Frontier Airlines 2006 Annual Report Download - page 95

3. AIRCRAFT AND OTHER EQUIPMENT
At December 31, 2006, the Company had a total fleet of 180 regional jets, including sixty-eight 50-seat ERJ-145 aircraft,
fifteen 44-seat ERJ-140 aircraft, seventeen 37-seat ERJ-135 aircraft, seventy-six 70-seat ERJ-170 aircraft, and four CRJ-200
aircraft. The Company owns 30 ERJ-145 aircraft, 11 ERJ-140 aircraft, 15 ERJ-135 aircraft, 56 ERJ-170 aircraft, and leases the other
aircraft under operating lease agreements (see Note 7).
Aircraft and other equipment, excluding aircraft and other equipment held for sale, consist of the following as of
December 31:
2006 2005
Aircraft $ 1,994,907 $ 1,702,611
Flight equipment 87,625 69,635
Furniture and equipment 5,718 4,729
Leasehold improvements 11,115 9,126
Total aircraft and other equipment 2,099,365 1,786,101
Less accumulated depreciation and amortization (209,648) (123,865)
Aircraft and other equipment—net $ 1,889,717 $ 1,662,236
Aircraft, other equipment and slot depreciation and amortization expense for the years ended December 31, 2006, 2005 and
2004 was $92,228, $64,877, and $34,412, respectively.
4. INTANGIBLE AND OTHER ASSETS
Intangible and other assets consist of the following as of December 31:
2006 2005
Prepaid aircraft rent $ 29,062 $ 23,708
Aircraft deposits 71,571 25,655
Deferred warrant charge, net (see Note 10) 6,470 7,035
Debt issue costs, net 17,560 15,779
Commuter slots, net 47,052 50,722
Other 20,570 21,300
$ 192,285 $ 144,199
The Company purchased commuter slots at Ronald Reagan Washington National Airport (“Washington”) and New York
LaGuardia Airport (“LaGuardia”) in 2005 from US Airways. The licensing agreement with the Company and US Airways for the
LaGuardia commuter slots expired on December 31, 2006, but we maintain a security interest in the LaGuardia slots if US Airways
fails to perform under the current licensing agreement. The LaGuardia commuter slots were amortized over a 15 month life ending
December 31, 2006, and the Washington commuter slots are amortized on a straight line basis over a 25 year expected life to an
estimated residual value. Amortization began in September 2005 and was approximately $918 in 2005 and $3,671 in 2006. The
Company assigned the right of use for these commuter slots to US Airways which will continue to be operated by US Airways
Express carriers until the expiration or termination of the amended and restated Chautauqua Jet Service Agreement (“JSA”) dated as
of April 26, 2005 between US Airways and Chautauqua or the Republic JSA, whichever is later, at an agreed rate. Prior to the
expiration of the agreement to license the commuter slots, US Airways has the right to repurchase all, but not less than all, of the
Washington commuter slots at a predetermined price.
5. ACCRUED LIABILITIES
Accrued liabilities consist of the following as of December 31:
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