Frontier Airlines 2006 Annual Report Download - page 194

1. Consideration. For and in consideration of the transportation services, facilities and other services to be provided by
Contractor hereunder, the right of United to (i) control all aspects of inventory as described in Article IV.D, (ii) receive and retain all
air fares, cargo rates and mail charges received by Contractor and United, and (iii) receive and retain all other revenue received by
Contractor and United as provided in this Agreement, and other valuable consideration provided under this Agreement, United shall
pay Contractor specified “Carrier Controlled Costs” (together with “Markup” as defined in Article VIII.B) and specified “Pass
Through Costs” for the Reimbursement Categories as detailed in Appendix E for each aircraft type.
2. Definitions. Contractor and United agree to the definitions for both Carrier Controlled and Pass Through Costs as
defined in Appendix E. Except as otherwise provided herein, Contractor is responsible for any and all other costs necessary to operate
the aircraft covered under the terms of this Agreement in accordance with the “United Express Service Standards.” United is not
responsible for any other costs not specifically covered in this Agreement.
3. Reimbursement Categories. The Pass Through Costs and Carrier Controlled Costs are grouped by
“Reimbursement Categories” for each aircraft type. Within each Reimbursement Category, are specific kinds or types of expenses
as outlined in Appendix E.
4. Unit Rate. Each Reimbursement Category, whether the costs are Pass Through Costs or Carrier Controlled Costs, is
expressed in terms of one or more “Unit Rates.” The Unit Rates express the basic measurement and constitute the driver of costs for
each Reimbursement Category. Each Reimbursement Category has specific Unit Rates as outlined in Appendix E.
The Unit Rates in Appendix E are effective from March 1, 2005 through December 31, 2005 and incorporate the 2005
Annual Adjustment Factor.
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* Confidential
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