Airtran 1999 Annual Report Download - page 39

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7. Leases
The Company leases seven DC-9s and one B737 under operating leases with terms
that expire in 2003. The Company has the option to renew the DC-9 lease for one
or more periods of not less than six months, with the renewal term to commence
upon the expiration of the original term. The Company also leases facilities from
local airport authorities or other carriers, as well as office space. These leases are
operating leases and have terms from one month to thirteen years.
Total rental expense charged to operations for aircraft, facilities and office space
for the years ended December 31, 1999, 1998 and 1997 was approximately
$21,705,000, $23,851,000 and $13,655,000, respectively.
The following schedule outlines the future minimum lease payments at December 31,
1999, under non-cancelable operating leases with initial terms in excess of one
year (in thousands):
2000 $ 18,059
2001 17,208
2002 15,609
2003 15,233
2004 8,700
Thereafter 45,623
$120,432
8. Stock Option Plans
The 1993 Incentive Stock Option Plan (the “1993 Plan”) provides up to 4,800,000
options to be granted to officers, directors and key employees to purchase shares
of common stock at prices not less than the fair value of the shares on the dates
of grant. With respect to individuals owning more than 10% of the voting power of
all classes of the Company’s stock, the exercise price per share shall not be less
than 110% of the fair value of the shares on the date of grant.
The 1994 Stock Option Plan (the “1994 Plan”) provides up to 4,000,000 incentive
stock options or non-qualified options to be granted to officers, directors, key
employees and consultants of the Company.
The 1996 Stock Option Plan (the “1996 Plan”) provides up to 5,000,000 incentive
stock options or non-qualified options to be granted to officers, directors, key
employees and consultants of the Company.
In connection with the acquisition of Airways on November 17, 1997, the Company
assumed the Airways Corporation 1995 Stock Option Plan (“Airways Plan”) and the
Airways Corporation 1995 Director Stock Option Plan (“Airways DSOP”). Under the
Airways Plan up to 1,150,000 incentive stock options or non-qualified options may be
granted to officers, directors, key employees or consultants of the Company. Under
the Airways DSOP, up to 150,000 non-qualified options may be granted to Directors.
Vesting and term of all options is determined by the Board of Directors and may vary
by optionee; however, the term may be no longer than ten years from the date of grant.