Source: Fortune.com
Summary
Spirit Airlines is being dismantled in bankruptcy court, with aircraft lenders repossessing planes and major US carriers vying for its assets. However, a 22-year-old voice actor, Hunter Peterson, has launched a viral campaign to save the airline through a crowdfunding effort. Peterson’s pitch, “Let’s Buy Spirit,” aims to raise $1.75 billion through pledges of $45 each, with the goal of taking back the airline from private equity. Despite the initiative’s populist framing, private equity is not involved in Spirit’s downfall. Spirit’s CEO, Dave Davis, attributes the airline’s demise to running out of cash.
Our Reading
The announcement sounds familiar.
Hunter Peterson’s crowdfunding campaign to save Spirit Airlines has gained traction, but its premise is flawed. Spirit’s business model, which relied on low fares and excessive fees, failed in the US market. The airline’s disappearance will likely lead to higher prices and reduced choices for passengers. The campaign’s framing, which pits the public against private equity, is misleading. Spirit’s CEO, Dave Davis, has acknowledged that consolidation is necessary for the industry’s lower end.
The numbers tell one story: Spirit’s demise is the latest in a series of consolidations that have reduced competition and increased prices in the US airline industry.
Author: Evan Null
