Frontier Airlines 2005 Annual Report Download - page 36

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includes the 25 ERJ-170s which we will obtain from US Airways. A "scope" clause in American's current collective bargaining
agreement with its pilots limits it from operating regional jets having 51 or more seats. A "scope" clause in Delta's current collective
bargaining agreement with its pilots restricts it from operating regional jets having more than 70 seats and limits it from operating
more than 125, or under certain circumstances, 150, regional jets having 70 seats. United’s "scope" limitations restrict it from
operating aircraft configured with more than 70 seats or any aircraft weighing more than 83,000 pounds.
American's "scope" limitations further limit its code-share partners, in our case Chautauqua, from operating regional jets with
51 or more seats even for partners other than American. Delta's "scope" limitations restrict its partners from operating aircraft with
over 70 seats even if those aircraft are operated for an airline other than Delta. Neither US Airways nor United have similar "scope"
limits on the size of aircraft we can operate for our other code-share partners.
We cannot assure you that these "scope" clauses will not become more restrictive in the future. Any additional limit on the
number of regional jets we can fly for our code-share partners could have a material adverse effect on our expansion plans and the
price of our common stock.
-19-
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 27, 2006 Powered by Morningstar® Document Research