By Gary Stoller, USA TODAY
For a company as controversial as Spirit Airlines, one might expect someone as flamboyant as Virgin Atlantic Airways' Sir Richard Branson at the helm. That's not Ben Baldanza, 47, the CEO of Florida-based Spirit, which bills itself as the country's first "ultralow-fare" airline.
Unlike Branson, whose escapades have included hot-air ballooning across the Atlantic Ocean, Baldanza's idea of a good time is playing board games at home with his wife, Marcia, and 2-year-old son, Enzo.
"We're more 'staycation' kind of people," says the career airline executive, who owns about 1,700 board games.
Baldanza says very little of his personality is part of the brand and image of Spirit, a private airline known for loud ad campaigns with sexual innuendoes, ads in passenger cabins and on flight attendants' aprons, and, most of all, very cheap airfares. A typical one: $54 one way from Fort Lauderdale to Freeport, the Bahamas.
"We're a small airline, so we have to be a little different, a little avant-garde," says Baldanza, who received a master's degree in transportation economics from Princeton University and previously worked at US Airways, Continental, Northwest and American airlines.
Spirit has kept its costs lower than most airlines, which has enabled it to squeeze out a $17 million profit during this year's first quarter — when other carriers were swimming in recessionary red ink. In 2008, it reported a $16 million loss, much smaller than most competitors.
Spirit flies to 39 cities with 28 new Airbus jets and has aggressively expanded into Latin America and the Caribbean in recent years. It has 53 daily departures from Fort Lauderdale, and about 10 from Detroit and New York's LaGuardia airport.
It's a leader in à la carte pricing that has swept the industry, charging extra for almost everything. Baldanza proudly says Spirit was the first airline to charge for a checked bag and "to stop pouring water for free."
Its sales policies and customer service, though, have enraged many fliers and put the carrier in hot water with government regulators.
The Transportation Department fined Spirit $40,000 in December for failing last summer to include certain fees in the base fare advertised on its website. The department also receives more complaints about Spirit than some bigger airlines.
"Our complaints are statistically much higher," Baldanza admits, "but compared to the number of people traveling with us, it's a tiny drop in the ocean."
'McDonald's of the airline industry'
Spirit carried 6.8 million passengers last year, and the Transportation Department received 792 complaints. That's more than triple the number of complaints against low-fare airline Southwest, which carried 102 million passengers. The largest number of Spirit complaints were for baggage, reservations, ticketing and boarding problems. Spirit also received a large number of complaints about customer service and refunds.
Baldanza says more than 99.9% of Spirit's customers are satisfied with their dealings with the airline and blames many complaints on fliers' expectations.
"We're the Wal-Mart or the McDonald's — not the Nordstrom's — of the airline industry," Baldanza says. "No one walks into McDonald's and gets disappointed when they don't see filet mignon on the menu."
Consumer advocate Kate Hanni says Spirit's problems with fliers cannot be explained away so easily.
"They are the absolute worst airline in the country," says Hanni, executive director of FlyersRights.org. "If it costs a little more, take the other airline."
Among other problems, Hanni says, three flights from Fort Lauderdale to Atlantic City were diverted to Philadelphia because of bad weather in mid-May, and passengers called police after not being allowed to disembark for many hours.
If any Spirit passengers feel they've been treated badly, "They should fly someone else," Baldanza says. "That's the way the free market works," he says. "I don't eat at some restaurants when I'm treated badly. Our job is to make sure that doesn't happen to a majority of customers."
Two years ago, Baldanza accidentally replied to an e-mail from a customer requesting a refund for missing a concert in Atlanta after a flight delay.
"We owe him nothing as far as I'm concerned," Baldanza said in his e-mail. "Let him tell the world how bad we are. He's never flown us before anyway and will be back when we save him a penny."
Baldanza's statements were ridiculed on Internet blogs, but Spirit is not backing down.
The customer paid $73.50 for two round-trip tickets between Orlando and Atlanta, and the flight to Atlanta arrived three hours late because of a weather delay, says Spirit spokeswoman Misty Pinson. The customer demanded $375 to cover the cost of airline tickets, a hotel room, a rental car and concert tickets, and rejected Spirit's offer of a $200 travel credit.
"Spirit went above and beyond in its offer to compensate this customer — despite having done nothing wrong — and the customer continued to make threats and refused to accept Spirit's more than generous offer," Pinson says.
Success mixed with complaints
Some flight attendants and pilots may be as disgruntled with Spirit as some of its customers.
The Association of Flight Attendants union in January opposed a series of Spirit airfare ads that it said degraded and demeaned women and flight attendants.
One campaign ostensibly referring to deep discounts proclaimed, "We're proud of our Double-Ds." Other campaigns mentioned "threesome sales" and "red-light specials."
