Spirit Airlines jets will surpass two United Airlines planes at Newar Liberty Airport on March 23, 2018 in Newark, New Jersey.
Gary Harshawn | Getty Images
Long Beach, California – United Airlines On Thursday, CEO Scott Kirby predicted Spirit Airlines is out of business and said the once flexible discount airline model was dead.
Spirit Airlines filed for Chapter 11 Bankruptcy Protection for the second time in a year after customer demand fell in March and failed to make enough changes to be met only at a sustained high cost when it came out in March.
Speaking at a meeting of the Airline’s Passenger Experience Association, Kirby was asked by moderator, aviation industry journalist and podcaster Brian Schmers. Why did you think the spirit would be closed? The CEO replied: “Because I’m good at math.”
Spirit recently cut dozens of destinations while being a rival like United. JetBlue Airways and fellow discount carriers Frontier Airlines Added flights to the city of Spirit Serves.
Kirby has criticised discount airlines for many years, saying the strong growth they rely on to support fuel profits is not sustainable. On Thursday, he also said that he could surprise customers, opposed the model that charges low fares and fees to everything else.
“You can’t have a business model that your customers hate. You can’t have a business model based on ‘screwing customers’,” Kirby said Thursday.
Kirby also criticised the model at another aviation event in Washington, DC on Wednesday, sparking a fight with the Spirit.
“Scott is finally right about something – it’s all about the customer,” said a post on Spirit’s X account on Wednesday, following Kirby’s initial comment. “Our guests love the low fares, especially our new Spirit First and Premium Economy options. Perhaps that’s why United executives can’t stop yapping about us.”
Spirit did not comment further on Kirby’s remarks on Thursday.
Frontiers and Spirit have begun offering more bundles, including seats and luggage. One of the major challenges of discount airlines is the success of larger rivals on basic economy fares. This includes more amenities, including carry-on baggage and seat selection.
Frontier CEO Barry Biffle said late last month that his career wanted to be the top ultra-low-cost carrier in the US.
United’s Kirby equated it with “the last man on the wreck.”
“The business model doesn’t work,” he continued. Frontier did not immediately comment.
