I wasn’t going to write about this, but after seeing all the misinformation out there, I figured I should chime in with what’s actually happening. Here’s the story.

I actually hate the phrase “carry on fee,” because that’s not really what it is. It’s an overhead bin space fee. You can still bring on a bag without charge on any Spirit flight as long as it fits under the seat in front of you. But if you need to put a bag in the overhead bin, then Spirit will charge you and has done so for the last 2 years. It recently announced fee changes that begin on November 6 of this year, and one of those fees is $100. Will you have to pay the $100? Only if you’re dishonest.

Spirit has created a structure that gives you incentive to sign up for bin space in advance, because it will cost you less. The cheapest way to do this is to be a member of the $9 Fare Club. That’s a club that costs $59.95 a year and gets you access to fare specials, discounts on fees, etc. If you fly Spirit more than a couple times a year or if you have a lot of bags, it probably makes a lot of sense. Members of that club pay $25 per bag for bin space in advance, and it goes up from there. Here’s the rundown on a per bag basis:

Does Spirit have way too much complexity in here? Yeah, probably. It’s hard to wrap your head around all these different prices, but the concept is easy. Do it early and do it yourself and it’ll be cheaper.

If you book online at spirit.com, then you can sign up right there during the booking process for $35. Piece of cake. If you book through an online travel agent, then you have no clue what’s happening because they don’t do a good job of incorporating fees in any way. But you can still come to spirit.com and make that purchase if you know about it.

But let’s say you don’t know about the carry on fee because the online travel agent didn’t tell you. Or let’s say you just didn’t know in advance whether you were going to have a carry on or not. Well, you can still get it during the online check-in process for $40. What if you aren’t tech savvy at all? Then you can pay $50 when you check in at the airport ticket counter. I’ll agree that it is pretty awful when you show up to check in after having booked on an online travel agent site only to find that you have to pay for bin space. The online travel agents need to do a better job with that if they’re going to sell airline tickets. But the fee still won’t be more than $50.

So who is it that’s paying that $100 fee the media has been jumping on? Crooks. That is a fee for those people who blatantly disregard the requirement to pay for a carry on with the hope that they’ll be able to sneak it on the airplane at the gate. That’s a real pain for everyone when they try to do that, because the gate agent will see it, stop that person, and have to take them out of line to process the fee. It slows down the boarding process.

In other words, this fee is completely punitive. Spirit would like nothing more than for there not to be a single person to pay this fee. That means everyone is doing it before security, and that makes boarding much quicker. I think that particular $100 fee is a pretty smart way of creating a disincentive. If you don’t like it, then don’t try to game the system.

The Midwest Cookie Is Dead and Other Important Airline News – Conde Nast Daily Traveler
This week, I did a round up of the death of the Frontier cookie, Spirit’s growth in DFW, and Southwest’s expansion into AirTran markets.

Allegiant Air begins charging passengers for carry-on bags – The Madeleine Brand Show
I was on the show to talk about Allegiant’s new carry on bag fee and had a good discussion.

Dallas Tornadoes and DFW Airport: What Travelers Should Do When Flights Are Cancelled – Conde Nast Daily Traveler
When storms hit DFW this week, scores of flights were canceled and people were stranded. We were able to help our clients get home quickly. Here are suggestions for handling these types of events.

In the Trenches: Hired – Intuit Small Business Blog
It’s finally happened. I’ve hired my first employee. While it was a long road to get here, I’m glad that it’s done.

Continental’s Airline Quality Rating dropped out of Top 10 in 2011 (take our poll) – Cleveland Plain Dealer
I was asked about the Airline Quality Rating, which I don’t put much stock in.

Spirit will begin daily service from Denver to Ft Lauderdale and Chicago/O’Hare with twice daily service to Dallas/Ft Worth and Las Vegas. First flights are on May 3. Of all the places in the US that Spirit could tackle with its model, why go to Denver now, where three airlines continue to slug it out? It has to be at least somewhat about Frontier.

