Frontier Airlines 2006 Annual Report Download - page 30

For the years ended December 31, 2006, 2005 and 2004 respectively, US Airways accounted for approximately 24%, 21%
and 38% of our passenger revenues, Delta accounted for approximately 35%, 34% and 36% of our passenger revenues, American
accounted for approximately 11%, 13% and 16% of our passenger revenues and United accounted for approximately 30%, 32% and
10% of our passenger revenues. We commenced flying for Continental in January 2007 and we expect to commence flying for
Frontier in March 2007.
Our code-share agreement with Delta will be terminated if Delta does not emerge from bankruptcy.
Delta is attempting to reorganize its business under Chapter 11 of the bankruptcy code. Under the terms of our code-share agreement
with Delta, if the plan of reorganization is not confirmed in Chapter 11 bankruptcy or if the bankruptcy is converted to liquidation
under Chapter 7 of the bankruptcy code, then our code-share agreements will be terminated. Although we are entitled to recoup certain
expenses in connection with the aircraft, including certain fees paid to the manufacturer as well as our ownership costs of the aircraft
for a transitional period of time, a termination of these agreements could have a material adverse effect on our financial condition,
operating revenues and net income unless we are able to enter into satisfactory substitute arrangements for the utilization of these
aircraft by other code-share partners, or, alternatively, obtain the airport facilities and gates and make the other arrangements
necessary to fly under our own flight designator code. We cannot assure you that we would be able to enter into substitute code-share
arrangements, that any such substitute code-share arrangements would be as favorable to us as the current code-share arrangements
with Delta, or that we could, in the alternative, successfully fly under our own flight designator code.
We may be unable to redeploy smaller aircraft removed from service in response to our code-share partners' demand for
larger aircraft.
Certain of our code-share partners have requested that we replace ERJ-145 and smaller aircraft with larger regional jets. To
the extent that we agree to remove an ERJ-145 or smaller aircraft from service, we must either sell or sublease the aircraft to another
party or redeploy it in order to cover our carrying expenses for that aircraft. Our inability to sell, sublease and/or redeploy aircraft that
have been removed from service could have a material adverse effect on our financial condition, results of operations and the price of
our common stock.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