Tuesday, December 6, 2011

Spirit Airlines lands in Allegiant Territory

Spirit Airlines announcement from their website
Spirit Airlines today confirmed what many were indeed thinking by announcing service to IWA (Phoenix-Mesa). Today they announced non-stop service from IWA to Dallas, TX, Fort Lauderdale, and Las Vegas.

And so begins the new low-cost carrier wars with both Allegiant and Spirit servicing Las Vegas non-stop from the same small airport.

Obviously this is purely a publicity move to test Allegiants response. There are already plenty of flights from PHX (Sky Harbor) to Las Vegas on both Southwest and US Airways.

So who wins in the new battle of the west?
We think that Spirit obviously has received incentives in order to come to Phoenix-Mesa. Allegiant has been the only carrier at Phoenix-Mesa for a few years and enjoys the lack of competition. While Spirit and Allegiant are only competing on 1 direct route at this time, we don't think that can last for long. We think one of the carriers will eventually drop the Vegas route....but we can't see Allegiant dropping it first since Vegas is their home market. Time will tell!

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