*

United CEO criticizes Spirit's business model as failed

experiment

*

Spirit defends low fares and premium offerings against

United's

criticism

*

Spirit's financial woes create market share opportunities

for

rivals

(Rewrites first paragraph; adds Spirit's comments, background

details throughout)

By Doyinsola Oladipo, Allison Lampert and David Shepardson

WASHINGTON, Sept 9 (Reuters) - A war of words between

United Airlines and ailing Spirit Airlines executives

escalated on Tuesday after the Chicago-based airline's chief

questioned the bankrupt discounter's business model and

expressed doubts if it could stay in the industry.

Minutes later, Spirit responded. In a post on X, the

Florida-based carrier said its customers love low fares and its

premium product offerings. "Maybe that's why United executives

can't stop yapping about us," the airline said.

United's CEO Scott Kirby has been a vocal critic of the

business model of no-frills airlines and has repeatedly

questioned their viability.

On Tuesday, he called the ultra-low-cost airline business

model "an interesting experiment," which has "failed."

"And it seems unlikely to me that Spirit can keep flying

because their customers dislike the airline and don't want to

fly," Kirby told the U.S. Chamber of Commerce's Global Aerospace

Summit in Washington.

Spirit filed for bankruptcy protection last month for the

second time in a year after a previous reorganization failed to

put it on firmer financial footing.

Its financial troubles have created an opportunity for rival

carriers to grab market share.

Last week, United started selling tickets for new flights to

15 cities where Spirit operates. The company said its new

flights were aimed at giving Spirit's customers other options if

the discount carrier suddenly went out of business.

Spirit immediately responded, dubbing United's comments

"wishful thinking." The company said it expected to remain in

business "for many years to come."

To stem its cash burn, Spirit has been shrinking its

operations and retreating from markets. It has discontinued

service to 11 U.S. cities, including Portland, Oregon, and San

Diego, and no longer plans service to Macon, Georgia, which was

scheduled to start in mid-October.

Industry analysts and executives say Spirit's troubles

stemmed from its failure to fix its bloated cost structure. Its

total operating expense in the latest quarter was $1.2 billion,

which amounted to 118% of its quarterly revenue.

(Writing by Rajesh Kumar Singh; Editing by Mark Porter and

Aurora Ellis)