Frontier Airlines 2006 Annual Report Download - page 142

ATTACHMENT “E” - DIRECT MAINTENANCE COST GUARANTEE
Maintenance Review Board Report: MRB 170.
Economic condition: ***.
Utilization : The guarantee covers a minimum of *** flight hours per cycle, *** APU hour per flight hour
plus or minus *** APU hour per flight hour and *** APU cycle per flight cycle plus or minus *** APU
cycle per flight cycle. Buyer's fleet-wide average annual Aircraft utilization shall be *** flight hours, plus
or minus ***.
Labor rate: *** per man-hour ***.
Maintenance Review Board Report: MRB 170.
i. The following are the elements covered under this Maintenance Guarantee:
1. Material cost for non-repairable parts purchased from or through Embraer and / or Embraer approved vendors.
2. Overhaul/repair costs incurred at Embraer approved repair facilities.
3. Expendable which can be accounted for on an unit basis, i.e. filters, gaskets, excluding wire, rivets, nuts, bolts,
washers, pins, brackets, tie wraps.
4. Parts and materials consumed through scheduled maintenance according to the Maintenance Review Board Report
(MRB).
j. The following elements are not covered under this guarantee:
1. Costs associated with taxes, levies, imposts, customs fees.
2. Shipping, receiving, ferry, packing, storage, warehousing and insurance expenses.
3. General administrative and overhead expenses.
4. Restoration expenses incurred due to damage to or failure of Aircraft, components or parts caused by accident,
incident, FOD or Acts of God, negligence, abuse, misuse and/or maintenance errors.
5. When the Aircraft or any of its parts has/have been altered or modified by Buyer, without prior approval from
Embraer or from the manufacturer of the parts through a service bulletin, provided such approvals have not been
unreasonably withheld.
6. Consumables including but not limited to fluids, water, oils, sealants, washing compounds, cleansers, solvents, and
lubricants.
7. Labor costs (excluding the *** related to *** and the *** service bulletins implementation, provided that *** have
been *** in writing *** in order ***).
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