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Ben Baldanza

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Ben Baldanza
Baldanza at a Wings Club luncheon in 2013
Born
Basil Ben Baldanza

(1961-12-03)December 3, 1961
Rome, New York, U.S.
DiedNovember 5, 2024(2024-11-05) (aged 62)
Arlington County, Virginia, U.S.
EducationSyracuse University (B.A.)
Princeton University (MPA)
Occupations
  • Economist
  • business executive
Years active1986–2024
Spouse
Marcia Baldanza
​
(m. 1986)​
Children1
AwardsWright Brothers Memorial Trophy
CEO and President of Spirit Airlines
In office
January 2005 – January 4, 2016
Preceded byJacob M. Schorr
Succeeded byRobert Fornaro

Basil Ben Baldanza (December 3, 1961 – November 5, 2024) was an American economist who was the chief executive officer and president of Spirit Airlines from 2005 to 2016, a period in which he led the transformation of the company into an ultra-low-cost carrier.

Early life

[edit]

Basil Ben Baldanza was born on December 3, 1961, in Rome, New York.[1] In his youth, he played the trombone and briefly thought of a professional musical career.[2] He later attended Syracuse University and graduated with a bachelor's degree in policy studies and economics in 1984. He earned his Master of Public Affairs degree at Princeton University in 1986.[2][3]

Career

[edit]

In 1986, Baldanza began his career in the airline industry working for the American Airlines Group[4] until 1991, where he was a member of chief executive officer Robert Crandall's, "Brat Pack", alongside Thomas W. Horton, C. David Cush, and Doug Parker.[5]

He was later employed by Northwest Airlines and briefly worked at the United Parcel Service afterwards. In 1994,[2] he was hired by Continental Airlines as the VP of Pricing, and soon was promoted to EVP of Marketing.[6] By 1997,[2] he had left Continental to serve as the managing director[7] and COO of TACA Airlines. While at Taca, he also served on the board of directors of Frontier Airlines. In the early 2000s, he served as the senior vice president of Marketing and International Operations for US Airways[8] during a troubling period when the company filed bankruptcy twice in as many years.[9]

Baldanza left US Airways to become the president and COO of Spirit Airlines in January 2005.[10][8] He became the chief executive officer of Spirit in 2006. At the time, the company was recording yearly losses of $79 million.[11] He replaced Jacob M. Schorr, who had served as CEO since 2000.[12][13] During his tenure, Baldanza was “the public face of Spirit’s transformation into a more extreme version of a discount airline.” He designed a plan to transform it into an ultra-low-cost carrier. The company implemented a “Bare Fare” model,[4] opting to charge airline fees for many services included in traditional airline fares.[14][15] This included fees for the option to select a desired seat,[16] food and drink, carry-on and checked baggages.[17] On July 14, 2010, Baldanza testified in a U.S. Congress hearing in which he defended the airline's unpopular “policy to unbundle services not essential to passenger transport.”[16] He faced significant criticism stemming from transformation of the airline into an ultra-low-cost carrier. Baldanza was largely unapologetic about his company's new pricing policy.[3][18] He was even featured in a 2010 video in which he placed himself inside an overhead bin to defend the airlines new policy on carry-on fees by saying “Had we not implemented this, there’s no telling what people would try to put in an overhead bin”.[19][20]

According to The Seattle Times, Baldanza's annual salary was $607,360 in 2010.[21] His annual salary was $500,000 in 2014.[22] Benzinga [zh] estimated his net worth at $15.3 million in November 2024.[23]

The most reported criticism of Baldanza stemmed from his handling of customer complaints, most notably his initial refusal to refund the fare of a terminally-ill military veteran in May 2012.[24] The Vietnam veteran was diagnosed with cancer and was recently informed that it was terminal and that he was unfit to travel by plane. He requested a refund and was refused. Baldanza initially defended his team's decision by stating that the customer purchased a non-refundable fare with no insurance and therefore the company does not owe him a refund as that would be unfair to other customers.[25] He faced criticism from veterans organizations including a social media campaign to boycott Spirit Airlines. Baldanza eventually apologized for failing to “demonstrate the respect or the compassion that [he] should have, given [the customer’s] medical condition and his service to [his] country.” He announced he would return the price of the fare from his own funds[26] and that Spirit Airlines would make a donation to a veteran's group.[24][27]

