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Home  >  Travel  >  Why I Don’t Like The Frontier-Spirit Merger
Travel

Why I Don’t Like The Frontier-Spirit Merger

Kyle Stewart Posted onApril 10, 2022April 10, 2022 8 Comments

In a post earlier today, I laid out the factual reasons why the JetBlue acquisition is better than the Frontier-Spirit merger. Here are a few reasons off the cuff. 


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Just Because They Are Both ULCCs Doesn’t Make Them a Good Fit

I get it, JetBlue is the cool airline (they really are) and Spirit is the discount carrier with the bad rap. Fine. I’ll concede that point only because I am out of breath trying to explain what Spirit really is to a bunch of people who have never, will never fly the carrier but somehow justify the validity of their opinion anyway.

Whatever.

Not all ULCCs are created equal just like not every major carrier in the US is the same or fits well together solely because they are in the same category. For example, let’s take American and United Airlines. They are both big international flag carriers. They have unwieldy fleets that touch every category outside of jumbos. Should they get together and form “America United”, right? No. The overlap out of Chicago and Washington DC alone would be ridiculous. Should regulators be okay with essentially all of Texas belonging to the behemoths? Certainly not. They don’t belong to the same alliance, they don’t even use the same ticketing system or common technology.

Likewise, I haven’t seen a single justification for the merger outside of the two of them being in the same price category. While important, it wouldn’t vacate the market altogether. Allegiant and Frontier would remain if JetBlue bought Spirit, they would compete, and that’s not to say that the majors don’t have a Basic Economy product that serves them.

However, Frontier simply doesn’t run the same models. They fly odd schedules on leisure-heavy markets, some of them seasonally. Spirit flies most of its schedule at least daily, into big airports, and helps business travelers save money too. Take the New York market for example from Pittsburgh. Spirit’s June launch of its Newark service, I expect, will drop fares and make it far easier and cheaper to get to the Big Apple. For every two flights on United, one flight will do on Spirit due to the aircraft type used.

Frontier will never start Pittsburgh-New York (market) daily flights. They just wouldn’t and that’s one of the main reasons I would rather have a bigger JetBlue, than a combined Frontier-Spirit.

A “Merger of Equals” Is Fiction

A merger of equals… somewhere legacy American Airlines staff is chuckling right along with me. I have been apart of a merger (outside of the business) that was branded the same. Both companies were in the same market, had similar employee counts, similar revenue but it was only a matter of time before all of the company leadership on the smaller side of a similar 7-5 board split had gone on to other ventures. Before long, accounting, HR practices and policies, finance, and then ultimately leadership tipped to the side of the “equal” that had more board seats. I’m not bitter, it’s just business.

That said, US Airways leadership gutted American Airlines just when it was going for great. The carrier was installing premium interiors like IFE in all of the headrests, while legacy US Airways didn’t even offer outlets at the seats. Over time, the frog was boiled and now the carcass of what American Airlines once was is all that remains.

A merger of equals is a business fallacy so if you consider this lens, then who should Spirit become acquired by, Frontier or JetBlue? I’d rather more JetBlue than a bigger Frontier.

Frontier’s Focused On Costs, Spirit Is Focused On The Traveler

Frontier just announced that in its push to increase its presence at Denver International Airport, they will invest $100 million in a terminal renovation to secure its own section with… wait for it… tarmac entry and exit from the plane. Frontier makes the point that this is common in Europe – it is, and frankly, it’s common in the Caribbean, and Asia too. But in most of those places, they aren’t literally in the mountains fighting blizzards. There are exceptions, Zurich, and Geneva come to mind and Frankfurt can get pretty cold too, but that’s a different customer base as well.

If Frontier said they wanted to do Tarmac loads in Florida – cool, no problem, save that money and pass it on to the customer. Connecting in Denver in February on the tarmac? No thanks. That’s a cost-cutting measure to stay more competitive on fares, one that Spirit hasn’t put forward despite so much of their operation being in sunny Florida.

That’s a great image of how Spirit is different. So is Wi-Fi. Spirit is finishing up its fleetwide installation of (fast) connectivity which even allows you to use your own streaming services. That sounds a lot more like JetBlue than Frontier who don’t offer it at all. Spirit’s loyalty program is better – if purely looking at domestic travel it rivals and even surpasses some network carriers. Spirit gives away free points on every flight (to engage customers with their credit card offer), Frontier doesn’t. Spirit offers its Big Front Seat (larger than first class on most legacy carriers) and makes it attainable (about $50/flight), Frontier doesn’t have a Big Front Seat.

Spirit has made its focus “Invest in the guest” and that’s not Frontier’s approach. Whataburger and In-N-Out are both regional favorite fast food burger chains. There are advantages to both, but a merger would be oil and water. It doesn’t matter that they have the same price point, serving a similar product, in the south and western states – they aren’t similar enough to work together. One will overtake the other and instead of having an amalgamation, you would have simply more Whataburgers or In-N-Out.

I’m an In-N-Out guy, not Whataburger, there is no middle ground.

