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The of Spirit Airlines - Case Study Example

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This paper describes and analyzes the work of a company Spirit Airlines, which was established by the name of Clippert Trucking Company in the year 1964. Initially, the company operated as a tour operator which organized charter tour programs for their customers…
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The Case of Spirit Airlines
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Download file to see previous pages The flights operate chiefly from and to South Florida, Latin America along with the Caribbean. The airline focuses on capturing the market of people traveling by air with the low fares. They believe that this market of air travelers have always been served with high costs and their strategy of low airfares grant them the prospect of continuous growth. This prospect also facilitates their sustained existence in the industry. The company employs the model of the ultra-low-cost carrier (ULCC) in their business. This model of ULCC assists the company to make available their services at low-fares which entails the fundamental service. The company also offers an assortment of elective services that can be availed with the help of extra charges. The company generally targets the people who are leisure travelers with the help of their low-cost services. Their unique services and low airfares have earned them immense popularity in the US placing them among the best airline companies in the country in spite of the increase in the fuel prices.
The biggest strength that has placed the company among the best airlines companies is their low-cost design. The operating expenses of the company were stated to be one of the lowest amongst all the airlines' companies functioning in the US. It is believed that this advantage of cost enables them to defend their position in the airline's industry and facilitates them to make available such low fares in the market, keep up the working margins and hold up the constant development and expansion. Although, the airlines had to increase their costs of tickets from the year 2009-2010 owing to the boost in the fuel prices they still managed to keep up their revenue and be counted among the best airlines of the US.  ...Download file to see next pagesRead More
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