By now, some of you will have heard about the now-resolving pilot’s strike at Spirit Airlines, and the fallout that resulted from it. Spirit has a special place here on Racing to the Bottom; they were the company profiled in the original post from the main blog that inspired this one in the first place; you can read about their new carry-on baggage fees by following the preceding link, assuming you still want to. But as much of a new low as this concept was just two months ago, their performance over the past week, while their flight crews were out on strike, may have shattered their previous record or even established a new standard for their industry to avoid – all during a week in which the company wasn’t even operating…
Spirit had been wrestling with the Airline Pilots Association (ALPA) for some time; there’s a Federally-mandated 30-day “cooling off” period between the time when talks break down and when a labor action can legally be started, and that time had obviously expired before the Spirit pilots walked off the job. However, as reported on Portfolio.com, the company did not inform any of the people who had purchased tickets on Spirit that a strike was forthcoming, or that they would be cancelling all of their scheduled flights over the weekend; nor did they allow anyone who had purchased their tickets to change their flight dates or request a refund for the flights without paying a $100 fee. The company did promise to find pilots from other airlines to operate their flights, or purchase tickets for their passengers on other airlines to make good the loss, but neither activity ever occurred…
Now, I understand that Spirit is one of the most heavily discounted airlines in the world, and that they don’t manage to offer cheap airfares because they have little airplane fairies working for them. They pull off both their operational and financial performance by pinching pennies harder than anyone else in their industry, and all of these games with the cancelled flights are only what you should expect when you attempt to do business with a “low bidder” as low as they are. We can also understand their CEO’s attitude in refusing to extend any loyalty to customers who have no history with the company and are only flying with Spirit because of the low price. Neither partner in such a relationship is extending any loyalty, in fact; the customers are only doing business with Spirit because it is cheaper to do so, and the company is not likely to run out of people who want to travel but don’t want to pay for doing so – unless they keep doing things like this, of course…
In all of the years I have been observing (and making snarky comments about) bad business practices, this is the only occasion I can remember in which a company accepted money from customers, refused to provide the service that had been paid for, and refused to fully refund the money – without being shut down by the Federal authorities while Law Enforcement personnel took all of their executives away to jail. I’m not even sure I’ve ever seen anything to compare to knowing that upcoming flights had been cancelled and still selling seats on them in the first place, but this behavior on the company’s part was so bad that people are now complaining to Congress about it, and there may be an investigation in the next few weeks. This just leaves us with the question of what the company thought it was doing – other than racing to the bottom of how you treat your customers, that is…
Thursday, June 17, 2010
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