Frontier Airlines 2007 Annual Report Download - page 55

We currently anticipate that our available cash resources, cash generated from operations and anticipated third-party
financing arrangements will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the
next 12 months. We may need to raise additional funds, however, to fund more rapid expansion, principally the acquisition of
additional aircraft, or meet unanticipated working capital requirements. It is possible that future funding may not be available to us on
favorable terms, or at all.
Our contractual obligations and commitments at December 31, 2007, include the following (in thousands):
Payments Due By Period
Less than
1 year 1-3 years 4-5 years
Over
5 years Total
Long-term debt (including interest) $ 243,235 $ 679,818 $ 453,212 $ 1,365,661 $ 2,741,926
Operating leases 150,901 362,439 213,613 533,173 1,260,126
Tax liability for uncertain tax positions — — — 4,409 4,409
Aircraft under firm orders:
Debt or Lease Financed Aircraft under firm
orders (29) 899,000 — — — 899,000
Engines under firm orders (9) 40,500 — — — 40,500
Total contractual cash obligations $ 1,333,636 $ 1,042,257 $ 666,825 $ 1,903,243 $ 4,945,961
The Company has long-term maintenance agreements with an avionics equipment manufacturer and maintenance provider
that has a guaranteed minimum annual flight hour requirement. The minimum guaranteed amount based on the Company's current
operations is $4.9 million per year through December 2014 for the ERJ-145 family of aircraft and $8.2 million per year through
December 2014 for the ERJ-170 family of aircraft. The Company did not record a liability for this guarantee because the Company
does not believe that any aircraft will be utilized below the minimum flight hour requirement during the term of the agreement.
The Company has long-term maintenance agreements with aviation equipment manufacturers to maintain the auxiliary power
units for the ERJ-145 family of aircraft and the CRJ-200 regional aircraft through June 2013 and December 2012, respectively. The
agreement has a penalty payment provision if more than twenty percent of the Company's aircraft are removed from service based on
the annual flight activity prior to the date of removal. The Company did not record a liability for this penalty provision because the
Company does not believe that more than twenty percent of their aircraft will be removed from service during the term of the
agreement.
The Company has long-term maintenance agreements based upon flight activity with engine manufacturers through February
2010 for the CRJ-200 aircraft, October 2012 for the ERJ-145 family of aircraft and through December 2014 for the ERJ-170 family of
aircraft.
The Company has long-term maintenance agreements for wheels and brakes through June 2014 for the ERJ-145 family of
aircraft and through February 2017 for the ERJ-170 family of aircraft. The agreement has an early termination penalty, if the
Company removes seller's equipment from certain aircraft, sells or leases certain aircraft to a third party or terminates the services
prior to expiration of the agreement. The Company did not record a liability for this penalty provision, because the Company does not
believe the contract will be terminated prior to the expiration date.
The Company has a long-term agreement to provide, manage and repair certain airframe components and spare parts on the
CRJ-200 aircraft through December 2009.
Total payments under these long-term maintenance agreements were $76.8 million, $56.1 million and $53.6 million for the
years ended December 31, 2007, 2006 and 2005, respectively.
Our commercial commitments at December 31, 2007 include letters of credit totaling $12.5 million expiring within one year.
Cash payments for interest were approximately $105.8 million in 2007. Tax payments in 2007 were not significant and we
are not expecting significant payments in 2008.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, February 21, 2008 Powered by Morningstar® Document Research℠