Sean Creed, chairman of the Spirit chapter of the Air Line Pilots Association union, says Spirit pilots agree with the flight attendants. "Mr. Baldanza's approach to advertising is similar to his approach to labor relations," Creed says. "He will do or say anything, if he believes it will help make the company profitable."
Baldanza says Spirit has cut its marketing and distribution expenses by more than 80% during the last three years "by using edgy, viral marketing." The savings have resulted in very inexpensive fares, he says.
Spirit's advertising "may be more colorful than some," but it isn't "out of the norm" when compared with many retailers' ads, Super Bowl commercials and the content of TV series, Baldanza says.
Attendants dislike apron ads
The flight attendants union said it opposed a proposal by Spirit management to make flight attendants "walking billboards" by requiring them to wear aprons with a Bud Light logo. Spirit consulted with union officials before the launch of the aprons and received no objection, Baldanza says. Atlantic City is now the apron advertiser.
In May, the airline's pilots voted to authorize a strike if negotiations don't result in a new contract. The pilots' contract became amendable two years ago, Creed says.
Baldanza, who was COO of Latin American airline Taca and a member of Denver-based Frontier Airlines' board in the late 1990s, says labor-management disputes are typical of any company.
Creed, a Spirit captain, says pilots were very hopeful when Baldanza left his position of senior vice president of marketing at US Airways in 2005 and was named Spirit's president and COO. They thought Spirit would grow and prosper under the guidance of an experienced executive from a major airline.
Baldanza "has had some success on the marketing side, but the operational side is a disappointment," Creed says.
Some airline experts, though, have a very different view of Baldanza and his airline.
"Ben is a brilliant CEO," says Paul Dempsey, who served with him on the Frontier Airlines board of directors. "So long as an airline is profitable and safe, it is successful. Too many airlines lose money."
Spirit offers "a solid product called basic air service," says aviation consultant Michael Boyd. "That's what people buy the ticket for — to get to point B, not have a hootenanny with airline employees."
Boyd says Spirit has found a low-fare niche.
"Survival means focusing on a niche and going for it like a pit bull after a T-bone," he says. "That's what they're doing. It's good business."
Letter to Spirit Airlines CEO from a customer
Letter to Spirit Airlines CEO from a customer
Ben Baldanza
CEO
Spirit Airlines
2800 Executive Way,
Miramar, FL 33025
Dear Mr. Baldanza:
Like many others, I am an avid traveler, both for business and pleasure. Having this lifestyle has taught me a lot about flexibility and patience along with the value of customer service. My background is in business and I have learned that those companies that place high importance on customer service are the ones left standing when others fail.
I recently chose to experience Spirit Airlines for the first time. I was impressed by your ultra low cost carrier model and the flight routes. However, I am now convinced that the hassle, tears and utter disrespect caused by your company were not worth the cheap fare.
My younger sister and I chose to travel to Puerto Rico via Spirit Airlines. I flew from Boston with two layovers while she flew from Detroit with one layover. The trouble for her began when she forgot her phone in the car. Our mother ran it in to Spirit over 90 minutes prior to takeoff and spoke with a representative who said she would take it straight to my sister at her gate. The woman never appeared, nor was my sister paged. When I tried to contact Spirit customer service, I spoke with Paul, a manager in Bangalore about connecting me with Spirit baggage claim in Detroit. He was completely powerless to give out a phone number accessible to anyone with online access or a phonebook! His recommendation was to look it up online myself – which I would have been happy to do if Spirit had not put me on a five hour layover! My mother tried calling from her end. It took over two hours and eight frustrating calls to find someone competent enough to find the phone.
The trouble on my end started when I boarded my first flight. There was insufficient space provided for carry-on luggage, even though the airline encourages only having carry-on. A flight attendant took my bag from me and asked my seat number, saying that she would take my bag and bring me a ticket. I assumed that she was placing my bag at the front of the plane. However, when she did not give me a ticket after takeoff, I became worried and asked what she had done with it. She had checked it, but she was not sure where it would turn up, nor did she have a tracking ticket for me. Her solution: Just de-board the plane during our layover, exit the terminal, find my bag at the luggage pickup, go through security again, and get back on the next flight, hopefully in time and having more space to store my bag. When I exited the plane, I spoke with seven staff members and was appalled by the lack of customer service and of empowerment to help resolve the issue. I did end up going to baggage claim and speaking with ONE kind and helpful person in the Fort Lauderdale Spirit Baggage Claim. Unfortunately, he could not find my bag. Thus, I rushed back through security and boarded my plane, now worried that Spirit had managed to lose my carry-on bag. When we landed in Puerto Rico, we waited for an hour and thankfully, magically, my bag did appear – without a tag and with my outer clip stolen. As I am on the road for nine months and the bag was 50% of my belongings, I was grateful.
