Frontier Airlines 2006 Annual Report Download - page 151

ATTACHMENT "F" - SCHEDULE RELIABILITY GUARANTEE
c. In the event the average ADRP at the end of any of the *** periods described in paragraph “II.a.” is lower than the GDR for
such period, Embraer shall credit Buyer for Maintenance Interruptions calculated according to the following formula:
***
In the event the average ADRP at the end of any of the *** periods described in paragraph “II.a.” above is *** for such
period, the *** calculated according to the formula above shall be ***.
Measurements will be calculated and submitted by Buyer *** after the end of each *** referred to in Article II a. herein.
The Parties shall do their efforts to reach an agreement over the data *** of the submission thereof. Any achieved credit
amount will be credited to Buyer or to Embraer *** after each agreement date for each of the ***. Buyer may use such
credit only toward ***. Embraer may use such credit only for ***.
The sum of all credits under this Dispatch Reliability Guarantee shall not exceed *** for Buyer’s
entire Aircraft fleet for the *** periods.
d. This dispatch reliability guarantee is based upon the following assumptions provided by Buyer, and any change to the
assumptions shall be cause for reevaluation or adjustments of this guarantee upon the reasonable agreement of the Parties.
Fleet Size: Minimum of ***.
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 ***.
For all purposes of this guarantee, the regularly scheduled revenue Aircraft departures and the Maintenance Interruptions
related to the SAC 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 regularly scheduled revenue Aircraft departures and
Maintenance Interruptions shall be disregarded.
e. The following elements are not covered under this guarantee:
- Interruptions of scheduled flights due to reasons other than Aircraft mechanical failures, including without limitation:
- Air Traffic Control
- Weather, acts of God, FOD, wars, riots, third party criminal acts
- Accidents
- Incidents
- Negligence
- Conditions that exist prior to dispatch which lead to a flight interruption and could have been prevented by maintenance
prior to dispatch (including but not limited to worn, flat and cut tires, servicing (ATA Chapter 12), dead batteries,
and worn brakes)
- Hard landing.
- Late out of maintenance
- Force majeure
- Crew refusal
- Optional equipment other than that identified on Attachment “A” to this Agreement
- Operational delays or cancellations not related to maintenance
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