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2019 Environmental Social and Governance Practices
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Page 1: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

2019Environmental

Social and Governance

Practices

Page 2: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

EnvironmentSpirit’s unique business model minimizes

environmental impact

FUEL SAVINGS• Young fleet: Spirit Airlines has one of the youngest fleets of any U.S. airline. Newer

aircraft provide substantially higher fuel efficiency and reduce carbon emissions.• Next-generation “Neo” Aircraft: Spirit was the first North American carrier to operate

the “new engine option” (“Neo”) version of the Airbus A320 aircraft, powered by the most fuel-efficient engine ever made for this aircraft class. This revolutionary technology advance reduces the acoustic footprint by up to 50% and consumes 15-20% less fuel, reducing greenhouse gas emissions. Spirit expects to have 68 Neo aircraft by year-end 2021. All new aircraft delivering beyond 2021 will be A320Neo family aircraft.

• Aircraft density: More seats per aircraft mean smaller carbon footprint per passenger and increased fuel efficiency (seat miles per gallon). Spirit is consistently an industry leader in lowest fuel consumption per passenger.

• Flight Operations: Spirit integrates our objective of high fuel efficiency into the way we fly. We use optimized energy approach paths for landings which reduce aircraft speed and noise, and conserve fuel.

SAFETY• Safety Risk Management System (SRMS): SRMS is the primary tool used to promote

safety programs that provides Spirit the ability to anticipate and address safety issues before they lead to incidents or accidents. SRMS also allows Spirit to collect valuable information to implement process improvements in response to incidents. Additionally, SRMS produces a structured framework for safety risk management decision making, promotes a Just Safety Culture, ensures a safe operation for our Team Members, a safe journey for our Guests, and helps facilitate best practices within the organization and throughout the industry.

• Diamond Award of Excellence: For 2018, Spirit’s Tech Ops team won the FAA’s Diamond Award of Excellence – the FAA’s highest award for aviation maintenance technicians and employers. The prestigious award recognizes aviation companies that initiate highly effective training programs aimed at improving safety, quality, reliability and technical knowledge that exceed standard FAA regulatory requirements.

• JACDEC: Spirit Airlines is consistently ranked as one of the safest carriers in the world by JACDEC, a global leader in airline safety. In their last safety study, we ranked among the Top 10 safest airlines - the only North American airline among the Top 10.

Page 3: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Spirit strives to generate environmental value through new initiatives and practices

NEW INITIATIVES AND PRACTICES

• New Fuel Policy: Spirit’s Fuel Policy update went into effect on September 9, 2019, with a goal of reducing excess planned extra fuel by over 1,200 lbs. to save weight and fuel burn. This new fuel policy is expected to save between 1.5 to 2 million gallons of fuel consumption in its first full year.

• New innovative and efficient seat design: Spirit’s new seats, padded with ultra-light weight foam and made of a composite skeleton, add comfort without increasing weight, maintaining high fuel efficiency on Spirit’s Fit Fleet. Our future Acro 6 seats will be 2.6 lbs. lighter per Guest than our current Acro 3 seats.

• New Flight Attendant Manuals: The Company eliminated all paper FAMs (Flight Attendant Manuals) and now use an Electronic Flight Bag (EFB) for 4000+ Flight Attendants, which substantially reduces paper, waste, printing and trees.

• New M Cabin Software: The software will allow us to eliminate many hard copy documents that the Flight Attendants use, like the Briefing document and Guest manifests.

• New Hybrite S Line Galley carts: Our new Hybrite Full and Half galley carts are 4 and 3 lbs. lighter, respectively, than our current galley carts, which will save over 36 million gallons of fuel annually, once fully rolled out.

• More Green: Spirit is currently using recycled paper for our adult Café snack boxes and is working to eliminate our Styrofoam coffee cups and plastic straws and replace them with paper cups and wooden stirrers.

• Use of Ground Power Unit (“GPU”) Vs. Auxiliary Power Unit(“APU”): Spirit is moving towards using more Ground Power Units to power the aircraft when the engines are off, rather than using less efficient fuel-powered Auxiliary Power Units to do so, which in turn reduces carbon emissions.

Environment

Page 4: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Fuel Efficiency

63.27 64.11 65.07 65.88 66.66 67.22

80.62 81.5083.32 84.20

86.1088.54

50.00

70.00

90.00

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Available Seat Miles per Gallon

Industry Average Excl. Spirit* Spirit

*Industry = American Airlines, Allegiant, Alaska, Delta, United, Southwest, JetBlue

Page 5: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Social ResponsibilityEvery year Spirit steps in to assist people and communities in

need, promote equality and basic rights, and encourage a more diverse pipeline of talent to the aviation/aerospace industry

• Honor Flight South Florida: In 2019, Spirit Airlines became the title sponsor for Honor Flight South Florida. Team Members escorted our veterans of WWII, Korea and Vietnam to visit national monuments in Washington, D.C.

