees for baggage, pets, snacks, water, reservation changes, flying standby and reserving seats, only Spirit has pushed the airline-fee frenzy to carry-on bags. Not even Ireland’s fee-crazy Ryanair, a bare-bones carrier that has even threatened to charge for toilet use, charges for carry-on baggage. (Ryanair allows only one piece of carry-on baggage; customers who bring more than one bag must check it at the gate and pay checked-baggage fees.)
Spirit’s move, which took effect Aug. 1, was unique among the world’s airlines and drew the ire of the Department of Transportation and several members of Congress, who considered legislation to make carry-on bags an essential and fee-free part of air travel. New York Sen. Charles Schumer even got five major U.S. airlines to pledge to keep carry-on bags free for air travelers.
Despite all the headlines about the carry-on fee, some Spirit travelers last week were surprised when they checked in for their flights and were told they could bring only one personal item, about the size of a briefcase, aboard free of charge as long as it could fit under the seat in front of them. Anything in the overhead bin would cost $30 at check-in, or $45 if caught at the gate without paying.
“This is the last time I ever fly Spirit,” Emika Danielczyk of Atlanta fumed on the phone to her mother before boarding a flight to Fort Lauderdale, Fla., last week. Spirit was $40 cheaper than comparable flights on Delta Air Lines, but at the airport she realized she’d spend $60 in carry-on fees.
“Had I known, I would have brought a really big purse,” she said after ending her phone call. “It’s probably a couple of years before every airline does this, but personally I’ll fly any airline with free carry-on bags.”
Ed and Ruth Phillips splurged on “big front seats” — Spirit’s version of first class — for a trip from Washington, D.C., to Las Vegas for their son’s wedding. Upon checking in, “I couldn’t believe it. Even in first class they charge you for carry-ons,” said Mr. Phillips, who travels frequently on business.
Still, they both preferred to carry on their bags instead of checking because they didn’t want clothes for the wedding to be lost. They paid $600 for two round-trip tickets, but the $120 in carry-on fees round-trip added 20% to the cost.
“We really aren’t saving anything,” said Mrs. Phillips.
Spirit says its fees give consumers a more transparent view of the cost of air travel. “Spirit is all about giving our customers the power to choose what you do and don’t want to pay for without subsidizing the choices of others,” Chief Executive Ben Baldanza said in the latest edition of his airline’s in-flight magazine.
(Mr. Baldanza said he couldn’t comment on how the carry-on fee has been received by customers because Spirit has filed a registration statement for a public stock offering and is currently in a quiet period.)
Part of Spirit’s carry-on baggage problem is that it has more seats on its planes, on average, than other airlines — but not more overhead bin space.
A Spirit A320 jet, for example, has 178 seats; jetBlue and US Airways put 150 seats on their A320s. As a result, Spirit has up to 28 more passengers clamoring for overhead bin space. When airlines began charging fees to check bags — Spirit was the first to do so in the U.S. — passengers naturally carried more into the cabin to avoid fees, some looking like pack mules. Spirit ended up delaying scores of flights while bags that wouldn’t fit in bins had to be tagged to destinations and sent down to baggage handlers to be loaded in cargo holds.
When the fee was first announced, Mr. Baldanza said Spirit expected to be able to shave five or 10 minutes off its flights, enabling it to add more trips to its schedule without adding more airplanes. That’s a huge cost savings for airlines.
Fees have been a crucial revenue source for Spirit, which has been profitable for the past three years, according to its stock-offering document.
In 2007, Spirit averaged about $11 per passenger in non-ticket revenue — fees and onboard sales. In the first six months of this year, passengers paid Spirit more than $31 on average in non-ticket revenue. Over the same period, Spirit’s average fare dropped almost $16 per passenger (each way) to $82.67, but fees more than offset the lower prices.
Through the first six months of this year, Spirit collected $32.8 million in baggage fees, $19.6 million in an $8 “passenger-usage fee” that can be avoided only if you buy a ticket at the airport, $13.5 million in fees to pre-reserve seating assignments and $10.9 million in reservation-change fees. There’s no tally yet on revenue from carry-on bag fees.
Spirit, a former charter carrier, launched as a passenger airline with scheduled service in 1992. It serves 40 airports, with flights between Florida and major cities including Boston, New York, Chicago, Los Angeles, Atlanta and Washington, D.C. It also has an extensive network to leisure destinations in the Caribbean and Latin America.
Travis Banks, a frequent Spirit customer and member of the company’s “$9 Fare Club” that offers discounts if you buy an annual subscription, said he pays Spirit’s fees but still thinks “it’s bogus.”
