Spirit to Begin Flights to Minneapolis

US low-fare carrier Spirit Airlines has announced plans to launch flights to Minneapolis-St Paul International Airport this summer with a three times daily connection from Chicago O’Hare and a daily offering from Las Vegas McCarran International due to commence from May 31, 2012. The new links continue Spirit’s rapid expansion from Chicago and Las Vegas where it is now ranked as the sixth largest operator by capacity, at each facility.

Like many of its routes, Spirit will face direct competition on the two new services but believes its low-fare strategy will enable it to generate enough of a penetration in the markets to develop a sustainable platform for development. "We are excited to bring our ultra low fares to the Twin Cities," said Barry Biffle, Chief Marketing Officer, Spirit Airlines. "Our cheap fares and optional services have saved customers millions because we give consumers the freedom to choose only the extras they value and they only pay for what they use."

The Chicago O’Hare - Minneapolis-St Paul International route is currently served by American Airlines, Delta Air Lines and United Airlines which between them offer more than 180 weekly flights providing over 17,000 weekly seats in each direction. United offers the greatest capacity on the route with a 40.8 per cent share of available seats; Delta (31.0 per cent) and American Airlines (18.2 per cent) also have sizeable shares.

An estimated 648,000 O&D passengers travelled between Chicago O’Hare and Minneapolis-St Paul International last year, down 1.8 per cent on the previous year. However, average fares have risen by around eleven per cent during the same period to approximately $161 each way.

The Las Vegas - Minneapolis-St Paul International route is currently served by Delta Air Lines and Sun Country Airlines which between them offer around 60 weekly flights providing just under 10,000 weekly seats in each direction. Delta offers the greatest capacity on the route with a 78.3 per cent share of available seats.

An estimated 501,000 O&D passengers travelled between Las Vegas and Minneapolis-St Paul International last year, down 3.3 per cent on the previous year. However, average fares have risen by around nine per cent during the same period to approximately $227 each way.

"I am very pleased to welcome Spirit Airlines to Minneapolis-St Paul International Airport and wish the airline every success here," said Dan Boivin, chairman of the Metropolitan Airports Commission (MAC), which owns and operates MSP and six general aviation airports in the Twin Cities metropolitan area. "Competition among airlines is good for consumers, and Spirit's unique low-fare business model provides a valuable alternative for cost-conscious travelers. It is a goal of the MAC to expand choices for the consumer with more options to more destinations while maintaining our commitment to sound environmental stewardship."

Spirit Airlines is the fourth new carrier to announce services to Minneapolis-St Paul International Airport since 2008. The market from the airport is dominated by Delta Air Lines as it was a former Northwest Airlines stronghold. The table below lists the top ten operators from Minneapolis-St Paul International Airport by available weekly seat capacity.

TOP TEN OPERATORS AT MINNEAPOLIS-ST PAUL INTERNATIONAL AIRPORT (non-stop weekly flights)

Rank

Airline

Weekly Flights

Weekly Seats

% Seat Capacity

1

Delta Air Lines (DL)

3,018

290,782

76.4 %

2

Sun Country Airlines (SY)

128

19,668

5.2 %

3

Southwest Airlines (WN)

112

14,999

3.9 %

4

American Airlines (AA)

129

13,178

3.5 %

5

United Airlines (UA)

123

12,258

3.2 %

6

US Airways (US)

90

11,446

3.0 %

7

AirTran Airways (FL)

54

6,423

1.7 %

8

Continental Airlines (CO)

91

5,066

1.3 %

9

Frontier Airlines (F9)

26

3,504

0.9 %

10

Alaska Airlines (AS)

13

1,968

0.5 %

(Others)

40

1,349

0.4 %

TOTAL

3,824

380,641

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