Spirit Airlines 2011 Annual Report Download - page 31

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Our processing, storage, use and disclosure of personal data could give rise to liabilities as a result of governmental regulation.
In the processing of our customer transactions, we receive, process, transmit and store a large volume of identifiable personal data,
including financial data such as credit card information. This data is increasingly subject to legislation and regulation, typically intended to
protect the privacy of personal data that is collected, processed and transmitted. More generally, we rely on consumer confidence in the security
of our system, including our website on which we sell the majority of our tickets. Our business, results of operations and financial condition
could be adversely affected if we are unable to comply with existing privacy obligations or legislation or regulations are expanded to require
changes in our business practices.
We may not be able to maintain or grow our non-ticket revenues.
Our business strategy includes expanding our portfolio of ancillary products and services. There can be no assurance that passengers will
pay for additional ancillary products and services or that passengers will continue to choose to pay for the ancillary products and services we
currently offer. Further, regulatory initiatives could adversely affect ancillary revenue opportunities. Failure to maintain our non-ticket revenues
would have a material adverse effect on our results of operations and financial condition. Furthermore, if we are unable to maintain and grow our
non-
ticket revenues, we may not be able to execute our strategy to continue to lower base fares in order to stimulate demand for air travel. Please
see “—Restrictions on or increased taxes applicable to fees or other charges for ancillary products and services paid by airline passengers and
burdensome consumer protection regulations or laws could harm our business, results of operations and financial condition.”
Our inability to expand or operate reliably or efficiently out of Fort Lauderdale–Hollywood International Airport, an airport on which
we are highly dependent, could harm our business, results of operations and financial condition.
We are highly dependent on markets served from South Florida, where we maintain a large presence with, approximately 27% of our daily
flights departing from Fort Lauderdale—Hollywood International Airport, or FLL Airport, for 2011. We operate out of the only international
terminal at FLL Airport, Terminal 4. FLL Airport is in the process of a renovation project, which includes the expansion of Terminal 4. The
airport expansion would allow us to increase the number of routes we serve from FLL Airport (although the expansion could also increase the
number of routes our competitors serve from FLL Airport). If the airport expansion does not occur or is delayed, however, our expansion
strategy out of FLL Airport may be impeded. In addition, FLL Airport presently has relatively low costs and there is no guarantee that the fees
and other costs related to operating out of FLL Airport will not increase. Our results of operations could be harmed by an increase in fees
charged by the airport, in particular, with respect to the increase in fees expected to be charged following the airport expansion. If we are unable
to operate reliably or efficiently from FLL Airport, we may need to move our South Florida operations to a smaller or more expensive area
airport.
Changes in how we or others are permitted to operate at airports, including FLL Airport, could have a material adverse effect on our
business, results of operations and financial condition.
Our results of operations may be affected by actions taken by governmental or other agencies or authorities having jurisdiction over our
operations at airports, including, but not limited to:
27
•
increases in airport rates and charges;
• limitations on take-
off and landing slots, airport gate capacity or other use of airport facilities;
•
termination of our airport use agreements, some of which can be terminated by airport authorities with little notice to us;
• increases in airport capacity that could facilitate increased competition, such as the planned expansion of the international terminal at
FLL Airport;
•
international travel regulations such as customs and immigration;
•
increases in taxes;
•
changes in the law that affect the services that can be offered by airlines in particular markets and at particular airports;
•
restrictions on competitive practices;
•
the adoption of statutes or regulations that impact customer service standards, including security standards; and