By: Taylor Etzell

Lauren OsmanskiMarissa Pie’Rachel Weir

PREPARE FOR TAKE-OFF!

Network Growth through Market Penetration

• Codesharing in markets with Frontier Airlineso Shared risk and reward

o Long term growth opportunity

o

Recommended Strategy

The Spirit Airlines Business Model• Low unit operating costs• High seat density• Unbundled “bare-fare” ticket prices

Current Position

40%

60%

Relationship Between RASM and CASM

Spirit Airlines Industry

Load Factor

A320 Spirit AirlinesLoad Factor 86.6%

Rows 30Total Seats 180Seats * Load Load Factor

155

A320 IndustryAverage

Load Factor 84%Rows 24Total Seats 150Seats * Load Load Factor

126

American•61% shared route network

JetBlue•LCC

Frontier•LCC, moving to ULCC

Competition

Frontier Spirit

Win WinWin

What is codesharing?• Many different types• Revenue sharing, Risk sharing• 1 operating carrier, 1 marketing carrier

o DENVER MARKET Frontier = operating carrier Spirit = marketing carrier

o FORT LAUDERDALE MARKET Spirit = operating carrier Frontier = marketing carrier

Frontier Airlines:

DEN

SpiritAirlines:

FLL

14%

Load Factor

12%

Seattle

San Francisco Salt Lake City

DEN-SEA 2.40%DEN-SLC 1.10%DEN-SFO 0.84%

Total % of Passengers Flown by Frontier

Spirit’s New Routes

San Salvador

Guatemala City

SantoDomingo

FLL-GUA 5.80%

FLL-SAL 3.40%

FLL-SDQ 5.00%

Total % of Passengers Flown by Spirit

Frontier's New Routes

2013 Year 1 Year 2

0.034% Increase

% IncreaseRevenue 11.27%

Expenses 0.034%

• Spirit’s Reputation • Overselling • Third-Party Distribution

Turbulence

Prepare for Landing