Frontier Airlines 2006 Annual Report Download - page 144

ATTACHMENT “E” - DIRECT MAINTENANCE COST GUARANTEE
16. Spare parts prices that exceed the prices obtainable from Embraer, provided, in the event that *** in a reasonable
time frame, *** may *** and *** will reasonably agree on ***.
17. In cases of deterioration, wear, breakage, damage or any other defect resulting from the use of inadequate packing
methods when returning items to Embraer or its representatives.
18. Maintenance problems caused by Buyer’s negligence or misuse of parts or Buyer’s failure to take all maintenance
actions on the Aircraft as recommended in all applicable maintenance manuals.
19. Maintenance problems involving Aircraft or parts that has / have been involved in an accident, or when parts
either defective or not complying to manufacturer’s design or specification have been used.
20. Maintenance problems involving parts that have had their identification marks, designation, seal or serial number
altered or removed.
21. Extraordinary costs incurred as a result of any labor disruption or dispute involving a significant work action that
affects in whole or part the Aircraft’s normal operation or maintenance.
22. Engines, related parts and related LRU costs.
23. Nacelle and Thrust Reverser.
24. BFE (Buyer Furnished Equipment) and / or BIE (Buyer Installed Equipment) costs.
25. Maintenance reserves.
26. GSE (Ground Support Equipment) costs.
27. For the purpose of calculating the Achieved Maintenance Cost Guarantee, the materials and labor costs related to
the New US Airways Aircraft, Owned Aircraft and GECC Aircraft shall be accounted for at the time these aircraft
start their revenue service by Buyer under this Purchase Agreement. All previous materials cost and labor costs
shall be disregarded. The total number of previous flight hours and cycles of such additional aircraft (New US
Airways Aircraft, Owned Aircraft and GECC Aircraft) New US Airways Aircraft, Owned Aircraft and GECC
Aircraft shall be considered.
II. The foregoing maintenance guarantee is provided subject to Buyer’s adherence to the following general conditions:
a. Airplane Operation: Aircraft shall be operated in airline service in accordance with the applicable Air Authority regulations
and as recommended by Embraer through the official and updated Operations and Airplane Flight Manual.
b. Inspection Program: The Aircraft shall be maintained in accordance with the current Maintenance Review Board Report -
(MRB), and the checks shall in no event occur at a time *** of the maintenance interval recommended by the current
Maintenance Review Board Report - (MRB). Buyer’s Maintenance Program must have provisions for escalating the checks
interval as soon as the applicable Air Authority allows. Buyer’s program should also include the use of task cards to assist
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