Frontier Airlines 2006 Annual Report Download - page 198

i. Contractor’s On-Time Zero (“On-Time Zero or On-Time”) Operating Goal is
calculated as equal to the United Express Best Practice Operating Performance (where individual United Express Carrier
Performance has been regionally normalized) adjusted down [*] percentage points then re-adjusted for regional differences
accounting for regions in which Contractor operates. Regional differences will be accounted for by taking the resulting goal
generated by the previous sentence and multiplying that number by the quotient of the weighted average of United Mainline
On Time Zero performance (domestic mainline flights, weighted by departures) for the hubs in which Contractor operates
(weighted by Contractor hub departures) and the United Mainline System On Time Zero Performance (domestic mainline
flights, weighted by departures).
ii. Contractor’s Controllable Flight Completion (“Controllable Completion” or
“Controllable Flight Completion”) Operating Goal is equal to United Express Best Practice Performance adjusted
downward by [*] percentage points. Controllable Flight Completion excludes cancellations due to weather, Air Traffic
Control (“ATC”) cancellations, requests by United to cancel flights in conjunction with the Ground Delay Program, acts or
omissions by United and emergency airworthiness directives.
iii. Contractor’s Mishandled Bag (“Mishandled Bags”) Operating Goal is calculated as
equal to United Express Best Practice Performance (where individual United Express Carrier Performance has been
regionally normalized) adjusted upward by [*] points then re-adjusted for regional differences accounting for regions in
which Contractor operates. Regional differences will be accounted for by taking the resulting goal generated by the previous
sentence and multiplying that number by the quotient of the weighted average of United Mainline Mishandled Bag
performance (domestic flights, weighted by departures) for the hubs Contractor operates in (weighed by Contractor hub
departures) and the United Mainline System Mishandled Bag Performance (domestic flights, weighted by departures).
iv. Contractor’s Year 1 Repurchase Intent (“Repurchase Intent or RPI”) Operating
Goal will be United Express Best Practice minus [*] percentage points. Concurrent with the annual goal setting process,
starting in year [*] and ending in year [*], the [*] percentage points referenced in the previous sentence will be reduced by [*]
percentage points each year such that in year [*], and for every year thereafter Contractor’s Repurchase Intent (“Repurchase
Intent or RPI”) Operating Goal will be United Express Best Practice Performance minus [*] percentage points.
2. B- Level Performance. Contractor’s Monthly Operating Goals, as defined above in Article VIII.C.1 and adjusted for
seasonality (as outlined in Article VIII.C.6, (below), define the minimum performance necessary to achieve at least B-Level
Performance.
3. Performance Grade Widths.“Grade Widths” (the range between the lowest end of each Performance Level) remain
constant and will not be changed over the entire Term of this Agreement and are as set forth in Appendix F.
__________
* Confidential
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