"Biffle came to Spirit's defense after United CEO Scott Kirby said the low-cost airline, which declared bankruptcy for the second time this year, was going to go out of business. When asked at a conference last week why he was so sure, Kirby replied, "Because I'm good at math." Biffle's ambition to have Frontier surpass Spirit as the top ultra-low cost carrier would make him the "last man on a sinking ship," Kirby added."
""That's like the CEO of Nordstrom saying 'I allow customers to buy jeans from Walmart.'" Biffle claimed Frontier is attracting people who may not have flown otherwise, or who are trying to save on flight costs so they can spend big on other items like luxury hotels. Biffle also bragged about Frontier's lower costs: 7.50 cents per available seat mile, not counting fuel, compared with a higher 12.36 cents for United."
United and Frontier CEOs engaged in a public dispute about the future and economics of ultra-low-cost carriers. United's CEO predicted Spirit Airlines and the budget flight business would fail, expressing confidence based on financial calculation. Frontier's CEO defended Spirit and Frontier, citing a U.S. flight oversupply and asserting that low-cost carriers attract new flyers and budget-conscious travelers who then spend on other travel categories. Frontier reported a lower unit cost of 7.50 cents per available seat mile (excluding fuel) versus United's 12.36 cents. United's CEO criticized the low-cost model and ancillary-fee practices as harmful to customers.
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