Spirit Airlines enters Cayman market

Hon Charles Clifford,
Minister of Tourism

Tuesday,  September 13, 2005

The Cayman Islands Civil Aviation Authority (CAA) has approved the application of the low cost carrier, Spirit Airlines for flight services to Grand Cayman. 

The spokesperson for the airline Rebecca Rivera said they were not ready to make a public announcement, but she confirmed the company had received permission from CAA, last week. 

“We have received the authority to fly to and from Grand Cayman,” said Ms Rivera. “We expect to make a public announcement some time (this) week.”

Based in Ft Lauderdale, Spirit Airlines has been operating for 15 years and expanded rapidly to numerous destinations in the US and throughout the Caribbean.

The airline already flys to the Bahamas, Jamaica, Puerto Rico, Turks and Caicos and Dominican Republic. 

Even as fuel costs are rising daily, the Airline still promotes rock bottom prices to Montego Bay and Kingston Jamaica from major US cities such as New York, Chicago and Ft Lauderdale. 

The entry of Spirit Airlines into the Grand Cayman market will increase the pressure on Cayman Airways as it struggles to survive in an every increasing competitive market, rising fuel costs, and expenses that have spiralled into record breaking losses of $24.7 million over two and a half years after Government subsidies of $13 million. 

Although the Minister for Tourism, Hon Charles Clifford, could not be reached for comment, he had said in a previous interview with Cayman Net News that Cayman Airways needs to be re-invented.

“Cayman Airways is a legacy carrier,” said Mr Clifford. “Most legacy carriers have either gone out of business or are struggling to make it such as Eastern, Pan Am, North West, United and Delta. 

“It is the low cost carriers that have a business model that lends itself to significant efficiencies,” he said.

The new board of Cayman Airways including the Chairman Bobby Bodden went to a two-day retreat in August to evaluate and hammer out a new business model for the airline. 

Two executives from successful but undisclosed low cost carriers were expected to demonstrate its business models at the retreat, which may have included Spirit Airlines.

Cayman Airways CEO Mike Adam could not be reached for comment.

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