Contour Airlines is entering into a strategic partnership with Spirit Airlines that is expected to increase connectivity and bring affordable travel options to underserved communities across the country.
Spirit is Partnering With Contour to Serve EAS Destinations
As part of the partnership, Contour, the second largest Essential Air Service (EAS) carrier in the country, will continue to serve its 22 EAS communities while providing connectivity to its interline partners; Alaska Airlines, American Airlines, and United Airlines.
Spirit will introduce service to major leisure destinations (think Orlando and Fort Lauderdale) from a number of Contour’s EAS markets. As part of the partnership, Contour will provide ground handling support for Spirit flights and cross market the flights in the communities which it serves.
According to the airlines, Spirit’s service to smaller airports will eliminate the need for long drives to larger airports and will help highlight Contour’s commitment as a community stakeholder. Ben Munson, President of Contour, said this about the partnership:
“EAS communities no longer need to choose between national connectivity and low fares. The combination of service from our two airlines is the best formula to grow passenger traffic in these underserved airports.”
John Kirby, Vice President of Network Planning at Spirit Airlines, added:
“Our new partnership with Contour gives us an exciting opportunity to grow our network and explore low-cost entry into new markets that currently have limited service. We look forward to welcoming new Guests onboard and providing convenient connectivity in historically underserved regions through Spirit’s affordable, high-value service.”
Neither carrier has made an announcement as to which markets will be served under this partnership. More information is expected later in the summer.
What in the World is Spirit Doing?
When I first saw this announcement I thought I misread the title. This is a tie-up that doesn’t make any sense to me, especially for Spirit. Contour Airlines primarily flies Essential Air Service (EAS) flights which are subsidized flying by the United States Government.
These flights are meant to connect underserved communities to the national air transportation network. The carrier operates a fleet of regional jet aircraft outfitted with 30 seats in order to perform these EAS flights and receives financial guarantees from the government for doing so.
On the other hand, Spirit, which is an ultra-low-cost carrier (ULCC), operates a fleet of Airbus A320 family jet aircraft. Its smallest variant, the Airbus A320, seats 176 passengers, roughly 6x larger than a Contour plane.
I have been very critical of Spirit in the past as the airline has burned through cash, declared bankruptcy, been taken private by a group of investors, and then relisted on the NYSE American all in the last few months. The airline can’t seem to turn a profit and has now decided for some reason that it wants to fly to communities that are unable to get commercial air service without a subsidy. With Contour having the EAS route(s), Spirit likely won’t be eligible for any subsidies unless they come from a local level.
If the two airlines truly wanted to create a partnership that works for both sides, Contour should look at shifting some of its EAS flying to Spirit focus cities and enter into a codeshare agreement with the ULCC.
Maybe I’m just not seeing the play here but this one certainly leaves me scratching my head, especially as Spirit continues to struggle financially.
Summary
Spirit Airlines and Contour Airlines have entered into a partnership which will see the two airlines partner to boost service to underserved communities. This isn’t a partnership that makes much sense to me, especially for Spirit, as it is attempting to return to profitability. I’d love to be a fly on the wall in the Spirit offices as these decisions are getting made. Spirit offers a good product for what it is but sometimes the carrier’s decision making is confusing.