Conclusion

Simply out of sheer laziness, many who think this is a good idea haven’t really examined the culture or customer experience. Analysts looking at route maps, and statistics haven’t flown either carrier, let alone both. I do not believe a blended board (unless 50/50) can ever be a merger of equals. Therefore, if I accept that Spirit is no more, do I want more Frontier or more JetBlue? The choice is clear.

What do you think? Have you flown all three carriers? How do you think this should play out? Do you agree that it will not be a merger of equals? 

Previous Article Why JetBlue’s Spirit Acquisition Makes Sense
Next Article American Airlines Brings Back Espresso Onboard!

About Author

Kyle Stewart

Kyle is a freelance travel writer with contributions to Time, the Washington Post, MSNBC, Yahoo!, Reuters, Huffington Post, MapHappy, Live And Lets Fly and many other media outlets. He is also co-founder of Scottandthomas.com, a travel agency that delivers "Travel Personalized." He focuses on using miles and points to provide a premium experience for his wife and daughter. Email: sherpa@thetripsherpa.com

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8 Comments

  1. john Reply
    April 10, 2022 at 3:02 pm

    How about neither?

    And then we break up the Big 4 in the process; one can dream.

  2. DesertGhost Reply
    April 10, 2022 at 3:22 pm

    Instead of rehashing what I wrote earlier (which is unnecessary since it makes some of the same points that are made here), I’ll repost the last paragraph which points out a significant fact that regulators routinely look at, but which few airline bloggers have given much attention.

    That fact is mentioned in this link to a CNBC report on the proposed merger. At the end of the clip, Phil LeBeau points out that Spirit and Frontier’s market overlap is about 46.4% compared to 29.2% between Spirit and JetBlue. I’m pretty sure the DOJ doesn’t get too worked up about an airline’s perceived market segment when looking at mergers and partnerships. It looks at factors such as market overlap and concentration. DOJ’s main focus is preserving competition. And competition, not low costs, is what keeps fares down.

  3. Dave Edwards Reply
    April 10, 2022 at 6:02 pm

    Maybe they do belong together.

    https://www.usatoday.com/story/travel/airline-news/2022/04/10/jetblue-spirit-flight-cancellations/9532955002/

    “ JetBlue Airways and Spirit Airlines passengers have struggled to reach their destinations this weekend as the airlines canceled hundreds of flights due to staffing issues and bad weather in Florida late in the week.”

    Kyle, I believe you live in Florida like I do and the past 3 days have had some of the most perfect Florida weather one could ever ask for. While Thursday was nasty, it shouldn’t take 3 days to get back on schedule. Blaming the weather is an excuse and we all can see through it.

  4. Mick Reply
    April 10, 2022 at 7:57 pm

    On a side note I agree re spirit. I flew them with the family from ord to myrtle beach if all places. Lolllll

    Was actually fine. And not that different to American etc. paid $15 or whatever for bypassed security. I loved they stopped people bringing 19 bags onboard. On way back has big seats for wife and I and kids had row behind. Worked out very well. 2 checked bags for five of us.

    • Mick Reply
      April 10, 2022 at 7:58 pm

      Noting all of my American mates laughed at me for even considering spirit. And I’m a points guy so long haul I’ve flown all the biz and f cabins. For a short flight it’s all good. I like their model.

  5. Marc Waddell Reply
    April 11, 2022 at 12:24 pm

    I’ve flown Spirit exclusively for several years. Mostly from Ft. Lauderdale To DFW, and SeaTac to Las Vegas laying over to DFW or Ft. Lauderdale. I have to get a “big” seat b/c I am 6’4” and nearly 275 pounds. I like their points system which is linked to my favorite motel chain. I have never experienced a cancelled flight, and their people skills are terrific. The only complaint I have is a 9 hour layover in Las Vegas when going to Ft. Lauderdale.
    The really good observation about people boarding with 4 or 5 grocery store bags and nacho chips smelling up the cabin. This is all true, and the price one has to pay to fly AirGreyhound. Finally, I am a huge fan of Airbus. Spirit seems to have a very able service system for the workhorse of travel: the A320 and the A319.

  6. Fred Reply
    April 14, 2022 at 12:27 pm

    Jetblue need to merger with Delta…Spirit and Frontier make a good merger same type of aircraft and service. Spirit is strong in the East and Frontier is strong in the Midwest…and both or low cost Airline…This merger will bring the cost down from the Big 4….And Jetblue need to work on getting it house any order…you ….had ten years of free cash..before you had to pay one dime on those aircraft jetblue…and on Top of that…you still in talk with American Airlines…..Give Me A BREAK…

  7. Sam Reply
    April 14, 2022 at 11:26 pm

    JetBlue is an operational horror show. Any merger/acquisition that leaves them in charge of ops is a bad idea but good for other carriers. DL is going to benefit in the NE because folks will pay higher fares when they realize JetBlues jets don’t take off reliably. But yeah… The Cool Airline..Mint is great & free wifi is helpful on the 3 out of 5 flights that go.

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