*
Kirby dismisses Spirit's assets as impractical for United
*
Not enough gates for United in Spirit's key markets, he
says
(Adds more comments, background in paragraphs 6-15)
By Doyinsola Oladipo
NEWARK, New Jersey, Sept 16 (Reuters) - United Airlines
CEO Scott Kirby said on Tuesday his company will not bid
for bankrupt Spirit Airlines' assets if they become available.
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. The discount carrier's
restructuring will involve shrinking its network and fleet,
which is expected to put a variety of its assets up for grabs
for competitors.
Kirby, however, told Reuters that Spirit's airplanes, slots
and routes don't work for the Chicago-based airline. He said it
would take two to three years and cost $15 million per airplane
to reconfigure the budget airline's fleet, making it impractical
for United.
Similarly, there are not enough gates for United in Spirit's
key markets like Fort Lauderdale in Florida, he added.
"It's not in our wheelhouse," Kirby said in an interview.
"And so we're not going to try to do that."
Earlier this month, however, 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.
Kirby has been a vocal critic of the business model of discount
airlines and has repeatedly questioned their viability. Last
week, he expressed doubts whether Spirit could survive.
Spirit's financial struggles, as well as a rush among U.S.
carriers to chase premium travelers, have raised concerns that
the era of cheap flights might be over for price-conscious
travelers.
Kirby played down those concerns, saying there are still plenty
of airlines to offer cheap travel options. "Some of the models
aren't going to work and some will, but there's always been and
always will be lots of low-cost competition in the United
States," he said.
United has partnered with JetBlue Airways ( JBLU ) to allow
customers to earn and spend frequent-flier miles on both
airlines. United will also gain access to slots at New York's
JFK, an airport it left in 2022.
The alliance has led to speculation about whether it would
eventually culminate with a merger between the two airlines.
Kirby said the partnership creates a lot of value for United's
customers, adding he was not sure the company needed to "go
through the pain" of a merger.
(Writing by Rajesh Kumar Singh; Editing by Chizu Nomiyama and
Lisa Shumaker)