Why Spirit Air CEO Respects Delta’s Aggressive Basic Economy Strategy
Photo Credit: Spirit's fares may be 'bare' but CEO Ben Baldanza says Wall Street doesn't always see and appreciate the resiliency of Spirit's business model. Pictured is an exterior of a Spirit A319 aircraft. Spirit Airlines
Skift Take
Spirit's Baldanza has a lot of respect for Delta's management, and Baldanza and the Spirit model are widely respected within the airline industry. With legacy carriers getting much more aggressive about matching Spirit's fares, the ultra low-cost carrier is definitely feeling it but Baldanza insists that Spirit can take a punch.
If you've ever wondered what's behind Delta's strategy in launching its Basic Economy fares, the low fares with seats assigned after check-in and no changes or refunds allowed, just ask the CEO of Spirit Airlines, whose airline is feeling the competitive heat from Delta's inroads.
"From a consumer standpoint we really like it," said Spirit CEO Ben Baldanza, referring to Delta's Basic Economy push, "because it sends a very powerful message that if you pay less you should get less and if you pay more you should get more."
In response to a question, Baldanza was outlining his view of Delta's strategy to analysts at the Credit Suisse 3rd Annual Indu