“All airlines find ways to charge you — they just go about it in different ways,” he said. Like others, even after paying extra for a carry-on and reserved seat, he still got a better deal with Spirit.
Greg Sech didn’t pay any fees — he put his one bag under the seat in front of him and wedged himself into a middle seat. With Spirit’s tight seating, neither his feet nor his knees had much space.
“The seats are the worst, but I really kind of respect what they are doing with fees. It’s buyers’ choice,” said Mr. Sech, who bought a last-minute ticket from Atlanta to Florida to attend a football game with friends. He paid $300 round-trip — half of what other airlines offered.
“I would never be loyal to this airline,” he said. “But I appreciate the model — as long as they don’t ever charge to use the bathroom.”
6. Satchell, Arlene. “Airline Blasts Competition for Fares.” South Florida Sun – Sentinel, Jul 18, 2015.
Spirit Airlines is taking on the major carriers over the way they price their fares.
Spirit began a campaign this week encouraging consumers to demand money back from carriers that include bags, meals and other services as “free” perks in their higher airfares.
In contrast, Spirit’s approach is to offer low base fares with additional fees for everything from checked bags and large carry-ons to advance seat assignments and boarding passes printed by an agent or airport kiosk.
The Miramar-based airline has launched the promotional website Unbundlers.com, which depicts a duo of lawyers searching for travelers who have been “bundled” and want help getting refunds.
On the website, travelers can choose from a list of six U.S. airlines and then use its ‘Unbundle-o-thon’ calculator to see how much they have been “swindled” by paying for things they didn’t use.
“It’s a fun way to point out a serious issue,” said Spirit’s president and CEO, Ben Baldanza. “At Spirit we pride ourselves on being very upfront and honest about what you get — and what you don’t — when you purchase tickets on our airline.”
The campaign offers a somewhat off-the-wall spin on the long-debated issue of airfare transparency.
For years, consumer advocates have called for airlines to be more clear about the final prices and extra fees they charge travelers. In January 2012, the U.S. Department of Transportation required carriers to include all taxes and mandatory fees in the price quoted. It also required carriers to prominently display additional travel-related fees and charges on their websites.
Most major airlines — and their trade group, Airlines for America — argue that they should be able to display fares without including taxes and fees, the same way other businesses sell their products. They have backed legislation to reverse the 2012 rules.
Southwest Airlines spokeswoman Michelle Agnew defended her airline’s transparency.
“No hidden fees here,” Agnew said in an email. “While other airlines’ approach may be to nickel and dime their customers at every turn, one thing that never changes is that Southwest is the lowest fare in the market more times than any other airline.”
That’s especially true, Agnew said, considering that Southwest does not charge for the first two checked bags or reservation changes.
Spirit’s practices have irked some travelers who view the carrier’s pricing structure as burdensome.
The carrier has the industry’s highest complaint rate with the U.S. Department of Transportation. But its business strategy also has given it the highest profit margin of U.S. airlines.
A recent Spirit survey found that 25 percent of air travelers had no carry-on bag but paid as much as $35 in their ticket prices to cover the costs of that perk, the carrier said.
Twenty percent of passengers polled had skipped the free in-flight snacks, which add $3.50 to the price of a ticket, Spirit said.
7. Satchell, Arlene. “Spirit Airlines is the most Improved U.S. Airline in 2016, New Study
shows.” TCA Regional News, Apr 11, 2017.
Spirit Airlines’ efforts to improve customer service appear to be paying off, according to findings of a new airline quality performance released Monday.
The low-cost carrier was the most improved U.S. airline in 2016, according to the 27th Airline Quality Rating study, which ranks the 12 largest air carriers based upon on-time performance, involuntary denied boardings, mishandled bags and customer complaints.
But Miramar-based Spirit is still hovering near the bottom of the rankings at No. 11 in the annual study conducted by researchers from Embry-Riddle Aeronautical University and Wichita State University.
This was Spirit’s second year in the study, following its 2015 debut at No. 13, the last spot.
“The most improved airline is Spirit, which it needs to be. It had a long ways to go,” said Dean Headley, associate professor at Wichita State University and the study’s co-researcher during a press conference. “It was definitely kind of the perennial last airline.”
Overall, Spirit’s total AQR rating for 2016 improved to -2.01 compared to -3.18 in 2015, the study showed.
“Now it’s not quite last, Frontier, unfortunately, has that distinction this year,” Headley said.
In recent years, Spirit has been working to fix its high complaint rate and poor customer service reputation. Consumers unfamiliar with its a la carte pricing approach have often felt nickel-and-dimed or blindsided by the final cost of travel but on-going marketing campaigns have sought to make its pricing structure clearer.
