Frontier Airlines 2006 Annual Report Download - page 229

a) RON (Remain Over Night): Hotel, transportation, and per diem for all pilots and flight attendants.
b) Interrupted Trip Expense: Includes all mishandled bag related expenses and all hotel, transportation and meal
accommodation expenses for any passenger traveling on Contractor’s flights.
c) Catering and on-board services: Includes all cost associated with providing food (snack and beverage service) for
passengers, excluding liquor. This includes but is not limited to costs for the food and beverages, catering supplies
d) Crew Scheduling: Labor for all management and administration associated with the Contractor’s crew scheduling
function, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography,
certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime,
vacation, holidays, sick days and paid leave). All Information Technology related charges (e.g., systems, software and hardware) and
other costs associated with crew scheduling functions.
e) Dispatch/flight operations center: Flight operations center and all costs associated with it including personnel,
facilities, management and systems.
ix) Corporate Overhead
a) Headquarters Facilities: All corporate real estate rent and associated facility charges
b) Management overhead: Labor for all management and administration whether or not based in Indianapolis,
Indiana, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography,
certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime,
vacation, holidays, sick days and paid leave).
c) Other: Out-sourced corporate overhead services (e.g., consulting, legal expenses), other depreciation and any
other overhead costs spread over multiple cost categories (e.g., memberships, office supplies, employee testing, IT, insurance costs
that are not Pass-Through Costs, other repairs and maintenance, software licensing, parking, safety office, flight standards,
communications, etc.); includes non-aircraft interest expense, if any.
x) Aircraft Ownership
a) All charges, except Aircraft Property Taxes (as described in the description of Pass-Through Costs), associated
with aircraft ownership including but not exclusive of lease, depreciation, other financing expense, and related start-up costs
(including painting).
b) All spare engine ownership expense
c) Hull Insurance - consists of premiums and other charges of insurers for Aircraft Hull All Risks Insurance as
described in the Agreement, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such
insurance, and surplus lines tax.
Descriptions of Pass-Through Costs
1. Fuel and Oil - consists of the cost of all aircraft fuel and oil, plus fuel flow charges, into-plane fees, and de-fueling charges,
and all applicable taxes on any of the foregoing.
2. Landing Fees - consists of all airport landing fees, Aircraft Rescue Fire Fighter (ARFF) charges or similar charges,
apron fees, and any other fees charged by airport operators to cover airfield costs or other airport facilities.
3. War Risk Insurance - consists of premiums and other charges of insurers for War Risk and Allied Perils Insurance, plus fees
and expenses of insurance brokers in connection with the procurement or maintenance of such insurance.
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