David Neeleman emphasized the need for budget airlines to adapt, stating, "I think there is a place for [ultra low-cost carriers] in the market, but Spirit and Frontier had overlapped routes, so they were competing with everyone else and each other." He highlighted that by merging, the airlines could stop competing directly and find a sustainable path forward in a challenging travel environment.
Neeleman pointed out that airlines like Southwest, Spirit, and Frontier need new strategies to increase profitability, saying, "adopting new money-making strategies, like bundling fares, offering more premium seats, and flying fewer traffic-heavy routes..." This reflects a necessary evolution in how these carriers approach their business models.
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