Frontier Airlines 2006 Annual Report Download - page 227

DEFINITIONS
Descriptions of Carrier Controlled Costs
General Statement: Notwithstanding the following descriptions, any costs incurred by Contractor that are described as
Pass-Through Costs on this Exhibit E shall not be considered Carrier Controlled Costs. Any costs incurred by Contractor that are not
Pass-Through Costs under the Agreement, regardless of whether such costs are described below, shall be considered Carrier
Controlled Costs, except for those costs that are typically considered the responsibility of the Ground Handling Provider as defined in
United’s contracts for ground handling services. The characterization of any cost as a Carrier Controlled Cost in the following
descriptions shall not impair any provision of the Agreement that specifically requires United to reimburse Contractor for such cost.
i) Flight Crews (Captains, First Officers and Flight Attendants)
a) Wages, benefits (including health insurance, pensions, 401k, and any other benefits), payroll associated taxes and
incentives (premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid
hours (including but not exclusive of hours for reserve employees, overtime, vacation, holidays, sick days, and paid leave) for the
following work categories:
ii) Pilots and Flight Attendants for all equipment types, including reserve crews and any other crews on the Contractor
payroll.
iii) Pilot and Flight Attendant Administration and Management, including senior management crew scheduling, labor
relations management.
iv) Domicile administration.
a) All uniform related charges for all of the above work categories, including purchase, repair, and cleaning
charges.
b) All training associated with the work groups above, including but not exclusive of:
v) Recurring and Attrition: Any training expense that occurs annually for all types of employees, new planes or attrition.
Includes Labor payments to those employees being trained (including all types of charges mentioned in paragraph i.a), trainer time
and salary, equipment and facility rental, training administration costs associated with recurring training, and any training materials
required. Excludes expenses associated with bringing new aircraft into the system.
vi) Ramp-up: Training expense that occurs due to new planes taken on. Includes Labor payments to those employees
being trained (including all items in paragraph i.a); Trainer time and salary; Equipment and facility rental; Training administration
costs associated with one-time training; Any training materials required; Uniforms & headsets; Pilot navigational charts.
vii) Maintenance:
a) Maintenance labor for all labor categories of aircraft mechanics, (e.g., engine specialists, parts clerks, etc.),
including base wages, benefits, payroll associated taxes and incentives (premiums for longevity, geography, certificates/licenses,
profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, holidays, vacation, sick
days and paid leave).
b) Maintenance Overhead: All hangar, parts/storage shop and maintenance management office rent and
maintenance facility charges. All sundry and clerical items associated with the management of Contractor’s maintenance function,
including but not exclusive of office supplies and furniture, maintenance schematic drawings and manuals, maintenance IT
hardware/software.
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