기업분석(Sprint Airlines)

Five Major Problems

Heavily reliant on repeat and original customers

 

             SA is too reliant on it’s original customers and does a poor job with reaching out to new customers. The idea behind this tactic is that customers will spread the word to others. There is no real strategy behind this, SA is relying on news to spread through the grapevine. They also have limited advertising that is only visible in airports. While this is a good way to reach out to those who travel frequently, it still does not reach out to those who travel on perhaps an annual basis. They are also too reliant on e-mails, which is a good idea, but only effective if it reached out to current and non-current customers. SA needs to develop a better marketing strategy.

 

Additional costs for luggage, drinks, and food

 

             Bringing Carry on/luggage into SA will cost you, whether you are part of their Fare club program or not. Fare members pay between $26 to $100 to bring a carry-on on-board, the longer you wait to state that you’re bringing luggage onto the plane will cost you more. Non-members bringin on luggage, each stage they delay to state that they are bringing carry-on costs them $9 more per stage they delay. Most other airlines permit one free carry-on. The U.S. airline industry collected $8 billion in baggage, drink, food, and other fees not associated with the price of a ticket. Customers are definitely not happy with this change, but are still willing to pay the extra, and other airlines have attempted to differentiate as a high-end, high frills airline have experienced little growth in their customer loyalty. SA does not provide complimentary beverage or snack services, doing so I think keeps prices down for all passengers. Other airlines charge lower prices for luggage/ food costs, and find better ways to accommodate the customer.

  

Global flights are seasonal

 

             SA have been concentrated to domestic flight.  Not only the number of global locations are very little but also the number of times are very little. Most of their global flights only fly once or twice a week to locations such as Canada, Mexico etc. New routes are substantially less profitable than mature routes. It takes long time to become from new routes to mature routes. However, if  new routes become mature routes, SA`s income will increase. SA have to develop international routes because SA today is in a similar position to where Southwest Airlines was in 1990. That year, Southwest generated $1.2 billion in revenue -- roughly equal to Spirit's 2015 revenue after adjusting for inflation.

 

Other airlines

 

               There are many airlines in the U.S. The SA`s domestic routes coincide with three airlines Delta, American and JetBlue. About 60 percent of SA destinations in Latin America are serviced by America and JetBlue. The most competitive aspect in the airline industry is ticket price. Delta has already introduced what it calls “basic economy” fares. The tickets cannot be changed or refunded after a 24-hour period and do not include advance seat assignments. Both United and American Airlines have said they plan to introduce similar entry-level fares later this year. That basic economy fare can be competitive with the SA`s Ultra low-cost policy.

 

Government taxes

 

             Airlines such as SA have been targeted as revenue streams due to the government implementing them through taxes. The U.S. have put new taxes into place in airplane ticket prices at the time of purchase. This new tax very often exceeds the actual ticket price at SA. In addition the Barack Obama Administration has recently inducted two new taxes into the airline industry. The first tax is a $100 departure tax to all flights leaving a U.S. based airport. Second proposed tax is to increase the “passenger security tax” from $2.50 per passenger to $5 and triple the current tax to $7.50 by 2017. These taxes are supposebly to add a burden of $36 billion on flights in the U.S. over the next 10 years.