In response Monday, Spirit spokesman Paul Berry said the improvements to its ratings reflects its commitment to improve operations and customer service.
“Beginning last spring, Spirit initiated a number of programs that have led to major improvements in on-time performance and a 64 percent reduction in complaints year over year,” Berry said. “While we’re pleased to see such dramatic improvements, we know we can do better and we’re committed to keep getting better every day. Today’s Spirit is performing much better than last year’s Spirit, and next year’s Spirit will be even better and we’ll still be the low-price leader in the industry.”
In 2016, Spirit’s on-time arrival performance rose to 74.3 percent from 69 percent in 2015, according to the study. Its rate of involuntary denied boardings however increased to 0.58 per 10,000 passengers from 0.31 in the prior year. But the budget airline’s mishandled bags rate also saw improvements, falling to 2.16 per 1,000 travelers from 2.57 in 2015.
On the consumer complaint side, Spirit’s decreased its rate of complaints to 6.74 per 100,000 passengers in 2016, down from 11.73 in 2015.
Still, Spirit’s consumer complaint rate is higher than the industry average of 1.52 per 100,000 passengers, according to the study.
Spirit is the second-busiest carrier at Fort Lauderdale-Hollywood International Airport, with 19.3 percent of passenger traffic in 2017 as of January, the latest airport data show.
Topping the 2017 study rankings is Alaska Airlines and rounding out the 12 are Delta, Virgin, JetBlue, Hawaiian, Southwest, SkyWest, United, American and ExpressJet.
JetBlue, which placed fourth, is the top carrier at Fort Lauderdale-Hollywood with 25.1 percent of passenger traffic, while Southwest, which ranked No. 6, is the airport’s third-busiest carrier with 17.8 percent.
In 2016, on-time arrival performance for the 12 airlines overall was 81.4 percent, which was “pretty good,” Headley said. That compares to 79.9 percent in 2015, and a range of 75 percent to 80 percent for the last four to five years.
Last year, the rate of denied boardings improved to 0.62 per 10,000 passengers, while mishandled bags also improved to 2.70 per 1,000 passengers from 3.24 per 1,000 in 2015, the study showed. Both rates for denied boarding and mishandled bags were the best ever in the history of the study, Headley noted.
“The airlines have finally gotten to the point where they’re not bumping nearly as many people,” he said. “Bags and bumpings are better than they’ve ever been.”
Meanwhile the rate of consumer complaints fell to 1.52 per 100,000 passengers versus 1.90 in 2015.
While it’s not the best or worst it’s ever been, the rate of consumer complaints is better than it’s been in recent years.
Customer complaints however remain a sore point, are travelers continue to complain about the same things such as flight problems and schedule changes, the study shows
In 2016, nine of the 12 airlines saw improvements in three of the four performance metrics, while seven got better overall in all four areas as did the airline industry overall, Headley noted. “So we’re going in the right direction.”
Notable year-over-year changes for the top six airlines included JetBlue moving from second place to fourth in 2016, while Southwest maintained its sixth position, said Brent Bowen, co-researcher professor and dean at Embry-Riddle Aeronautical University’s College of Aviation in Arizona. While Alaska moved from fifth to first, Virgin America dropped to third from first place, Bowen noted.
“It will be interesting to see how the Virgin America-Alaska merger will pan out moving forward,” Bowen said. “But in the end, airlines with a solid commitment to their customers and those key experiences, like making sure your flight is on time or that your baggage isn’t lost or damaged, will always come out on top.”
8. “Spirit Airlines Posts Q4, Full Year 2023 Results.” Airline Industry Information, 2024.
Florida, US-based low-cost carrier Spirit Airlines, Inc (NYSE: SAVE) has reported fourth quarter and full year 2023 financial results, the carrier said.
Operations
For the fourth quarter 2023, the company’s load factor was 80.1 %. For the fourth quarter 2023, Spirit reported a DOT on-time performance2 of 76.8 % and a DOT Completion Factor2 of 99.2 %.
Fourth Quarter 2023 Financial Results
For the fourth quarter 2023, Spirit reported a net loss of USD 183.7 m, or a net loss of USD 1.68 per diluted share.
Excluding special items, adjusted net loss for the fourth quarter 2023 was USD 148.7 m1, or an adjusted net loss of USD 1.36 per diluted share.
For the fourth quarter 2023, Spirit reported a pre-tax loss of USD 228.3 m and a pre-tax margin of negative 17.3%.
Adjusted pre-tax loss for the fourth quarter was USD 192.2 m1 and adjusted pre-tax margin was negative 14.5 %
Revenue
Total operating revenues for the fourth quarter 2023 were USD1.3 bn, a decrease of 5.0 % compared to the fourth quarter 2022. Total revenue per ASM was 8.94 cents, a decrease of 17.3 % compared to fourth quarter 2022 on 14.8 % more capacity.
