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An Airline for the 99 Percent: Spirit Airline CEO Speaks Out

Locations in this article:  Atlanta, GA Chicago, IL Dallas, TX Fort Lauderdale, FL Las Vegas, NV Philadelphia, PA Pittsburgh, PA St. Louis, MO

PG: Do you look at yourself at any time as a thorn in the other airlines’ side?

BB: I’m sure other airlines don’t like our prices in the marketplace. But I don’t know bothered by us as much as they’re bothered by some other airlines. We’re clearly not an airline trying to capture that high-fare-paying corporate business customer, which is what most other airlines see as their– as their golden calf.

No business class, no first class. We do have a frequent flyer program. But if you don’t use our credit card, it’s probably not worth that much to you.

PG: Let’s talk about leg room. Less leg room.

BB: The plane costs a certain amount of money. Pilots and flight attendants cost a certain amount of money. Fuel costs certain amount of money. Landing at LaGuardia costs certain amount of money. If I can spread that cost over 178 people versus 150 people, I can charge those 178 less.

PG: Some people would say, “Hey, my knees are in my neck.”

BB: And so pay more and fly an airline with more leg room. You have that option.

Back in 2010, we launched– we started charging for large carry-on bags. And they created a bit of a media fire storm, right. We probably didn’t explain it as clearly as we could have in hindsight.

PG: Was this just a weight issue for you?

BB: No. It was– it was a delay issue. In late 2009, a couple of us had gotten together to look at some problems with the airline, including long gate delays. If a flight is scheduled to leave at 1:10, why are we leaving at 1:22?

The single largest controllable problem was bags that didn’t fit on the plane. We had helped create the problem by charging for checked bags and not charging for carry-on bags. So we said, “Let’s neutralize the incentive. And let’s also charge for a large carry-on bag while protecting anything you’ll fit under the seat.” You have– a mother’s bringing– a diaper bag or things like that, we’re not gonna charge for that kinda stuff, or an umbrella. But the media went crazy about this.

PG: The perception is, if you could charge for the umbrella, you would.

BB: That may be the perception. But I think that’s unfair. Because at the core, we’re an incredibly customer-service-friendly airline because we try to get you where you’re going for less money.

Today, a fewer number of our customers bring the large carry-on on board. They board the plane first so they find space right above their seat for the bag. Everybody else just gets down and goes to their seat.

With Spirit, if you use the extra service, we charge you for it. If you don’t, you don’t pay for it. And that’s the big difference between us and many other airline– there’s an airline that you’re probably familiar with that tells the world bags fly free, right?

PG: Would that be Southwest?

BB: Fundamentally, we think that’s a lie. Because bags cost money to manage through the system. People put the bags on the airplanes. So the bags aren’t free at Southwest. They’re just included in the price of your ticket. But truth in advertising would be, “Two b– the price of carrying two bags is included in the price of your ticket, whether you carry the bags or not.”

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