As we all know by now, Frontier wants to become an ultra low cost carrier and it has started making some big moves in its network to begin that process. While some airlines, like Allegiant, tend to stay away from competition when there are so many other opportunities out there, Spirit likes to get up in your face and let you know that it’s there to make life miserable.

Of course, this move won’t exactly make life miserable but more just be a pain in the butt. Spirit is only coming in with 1 or 2 flights a day and that’s barely going to make a ripple, but the airline is warning Frontier that it’s up for a fight. Need more proof? How about this gem in the press release from Spirit’s Chief Marketing Officer Barry Biffle (who I interviewed hear last year):

We understand that Denver has been looking for an ultra low cost carrier and we are here to satisfy that need. . . .

In other words, “Hey Frontier, this is our game. You try it, we’ll be there to fight you every inch of the way.”

So far, the two airlines seem to be taking different paths in their approach to ULCC-ness. Frontier’s new service looks more like Allegiant’s with sub-daily flights to smaller cities. But it still has its substantial existing service patterns which are more likely to overlap with Spirit.

Let’s take a look at the frequencies for this Friday in the markets that Spirit is entering:

Fares are already inexpensive thanks to the major competition, at least in some of these markets, but Spirit will still try to squeeze in below. Can it do it? Maybe, but you would think there would be better opportunity elsewhere. That’s why my guess is that Spirit wouldn’t have picked Denver next had it not been for Frontier making too much noise for Spirit to ignore.

[Original Frontier photo via Flickr user redlegsfan21/CC 2.0]

New DOT Regulations Could Kill This Annoying Airline Fee – Conde Nast Daily Traveler
A follow up inspired by the comments in this space last Saturday to my Spirit post. There is one fee I hate, and I’m hoping DOT regulations might kill it off.

“Cranky Flier” Explores Decline in Small City Airline Service – Part 1 of 2 – Expert Flyer Hot Topics
Expert Flyer invited me to participate in their Hot Topics series – we’re talking about small city airline service and why it’s been going away.

In the Trenches: Back in the Saddle – Intuit Small Business Blog
After a break for the baby, I’m back on my Intuit column again. This time, I talk about how things went while I was away.

The Pros and Cons of American Airlines’s New First Class and Business Class – Conde Nast Daily Traveler
Just a little piece on American’s new 777 interiors. Not much more than what I wrote about here.

Waiting to board with Brett Snyder – Cheapflights.com Waiting to Board
I did an interview with Cheapflights talking about the blog and some travel tips.

Spirit Grows Dallas/Ft Worth
Spirit has has now refocused on domestic flying, and DFW is getting a big new spot on the map. This expansion will see one flight per day to Atlanta, Boston, New York/La Guardia, and Orlando. It also announced a day later that it was going to add a daily flight to Mesa (outside of Phoenix) as well.

Let’s be clear on this one: this doesn’t hurt American much. Sure, it has the potential to siphon off some seriously price sensitive travelers on to Spirit, but American shouldn’t be targeting those people anyway. The flight times here aren’t very good with a redeye on the DFW-Boston and Mesa-DFW flights and some mid-day runs on the others. This isn’t going to pull off business travelers in any way, and I can’t imagine Spirit wants to do that. Just as it has tried to do in Chicago and in Vegas, Spirit sees an opportunity to go with super low fares and skim traffic off the bottom.

For Spirit, the timing was perfect. Spirit thrives on using outrageous slogans or promos to get free press. So when Spirit saw American file for Chapter 11 bankruptcy protection, it was too good to ignore. The press release makes that clear with references to a “new chapter in Dallas/Fort Worth’s history” along with $11 fares. You have to love an opportunistic airline. Spirit is like a parasite that lives off the misfortune of others – it’s brilliant.

This really shouldn’t be viewed as much of an assault on American, but many will draw the parallel. And American, like most legacy airlines, has nothing against irrational response so we’ll see where this goes. But American isn’t the only one that’s thinking about these moves. . . .

