Frontier Airlines 2008 Annual Report Download - page 74

4. ASSETS HELD FOR SALE
At December 31, 2008, the Company had nine E135 aircraft classified as held for sale. Eight of these aircraft are under an
agreement to be sold. The Company classified all of the debt associated with these aircraft of $65,376 within current portion of
long-term debt in the consolidated balance sheets. The Company expects these aircraft to be sold throughout the first half of 2009.
5. AIRCRAFT AND OTHER EQUIPMENT
Aircraft and other equipment, excluding aircraft held for sale in 2008, consist of the following as of December 31:
2008 2007
Aircraft $ 2,936,311 $ 2,498,306
Flight equipment 134,459 104,475
Office equipment and leasehold improvements 24,866 21,393
Total aircraft and other equipment 3,095,636 2,624,174
Less accumulated depreciation and amortization (403,226) (315,448)
Aircraft and other equipment—net $ 2,692,410 $ 2,308,726
Aircraft, other equipment and slot depreciation and amortization expense for the years ended December 31, 2008, 2007 and
2006 was $133,206, $106,594 and $92,228, respectively.
6. INTANGIBLE AND OTHER ASSETS
Intangible and other assets consist of the following as of December 31:
2008 2007
Prepaid aircraft rent $ 37,372 $ 32,077
Aircraft parts receivable 18,447 13,800
Aircraft deposits 15,118 65,382
Debt issue costs, net 22,374 22,271
Commuter slots, net 46,276 46,664
Other 20,510 17,146
Intangible and other assets—net $ 160,097 $ 197,340
The Company purchased commuter slots at Ronald Reagan Washington National Airport (“DCA”) and New
York LaGuardia Airport (“LGA”) in 2005 from US Airways. The licensing agreement with the Company and US Airways for the
LGA commuter slots expired on December 31, 2006, but we maintain a security interest in the LGA slots if US Airways fails to
perform under the current licensing agreement. The LGA commuter slots were amortized over a 15 month life ending December 31,
2006, and the DCA commuter slots are amortized on a straight line basis over a 25 year expected life to an estimated residual value.
Amortization was approximately $388, $388 and $3,671 in 2008, 2007 and 2006, respectively. 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 DCA commuter slots at a predetermined price.
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Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 16, 2009 Powered by Morningstar® Document Research℠