Question

Describe the evolution of SPIRIT AIRLINES by describing the "elasticity of price" and "consumer satisfaction". Summarize your research and give your prediction for their future.

Answer 1

Spirit Arlines has seen a roller coaster journey from the day of incorporation. It was initially named as Clipper Trucking Comany but later changed the name to Spirit airlines. They are supposed to be ultra low cost carrier, hence the proce elasticity of the airlines is quite high. They have always targeted degment who could afford low cost carrier. The prices are so elastic that they changes it frequently. And the breakup of the charges are abrupt. For example there were different charges for ifferent luggage weights, charges were for welcome drink etc.

Spirit airlines were always accused for overbooking of flights and then cancelling the tickets without prior notice. Apart from this they has been questioned for not maintaining the standards and delaying flights and mishandling the luggage and not even compensating for the losses. They always struggled to get the customer satisfaction. But as always in 2017 also thet stood last among the other airlines in US to provide customer satisfaction.

If the airlines keeps on working in the same status quo way then it will be quite difficult for this airline to sustain in long run. With the increasing competition in the airlines, it is very important to maintain customer satisfaction. They company need to revamp the way they work or else the end is not too far