JetBlue Starts Boston to DFW
Another move that would seem to be more alarming to American is JetBlue’s decision to fly Boston to DFW three times daily. JetBlue has avoided DFW so far, and it has a strong relationship with American, so this might seem curious. Why is JetBlue doing this? I think it’s more about Spirit than American.

Is JetBlue trying to make a move on American’s turf? Well, it is doing that, but I don’t think it’s particularly targeting American. JetBlue stands to benefit through greater cooperation with American after the bankruptcy process wraps up, and it wants to be a strong partner. That makes this seem like an odd move.

And that’s why I think this is more about Spirit. JetBlue has previously been VERY aggressive at tackling ultra low cost carriers. When Allegiant announced it would begin flying from Long Beach to Las Vegas, JetBlue ramped up to offer 5 daily flights in the market and launched the additional flights with a $19 each way sale. Overkill? Yeah, probably. But then again, Allegiant pulled out.

JetBlue has tried a similar move with Spirit. Less than a week after Spirit announced it would do a daily flight from Chicago to Boston, JetBlue added a fourth flight on that route. While JetBlue doesn’t care about competing on Boston to Myrtle Beach and it probably accepts Spirit flying to its home base in Ft Lauderdale, it’s not going to be willing to sit there while Spirit moves in on other destinations. That’s why I think we’re seeing this move.

Delta Steals Gol from American
In a completely unrelated blow to American, Delta signed an “exclusive” deal with Brazil’s Gol to be the only US partner with the airline. That means that American’s current partnership with the airline is going to disappear. Delta paid a pretty hefty price to get in on this – it had to invest $100 million in Gol and now has a seat on the Board of Directors.

While I can’t imagine this has anything to do with American’s bankruptcy (this kind of agreement had to be be in the works long before), I do think it was more about Delta feeling a little desperate about Latin America. Avianca/TACA and COPA will all be in Star Alliance. Though I don’t think it’s been announced, the combined LAN and TAM have to pick an alliance, and the scuttlebutt is that they’re leaning toward oneworld (as they should). That leaves Delta with a messy Aerolineas Argentinas and absolutely no presence in the increasingly important Brazilian market. This was an effort to buy a place in that market, and it’s a place that American likely won’t need assuming LAN brings TAM into oneworld.

So, lots of moves that impact American recently, but it’s not a direct hit, as the title of this post says.

[Original surfer photo via Flickr user The Pug Father/CC 2.0]

Buying the Tickets
My first decision was to pick the day to go. I of course looked for the cheap days and the days where the flight times worked. Spirit keeps a fairly consistent schedule but Allegiant is all over the map. The morning flight on Wednesdays looked best, because it would give me 3 hours in Vegas to connect. I knew I needed a buffer in case Allegiant was delayed (and it was).

I first went to AllegiantAir.com to buy my ticket. The website is a bit clunky but I found my flight on November 2 for $10.01. I declined the myriad of seat assignment fees, bag fees, car rentals, hotels, etc before finally getting to the final screen. My ticket had still ballooned from $10 to over $50. Why?

Allegiant slaps on a “convenience” fee of $17 per ticket if you book online. The airline also snuck a transfer in on the website which I would have had to de-select. Knowing that I would be running by Long Beach Airport, I figured I’d just drop in and save the $17.

Tickets can be bought within an hour after every flight departure, but finding out when each flight departs wasn’t easy. I did figure it out, and it took me only 10 minutes to get ticketed so I was able to avoid a parking fee at the airport. Total ticket price was $20.71 with a mere $9.31 going to Allegiant and the rest to the feds.

With Spirit, I wasn’t so lucky. I went on the website and got the same kind of experience as Allegiant though the fees were displayed more clearly and the site looked more professional. On Spirit, there’s an $8.99 passenger usage fee each way, and I wasn’t about to drive up to LAX just to avoid that. I gave in and paid $28.69 for the trip with $8.37 going to Spirit for the fare plus $8.99 for the passenger usage fee. That was the only fee I’d pay on the whole trip.

