INSTANT MBA: Choose Your Competitive Advantage, And Do it Now

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		Tech Media Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Wednesday, July 13, 2011 Advertisement Today's advice comes from Spirit Airlines CEO Ben Baldanza's interview with the AP: "In 2006, we decided we were going to run Spirit as an airline that competes on the basis of price and price alone. Making that decision made it easier for us to make other decisions about how to run the business that are probably very difficult for other airlines." Adding more seats to planes, charging passengers for carry-on luggage, and offering higher fees for aisle seats are compromises passengers are willing to pay for because of cheaper ticket prices. "You start asking yourselves why would I put fewer seats on the airplane than the airplane can hold? At some point you’ve got to get tired of losing money." Baldanza says Spirit Airlines became successful after they grouped airlines into two buckets: extremely high premium airlines, or extremely low-cost ones. This way they found a niche in the middle, he says. Want your business advice featured in Instant MBA? Submit your tips to tipoftheday@businessinsider.com. Be sure to include your name, your job title, and a photo of yourself in your email. Please follow War Room on Twitter and Facebook. Share this: Buzz Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.wyldside@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the War Room RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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