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Spirit Airlines orders 30 more Airbus A-319 aircraft, nearly doubling fleet size

January 24, 2007

Spirit Airlines said Tuesday it ordered 30 additional Airbus A-319 aircraft valued at $1.8 billion to be delivered between 2009 and 2013, signaling continued expansion for the low-cost carrier that will nearly double its size.

Coupled with its fleet of 33 and the seven planes it previously ordered, the Miramar-based airline expects to grow to 70 aircraft in six years, bringing increased service on existing routes and new destinations, Chief Executive Officer Ben Baldanza said.

"We will continue to follow our business model of building Fort Lauderdale as an international gateway," Baldanza said. "It's logical to assume most of the planes will be focused on international routes to provide greater depth with more frequency and greater scope with more places that we will serve."

The Airbus A-319s, which seat 124 passengers, will be powered by V-2500 engines from International Aero Engines AG, a multinational company that includes Pratt & Whitney as one of four partners. Spirit also has agreed to purchase 11 spare engines for its existing and future needs.

The airline has not decided whether to lease the new aircraft from a third party or buy some of them outright, Baldanza said.

"We don't need to make that decision right away," he said. "As the creditworthiness of Spirit increases, we might be able to get better terms in a lease."

Spirit took delivery of its first Airbus in 2004 with the goal of phasing out its aging, inefficient MD-80 aircraft by 2008. The company accelerated the process and became an all-Airbus fleet late last year.

"For the airline to come back this soon with an order of this magnitude shows that Airbus aircraft are working well for Spirit," said John Leahy, the Airbus chief operating officer for customers.

Still, the fleet will remain small compared to competitors. JetBlue, another low-cost carrier, has 119 aircraft.

Spirit, with hubs in Fort Lauderdale and Detroit, has focused largely on expansion in the Bahamas, Caribbean and Latin America with prices that undercut competitors and promotions that offer seats for a few pennies, plus required fees and taxes.

Within the past week, the carrier announced plans to serve St. Maarten, Netherlands Antilles, Aguadilla, Puerto Rico, and Port-au-Prince, Haiti. The company also is waiting a decision from the Venezuelan government to serve Caracas.

Baldanza said he is particularly pleased with service to Jamaica, the Dominican Republic and St. Thomas, Virgin Islands, as well as nonstops from Fort Lauderdale-Hollywood International Airport to Los Angeles, Las Vegas and Myrtle Beach, S.C.

"Our low fares are encouraging more people to fly, and that is one of our goals," he said.

Spirit dates to 1992, when it changed its name from Charter One, originally a Detroit-based charter tour operator. The company began service to Florida in 1993, and it relocated its headquarters in late 1999 to Miramar from Eastpointe, Mich.