Checking In
The day before departure, I went to check in for both flights. Allegiant just gave me an error message saying that since I hadn’t paid for an assigned seat, I couldn’t check in online. If I wanted to pay for a seat, I could call Allegiant. I knew that was the case, but this was very poor presentation. Why not let me pay right there? (Not that I was going to . . .)

Spirit does things differently. When you check in, they try to upsell you more on bags, seats, etc. If you pass, then they just assign you a random seat, which is, of course, a middle. I ended up in seat 19B, printed my boarding pass, and I was set with them.

When I bought my Allegiant ticket, the people at the counter said it was a madhouse and people usually really did need to arrive 2 hours before departure. But they said that the Wednesday morning flight was lighter so I could get there 1.5 hours early and I’d be fine.

I parked on a side street off the airport and walked the 10 minutes into the terminal. Once there, I found nobody waiting at the Allegiant counter. I checked in and the first thing the agent said was that the flight was delayed “about 30 minutes.” Had Allegiant actually offered flight status on its website, I would have known this when I checked. Unfortunately, it just redirects to you FlightView and has no delay info. Boo. She then said the airplane was only half full so I’d have an easy time picking an open seat. I got my boarding pass, which was Z17 and went to wait at the gate.

The Flights
There is no Allegiant presence in the gate area – they just board from the Delta gate. When the airplane finally arrived, they started boarding and there was some confusion. First they did some pre-boarding for those who paid. Then they board those who paid for assigned seats (about 15 boarded). After that, they boarded families and then open seating in groups of 10.

I did the long walk to the airplane and saw it in shiny new paint. What a beauty, especially with the iconic Fly DC Jets sign in the background. I figured this might be the last chance I’d have to fly a Douglas aircraft out of its Long Beach home.

The interior was clean but the fixtures looked old. I loved it. Nobody seemed to be in a hurry and in the end, we left about an hour late. The Santa Ana winds were kicking up so I had the chance to experience my first departure from runway 12.

As you can see in the video, we took off like a rocket, and circled over Long Beach before heading toward Vegas. Being in the front of the airplane, I could hear nothing but the slipstream. I love that airplane. It’s so funny, because were I stuck sitting in the back next to the engine, I would have a very different opinion.

The flight was quick as we went by Disneyland and Ontario Airport. By the time we had passed over the Cajon Pass, the flight attendants had already done their beverage-only service. Sticking with my no-fee plan, I passed. Soon we were descending over the desert, and we landed straight in to the north.

I got off the airplane and noticed that half of the D concourse we were using was fenced off. I took the train back to the main terminal and went through security at the B gates, where Spirit flew out of. This time, I opted for the Millimeter Wave scan instead of opting out, and they really have sped the process up dramatically. It was quite efficient.

By now, I had about 1.5 hours until my flight back, so I wandered. I strolled down the A concourse where Spirit uses a couple gates and US Airways uses a couple more. One whole part of it is fenced off and it’s really quite empty. (And THIS is an airport that’s building another terminal. Yeah, that’s a good idea.)

I went back to the B gates and found my airplane waiting there in the old black cube colors. I went up to the gate and asked if I could change my seat or if that would cost money. The agent laughed and said that no, he could change my seat at the gate without charge.

He asked if I wanted an exit row, and I stared at him wondering what the catch was. He said that it was again no charge at the gate – first come first served. And since the flight was less than half full, there wasn’t much demand.

I parked myself in the empty gate area and waited until it was time to board. Spirit has a much more normal boarding process, using zones. They boarded zone 1 and 2 but apparently, that’s only for exit rows and people sitting in the Big Front Seats. Only three of us boarded.

