Organization Effectiveness: Spirit Airlines

Topics: US Airways, Spirit Airlines, Airline Pages: 4 (1325 words) Published: March 2, 2014
Airline Organizational Effectiveness

Spirit Airlines labels itself as an ultra-low cost airline that aims to offer cheap airfare for Americans. They believe their organization and business model are effective. But are they really as effective as they seem to be? Could they operate more effectively? An effective organization is one that one that can implement strategy in a manner that engages or satisfies its 3 major stake holders: consumers, employees, and shareholders. Although Spirit can be on thin ice at times with their employee relationships, by offering a low cost alternative for flying, Spirit is effective in satisfying the consumers’ needs and reaching its financial goals. When discussing consumer satisfaction, it is important to first understand the nature of the corporate culture that dominates Spirit. Chief executive, Ben Baldanza, champions a philosophy of acting cheap. He says, the word cheap is not an insult. Mr. Baldanza actually vacuums his office and has a third of the light bulbs screwed in his office to save money. Demonstrating his frugality, he said “we don’t over-spend on that stuff.” This approach to dealing with money permeates throughout the entire airline. Spirit was the first airline to introduce fees for carry-ons and was one of the first to install chairs that do not adjust. A Spirit flyer has to even pay for water on a flight. However, their fares are incredibly affordable. “They are able to do so by putting a price tag on everything else (LA Times).” According to Baldanza, purchasing a ticket for Spirit is purchasing a ticket of expectation. With such low fares, the chief executive believes it should be expected a flight with Spirit will likely not be enjoyable. But it will be the cheapest. It seems the company is positioned to satisfy the desire of consumers to save money, not necessarily wow them on an experience. This business model and philosophy has mixed reviews. The majority of people complain about the airline. The...

Cited: "Company Financials." Standard and Poor 's. N.p., n.d. Web. 07 Feb. 2014. etAdvantage/cp/
07 Feb. 2014.
"Spirit Airlines."
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