Frontier Airlines 2004 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2004 Frontier Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

Chautauqua is subject to certain legal and administrative actions which management considers routine to their business activities. As of December 31, 2004, management believes, after
consultation with legal counsel, the ultimate outcome of any pending legal matters will not have a material adverse effect on the Company's financial position, liquidity or results of operations.
Under the American code
-
share agreement, Chautauqua is subject to American
’
s scope restrictions, and Chautauqua has agreed to pay American an aggregate of approximately
$500,000 through February 19, 2005, in connection with Chautauqua operating ERJ
-
170s for United instead of Republic Airline. Chautauqua will pay approximately $1.1 million, monthly, to
American if Chautauqua continues to be in violation of the scope restrictions on or after April 22, 2005.
As of December 31, 2004, approximately 78% of Chautauqua's workforce is employed under union contracts. Approximately 29% of the union workforce (flight attendants) is under a
contract that is currently amendable and under federal mediation.
51