The first thing I noticed was the advertising on the bulkhead, on the overhead bins, on the seatbacks…. It didn’t bother me , but the advertisers are certainly getting their money’s worth.

I took my exit row seat and found it to be horribly uncomfortable. The seat lacked padding, as exit rows often do, and it felt like it was reclined forward. I moved up a couple rows to a standard row and found the seat pitch tight but it was for more comfortable. Certainly nothing that would bother me on a short flight like this.

But I couldn’t stay long. The flight attendant said that everyone had to sit in their assigned seats for weight and balance. Really? Ok, so I went back to my generous exit row legroom. I did notice that the seats were very well worn and there was a lot of junk in the seatback pockets, but it was just fine.

Soon, we were pushing back to take off, but then we sat. Other airplanes passed us to depart, so I assumed there was some sort of flow control delay into LA. The pilots never said anything and after about a 10 minute wait, we were on our way.

We had barely made the turn back toward LA after our westbound departure before the flight attendants started pitching the Spirit credit card. That was followed by a pass through the aisles asking if anyone wanted “purchased items.” Then they came back through and handed out credit card apps. Believe it or not, people actually took them.

Unlike on the Allegiant flight up, the Spirit pilots turned the seatbelt sign off quickly. As soon as they did, I headed back up a couple rows to the more comfortable seat.

After the early quick passes, the flight attendants went back to the galley while travelers slept or read. I just stared out the window as we headed toward LA.

It was an uneventful landing and we pulled in to our gate in the war zone known as Terminal 6 a few minutes early. Terminal 6 is under massive construction preparing for the Alaska move next year, and it’s a mess right now. My wife picked me up at the curb and we headed back down to Long Beach.

The Verdict
Both of these airlines gave great value for the money, and that’s no surprise. I mean, if you pay $48 roundtrip, it’s hard to get poor value as long as the flights get you there. Most of the things that bugged me could easily have been resolved by paying for an extra level of service. And that’s great. I’m more than happy to have the choice to pay for what I want. So, who was better?

While I loved the MD-80 ride on Allegiant, I have to give the nod to Spirit for being more polished. Spirit seemed to be more clear about the model throughout the entire process. The website was pretty easy to use and the nature of the product was very clear throughout the process. My biggest complaint about Allegiant is really on the operational side.

Allegiant has no flight status on its website so it’s impossible to know for sure if your flight is delayed unless you just look for an inbound flight on a flight tracking service. There’s no reason they have to be so difficult with those kinds of things. I also found Allegiant’s boarding process to be pretty confusing with some assigned seats and some open seating. The whole process just ran more smoothly on Spirit.

But in the end, both did a good job.

[See more photos from the trip]

Cranky: Now what about Vegas? People have long thought of Southwest as the low fare airline, and you’re coming into Vegas-West markets where Southwest has long ruled the roost. But you think that Southwest’s fares have risen to the point where there’s room for a lower fare operator?

Barry: Well, we added LA last month. You’ve still got Delta, US Airways, American, and United. There are plenty of high cost guys. But we do have lower costs than Southwest. We also offer a different product. Southwest would actually go out and tell you that everything is free. They tell you bags are free, but what they really ought to say is that you’re subsidizing people who want to check bags. It’s like when you go out to dinner with friends and someone orders a really expensive bottle of wine. When you split the bill, you’re paying for it whether you drank the wine or not.

In 2006 our total revenue per passenger was $109. We actually had less than $5 in non-ticket revenue. In 2010, our average total prce including options was $112. It was only up $3 but our non-ticket revenue was $35. We don’t nickel and dime. What we’ve done is allowed people options. Most people are figuring out that we’re a much more consumer-friendly model. But we also cater to a different clientele. If you’re the guy who always orders that wine, you like the Southwest model.

Cranky: Let’s talk about one of the more controversial moves. You’ve started charging for people to bring carry-on bags.

