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Spirit Airlines CEO Ben Baldanza on the company’s business model of charging lower fares along with fees for additional options.
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Bottom line Americans under -- right so our flyers you when they just -- relax I mean.
Speed up.
These so the guy.
Include charges for everything from not bad so booking a ticket online to go into the bathroom and getting but he really started this and he's done all -- is letting people know.
That is your basic and honest with them while they know up -- what the -- -- Spirit Airlines CEO Dan rather on that then on the there -- those in the airline as you said you know.
American Airlines didn't charge enough seats what do you think about.
Well -- We do we charged recharged he's deal but we make -- options as you know and every time we got -- if the we've correspondent -- lowered our base fare.
Which is why spirit -- lower fares and any other airline in the US right now and we put the pricing power consumers had to give them the option of what debate.
But a lot of your consumers don't know about right I know you had your rabid fans of frequent flyers -- -- But a lot of them are surprised and I find it always -- carrying a bag -- have to -- today assumptions.
From doing this birthday today as an and they resumed that the that the count are on their shock -- Well you -- -- that's fading that that may have been -- a couple of years ago we started this but the reality is is most of our customers by directly from our website.
And we disclosed enormously on our website you charges -- then fine and I -- to sign.
Well we have a we have a passenger usage fee which helps offset the cost.
Of the marketing distribution cost of that website which of course we -- if you come and you buy the ticket directly and our airports.
The way to Minnesota Viacom then I -- the whole idea of these online and go to make it easier.
Make -- more efficiently when I go to a bank is -- rather than.
A talent.
Well in some cases that's true but.
You know what we have is we continue to evolve our website it does a lot of things for customers and we also have this and lists flush at this on that endless.
-- on parade of regulations that are coming from the government in terms of what the website have to do.
You know for example we have to build our website now so that visually impaired people can use our website.
That's not something that Google or Amazon even have to do but the airline industry is gonna have to do that her you're gonna chargers driven knows that not only is going people you're gonna charge and double -- Hello again if you're visually impaired you wanna -- spirit today we let you call our call center we don't charge a fee for that and we take care of you really well at the airport.
What about what -- ever say there -- -- there are like my son my visit is -- -- -- would not I don't want to tackle the identical -- -- believe me -- just give -- a -- Well but again it's that spirit doesn't nickel and -- because our fares are really really -- our average fares well under a hundred dollars -- you know Smart state years -- November the smartest and I think -- -- -- because I think you're great -- really don't know blowing smoke.
And that's how we use only yourself into.
A luggage compartment -- overhead bin personal like couldn't get my headed one of those things.
You got your whole body not to shed what we have big -- -- -- if you -- it.
Don't trust me I've moved through your planes alone in the bins but but you know was Smart about that it just -- it reminded people of of what the reality it's.
Do you think that the airline industry you're spirit notwithstanding.
Is gonna look at this and say well you now -- on to something.
And maybe this is a model ago -- -- -- small right now getting bigger but still -- lose -- by comparison the big guys.
This is a little bit ago and that's why a lot of passengers saying -- today we're gonna be hit hard.
Well the good thing about capitalism -- -- the good thing about America is that we we give consumers.
And customers choices and there's airlines are choosing to compete on a different basis there's airlines out there that you know sell legroom and he needs in -- airlines say bags fly free.
And those airlines that say you know we'll get -- around the world and it's -- we just say you're gonna get a really really low fare.
And customers can choose then that's a great thing about the country I mean if you could only get Morton's steak house.
You know -- though the only place you can -- that you might be happy at McDonald's moved into doubt.
I don't know on our event a very good seeing you again be well.
It -- good to see -- thank you -- could --