• Military Missions in Action : In addition to a monetary donation, Spirit’s CEO Ted Christie and Team Members assisted a local North Carolina family with home improvements, prior to the husband returning from deployment.

• Spirit Walk for the Animals : The Broward County Humane Society is recognized as a leader in Animal Protection and Care and provides adoption services for Thousands of dogs and cats each year. This year, Spirit Airlines was the Title Sponsor for the “Spirit –Walk for the Animals, the largest annual fundraiser for the Shelter that took place in Huizenga Park in March 2019. More than 150 Team Members and their families joined Spirit’s CEO and his family on this walk to raise money for the Shelter.

• PRIDE Parade (Diversity & Inclusion): To commemorate National Pride Month, more than 70 Spirit Team Members from various departments across our network, walked to support our PRIDE participation in the Ft. Lauderdale/Wilton Manors parade. This was the first time Spirit officially participated in a PRIDE sponsored event, and we received many accolades from our Team Members for demonstrating our support of the LGBTQ community.

Page 6: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Social ResponsibilityThe Spirit Airlines Charitable Foundation is committed to inspiring positive

change in the communities where we live and work. We invest in organizations that have a meaningful social impact on the lives of children & families, service

members and the environment through Team Member volunteerism, monetary and in-kind donations

• Fight Cancer Support: The Spirit Airlines Foundation works with the Susan G. Komen Foundation, a non-profit breast cancer organization working to save lives by increasing the awareness of this disease to find a cure. Annually, Spirit hosts an organization’s leadership summit. And, during Detroit’s Susan G. Komen Foundation 5K Run/Walk event, Spirit sponsored the “Survivor Trolley” -- a special coach to carry cancer survivors and those without the stamina to complete the walk.

• Community Service in Cien Fuegos Dominican Republic: Members of our flight crew and ground staff flew to Cine Fuego Dominican Republic to work in the community and paint several houses for local residents in need.

• Community Service in Hogar Niñito Jesus house – SJU: Members of our airport services teams flew to Hogar Niñito, Puerto Rico to work at a home for Foster Children (ages 4-17) and painted/repaired walls with mold and cleaned the facility.

Page 7: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Social ResponsibilitySpecial Video

• Autism Awareness Day: We know how difficult flying can be for some people living with Autism. As we strive to brighten our Guests' days in our unique Spirit Way, we came across the story of Cameron, a recent Spirit Guest who has a one-of-a-kind Spirit Special Video

• Hurricane Relief: Spirit worked to provide disaster relief with the American Red Cross to meet the immediate need of the communities affected by Hurricane Dorian. Spirit agreed to match contributions made by the Company’s Team Members and Guests up to $50,000. Additionally, we worked with our partner Help.NGO to provide flights for their Disaster Immediate Response Team who gathered in FLL before traveling to the region to set up satellite communications and restore cellular service using their specialized communications equipment, as well as use UAV’s for aerial mapping.

• Spirit Week Support Center Feeding South Florida: We coordinated with Feeding South Florida, a non-profit whose mission is to end hunger in South Florida, to support them by participating in their Volunteer activities. Each initiative helps Palm Beach, Broward, Miami-Dade, and Monroe Counties to have hunger-free communities.

• Bogota-Mano Amiga Project: Spirit donated the funds to the construction of twelve classrooms at the Mano Amiga College in Zipaquirá, Colombia.

• Futbol con Corazon – Colombia: We sponsored non-profit organizations in all the cities we fly to in Colombia: Cali, Medellin, Cartagena, Bogota and Armenia; to help them further their mission to develop life skills through soccer.

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Social ResponsibilityThe Spirit Airlines Charitable Foundation, founded in

2017, has donated $1.1 MM to date since inception

Y-T-D Donation Disbursements from The Spirit Airlines Charitable FoundationFundación Mano amiga: ($50,000)Spirit Walk for the Animals ($50,000)Organization of Black Aerospace Professionals ($20,000) The International Aviation Women’s Association ($20,000) The Aviation Institute at Broward College ($20,000) Embry-Riddle Aeronautical University ($20,000) The First Tee of Broward County($20,000) K9s For Warriors($20,000) Kids in a New Groove ($10,000)Military Mission in Action ($10,000)Susan G. Komen Foundation ($5,000)Matthew Shepard Foundation ($10,000)Girl Scouts of Southeast Florida ($15,000)Adrienne Arsht Center ($70,000 + 20 Round Trip Flight VouchersAviation Expo ($7,500)Jack and Jill Children’s Center ($10,000)

Page 9: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Team Members who are more satisfied clearly drive better financial performance for companies. Spirit actively focuses on developing Team

Member engagement initiatives that can result in future labor cost savings by reducing turnover rates and increasing overall productivity

Workforce Engagement

• Diversity & Inclusion Policy: Creating opportunities for our Team Members and Guests to experience the rich diversity and broad thinking that is the cornerstone of our company culture. By building a workplace that celebrates diversity & inclusion, we are able to generate an environment of mutual respect and acceptance. Our leadership is committed to recruiting, retaining and engaging a workforce that inspires people to succeed.