During his tenure, the airline became profitable in “a period in which many airlines struggled to stay in business.”[3] As of 2011, “Spirit earned 40% more per airplane than any other U.S. airline”.[24] Baldanza and other executives at Spirit were paid less than others in the industry and but instead owned shares in the company.[28] Baldanza often promoted terms such as “a bus with wings” and “dollar store of the sky” to describe the airline. He pushed for ways of offsetting costs by selling advertising spaces where ever available on the plane, including flight attendant aprons, seatback trays, overhead bins, napkins, cups and motion sickness bags.[29] His company used advertising that often went viral instead of relying on a large marketing budget. Their advertisements often contained sexual innuendo as well as topical subjects in pop culture and politics.[29][30]

On January 4, 2016, Baldanza resigned from his position as chief executive officer and president of Spirit, after serving in the position for nearly a decade.[11][22] The resignation was described by several news organizations as unexpected and abrupt. However, Baldanza stated that the move was part of “an orderly succession plan.”[4][31] Spirit said that Baldanza had recently moved his family to Washington, D.C. He was replaced by Robert Fornaro, a member of the board that Baldanza personally recruited in 2014.[4]

Baldanza served on the board of JetBlue Airways,[32] Go First[33] and Six Flags Entertainment.[34] He was also an adjunct professor of economics at George Mason University.[35] He co-hosted a weekly podcast called Airlines Confidential with long-time The Wall Street Journal journalist Scott McCartney.[36] Baldanza retired from the podcast in August 2024.[37]

Baldanza was named among 25 Most Influential People in Business Travel in 2002 and 2015 by Business Travel News.[38]

On November 15, 2021, Baldanza was elected as the non-executive chairman of the board of Six Flags.[39] He was most recently the CEO of Diemacher, LLC.[40]

In May 2023, Baldanza was awarded the Joseph S. Murphy award for service to the airline industry. This is an award that Air Transport World Magazine gives rarely.[41]

Baldanza was awarded the Wright Brothers Memorial Trophy in June 2024 and was scheduled to receive it at the 76th Annual Wright Memorial Dinner, planned to be hosted by the Aero Club of Washington in Washington, D.C. on December 13, 2024.[42]

Charity and philanthropy

[edit]

Baldanza and his wife supported various educational institutions and arts programs through the Baldanza Fund.[43]

He served on Syracuse University's Maxwell School of Citizenship and Public Affairs Advisory Board.[44]

Baldanza acted as Treasurer for the American Youth Philharmonic Orchestras[45] and served on the Audit Committee for the International Trombone Association.[46]

Personal life and death

[edit]

Baldanza was married to Marcia Baldanza since 1986 and they had a son.[8][47]

He at one point owned a collection of thousands of board games which he enjoyed playing.[48] In June 2023, he donated most of his games to local DC-area and Pennsylvania gaming groups, keeping about 100 for his family. He was a voting member of the International Gamers Awards.[49]

In 2022, Baldanza was diagnosed with ALS caused by a mutation in the C9orf72 gene.[50] His mother, Norma, died of the same disease in 1983, at the age of 58.[1][51]

Baldanza died of ALS at his home in Arlington County, Virginia on November 5, 2024, at the age of 62.[52][51][53]