Losing a bag is common among all airlines so I let my anger go. However, I was soon to discover that the incompetent staff, rude attitudes and complete disrespect for clients run deep in the culture of Spirit Airlines.
On our way home we arrived at the terminal in Puerto Rico almost two hours early to check-in in for my sister’s flight home. She was to depart San Juan at 3:15am and my flight was around 6:58am. When we arrived we soon discovered that her flight to Fort Lauderdale had been cancelled. How did we discover this? By waiting in line for over four hours and hearing rumors. Not once did the Spirit staff find the decency to explain what was going on. When we finally made it to the front of the line, I watched, appalled, while Jose, a Spirit Customer Service Representative, allowed a friend of his to cut in front of us and check in, even though they had just arrived. (They gave each other a high-five while I asked why he was not serving us.) Why the long wait? Why the total lack of communication? Why the rude behavior? It certainly was not because they were short staffed. I counted five people standing around talking about their holidays behind the counter, while we waited.
When we did finally speak with someone, she was going to put my sister, who graduated high school the week prior, on a tentative flight out of the country after me. I explained that we are family and that she must fly out before me or on the same flight, but not after because 1) she does not speak Spanish and 2) I had seen enough to know not to trust the competence of the Spirit staff. When I called the customer service number, their only response was that they would fly her out within two days without making sure she was safe in a hotel and that all other information was up to the staff in the departing terminal. Wow. Spirit told me to leave my little sister alone in a country where she does not know the language and does not own a credit card. What a brilliant idea.
After waiting for another two hours, we stood by the gate and prayed that she could get on standby for my flight. The staff did nothing to make sure she was moved to the front of the list as to not separate family. Thankfully, she was one of the last people to make it on.
Once in Fort Lauderdale, we tried to speak with a customer service representative again to find out what our options were. Strangely, there was no one who would take the time to help! We exited the terminal and went to the ticket counter where one person was kind enough to give us some advice.
My flight back to Boston was delayed. Her flight to Detroit was delayed by over 45 minutes. My sister sat down on her confirmed seat to Detroit after a seven hour layover (please keep in mind that we cut our trip short in order for her to be back home in time for an event that evening, which she was forced to miss). Moments later, another person appeared with the same seat assignment! My sister was pushed to tears for the third time that day. They escorted her off the plane and told her she was not even in the computer, even though Spirit had given her a ticket and told her she was good to go. Thankfully, a seat opened and she was able to go home. What would have happened if the flight was full? I am terrified to even think about it.
As a working professional and as a family person, I am utterly disgusted by the behavior and the deplorable treatment of customers exhibited by the vast majority of the Spirit staff. As one who regularly provides travel advice to many people, I am positive of only one thing when it comes to Spirit Airlines: This is the worst company (not just airline) that I have ever come in contact with and whatever a customer might “save” monetarily will be lost through the airline wasting their customer's time and treating them with less dignity than a piece of expendable furniture.
It is my hope that you as the CEO will take this letter seriously and begin to change the culture of the organization. Great airlines are needed and you have some of the infrastructure in place. Now act like you care for continued business.
Sincerely,
Erika
CEO
Spirit Airlines
2800 Executive Way,
Miramar, FL 33025
Dear Mr. Baldanza:
Like many others, I am an avid traveler, both for business and pleasure. Having this lifestyle has taught me a lot about flexibility and patience along with the value of customer service. My background is in business and I have learned that those companies that place high importance on customer service are the ones left standing when others fail.
I recently chose to experience Spirit Airlines for the first time. I was impressed by your ultra low cost carrier model and the flight routes. However, I am now convinced that the hassle, tears and utter disrespect caused by your company were not worth the cheap fare.
My younger sister and I chose to travel to Puerto Rico via Spirit Airlines. I flew from Boston with two layovers while she flew from Detroit with one layover. The trouble for her began when she forgot her phone in the car. Our mother ran it in to Spirit over 90 minutes prior to takeoff and spoke with a representative who said she would take it straight to my sister at her gate. The woman never appeared, nor was my sister paged. When I tried to contact Spirit customer service, I spoke with Paul, a manager in Bangalore about connecting me with Spirit baggage claim in Detroit. He was completely powerless to give out a phone number accessible to anyone with online access or a phonebook! His recommendation was to look it up online myself – which I would have been happy to do if Spirit had not put me on a five hour layover! My mother tried calling from her end. It took over two hours and eight frustrating calls to find someone competent enough to find the phone.
