Most Hated Airline Also Most Profitable

Discussion in 'Other Airlines | North America' started by Newscience, Apr 11, 2014.  |  Print Topic

  1. Newscience

    Newscience Gold Member

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    Most-hated US airline is also the most profitable
    Is an airline a utility or a service? The ones who act like a utility have more financial success

    By Justin Bachman, Bloomberg Businessweek
    Spirit Airlines inspires a special kind of wrath among the American traveling public: It's the industry leader in customer complaints by a wide margin.

    Over the last five years, Spirit's rate of complaints to the Department of Transportation was three times higher than other U.S. airlines, according to a report (PDF) released Thursday by the U.S. Public Interest Research Group Education Fund.

    Read the entire article here:
    http://money.msn.com/top-stocks/post--most-hated-us-airline-is-also-the-most-profitable
     
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  2. TUMD

    TUMD Silver Member

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    I found it interesting that Allegiant has the second best operating margin. Has anyone flown on them much? I certainly dislike Spirit HAHA
     
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  3. NYBanker
    Original Member

    NYBanker Gold Member

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    The success has less to do with their low service/low price/high fee model, and more to do with how efficiently they utilize their workforce. Labor inefficiency (not so much salaries, but burdensome work rules) remains the bane of the mainline legacy carriers.
     
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  4. gregm

    gregm Gold Member

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  5. TUMD

    TUMD Silver Member

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  6. Newscience

    Newscience Gold Member

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    Allegiant's profits might just have something to do with the fact that they have the oldest fleet of airplanes of any US carrier - 22 years old!

    See:

    http://milepoint.com/forums/threads/how-old-is-your-plane.85742/#post-2339355
     
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  7. TUMD

    TUMD Silver Member

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  8. gregm

    gregm Gold Member

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    Too bad those are still 3 across!
     

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