Barry: We were averaging 17 gate-checked bags per departure at LaGuardia. The reason is because airlines lie to you, not Spirit, well, they don’t really lie but they’re allowing you two bags when there isn’t enough space above all the seats for everybody to jam a bag up there. If it’s a full flight, there’s a backup, nowhere to put the bag so its gets checked. It delays the flight and the customer gets mad. Will it be checked to my connection? Wait, I’ve got to get my medicine out. We don’t have those issues anymore. We’ve ended up with a better customer experience. Our total turn is down by 7 minutes because I’m not gate checking bags. Are we evil or are we actually the best option for consumers?

Cranky: Some people think that you’re being sneaky and trying to hide fees from them.

Barry: I want you to know what’s optional and what’s not and what’s included and what’s not. Part of the challenge is that there are so many requirements for disclosing this or that (not just in the airlines) and so people don’t pay attention. I don’t want to deceive anybody. I want people to feel good about the purchase that they bought. We just think the airline industry operated forever in a manner that didn’t give options. If you go way back, we assumed everyone wanted a meal.

At the end of the day, if you take a Haitian who lives in South Florida and they immigrated here 10 years ago and they’re living the American Dream and they want to go see their mother back in Haiti, who am I to say they need bags or they need a TV or they need food? We believe it’s our job to get them the cheapest possible way to go see their mother because otherwise they might not be able to afford it.

Cranky: But disclosure is a lot tougher for sales that aren’t through Spirit directly. And you do sell through third parties.

Barry: I think there’s frustration with the third parties. If they sell the ticket they should be obligated to tell our policies. How many times have you gone to Expedia and then you get to the hotel and there’s a $15 a day resort fee and it’s mandatory. Wait, so this is required of me and you didn’t tell me this? But they should have just said it.

There is an issue with people who haven’t flown us and bought us through a third party. The third party causes the most challenge. We like that distribution partner, but we’re not in all of them. We’re comfortable with the partners we have and we see value in it. We’re just trying to isolate the specific issue you mention. We’re not going to go to them with a big mandate, but at some point we’re going to have to figure out a way for them to disclose better and better present the options to the customer.

But the third party is a separate issue. When we changed our model in 2007 in a big way, there were people who had flown Spirit before who were not familiar with the new model. I’m not aware of a complaint we’ve ever got from Haiti, but routes that we had flown before, there was a higher propensity. There definitely was a conditioning of previous customers on previous routes. Last year was a good example. When we announced carry-on fees, we had these huge banners, maybe we went overboard. If I’m going to carry 700,000 people a month, if I get 99 percent, if 1 percent of people don’t know, that’s still a large number of people. I don’t know how we get every last person conditioned, but I’m committed to trying to get there.

Cranky: You talk about places like Haiti, but those are markets where people usually do bring a lot of bags when they go back to their families. There hasn’t been any backlash?

Barry: What we normally do to illustrate it to people is explain that your fares are going to drop so much that you can afford to go back and forth. Before you were paying $700 and you wanted to make that trip count, so you would take a gazillion things back with you. But now they don’t need to bring as much stuff. We see checked bags drop the longer we’ve been in a market.

And that was the end of the interview. I tend to agree with just about everything Spirit says, but there are a couple practices that I don’t like. First, Spirit charges an $8 passenger usage fee each way. This applies to everyone unless you buy at the ticket counter, so that’s how they get around it being considered optional. I’m fine with that, but I want a disclaimer that shows me that I can save $8 each way if I go to the airport. It’s not very clear.

The second issue is with opt-in versus opt-out. As Barry mentions, people do get overwhelmed with disclosures and end up missing things. So when, for example, travel insurance is already pre-checked for me and I have to opt out, that’s a little tricky in my mind. How many people fail to uncheck it even if they don’t want it? Of course, this will be going away with the recent DOT regulation change, so it won’t be an issue for much longer.

Other than, I like what Spirit does. I have no clue if they can make big city markets work, but hey, they think they can and the results have been promising in those cities with the trial balloons they’ve sent up so far.

