Frontier Airlines 2008 Annual Report Download - page 55

Our contractual obligations and commercial commitments at December 31, 2008, 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) $ 270,108 $ 818,594 $ 586,041 $ 1,518,028 $ 3,192,771
Operating leases 131,226 331,075 201,363 434,577 1,098,241
Tax liability for uncertain tax positions — — — 5,252 5,252
Funding commitments on notes receivable 52,500 — — — 52,500
Debt or Lease Financed Aircraft under firm
orders (3) 105,000 — — — 105,000
Engines under firm orders (7) 9,100 22,700 — — 31,800
Total contractual cash obligations $ 567,934 $ 1,172,369 $ 787,404 $ 1,957,857 $ 4,485,564
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 $4.0 million per year through December 2014 for the E145 family of aircraft and $8.2 million per year through
December 2014 for the E170 family of aircraft.
The Company has long-term maintenance agreements with aviation equipment manufacturers to maintain the auxiliary power
units for the E145 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 has long-term maintenance agreements based upon flight activity with engine manufacturers through February
2010 for the CRJ-200 aircraft, October 2012 for the E145 family of aircraft and through December 2014 for the E170 family of
aircraft.
The Company has long-term maintenance agreements for wheels and brakes through June 2014 for the E145 family of
aircraft and through February 2017 for the E170 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 has a long-term agreement to provide, manage and repair certain airframe components and spare parts on the
CRJ-200 aircraft through December 2009 that has a guaranteed minimum flight hour requirement. Based on the Company’s projected
lease return schedule of the aircraft, the Company believes it will not meet the minimum requirement for the remaining term and has
recorded a liability of $1.2 million as of December 31, 2008.
Total payments under these long-term maintenance agreements were $101.9 million, $76.8 million, and $56.1 million for the
years ended December 31, 2008, 2007 and 2006, respectively.
Our commercial commitments at December 31, 2008 include letters of credit totaling $12.4 million expiring within one year.
Cash payments for interest were approximately $122.4 million in 2008. Tax payments in 2008 were not significant and we
are not expecting significant payments in 2009.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 16, 2009 Powered by Morningstar® Document Research℠