• Employee Engagement and Development: Spirit promotes workforce engagement through management meetings, compliance training, leadership traits and behaviors courses, book clubs, on-campus training, instructor led trainings, weekly Team Member highlights. Events and Initiatives: Company-sponsored recreational events, holiday celebrations, HR recruiting events, management station visits, Hive-Five recognition program, Spirit Week, Bring Your Kids to Work Day, Flight Attendant appreciation month and station events.

• Welcome Sebastian: Team Members in Guatemala welcomed Sebastian our newest Team Member in Guatemala to the team. Sebastian has Down’s Syndrome, and we created a special day for him to remember his onboarding experience.

Spirit Week

Station Anniversaries

Black & Yellow Ball

Learnatarium

Monthly team socials

Page 10: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Creating jobs that support the Company’s growthand benefit the communities we serve

3,224 3,722

4,326

5,159

6,100

7,110

2013 2014 2015 2016 2017 2018

Total Full-Time Team Members

Page 11: 2019 Environmental Social and Governance Practicess24.q4cdn.com/507316502/files/doc_downloads/irw/ESGBrief.pdfSpirit strives to generate environmental value through new initiatives

Partnerships andPrograms

Spirit is enhancing its commitment to ESG through partnerships with different entities

• Airport/Airline Partnerships: Spirit, along with other airlines, has joined the port of Seattle to collaborate on a plan to provide sustainable aviation fuel, a low-carbon and sustainably produced biofuel alternative to conventional jet fuel, for airlines serving Seattle-Tacoma International Airport. The effort will also explore a variety of other mechanisms to reduce carbon and other emissions, via new technology, operational changes and infrastructure improvements.

• CORSIA: Spirit is now participating in the Carbon Offsetting Reduction Scheme for International Aviation, an emission mitigation approach for the global airline industry, developed by the International Civil Aviation Organization. We are in the MRV (Monitoring, Reporting, & Verification) phase. The goal of the MRV phase is to establish a baseline measurement of annual international carbon emissions in 2019-2020.

• Our Pride Academy: Ongoing partnership with this non-profit group of families and educators which provides a nurturing educational environment for people with developmental disabilities ages three to adult in the Miami area.

• IAWA: Spirit has an ongoing partnership with The International Aviation Women's Association (IAWA), an international organization for women who hold positions of impact in the aviation and aerospace industry.

• Luke’s Wings: Since 2012, Spirit has partnered with Luke’s Wings, providing hundreds of complimentary flights to wounded and ill service members, veterans and their families.

• Human Trafficking Prevention: Spirit has been an industry leader in efforts to combat human trafficking, through enhanced training of flight crew and airport personnel. In 2018, we became an official airline partner of the DHS/DOT Blue Campaign, which provides transportation companies with resources and awareness training materials to identify and prevent human trafficking.

• MIAT partnership: Spirit partners with this technical school in aircraft maintenance programs and in minority/veteran outreach.

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Governance InitiativesWe believe that strong corporate governance principles

benefit our stockholders, as well as our Guests, Team Members and communities we serve

• Board qualification standards: The Nominating and Corporate Governance Committee is responsible for reviewing with the Board, on an annual basis, the appropriate characteristics, skills and experience required for the Board as a whole and its individual members. Diversity of personal and professional background is an important factor taken into account

• Board diversity: Spirit currently has 3 female Directors (33% of Board), one of whom is of Hispanic descent

• Among other initiatives, we have implemented a leadership training program for our women leaders in the Company:

• The Commonwealth Institute: The Commonwealth Institute (TCI) is a non-profit organization devoted to advancing businesswomen in leadership positions and building successful businesses, organizations, and careers. To date we have sent over 30 Spirit Women through this month-long development and empowerment program.

• Sponsor, Women in Aviation Conference

• Sponsor, International Women’s Forum

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Awards and Recognitions

Featured Acknowledgments

• “Fly Quiet” Award: Seattle-Tacoma International Airport has awarded Spirit its prestigious “Fly Quiet” Award in 2017, 2018 and 2019. The award recognizes noise levels consistently lower than other airlines, a high rate of success in flying strict local noise abatement procedures and our operation of low-noise next-generation aircraft.

• Diamond Award of Excellence: For 2018, Spirit’s Tech Ops team won the FAA’s Diamond Award of Excellence – the FAA’s highest award for aviation maintenance technicians and employers. The prestigious award recognizes aviation companies that initiate highly effective training programs aimed at improving safety, quality, reliability and technical knowledge that exceed standard FAA regulatory requirements.

• 23rd Annual Pinnacle Awards - Miramar/Pembroke Pines Regional Chamber of Commerce: Spirit won the Pinnacle Corporate Stewardship Award, presented by the Miramar/Pembroke Pines Regional Chamber of Commerce this year, which recognizes the commitment and support of our local community.


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