Frontier Airlines 2006 Annual Report Download - page 69

1 year 5 years
Long-term debt (including interest) $ 182,205 $ 541,721 $ 360,928 $ 1,191,647 $ 2,276,501
Operating leases 118,347 335,966 199,293 539,779 1,193,385
Aircraft under firm orders:
Lease Obligations for CRJ-200 Aircraft
(20) 18,545 26,505 — — 45,050
Debt or Lease Financed Aircraft under
firm orders (38) 1,140,000 — — — 1,140,000
Engines under firm orders (7) 30,513 — — — 30,513
Total contractual cash obligations $ 1,489,610 $ 904,192 $ 560,221 $ 1,731,426 $ 4,685,449
We have a long-term maintenance agreement with an avionics equipment manufacturer and maintenance provider that has a
guaranteed minimum annual flight hour requirement. The minimum guaranteed amount based on our current operations is
$4.4 million per year through December 2012 for the Embraer 145 family of regional jets and $5.1 million per year through December
2014 for the Embraer 170 regional jets. We did not record a liability for this guarantee because we did not believe that our aircraft will
be utilized below the minimum flight hour requirement during the term of the agreement.
We have a long-term maintenance agreement with an aviation equipment manufacturer through April 2009. The agreement
has a penalty payment provision if more than twenty percent of Chautauqua's aircraft are removed from service based on the annual
flight activity prior to the date of removal. We did not record a liability for this penalty provision because we do not believe that more
than twenty percent of their aircraft will be removed from service during the term of the agreement.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