Wednesday, October 9, 2013

Why This Airline Isn't Threatening Its Rivals... Yet


Following a few intriguing moves in the past month, Spirit Airlines' (NASDAQ: SAVE  )  cheap-ticket, high-fee model could be in for serious competition in a few years.

Spirit chairman William Franke, who pioneered the airline's highly profitable approach to flying, resigned his post after his Indigo Partners group sold a substantial stake in the airline. But Franke and Indigo turned right around and bought Frontier Airlines, a subsidiary of Republic Airways (NASDAQ: RJET  ) The deal won't close until December, and given the time it takes to turn around an airline, Spirit and Allegiant Travel (NASDAQ: ALGT  ) shouldn't sweat Frontier's competition for now. However, with a strong operator at its helm, other ultra-low-cost carriers could face a tougher rival in the future.

Read the full article here.


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