Spirit Airlines 2011 Annual Report Download - page 41

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In 2010, in an effort to gain efficiencies, we relocated all of our maintenance operations in Detroit, Michigan to Fort Lauderdale, Florida.
The restructuring included the closure of facilities in Detroit, relocation of equipment and tools, and the relocation of a portion of the former
Detroit workforce. Our maintenance facilities are currently located in a leased facility at FLL Airport under a lease that expires in January 2015.
Our principal executive offices and headquarters are located in a leased facility at 2800 Executive Way, Miramar, Florida 33025,
consisting of approximately 56,000 square feet. The lease for this facility expires in January 2015. We also have a training center located in a
leased facility at 1100 Lee Wagener Boulevard, Fort Lauderdale, Florida 33315, consisting of approximately 10,000 square feet, under a lease
that expires in January 2015.
ITEM 3. LEGAL PROCEEDINGS
We are subject to commercial litigation claims and to administrative and regulatory proceedings and reviews that may be asserted or
maintained from time to time. We currently believe that the ultimate outcome of such lawsuits, proceedings and reviews will not, individually or
in the aggregate, have a material adverse effect on our financial position, liquidity or results of operations.
In June 2011, we and a competitor, Allegiant Travel Services, LLC (“Allegiant,” and together with us, “Petitioners”), filed petitions of
appeal in the U.S. Court of Appeals for the D.C. Circuit, requesting relief from certain aspects of a new rule adopted by the DOT, which rule is
known as Enhancing Airline Passenger Protections Final Rule (“EAPP-2”). The petitions, filed by us on June 15, 2011 and by Allegiant on
June 16, 2011, have been consolidated. The aspects of EAPP-2 that we and Allegiant have challenged include (i) a requirement to quote fares
inclusive of government taxes and fees, rather than quoting such taxes and fees separately from the base fare, (ii) a requirement that travel
reservations be held at the quoted fare without payment, or canceled without penalty, for at least 24 hours after the reservation is made if the
reservation is made one week or more prior to a flight’s departure, (iii) a prohibition on post-purchase price increases for products and services
not purchased at the time of the initial booking, (iv) a requirement to deliver to passengers a list of all baggage allowances and pricing on any e-
ticket or other electronic confirmation (despite already providing this information at the time of booking), and (v) a requirement to provide
notice to passengers of flight schedule changes within 30 minutes after a carrier knows, or should have known, about such change. We consider
these aspects of the EAPP-
2 to present a risk of stifling competition and of significantly increasing prices in the airline industry, and we intend to
pursue our appeal vigorously.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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