References

[edit]
  1. ^ a b Schlangenstein, Mary (November 6, 2024). "Ben Baldanza, Discount Flight Pioneer at Spirit, Dies at 62". BNN Bloomberg. Retrieved November 7, 2024.
  2. ^ a b c d Associated Press (July 12, 2011). "Spirit Airlines CEO Ben Baldanza bio". The Seattle Times. Retrieved October 9, 2017.
  3. ^ a b c Mayerowitz, Scott (July 12, 2011). "Meet America's king of airline fees". The San Diego Union-Tribune. Retrieved October 9, 2017.
  4. ^ a b c d Carey, Susan (January 5, 2016). "Spirit Airlines Names Industry Veteran Fornaro as New CEO". Wall Street Journal. Retrieved October 9, 2017.
  5. ^ "American Brat Pack: Where Airline CEOs Came Of Age". CBS News. December 29, 2011. Retrieved April 15, 2024.
  6. ^ Boisseau, Charles (April 16, 1995). "Continental Admits Flub, Turns Off Lite Struggling Airline Decides To Halt Ill-Conceived No-Frills Operation". The Spokesman-Review. Retrieved October 9, 2017.
  7. ^ Rohter, Larry (April 15, 1998). "International Business; A Home-Grown Giant Of Central America". The New York Times. Retrieved October 9, 2017.
  8. ^ a b c Stoller, Gary (June 21, 2009). "Spirit Airlines is cheap, and CEO Ben Baldanza's proud of it". ABC News. Retrieved October 9, 2017.
  9. ^ Alexander, Keith (September 15, 2004). "US Airways". The Washington Post. Retrieved October 9, 2017.
  10. ^ Compart, Andrew (May 9, 2005). "In the Hot Seat: Ben Baldanza: Travel Weekly". Travelweekly.com. Retrieved October 9, 2017.
  11. ^ a b Satchell, Arlene (January 13, 2016). "Former Spirit CEO Baldanza could get $1M in severance plus airline tickets for life". Sun Sentinel. Retrieved October 9, 2017.
  12. ^ "New Spirit CEO To Guide Fleet Transition". Aviation Pros. May 25, 2006. Retrieved November 7, 2024.
  13. ^ "Jacob M Schorr, Spirit Airlines Inc: Profile and Biography". Bloomberg. Retrieved November 7, 2024.
  14. ^ Satchell, Arlene (January 5, 2016). "Ben Baldanza out as CEO at Spirit Airlines". Sun Sentinel. Retrieved October 9, 2017.
  15. ^ Weber, Harry R. (April 19, 2010). "5 U.S. airlines say no to carry-on fees". SFGate. Retrieved October 9, 2017.
  16. ^ a b Mayerowitz, Scott (July 14, 2010). "Airline CEO: Bags 'Not Essential'". ABC News. Retrieved October 9, 2017.
  17. ^ Khan, Huma (May 7, 2010). "Paying for Using Plane Bathrooms? Spirit Air CEO Says No But Doesn't Discount New Fees". ABC News. Retrieved October 9, 2017.
  18. ^ Saporito, Bill (December 11, 2013). "The Budget Deal Is Going to Jack Up Your Airfare". Time. Retrieved October 9, 2017.
  19. ^ Sharkey, Joe (August 23, 2010). "Carry-Ons and Courtesy Need to Co-Exist". The New York Times. Retrieved October 9, 2017.
  20. ^ Tuttle, Brad (May 3, 2012). "See That Flight Price? Add $103 to It". Time. Retrieved October 9, 2017.
  21. ^ The Associated Press (July 12, 2011). "Spirit Airlines CEO Ben Baldanza bio". The Seattle Times. Retrieved November 7, 2024.
  22. ^ a b Clampet, Jason (January 9, 2016). "Spirit Air's Ex-CEO Walks Away With $1 Million and Free Flights for Life". Skift. Retrieved November 7, 2024.
  23. ^ "B ben Baldanza net worth, bio and insider trades". Benzinga [zh]. Retrieved November 7, 2024.
  24. ^ a b c Nicas, Jack (May 12, 2012). "A Stingy Spirit Lifts Airline's Profit". Wall Street Journal. Retrieved October 9, 2017.
  25. ^ Miller, Joshua Rhett (May 3, 2012). "Spirit Airlines CEO: Dying vet has himself to blame for no refund". Fox News. Retrieved October 9, 2017.
