Frontier Airlines 2008 Annual Report Download - page 54

payments for the next 12 months under all non-cancelable operating leases is approximately $119.3 million. Other non-cancelable
operating leases consist of engines, terminal space, operating facilities, office space and office equipment. The leases expire through
2026. As of December 31, 2008, our total mandatory payments under other non-cancelable operating leases aggregated approximately
$121.6 million. Total minimum annual other rental payments for the next 12 months are approximately $12.0 million.
Purchase Commitments
As of December 31, 2008, the Company had firm orders to purchase three E170/175 aircraft. The current total list price of the
three aircraft is $105.0 million. The Company took delivery of one aircraft in January 2009 and two in February 2009, all of which
were debt financed. During the year ended December 31, 2008, the Company made aircraft deposits in accordance with the aircraft
commitments of $20.9 million. The Company also has a commitment to acquire seven spare aircraft engines with a current list price of
approximately $31.8 million. The Company expects to take delivery of two engines per year through 2011 and one engine in
2012. These commitments are subject to customary closing conditions.
At US Airways’ option, and subject to certain other conditions, the Company has a note receivable funding commitment of
$25.0 million, which is expected in March 2009. Interest on the note is at the three-month LIBOR rate plus a margin and is to be paid
quarterly, with the principal amounts to be repaid between October 2009 and October 2011.
On March 5, 2009, we agreed to a firm commitment for $40 million in post-petition debtor-in-possession (DIP) financing to
Frontier. This new DIP facility refinances the existing DIP loan that matures in April 2009. The DIP facility is subject to approval by
the United States Bankruptcy Court for the Southern District of New York and other pre-closing conditions. Frontier and its
subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on April 10, 2008. As a
condition to the loan, Frontier has agreed to allow the Company’s damage claim in the amount of $150 million arising out of
Frontier’s rejection of the Airline Services Agreement, dated January 11, 2007.
We expect to fund future capital and funding commitments through internally generated funds, third-party aircraft financings,
and debt and other financings.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 16, 2009 Powered by Morningstar® Document Research℠