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Adam Allington
The no-frills air carrier Spirit Airlines filed for bankruptcy protection on Monday, having not posted an annual profit in five years. Spirit is the first major U.S. airline to file for Chapter 11 since 2011.
Christopher Anderson
Professor at the Cornell School of Hotel Administration
Christopher Anderson is a professor of operations, technology and information management, and an expert in the hospitality and airline industries. Despite its unpleasant reputation, he says Spirit’s bankruptcy is bad news for consumers.
Anderson says:
“It is unfortunate as ultra-low cost carriers (like Spirit and Frontier) greatly benefit consumers. Having them in markets also helps with competition and ensures a full range of flight options.
“The JetBlue-Spirit merger never really made sense with Spirit scrabbling ever since it was called off. A merger with Frontier probably would have made more sense, providing the combined airline with sufficient scale to compete at a desirable price and service level.
“Spirit has struggled without sufficient scale and, as a result, had to provide a lower level of service and equipment, which in turn has negatively impacted their performance. Spirit was able to stabilize demand but at reduced fares. This, combined with today’s elevated costs, has resulted in the announced bankruptcy.”
