Frontier Airlines 2006 Annual Report Download - page 180

segment exceeds 100 air miles as defined in the Apollo mileage database. United will pay Contractor for a diverted flight that is
completed via ground transportation based on the original scheduled block hour time for that segment. In the event a diverted flight is
not completed within the [*] hour time frame, no payment is due for the diverted flight segment (e.g. flight segment will be excluded
from the monthly operating statistics used in calculating payments to Contractor). In addition, United will not pay any costs associated
with aircraft repositioning.
7. Ground Delay Program. Contractor will participate in United’s ground delay program, which stipulates that
United may request Contractor to cancel, and Contractor shall cancel, flights to free ATC slots at a hub when the FAA or United’s
Station Control Center has initiated a Ground Delay Program (“GDP”). For cancellations requested by United as part of the GDP, and
in accordance with Article VIII, United shall pay Contractor only a portion of the amounts normally due had the flights not been
cancelled. United will pay [*] of the Completed Block Hour and Completed Departure rates (Carrier Controlled Costs only). All
payments will be based upon the scheduled block hours and departures for such scheduled flights. No payments will be made with
respect to Pass Through Costs in these categories. (e.g. fixed overhead).
8. Significantly Delayed Flights. In the event that Contractor operates a flight more than [*] hours late from the
scheduled departure time with a revenue passenger load factor of less than [*], OR, more than [*] hours late with [*] revenue
passengers (“Significantly Delayed Flight”). Contractor shall not be reimbursed for such flight (e.g. flight segment will be excluded
from the monthly operating statistics used in calculating payments to Contractor). United and Contractor will make good faith efforts
to establish a process by which Contractor may solicit and receive United’s concurrence to be paid for an otherwise Significantly
Delayed Flight.
9. Station Operations Center (SOC) - Hub Locations. At United’s request and expense (and not included in the
rates outlined in Appendix E), Contractor will provide adequate staffing in the United Airlines SOC of each designated hub city. If the
number of departures in any single hub city exceeds [*] per day, Contractor will provide a full-time representative at United’s request
and at United’s expense (in additional to the rates outlined in Appendix E). Such staffing will be provided during all normal hours of
operation. If the number of daily departures does not exceed [*] per day, then Contractor will provide a point of contact and make a
representative available on a limited basis as requested by United.
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* Confidential
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