Frontier Airlines 2005 Annual Report Download - page 22

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agreement; or
• if either party assigns, by operation of law or otherwise, the code-share agreement without the written consent of the other party,
subject to five days notice and cure rights, or if we enter into any merger, sale or acquisition of all or substantially all of our assets or a
majority of our outstanding voting interests with an air carrier other than an entity that is under common control with us.
American may terminate the code-share agreement without cause upon 180 days notice, provided that such notice may not be given
prior to September 30, 2008. If American exercises this right, it is required to reimburse us for certain deferred costs and we and
American have certain "put" and "call" rights with respect to the aircraft we operate for them.
If American terminates the code-share agreement for any reason prior to September 30, 2008, or we terminate the code-share
agreement prior to September 30, 2008, due to a breach of the agreement by American, American has agreed to reimburse us for
certain price concessions that we granted American.
In general, we have agreed to indemnify American and American has agreed to indemnify us for any damages caused by any breaches
of our respective obligations under the code-share agreement or caused by our respective actions or inactions under the code-share
agreement.
In October, 2004, in order to accommodate American with respect to its scope restrictions, we agreed to modify our
Agreement with American to preclude the continued use of larger regional jets on our Chautauqua Airlines Air Carrier Operating
Certificate. Between October 2004 and September 2005, we paid $6.7 million in penalties in connection with our operation of
ERJ-170 aircraft by Chautauqua Airlines.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 27, 2006 Powered by Morningstar® Document Research℠