Spirit Airlines 2015 Annual Report Download - page 10

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Safety and Security
We are committed to the safety and security of our passengers and employees. We strive to comply with or exceed health
and safety regulation standards. In pursuing these goals, we maintain an active aviation safety program. All of our personnel are
expected to participate in the program and take an active role in the identification, reduction and elimination of hazards.
Our ongoing focus on safety relies on training our employees to proper standards and providing them with the tools and
equipment they require so they can perform their job functions in a safe and efficient manner. Safety in the workplace targets
several areas of our business including: flight operations, maintenance, in-flight, dispatch and station operations. The
Transportation Security Administration, or TSA, is charged with aviation security for both airlines and airports. We maintain
active, open lines of communication with the TSA at all of our locations to ensure proper standards for security of our
personnel, customers, equipment and facilities are exercised throughout our business.
Insurance
We maintain insurance policies we believe are customary in the airline industry and as required by the Department of
Transportation (DOT). The policies principally provide liability coverage for public and passenger injury; damage to property;
loss of or damage to flight equipment; fire and extended coverage; directors’ and officers’ liability; advertiser and media
liability; cyber risk liability; fiduciary; and workers’ compensation and employer’s liability. As of July 2014, we obtained third-
party war risk (terrorism) insurance from the commercial market. Prior to July 2014, we obtained this insurance through a
special program administered by the FAA, which was discontinued in late 2014. Renewing coverage from commercial
underwriters could result in a change in premium and more restrictive terms. Although we currently believe our insurance
coverage is adequate, there can be no assurance that the amount of such coverage will not be changed or that we will not be
forced to bear substantial losses from accidents. Our current war risk (terrorism) insurance policy expires in July 2016.
Management Information Systems
We have continued our commitment to technology improvements to support our ongoing operations and initiatives.
During 2013, we completed the integration of a new SAP Enterprise Resource Planning application, which replaced our general
ledger, accounts payable, accounts receivable, cash management and fixed asset systems. The conversion was designed to
improve our key business processes by implementing an integrated tool to increase efficiency, consistency, data accuracy and
cost effectiveness. During 2015, we completed the integration of TRAX, a new scalable maintenance, repair, operations (MRO)
system to improve the tracking of all maintenance related financial transactions. We intend to continue to invest time and
resources in upgrading and improving our information systems and the security of our data.
Foreign Ownership
Under DOT regulations and federal law, we must be controlled by U.S. citizens. In order to qualify, at least 75% of our
stock must be voted by U.S. citizens, and our president and at least two-thirds of our board of directors and senior management
must be U.S. citizens.
We believe we are currently in compliance with such foreign ownership rules.
Government Regulation
Operational Regulation
The airline industry is heavily regulated, especially by the federal government. Two of the primary regulatory authorities
overseeing air transportation in the United States are the DOT and the FAA. The DOT has jurisdiction over economic issues
affecting air transportation, such as competition, route authorizations, advertising and sales practices, baggage liability and
disabled passenger transportation, among other areas, several of which were included in rules that became effective in 2011 and
2012 relating to, among other things, how airlines handle interactions with passengers through advertising, the reservation
process, at the airport and on board the aircraft. Additional consumer rules proposed in 2014 that would require airlines to
disclose through all points of sale the fees for certain basic ancillary services associated with the air transportation consumers
are buying or considering buying may be implemented in 2016. Additional disabled passenger rules may be proposed in 2016.
See “Risk Factors—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.”
The DOT has authority to issue certificates of public convenience and necessity required for airlines to provide air
transportation. We hold a DOT certificate of public convenience and necessity authorizing us to engage in scheduled air
transportation of passengers, property and mail within the United States, its territories and possessions and between the United