Author Topic: SAVE - Spirit Airlines, Inc.  (Read 23161 times)

Gamecock-YT

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Re: SAVE - Spirit Airlines, Inc.
« Reply #70 on: November 20, 2017, 08:14:29 PM »
Is there anything helping the United/Delta/American trifecta keep the startup airlines at bay from a real estate / terminal perspective, particularly on the coasts? If I remember right, one of the things helping BA against Virgin back in the day was BA controlled the gates at Heathrow. One thing helping Frontier is DIA was built on a massive plot of land 40 minutes from downtown (for Denver that's quite far). The airport basically has unlimited room to expand and Frontier is taking advantage of that. That requires landing space on the other end as well though.

They're called slots (as in landing slots). The economist had an article in the issue this week.


kab60

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Re: SAVE - Spirit Airlines, Inc.
« Reply #71 on: September 09, 2019, 10:35:58 AM »
Anyone getting interested again? I didn't participate in any of the other round trips but bought a smallish position today.

Stuart D

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Re: SAVE - Spirit Airlines, Inc.
« Reply #72 on: September 09, 2019, 11:09:03 PM »
I just had a quick read through the this thread & some of SAVE's financials.

Looks as though they have grown a lot since the last round of discussion. CapEx has exceeded depreciation by $100's of millions for each of the last 4 years. Do you know if the company is planning to keep their foot on the gas (i.e. growth) pedal? or are they now looking to gush cash?


kab60

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Re: SAVE - Spirit Airlines, Inc.
« Reply #73 on: September 09, 2019, 11:45:15 PM »
They still have a large orderbook for 19, 20 and 21, so FCF will stay negative for the forseeable future. Which is ofc fine if returns are attractive. They guide for mid DD operating margin long term so it should be accretitive. My investment is pretty high level. They're a low cost provider and fill an important niche and have generally generated good returns. Growth runway should be good, so it's really about execution, and that shouldn't require a PHD. It's an Airline so obviously cyclical but who knows where we're going... Not that it gets valued like this, but it actually trades below BV which is mostly planes.