Are Low-Cost Carriers In The US Facing A Crisis?
With Frontier announcing a new operating model, is this the beginning of the end for low-cost and ultra-low-cost carriers in the US?
We have seen that JetBlue’s efforts to acquire Spirit Airlines didn’t go anywhere, because of regulatory intervention. Before this, Spirit was in talks for a similar merger with Frontier Airlines, until JetBlue emerged as Frontier’s competitor.
Photo: JTOcchialini,CC BY-SA 2.0US authorities believed that a JetBlue-Spirit merger/acquisition would hurt competition and reduce the number of affordable seats in low-cost carriers. But after the deal stalled, Spirit went into “survival mode”, as it tries to avoid bankruptcy.
The company is in financial trouble in part because of its route expansion in the immediate post-pandemic years. But the company has also suffered because of the need to ground A320neo-family aircraft with Pratt & Whitney engine issues.
Photo: Jack PlantHard Times for US Low-Cost Carriers?Among US ultra low-cost..