This past week, the airline announced some big moves. It will begin flying from Chicago/O’Hare to Boston, Dallas/Ft Worth, Detroit, New York/LaGuardia, and Orlando. You’ll also see flights from Vegas to Portland (OR), Oakland, and San Diego. These are big moves in big airports, and I was able to get Spirit’s Chief Marking Officer Barry Biffle on the phone to learn more about it. We ended up having a wide-ranging discussion, so it’s going to be broken into two parts. Today we’ll talk about the new markets. Tomorrow, look for talk about fees and why Spirit loves them so much.

Cranky: Where is all this capacity coming from for these new routes?

Barry: There are two more aircraft coming in at the end of this year and three more at the beginning of next year. There’s not a lot of frequency on these routes, so they don’t actually use a lot of aircraft. You can take San Diego to Las Vegas for example. It’s only an hour flight. We operate our airplanes 13 hours a day, so that’s a small amount of time for a roundtrip.

Cranky: Tell me more about this move. You’ve really focused on Caribbean and Latin America for awhile. Recently you’ve gone into small cities like Plattsburgh (NY) and Latrobe (PA). Now you’re doing big city routes.

Barry: The geography may be a little different, but it’s 100 percent consistent with the business model. What we look to do is provide something different in the marketplace; we are the price leader. We look for markets that have really high cost competitors, we look for really high fares, and we look for cities where we can we have an efficient operation. Then the question is: Will the market stimulate if we come in?

Cranky: But O’Hare is crowded and not the cheapest airport around, so can you have an efficient, low cost operation?

Barry: Specifically in Chicago, we’ve been there for a long time and we’ve been growing Chicago in just the last year and a half. We see the dynamics of the customer base in Chicago wanting more and more of what we offer. The fare environment has gotten really high. American and United have a great product and they’re serving the business customer needs very well but the reality is that $400 for a two-hour flight to Dallas is out of reach for leisure consumers and people visiting friends and relatives. So we saw a great opportunity there.

Las Vegas also meets those same criteria, and when you talk about the stimulation potential, Las Vegas is one of the greatest destinations on the planet. At the end of the day, it comes down to price. You have a lot of markets out there that are one- to two-hour flights that are over $100 on average. The only reason people go there is vacation or leisure, setting aside convention business. The price is gonna draw a lot of people in. Vegas is also important because the seasonal balancing opportunities are very good and it complements Ft Lauderdale. In Sept/Oct, which are decent convention months in Vegas, it’s hurricane season [in Florida]. Conversely, not a lot of people go to Vegas for Christmas.

Cranky: I understand the rationale for targeting these markets in general, but why O’Hare? If you are all about lowest costs and lowest fares, why not something like Gary or Rockford which is cheaper?

Barry: We’ve looked at Gary. We’ve looked at it a lot. It’s cheap. And we looked at Rockford. The best way to think about our airport selection is we will go where we believe we will have a cost advantage. We will not fly somewhere if we believe that the airport location is going to impede our cost structure. We fly to LaGuardia and we believe we’re the lowest cost operator there. We run 12 flights a day on one gate. We wouldn’t be in LaGuardia if I couldn’t find a way to be the lowest cost operator at the airport.

We’re already in O’Hare and by throwing out two gates of flying, we’re actually lowering our costs there. Our first choice is always going to be a secondary airport because of congestion and at the end of the day, the facility’s cheaper. But the reality is that there may not be a good secondary option. In Europe, it’s actually great, because there’s so much ground transportation. In the States, unfortunately, so many people have cars, but they don’t want to necessarily drive them that far.

Cranky: So you’re saying people don’t want to drive to Gary or Rockford for low fares?

Barry: Specifically with Chicago, my opinion is that if you’re going there for business, Midway is just as convenient to downtown or easier than O’Hare. In our case, we’re not targeting business traffic, so I don’t look at it that way. If you think about the geography where the population lives, specifically the suburban population, it’s north and west of downtown. So O’Hare is much more convenient than Midway. If you look at Gary, there’s just not that much population, and definitely not the affluent population on the south side, south and east of Chicago.

