Spirit CEO says the airline's recent operational meltdown doesn't reflect 'systemic issues.' These employees disagree.
- Spirit Airlines canceled over 2,800 flights during an operational meltdown that started in July.
- The airline says it lost $50 million and is predicting future losses up to $100 million in Q3.
- Spirit CEO Ted Christie says it "does not reflect systemic issues." These three staffers disagree.
- See more stories on Insider's business page.
Spirit Airlines canceled more than 2,800 fights from July 30 to August 9, citing a poorly timed combination of bad weather, system outages, and staffing issues.
But the airline's CEO says the massive failure wasn't due to internal problems.
"We believe the interruption was a singular event driven by an unprecedented confluence of factors and does not reflect systemic issues," CEO Ted Christie said in a regulatory filing on Monday. "Over the past few years, we have made investments to be one of the most efficient and reliable airlines in the U.S. industry, and We are committed to taking the steps necessary to make sure we maintain that standard."
The airline said that it lost $50 million during the operational meltdown and is predicting future losses between $80 million and $100 million in the third quarter.
Spirit reported that recent bookings have been lower than originally anticipated, citing an increase in COVID-19 cases and "short-term brand impact" from the mass cancellations.
In an attempt to stabilize the airline during continued staffing shortages, Spirit said it is making "tactical schedule reductions throughout the remainder of the third quarter."
Insider spoke to a Spirit pilot, flight attendant, and customer service agent who worked throughout the meltdown. They requested anonymity to speak freely about the situation, though their identities and employment were verified by Insider.
All three Spirit employees told Insider that they believe the airline's meltdown is a symptom of larger issues at the company.
According to the staffers, Spirit has failed to proportionally increase new hires while the airline continues to dramatically increase flight offerings. The airline did not respond to Insider's request for comment.
This June, Spirit announced it will start flying out of Miami in November with an addition of 30 flight routes - an increase that would make Spirit the second-largest carrier in Miami.
The budget airline recently announced plans to offer 11 additional routes from Milwaukee, Louisville, and St. Louis, The Points Guy reported.
"We're all looking at each other and thinking they don't even have staffing for the flights they have now," one pilot told Insider. "How are they going to just suddenly start flying 30 additional flights out of an airport that we don't even operate out of?"
The Spirit pilot said he believes the airline's meltdown was the result of a lack of investment in infrastructure which he said is evidenced by staffing shortages, antiquated phone lines, and crashing computer systems.
"I don't want to trash my airline, but I want to inspire them to improve," he told Insider. "They're not investing in their infrastructure ... they're trying to run an airline of 167 airplanes on an infrastructure that was designed for 50."
Contributer : Business Insider https://ift.tt/3CQNhrf
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