Frontier Airlines 2006 Annual Report Download - page 65

Insurance and taxes increased 22.2%, or $2.9 million, to $16.1 million in 2005 compared to $13.2 million in 2004. The
increase in operations and an increase in aircraft property taxes were partially offset by a decline in the average insurance rates year
over year. The unit cost remained unchanged at 0.3¢.
Depreciation and amortization increased 88.5%, or $30.5 million, to $64.9 million in 2005 compared to $34.4 million in 2004
due to depreciation on thirty-one 70-seat regional jet aircraft purchased in 2005 and the full year effect of 24 regional jet aircraft
purchased in 2004. The unit cost increased to 1.0¢ in 2005 compared to 0.8¢ in 2004.
Impairment loss and accrued return costs of ($4.2) million were recorded in 2005 to reverse the remaining balance of a
reserve for the return of our Saab fleet of aircraft after an agreement to return all the Saab turboprop aircraft to lessors was executed
and all liabilities were settled. Impairment charges in 2004 of $1.4 million mainly consisted of a write off of purchased route costs on
markets that were abandoned during 2004.
Other expenses increased 31.0%, or $14.7 million, to $62.2 million in 2005 from $47.5 million in 2004, due mainly to $6.3
million of charges paid to American Airlines for having 70-seat aircraft on the Chautauqua operating certificate in 2005 and higher
pilot training, crew-related and administrative expenses to support the growing 70-seat regional jet operations. The unit cost decreased
to 0.9¢ in 2005 compared to 1.0¢ in 2004.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