I actually think we’re still intrigued with Gary and I would actually argue that Gary serves a different geographic base. Rockford is a little bit different. You do kind of appeal to some of that west and northern suburbs and of course, I guess Allegiant has chosen that. Our view is that I’m already at O’Hare so we want to grow O’Hare to its potential before I consider another airport.

Tomorrow, we’ll talk fees. I can already hear you guys typing your comments, so I look forward to a “Spirit-ed” discussion. (Sorry for the pun, but I had to do it.)

There are a few reasons you might decide to go into a market, but the best is that it’s commercially viable. I don’t see that as being the case here. Here is a table showing the number of flights from the LA Basin to Vegas.

Yes, Vegas to LA is a big market, but as you can see, there is plenty of service including a lot from low cost carriers, not to mention carloads full of people who would rather drive anyway. So can Spirit come in and scrape a bunch of low dollar people out of the cars and put them on an airplane? Maybe. But I can’t see that being a profitable move, especially since a fare war is already in full effect. Even if the airline finds a way to make this profitable, is it really the best use for an airplane? I mean, these are brand new birds, and there has to be a better way to use them than this.

But there are other reasons airlines fly routes, like utilization. For example, Continental has an airplane sitting overnight at LAX, so it decided to send it to Hawai’i. It was either that, or sit on the ground. Heck, the entire America West Vegas Nite Flight hub was based on utilizing airplanes at night when they would otherwise just be parked. So is that what Spirit is doing here? It’s unclear, actually.

This isn’t one plane going back and forth all day. Three of the airplanes continue to Detroit, one to Dallas, and the other to Ft Lauderdale. So I suppose it’s possible that these airplanes had some extra ground time in Vegas before heading east again and this is how the airline decided to spend that time. But that doesn’t make a ton of sense either. There have to be less crowded markets that could be served from Vegas with similar distances. But why would that even need to be the case? There aren’t any slots in Vegas, and as an ultra low cost carrier, Spirit’s goal is to fly these airplanes whenever they’re ready to go, not necessarily at the best commercial times. For the people Spirit is courting, they’ll fly anytime.

I do, however, wonder if this is part of a larger assault on LA. These airplanes consistently sit on the ground in Vegas for 30 to 40 minutes. The times fit well. But in LA, it’s all over the map. I actually tried to connect the dots between airplanes the come to LA and I can’t. Some airplanes are sitting for almost two hours before there’s a flight going back. And one would actually require a 26 minute turnaround. It just doesn’t seem right the way these are scheduled. So I do wonder if more might be coming in LA to make this schedule fill out better. But then, why do you need 5 airplanes coming from Vegas every day? You don’t.

This could also be an old-fashioned ego fight. Maybe Spirit wants to send Southwest a message that it’s going to fight the airline on its turf, and this is a very good way to get noticed. These ego fights are just so stupid that I won’t even address it. If that’s the point, then Spirit is in trouble. I don’t believe it.

The last theory comes from Airliners.net. According to one poster, Vegas has two tiers of airport charges and part of the criteria to qualify for the lower rate is a certain number of flights per day. So Spirit is adding five more flights as quickly as possible to get to that point.

This one just doesn’t seem right either. I mean, Spirit has 9 daily flights this summer from Vegas before LA. Would it really make sense to fly 5 marginal-at-best flights to LA just to bring down costs on 9 other flights? The math just won’t add up on that unless we’re talking about an insanely big discount that I can’t imagine.

In the end, LA to Vegas is going to end up in an ugly fare war for the foreseeable future. It’s great for us Angelenos but not for anyone in the industry.

You guys have any theories on this?

[Original Vegas photo via Flickr user Bukowsky18/CC 2.0]

[Updated at 741a to reflect Delta's flights from LAX]