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Spirit and Frontier Will Soon Have More Competition in the Ultra Low-Cost Market

Aug. 17, 2017
3 min read
sun country
Spirit and Frontier Will Soon Have More Competition in the Ultra Low-Cost Market
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There's no shortage of low-cost carriers in the US. For no-frills flyers, choices range from the customer-friendly Southwest Airlines to the New York-based JetBlue, which offers free in-flight Wi-Fi. Then, there's another group of airlines below those brands, which are commonly referred to as ultra low-cost carriers, or ULCCs — think Spirit Airlines and Frontier Airlines. Now, that ULCC market is about to get one more addition.

Sun Country Airlines' new CEO Jude Bricker announced in a staff memo this week that the carrier was about to undergo some big changes, especially in the cost-cutting department. As reported by the Star Tribune, Bricker told employees that he plans to increase the carrier's revenue by implementing fees and plans to expand beyond its hub at Minneapolis-St. Paul International Airport (MSP).

What does that mean for passengers? Well, the ULCC market is about to get more crowded — Sun Country will move to earn a spot among the US fee-crazy carriers like Spirit and Frontier. Sun Country plans to start charging for a carry-on bag like Frontier and Spirit are notorious for doing.

Image courtesy of Wikimedia Commons.

In addition, Bricker said that he plans to add more seats to Sun Country's fleet of aircraft. Currently, the Eagan, Minnesota-based carrier operates a fleet of Boeing 737-700 and -800 aircraft, with each of its economy seats offering a generous 31-33 inches of pitch, depending on the seat. With Bricker's plan to add more seats, passengers will see that seat pitch decrease, as it crams more passengers in the cabin. Likely, passengers will see seat pitch on par with what's offered by Spirit and Frontier — 28 or 29 inches per seat.

Because of the carrier's underperformance, Bricker plans to increase revenue, in part, by focusing less on its MSP hub where there's plenty of competition. Instead, it'll expand its focus to other cities. And, to cut costs even further, Sun Country is offering to buy out senior employees. Instead, it'll hire new, younger employees who require less pay, helping to save it money.

The combination of these cost-cutting and revenue-enhancing measures are some of what Bricker has in store for the future of Sun Country. While he gave no timeline for the implementation for these new policies, they're surely on the horizon. If you're planning to fly with Sun Country in the near future, keep in mind that these changes are looming, and prepare to be nickel-and-dimed for just about everything.

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4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.