Spirit Airlines was the budget-friendly carrier America loved to hate. But now that it’s out of business, a viral crowdfunding campaign is attempting to resurrect the bankrupt airline.
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Once Hunter Peterson heard Spirit would close on May 2 — after attempts to merge with other airlines or get a lifeline from the federal government — the 22-year-old voice actor and content creator posted on social media that day with an idea to revive the airline.
If a fifth of Americans each pitched in $45, (the equivalent of a cheap Spirit flight) “we could buy Spirit Airlines,” he said.
His initial pitch was to run the airline like the Green Bay Packers, the only publicly owned team in the NFL. It has more than5 million shares split among more than 530,000 owners.His joke, however, became a call to action. Peterson is not taking actual cash, but he has rallied $337 million in pledges from more than 370,000 verified people, his website says.
Peterson did not respond to a request for comment and said he’s not talking to media until his plans are firmer. But he said on social media that he is actively consulting lawyers as he learns the regulatory limits to his idea.
Public interest in this crowdfunding effort shows a collective desire to disrupt the airline industry. While spirits are high about the idea, experts say the regulatory hurdles alone could slow momentum to a screeching halt.
“An airline is a very complicated financial enterprise. There’s a lot of players,” said Charles Elson, a retired professor of finance at the University of Delaware.
Elson said that crowdfunding can work for small operations without much regulatory involvement, but an airline just has too many moving parts.
“You’ve got the lenders, the planes, the governmental entities that lease the space to the airline and the different facilities, the aircraft itself, liens on the aircraft,” Elson said. “Obviously union contracts with your pilots, stewardesses, your flight attendants, ground personnel, maintenance personnel.”
Source: Drudge Report
