Sypnosis of Two Companys

"Identify and research two companies that have faced specific issues related to those you identified in the scenario and connected with the course concepts"

(A) Identified in the scenario that is also facing the company

Spirit Airlines has become the first Ultra Low Cost Carrier in the Americas. They operate with lower costs and this allows customer to gets a lower ticket, and these prices create the excitement and volume increases that drive Spirit growth. Spirit is a great airline, however, she is a smaller than many of their competitors. The result is a very successful company that thrives in a very difficult industry.

Spirit began in 1980 in Detroit, Michigan, which provide travel packages to entertainment destinations as Bahamas, Las Vegas and Atlantic City. In 1990, started service to Providence, R.I., Atlantic City and Boston. On May 29, 1992 changed the name to Spirit Airlines and inaugurated service from Detroit to Atlantic City.

In April 1993, Spirit started service in Florida. In the next five years, Spirit increase service from Detroit and add new markets such as Myrtle Beach, S.C.; New York and Los Angeles.

In December 1999 Spirit relocated its headquarters moving from Detroit, Michigan to Miramar, Florida. They continued their expansion to market as Los Angeles and Chicago. In November 2001, they started service to San Juan, PR and implemented a customer service plan bilingual which includea website. In 2002, Spirit started service to Las Vegas, Nevada and Denver, Colorado. In Fall 2003, Spirit restared flights to Cancun, Mexico and Washington, D.C's Reagan National Airport.

In 2004, they expanded service to Providence and Santo Domingo; in 2005, to Bahamas and Caribbean; in 2006, Boston, Grand Cayman and San Francisco; in 2007 to Venezuela, Haiti, the Netherlands Antilles, and Costa Rica.

In 2006 Spirit established their Free Spirit frequent flyer program. This program offers travel award starting at 15,000 miles, this is lower than most other frequent flyer programs. This program guarantees award availability on every flight.

In 2006 Spirit will order 30 Airbus A319-100 aircraft for more expansion. .

March 6, 2007, Spirit start the transition to become the first Ultra-Low Cost carrier in the United States. The initial plan consist in charging $10 per check-in bag for the first two bags ($5 if bag is pre-paid online) now they increase the bag to $20 ($10 if bag is pre-paid online), in addition they start charging $1 for drinks. On June 20, Spirit Plus, renamed as big front seat and discontinue the business class service. The customer could choose a big front seat or an upgrade at the airport for an additional fee. On October 1, 2007, Spirit started charging $2 for all drinks and $2 for bottled water. In 2007, Spirit became the largest carrier at Fort Lauderdale-Hollywood International Airport.

On September 26, 2007, Spirit change of image for it airline. Spirit said that this new image will save money . This new image represents the colors in Latin American, and Caribbean.

JetBlue Airways is another low-cost airline which it parent company is JetBlue Airways Corporation. Its headquartered is located in Forest Hills, New York City. The John F. Kennedy International Airport is its base. JetBlue is not an union airline. In 2001, JetBlue start its operation in Los Angeles, California and Long Beach,