  26. ^ Elliott, Christopher (November 29, 2012). "The Insider: A Tale of Two Airlines". National Geographic Traveler. Archived from the original on August 1, 2017. Retrieved October 9, 2017.
  27. ^ Miller, Joshua Rhett (May 4, 2012). "Spirit bows to pressure: Airline CEO to refund dying veteran's fare". Fox News. Retrieved October 9, 2017.
  28. ^ Kristof, Kathy (July 2013). "Coping With a Moody Market". Kiplinger. Retrieved October 9, 2017.
  29. ^ a b Tuttle, Brad (March 12, 2014). "At Long Last, Your Company Can Advertise on Airline Barf Bags". Time. Retrieved October 9, 2017.
  30. ^ Malone, Kenny (September 3, 2013). "Spirit Airlines Sees Business Take Off With Raunchy Ads". NPR. Retrieved October 9, 2017.
  31. ^ "Brash, fee-happy CEO of Spirit Airlines abruptly replaced". Chicago Tribune. January 5, 2016. Retrieved October 9, 2017.
  32. ^ "Governance − Board of Directors". JetBlue Airways. Retrieved April 15, 2024.
  33. ^ "BEN BALDANZA". BCI Aerospace Malaysia. Retrieved November 7, 2024.
  34. ^ "Board of Directors". SixFlags Investors. Retrieved April 15, 2024.
  35. ^ "Faculty and Staff: Ben Baldanza". Economics – George Mason University. Retrieved April 15, 2024.
  36. ^ "Your Hosts". Airlines Confidential Podcast. Retrieved April 15, 2024.
  37. ^ Kaplan, Seth (August 17, 2024). "Former Spirit Airlines CEO Baldanza, battling ALS, retires from podcast; has 'very little energy' left". WHTM-TV. Retrieved November 7, 2024.
  38. ^ Airoldi, Donna M. (November 6, 2024). "Former Spirit CEO Ben Baldanza Dies at 62". Business Travel News. Retrieved November 7, 2024.
  39. ^ "Six Flags Announces New CEO". Business Wire. November 15, 2021. Retrieved November 15, 2021.
  40. ^ "B. Ben Baldanza *86, SPIA | GradFUTURES". Princeton University. Retrieved November 7, 2024.
  41. ^ "2023 ATW Joseph S. Murphy Service to Industry: Ben Baldanza". Aviation Week Network. Retrieved April 15, 2024.
  42. ^ Griffith, Stephanie (June 19, 2024). "Ben Baldanza to be Honored with 2024 Wright Brothers Memorial Trophy". Aero Club of Washington. Retrieved November 7, 2024.
  43. ^ Ortiz, Luisana (September 1, 2022). "Baldanza Fund aims to improve learning for diverse, underrepresented students". The Daily Orange. Retrieved November 7, 2024.
  44. ^ "Maxwell Advisory Board". Maxwell School. Retrieved April 15, 2024.
  45. ^ "Board of Directors". American Youth Philharmonic Orchestras. Retrieved April 15, 2024.
  46. ^ "Committees". International Trombone Association. January 7, 2016. Retrieved April 15, 2024.
  47. ^ Cortez, Joe (November 6, 2024). "Ben Baldanza, Former Spirit Airlines CEO, Dies at 62". FlyerTalk. Retrieved November 7, 2024.
  48. ^ Mayerowitz, Scott (February 9, 2014). "Spirit Airlines chief is a ruthless strategist, even at play". Seattle Times. Retrieved July 11, 2019.
  49. ^ "Ben Baldanza". International Gamers Awards. Retrieved April 15, 2024.
  50. ^ "Former Spirit Airlines CEO, now battling ALS, gets 'new' AI voice based on his own pre-disease voice". ABC27. March 19, 2024. Retrieved April 15, 2024.
  51. ^ a b "B. Ben Baldanza". Airlines Confidential Podcast. Retrieved November 7, 2024. B. Ben Baldanza, (...), passed away at home on November 5, 2024, (...)
  52. ^ "Ben Baldanza Pioneer of budget air travel at spirit dies at 62". Bloomberg. November 6, 2024. Retrieved November 6, 2024.
  53. ^ "Ben Baldanza". Vindow. Retrieved November 7, 2024. Ben is married to Marcia Baldanza, (...). They have one son, (...), and live in Arlington, Virginia.
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