Frontier Airlines 2005 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2005 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 154

  • 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
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

September 2, 2005. The Company also agreed to assume the leases of 15 additional ERJ-170 aircraft, which it expects to transition to
Republic Airline by September 2006. In addition, under a commuter slot option agreement that the Company and US Airways entered
into on September 22, 2005, the Company purchased 113 commuter slots at Ronald Reagan Washington National Airport and 24
commuter slots at New York-LaGuardia Airport. Republic assigned the right of use of these commuter slots to US Airways and these
commuter slots are being operated by US Airways and US Airways Express carriers under a licensing agreement for which US
Airways pays us rent.
Under the American code-share agreement, which expires in 2013, the Company provides regional jet service on a fixed-fee
basis with reimbursement of certain pass-through costs and allows the the Company to operate fifteen 44 seat regional jets. The
agreement may be terminated by American without cause at any time after September 30, 2008 with 180 days notice. As of
December 31, 2005, the Company had 15 regional jets dedicated to American service.
The Company started regional jet service for Delta in November 2002. The regional jet code-share agreement with Delta for
37 and 50 seat aircraft, as amended, which expires in 2016, is on a fixed-fee basis with reimbursement of certain pass-through costs
and provides for 39 aircraft to be placed into service. The agreement may be partially or completely terminated by Delta with or
without cause at any time after November 2009 with 180 days notice. As of December 31, 2005, the Company has thirty-nine regional
jets dedicated to Delta service.
In January 2005, the Company and Delta entered into a code-share agreement whereby the Company will operate 16
ERJ-170 aircraft for Delta. This agreement expires in 2019 and can be terminated by Delta with or without cause at any time after
2013. As of December 31, 2005, the Company had nine ERJ-170’s dedicated to Delta service.
The Company previously provided regional jet service for America West and, in February 2003, the Company and America
West agreed to terminate their code-share agreement. The code-share agreement with America West commenced in August 2001 and
was on a fixed-fee basis with reimbursement of certain pass-through costs. Pursuant to the termination of the code-share
agreement, the Company and America West agreed to remove the 12 aircraft from service during April, May and June 2003 and
America West paid the Company a contract termination fee of $6,000 as the aircraft were taken out of service. The Company amended
the Delta code-share agreement on February 7, 2003 to utilize these 12 aircraft.
The Company's previous pro-rate code-share agreement with US Airways was terminated in October 2004. The code-share
agreement with US Airways allowed the Company to operate Saab 340 turbo-prop aircraft under a pro-rate arrangement, for which the
Company received an allocated portion of the passengers’ fare and paid for all of the costs of transporting the passengers. In 2004 the
Company transitioned the Saab 340 turbo-prop aircraft in service with US Airways to United.
-52-
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 27, 2006 Powered by Morningstar® Document Research℠