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After Spirit's Collapse, Internet Campaign Pivots To Building Airline
Spirit Airlines stopped flying after many years in business.
Many people suddenly missed having a very cheap airline to use.
Hunter Peterson asked whether passengers could join together and buy Spirit.
More than 500,000 people promised about $437 million, but they did not actually pay that money.
Buying an airline also required court approval, legal work and much more funding.
A later investment effort raised about $2.2 million from roughly 443 investors, below the required $5 million minimum.
Peterson then changed the plan instead of buying Spirit.
He began developing First Jet Airways, an airline owned and supported by members.
People can watch the new company being built through online videos, but it is not yet clear whether it will start flying.
Spirit Airlines ceased operations at 3am on May 2 after 34 years.
Creator Hunter Peterson launched Spirit 2.0 to explore passenger ownership of the airline.
More than 500,000 people made non-binding pledges totaling about $437 million.
Spirit 2.0 failed to raise the $5 million minimum for a contemplated acquisition bid.
Peterson then shifted toward building First Jet Airways, a cooperative membership-based airline.
- Who
- Hunter Peterson, Spirit Airlines supporters, employees and potential investors.
- What
- An online campaign to buy Spirit Airlines failed and shifted toward creating First Jet Airways.
- Where
- The effort concerns an airline operating in the United States, with its development documented online.
- When
- Spirit ceased operations at 3am on May 2; the campaign and fundraising followed afterward.
- Why
- Peterson wanted to create an affordable airline owned by passengers and workers after Spirit disappeared.
Internet Enthusiasm
Investment Reality
Can the public buy an airline?
Internet Enthusiasm
The campaign showed strong public interest, with more than 500,000 people pledging about $437 million to support collective ownership.
Investment Reality
Non-binding pledges were not available acquisition capital, and the campaign failed to raise the $5 million minimum required for its contemplated bid.
How should the airline be created?
Internet Enthusiasm
Peterson's vision emphasizes affordable fares, community ownership and participation by passengers and workers.
Investment Reality
Building or buying an airline requires bankruptcy-court proceedings, legal work, accredited investors, regulatory processes and substantial funding.
Key facts
- Spirit's operating history
- Spirit Airlines had operated for 34 years before ceasing operations.
- Initial pledges
- More than 500,000 people pledged approximately $437 million.
- Nature of pledges
- The pledges were non-binding, and no money had changed hands.
- Acquisition target
- The campaign's eventual target was approximately $1.75 billion.
- Investment offering
- A June offering memorandum proposed raising between $5 million and $250 million.
- Funds raised
- The campaign reportedly raised about $2.2 million from roughly 443 investors.
- New airline plan
- First Jet Airways is described as a cooperative, membership-based airline.
Sources
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