Frontier Airlines 2006 Annual Report Download - page 34

jets leased, but not in operation as of December 31, 2006. Embraer's current aggregate list price for the 43 Embraer regional jets that
we expect to acquire from Embraer is approximately $1.3 billion. We expect to lease or otherwise acquire on credit a substantial
portion of these Embraer regional jets, which will increase significantly our mandatory lease and debt service payments.
There can be no assurance that our operations will generate sufficient cash flow to make such payments or that we will be
able to obtain financing to acquire the additional aircraft or make other capital expenditures necessary for our expansion. If we default
under our loan or lease agreements, the lender/lessor has available extensive remedies, including, without limitation, repossession of
the respective aircraft and other assets and, in the case of large creditors, the effective ability to exert control over how we allocate a
significant portion of our revenues. Even if we are able to timely service our debt, the size of our long-term debt and lease obligations
could negatively affect our financial condition, results of operations and the price of our common stock in many ways, including:
• increasing the cost, or limiting the availability of, additional financing for working capital, acquisitions or other purposes;
• limiting the ways in which we can use our cash flow, much of which may have to be used to satisfy debt and lease
obligations; and
•adversely affecting our ability to respond to changing business or economic conditions or continue our growth strategy.
If we need funds and cannot raise them on acceptable terms, or at all, we may be unable to realize our current plans or take
advantage of unanticipated opportunities and could be required to slow or stop our growth.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