Few U.S. airlines are as confident in their business strategies at Spirit Airlines, which is working diligently to become the Ryanair or EasyJet of North America.
Spirit has an updated presentation on its website, and the airline is reminding investors that customers want to save money over all else. It included this survey of 1,474 travelers taken on June 26-27, 2014. Do you think this is an accurate assessment of passenger preferences?
Some people have questioned whether Spirit, which now has 74 aircraft, still has room to grow in the U.S., especially since it now has a bonafide ultra low cost competitor in Frontier Airlines. But Spirit believes it has plenty of routes on which it can expand.
This is not the best slide, but it purports to show why Spirit predicts it will have more success. In Europe, airlines like Spirit now have about 20 percent market share, while Spirit now has only about 1.8 percent U.S. share. By 2021, Spirit predicts it can easily have about 5 percent share.
The larger airlines - American Airlines, Delta Air Lines and United Airlines - hate the prospect of Spirit increasing it market share. But Spirit keeps telling investors the big carriers have nothing to worry about. Spirit compares the situation to retail - there are luxury brands and non-luxury brands, and the two generally do not compete.
What do you think about Spirit? Do you think it will continue to increase share because travelers prefer the cheapest fares? Or do you expect it will peak below 5 percent share?
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