Spirit Airlines 2014 Annual Report Download - page 11

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Islands. If we decide to increase our routes to additional international destinations, we will be required to obtain necessary
authority from the DOT and the applicable foreign government. We are also required to comply with overfly regulations in
countries that lay along our routes but which we do not serve.
International service is also subject to Customs and Border Protection, or CBP, immigration and agriculture requirements
and the requirements of equivalent foreign governmental agencies. Like other airlines flying international routes, from time to
time we may be subject to civil fines and penalties imposed by CBP if unmanifested or illegal cargo, such as illegal narcotics, is
found on our aircraft. These fines and penalties, which in the case of narcotics are based upon the retail value of the seizure,
may be substantial. We have implemented a comprehensive security program at our airports to reduce the risk of illegal cargo
being placed on our aircraft, and we seek to cooperate actively with CBP and other U.S. and foreign law enforcement agencies
in investigating incidents or attempts to introduce illegal cargo.
Security Regulation
The TSA was created in 2001 with the responsibility and authority to oversee the implementation, and ensure the
adequacy, of security measures at airports and other transportation facilities. Funding for passenger security is provided in part
by a per enplanement ticket tax (passenger security fee). For the first half of 2014, this fee was $2.50 per passenger flight
segment, subject to a $5 per one-way trip cap. Effective July 1, 2014, the security fee was set at a flat rate of $5.60 each way.
On December 19, 2014 a new law took effect which limits a round-trip fee to $11.20. We cannot forecast what additional
security and safety requirements may be imposed in the future or the costs or revenue impact that would be associated with
complying with such requirements. In addition, for the majority of 2014, the TSA assessed an Aviation Security Infrastructure
Fee, or ASIF, on each airline. This fee was eliminated by the TSA effective October 1, 2014.
Environmental Regulation
We are subject to various federal, state and local laws and regulations relating to the protection of the environment and
affecting matters such as aircraft engine emissions, aircraft noise emissions and the discharge or disposal of materials and
chemicals, which laws and regulations are administered by numerous state and federal agencies. The Environmental Protection
Agency, or EPA, regulates operations, including air carrier operations, which affect the quality of air in the United States. We
believe the aircraft in our fleet meet all emission standards issued by the EPA. Concern about climate change and greenhouse
gases may result in additional regulation or taxation of aircraft emissions in the United States and abroad.
Federal law recognizes the right of airport operators with special noise problems to implement local noise abatement
procedures so long as those procedures do not interfere unreasonably with interstate and foreign commerce and the national air
transportation system. These restrictions can include limiting nighttime operations, directing specific aircraft operational
procedures during takeoff and initial climb, and limiting the overall number of flights at an airport.
Other Regulations
We are subject to certain provisions of the Communications Act of 1934, as amended, and are required to obtain an
aeronautical radio license from the Federal Communications Commission, or FCC. To the extent we are subject to FCC
requirements, we will take all necessary steps to comply with those requirements. We are also subject to state and local laws
and regulations at locations where we operate and the regulations of various local authorities that operate the airports we serve.
Future Regulations
The U.S. and foreign governments may consider and adopt new laws, regulations, interpretations and policies regarding a
wide variety of matters that could directly or indirectly affect our results of operations. We cannot predict what laws,
regulations, interpretations and policies might be considered in the future, nor can we judge what impact, if any, the
implementation of any of these proposals or changes might have on our business.