No, the word 'spooky' had not been banned by a theater company for being racist

"However, following the commitment by NTS to becoming an anti-racist organization, the company will now always interrogate language choices on all materials to try and ensure that no offense or hurt is caused by inappropriate language or by words that have historically oppressive connotations."

Pilots of the Tuskegee Institute—derived from the first Black military aviators in the U.S. Army Air Corps—were named"Spookwaffe," which in turn was a play on the German word"waffe," meaning weapon or gun. The Luftwaffe was the German army's air branch during World War II. The Scottish government-funded NTS has campaigned to become, what it calls, anti-racist and monitors language used in its productions and promotional material.protest movement, the NTS took several steps to address and better promote diversity within the company.

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