Aviation & Community Glossary

A sale of assets under Section 363 of the Bankruptcy Code. Allows for a quick sale of assets free of liens and claims, often used in airline bankruptcies.

New Engine Option variant of the A320, featuring more fuel-efficient engines and aerodynamic improvements. Reduces fuel consumption by 15-20%.

An individual or entity meeting SEC criteria for investing in private securities. Generally requires income over $200K ($300K joint) or net worth over $1M excluding primary residence.

A family of narrow-body aircraft including the A319, A320, and A321. Spirit operated an all-Airbus fleet for commonality benefits.

The average number of hours per day an aircraft is in revenue service. Higher utilization spreads fixed costs over more flights, reducing unit costs.

Revenue from sources other than ticket sales, including baggage fees, seat selection, onboard sales, and travel extras. A major revenue source for ULCCs.

Air Operator Certificate. The certification required by the FAA to operate commercial aircraft. Obtaining an AOC involves demonstrating compliance with safety regulations.

Available Seat Miles. A measure of airline capacity calculated by multiplying the number of seats by the distance flown. Used as the denominator in CASM and RASM calculations.

A certification for businesses meeting high standards of social and environmental performance, accountability, and transparency. A potential structure for Spirit 2.0.

The lowest advertised ticket price before taxes, fees, and optional services. ULCCs compete on low base fares while earning from ancillaries.

The time from when an aircraft leaves the gate (blocks out) until it arrives at the destination gate (blocks in). Used for crew scheduling and aircraft utilization calculations.

Cost per Available Seat Mile. A measure of unit cost calculated by dividing operating expenses by available seat miles. Lower CASM indicates greater cost efficiency.

A form of bankruptcy that allows a company to reorganize while continuing operations. Spirit Airlines filed for Chapter 11 protection to restructure its debts and emerge as a viable airline.

An arrangement where two or more airlines share the same flight, with each marketing it under their own flight number. Allows airlines to offer more destinations without operating the flights.

A debt instrument that converts into equity at a future financing round, typically at a discount. Common in early-stage fundraising.

A business owned and democratically controlled by its members, who share in the benefits. One model being explored for community airline ownership.

Debtor-in-Possession Financing. Loans provided to companies in Chapter 11 bankruptcy to fund operations during restructuring. Has priority over existing debt.

Department of Transportation. The federal agency that regulates airline economic matters including consumer protection, airline licensing, and international route authority.

An aircraft lease that includes only the aircraft itself, without crew, maintenance, or insurance. The lessee operates and maintains the aircraft.

Adjusting prices in real-time based on demand, competition, and other factors. Airlines use sophisticated revenue management systems for dynamic pricing.

Ownership interest in a company, typically represented by shares of stock. Equity holders share in profits and losses and may have voting rights.

Employee Stock Ownership Plan. A program that provides employees with ownership interest in the company. Could be part of Spirit 2.0's worker-friendly approach.

Federal Aviation Administration. The agency responsible for regulating civil aviation safety, including aircraft certification, pilot licensing, and air traffic control.

Frequent Flyer Number. A unique identifier assigned to loyalty program members. Spirit 2.0 is exploring early FFN reservations for founding members.

Operating a single aircraft type or family to reduce training, maintenance, and parts inventory costs. A key cost advantage for ULCCs.

A designated area at an airport terminal where passengers board and deplane aircraft. Gate availability can constrain airline operations at busy airports.

An airline network model where flights are routed through central hub airports, allowing passengers to connect to many destinations. Contrasts with point-to-point networks.

An agreement between airlines to handle passengers traveling on multiple carriers, including baggage transfer and rebooking. Less integrated than codesharing.

Low-Cost Carrier. Airlines that offer lower fares than traditional carriers by reducing costs through various operational efficiencies, though typically with more included amenities than ULCCs.

Traditional full-service airlines that existed before airline deregulation in 1978, typically offering bundled fares with included amenities, extensive route networks, and multiple service classes.

The percentage of available seats that are filled with passengers. A key metric for airline profitability, typically expressed as a percentage.

Maintenance, Repair, and Overhaul. The services required to keep aircraft airworthy and in compliance with regulations.

Aircraft with a single aisle, typically seating 100-240 passengers. Suited for short to medium-haul routes. Also called single-aisle aircraft.

The FAA regulations governing commercial air carrier operations. Airlines must comply with Part 121 requirements for crew training, maintenance, and operational procedures.

A non-binding expression of intent to invest in Spirit 2.0 when the opportunity becomes available. Helps gauge community interest and potential capital.

An airline network model where aircraft fly directly between city pairs without routing through a central hub. Common among ULCCs for operational efficiency.

A corporate structure that requires directors to consider stakeholders beyond shareholders, including employees, community, and environment.

Revenue per Available Seat Mile. A measure of revenue efficiency calculated by dividing total revenue by available seat miles. Higher RASM indicates better revenue generation.

SEC regulation allowing companies to raise up to $75 million from the general public with lighter disclosure requirements than a full IPO. Also known as a mini-IPO.

SEC regulation allowing equity crowdfunding from the general public, with companies able to raise up to $5 million annually through registered funding portals.

SEC regulation providing exemptions from registration requirements for private securities offerings. Commonly used for raising capital from accredited investors.

The practice of using data and analytics to sell the right product to the right customer at the right price and time to maximize revenue.

Revenue Passenger Miles. A measure of traffic calculated by multiplying paying passengers by distance traveled. Used to calculate load factor when compared to ASM.

Simple Agreement for Future Equity. An investment instrument that converts to equity upon a triggering event, without accruing interest like convertible notes.

A scheduled time for an aircraft to take off or land at a congested airport. Slots are valuable assets at capacity-constrained airports and can be bought, sold, or traded.

The community-driven initiative to potentially acquire and revitalize Spirit Airlines' brand and operations as a member-owned or stakeholder-focused airline.

The time required to unload, clean, refuel, reload, and prepare an aircraft for its next flight. Minimizing turn times is crucial for ULCC efficiency.

Ultra-Low-Cost Carrier. An airline business model focused on minimizing operating costs to offer the lowest possible fares, typically with unbundled pricing where passengers pay separately for extras like baggage and seat selection.

The practice of separating services traditionally included in airfare (baggage, seat selection, meals) and charging separately. Core to the ULCC model.

The estimated worth of a company, used to determine share prices in fundraising. Can be pre-money (before investment) or post-money (after investment).

An aircraft lease that includes the aircraft, crew, maintenance, and insurance (ACMI). Used for temporary capacity needs without long-term commitments.

A team of community members focused on a specific aspect of the Spirit 2.0 initiative, such as legal structure, operations, or communications.

The average fare paid per passenger mile. Calculated by dividing passenger revenue by revenue passenger miles (RPM). A key indicator of pricing power.