Frontier Airlines 2006 Annual Report Download - page 20

· if our on time departure performance falls below specified percentages during specified periods;
· if we admit liability or are found liable for any safety infraction by the FAA that could reasonably be expected to lead to the
suspension or revocation of our operating certificate or if in US Airways' reasonable opinion we are not complying in any material
respect with applicable safety and operational requirements;
· if we fail to use commercially reasonable efforts to comply with the applicable provisions of the “Jets for Jobs” protocol;
· if our FAA operating certificate is suspended or revoked; or
· in the event that we or an affiliate of ours shall have commenced the provision of flight services under the code share
between US Airways and Republic Airline and such agreement is subsequently terminated, among other things.
Under a commuter slot option agreement that we and US Airways entered into on September 22, 2005, we purchased 113
commuter slots at Ronald Reagan Washington National Airport and 24 commuter slots at New York-LaGuardia Airport. We assigned
the right of use for these commuter slots to US Airways and these commuter slots are being operated by US Airways and US Airways
Express carriers under a licensing agreement for which US Airways pays us rent. Prior to the expiration of the agreement to license
the commuter slots, US Airways has the right to repurchase all, but not less than all, of the Washington commuter slots at a
predetermined price. The licensing agreement between us and US Airways for the LaGuardia commuter slots expired on December
31, 2006, but we maintain a security interest in the LaGuardia slots if US Airways fails to perform under the current licensing
agreement.
-11-
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