On a per passenger flight segment basis, compared to the same period in 2022, total revenue per passenger flight segment for the fourth quarter 2023 decreased 15.3 % to USD 114.84.
Compared to the fourth quarter 2022, fare revenue per segment decreased 25.0 % to USD 48.24 and non-ticket revenue per segment decreased 6.6 % to USD 66.603.
Cost Performance
Total GAAP operating expenses for the fourth quarter 2023 decreased 9.5 % compared to the fourth quarter 2022 to USD 1,536.6 m. Adjusted operating expenses for the fourth quarter 2023 increased 11.3 % compared to fourth quarter 2022 to USD 1,485.1 m.
The decrease in operating expenses was primarily driven by a decrease in special charges year over year, partially offset by increases primarily related to increased flight volume, additional leased aircraft and inflationary pressures.
The increase in adjusted operating expenses year over year was primarily driven by expenses related to increased flight volume, additional leased aircraft and inflationary pressures.
Aircraft utilization in the fourth quarter 2023 was 11.2 hours, up 3.7 % compared to the 10.8 hours in the same period of 2022.
The company’s aircraft utilization in the fourth quarter 2023 was constrained due to engine availability issues primarily driven by unscheduled engine maintenance events resulting in aircraft not being available for service.
During the fourth quarter 2023, Spirit took delivery of four new aircraft (two A320neos and two A321neos) and retired one A319ceo aircraft, ending the year with 205 aircraft in its fleet.
Neo Engine Update
During the third quarter 2023, Pratt & Whitney notified the company that all the geared turbofan neo engines in its fleet, are in the potential pool of engines subject to the inspection and possible replacement, of the powdered metal high-pressure turbine and compressor discs.
In January 2024, the company had an average of 13 grounded neo aircraft and estimates that number will climb steadily to an average of about 40 in December 2024, averaging about 25 grounded neo aircraft for the full year 2024.
Spirit currently estimates its capacity for the full year 2024 will be flat to up mid-single digits compared to the full year 2023.
The company and Pratt & Whitney have been in negotiations regarding fair compensation for the financial damages related to the geared turbo fan neo engine availability issues.
Discussions with Pratt & Whitney have progressed considerably since October, and, while no agreement has been reached to date, the company believes the amount of compensation it will receive will be a significant source of liquidity over the next couple of years.
Liquidity and Capital Deployment
Spirit ended fourth quarter 2023 with unrestricted cash and cash equivalents, short-term investment securities and liquidity available under the company’s revolving credit facility of USD 1.3 bn.
In November 2023, Spirit modified its Revolving Credit Facility to, among other things, extend the final maturity to September 30, 2025.
In December 2023, the company completed sale-leaseback transactions for 20 aircraft, resulting in repayment of approximately USD 325 m of indebtedness on those aircraft and net cash proceeds of approximately USD 320 m.
In January 2024, the company completed sale-leaseback transactions for an additional five aircraft, resulting in repayment of approximately USD 140 m of indebtedness on those aircraft and net cash proceeds of approximately USD 99 m.
In total, these transactions resulted in net cash proceeds to the company of approximately USD 419m.
Total capital expenditures for the year ended December 31, 2023, were USD 232.4 m, primarily related to expenditures related to the building of Spirit’s new headquarters campus in Dania Beach, Florida, and purchases of spare parts, including four spare engines, partially offset by net inflows of aircraft pre-delivery deposits.
And surely the airline’s official website.
“About Spirit.” Spirit Airlines, https://www.spirit.com/s/about_us.
There are many reports and statistics. They even recently posted their first quarter results for 2024 so I am sure you will find some really good details.
https://s24.q4cdn.com/507316502/files/doc_financials/2024/q1/Earnings-Release-1Q24.pdf
Try to cite even a sentence from each of the library sources so that they can be written in the works cited page. However, you are absolutely free to use any outside source as long as it they come from reliable places like Time.
These are the articles I read and I am not sure if they will be helpful but I will leave them here.
https://www.naplesnews.com/story/news/2024/04/29/best-airlines-spirit-airlines-florida-wallethub/73502346007/#
https://www.statista.com/topics/4567/spirit-airlines/#statisticChapter
in the last link there is a diagram on American customer satisfaction index scores for Spirit Airlines U.S. 2015-2024 have a look I think it’s a good thing to develop a paragraph.
https://www.statista.com/statistics/1004096/american-customer-satisfaction-index-spirit-airlines-us/
if you will cite some other sources please attach them in the works cited page.
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