The trouble on my end started when I boarded my first flight. There was insufficient space provided for carry-on luggage, even though the airline encourages only having carry-on. A flight attendant took my bag from me and asked my seat number, saying that she would take my bag and bring me a ticket. I assumed that she was placing my bag at the front of the plane. However, when she did not give me a ticket after takeoff, I became worried and asked what she had done with it. She had checked it, but she was not sure where it would turn up, nor did she have a tracking ticket for me. Her solution: Just de-board the plane during our layover, exit the terminal, find my bag at the luggage pickup, go through security again, and get back on the next flight, hopefully in time and having more space to store my bag. When I exited the plane, I spoke with seven staff members and was appalled by the lack of customer service and of empowerment to help resolve the issue. I did end up going to baggage claim and speaking with ONE kind and helpful person in the Fort Lauderdale Spirit Baggage Claim. Unfortunately, he could not find my bag. Thus, I rushed back through security and boarded my plane, now worried that Spirit had managed to lose my carry-on bag. When we landed in Puerto Rico, we waited for an hour and thankfully, magically, my bag did appear – without a tag and with my outer clip stolen. As I am on the road for nine months and the bag was 50% of my belongings, I was grateful.
Losing a bag is common among all airlines so I let my anger go. However, I was soon to discover that the incompetent staff, rude attitudes and complete disrespect for clients run deep in the culture of Spirit Airlines.
On our way home we arrived at the terminal in Puerto Rico almost two hours early to check-in in for my sister’s flight home. She was to depart San Juan at 3:15am and my flight was around 6:58am. When we arrived we soon discovered that her flight to Fort Lauderdale had been cancelled. How did we discover this? By waiting in line for over four hours and hearing rumors. Not once did the Spirit staff find the decency to explain what was going on. When we finally made it to the front of the line, I watched, appalled, while Jose, a Spirit Customer Service Representative, allowed a friend of his to cut in front of us and check in, even though they had just arrived. (They gave each other a high-five while I asked why he was not serving us.) Why the long wait? Why the total lack of communication? Why the rude behavior? It certainly was not because they were short staffed. I counted five people standing around talking about their holidays behind the counter, while we waited.
When we did finally speak with someone, she was going to put my sister, who graduated high school the week prior, on a tentative flight out of the country after me. I explained that we are family and that she must fly out before me or on the same flight, but not after because 1) she does not speak Spanish and 2) I had seen enough to know not to trust the competence of the Spirit staff. When I called the customer service number, their only response was that they would fly her out within two days without making sure she was safe in a hotel and that all other information was up to the staff in the departing terminal. Wow. Spirit told me to leave my little sister alone in a country where she does not know the language and does not own a credit card. What a brilliant idea.
After waiting for another two hours, we stood by the gate and prayed that she could get on standby for my flight. The staff did nothing to make sure she was moved to the front of the list as to not separate family. Thankfully, she was one of the last people to make it on.
Once in Fort Lauderdale, we tried to speak with a customer service representative again to find out what our options were. Strangely, there was no one who would take the time to help! We exited the terminal and went to the ticket counter where one person was kind enough to give us some advice.
My flight back to Boston was delayed. Her flight to Detroit was delayed by over 45 minutes. My sister sat down on her confirmed seat to Detroit after a seven hour layover (please keep in mind that we cut our trip short in order for her to be back home in time for an event that evening, which she was forced to miss). Moments later, another person appeared with the same seat assignment! My sister was pushed to tears for the third time that day. They escorted her off the plane and told her she was not even in the computer, even though Spirit had given her a ticket and told her she was good to go. Thankfully, a seat opened and she was able to go home. What would have happened if the flight was full? I am terrified to even think about it.
As a working professional and as a family person, I am utterly disgusted by the behavior and the deplorable treatment of customers exhibited by the vast majority of the Spirit staff. As one who regularly provides travel advice to many people, I am positive of only one thing when it comes to Spirit Airlines: This is the worst company (not just airline) that I have ever come in contact with and whatever a customer might “save” monetarily will be lost through the airline wasting their customer's time and treating them with less dignity than a piece of expendable furniture.
It is my hope that you as the CEO will take this letter seriously and begin to change the culture of the organization. Great airlines are needed and you have some of the infrastructure in place. Now act like you care for continued business.
Sincerely,
Erika
FOLLOW-UP: Spirit Airlines did respond to our letter with an apology stating that this is not normal behavior for the airline. No concessions were made to rectify how we were treated. Strangely, the letter was never finished...the sentence trailed off and the last two letters of the mail read "fu". Coincidence? I think not. What a disappointing company.
ReplyDeleteI a passenger on Spirit flight # 174 from FLL to LGA. I want to tell you of the great service given by your crew, they were polite and most professional. I want to single out Ingrid who was most exemplary. Getting on board I received a warm welcome and throughout the flight had a positive and great smile serving her guest. These days people are so quick to complain about everything but, I feel that when you get great service, it should be mentioned. I thank you for having a wonderful staff working for a great airline.
ReplyDelete