Spirit Airlines 2013 Annual Report Download - page 22

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22
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 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 our key airports where we maintain a large presence
could have a material adverse effect on our business, results of operations and financial condition.
We are highly dependent on markets served from airports where we maintain a large presence. 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:
• 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;
• 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
• the adoption of more restrictive locally-imposed noise regulations or curfews.
In general, any changes in airport operations could have a material adverse effect on our business, results of operations
and financial condition.
We rely on third-party service providers to perform functions integral to our operations.
We have entered into agreements with third-party service providers to furnish certain facilities and services required for
our operations, including ground handling, catering, passenger handling, engineering, maintenance, refueling, reservations and
airport facilities as well as administrative and support services. We are likely to enter into similar service agreements in new
markets we decide to enter, and there can be no assurance that we will be able to obtain the necessary services at acceptable
rates.
Although we seek to monitor the performance of third parties that provide us with our reservation system, ground
handling, catering, passenger handling, engineering, maintenance services, refueling and airport facilities, the efficiency,