Frontier Airlines 2010 Annual Report Download - page 112

guarantee amounts, penalty provisions for either the early removal of aircraft or agreement termination for activity levels below the
minimums. The liabilities for these guarantees are immaterial.
Total payments under these long-term maintenance agreements were $80.5 million, $96.0 million, and $101.9 million for the years
ended December 31, 2010, 2009 and 2008, respectively.
While the Company does not have long term maintenance agreements for its Airbus (except wheels and brakes) and Q400 fleets, it
has made significant deposits with the aircraft lessors for future maintenance events which will reduce future cash requirements. As of
December 31, 2010 and 2009 we had maintenance deposits of $147.2 million and $143.9 million, respectively.
As part of the Company's lease agreements, the Company typically indemnifies the lessor of the respective aircraft against liabilities
that may arise due to changes in benefits from tax ownership or tax laws of the respective leased aircraft. The Company has not recorded a
liability for these indemnifications because they are not estimable. The Company is responsible for all other maintenance costs of its aircraft
and must meet specified return conditions upon lease expiration for both the air frames and engines. The Company recorded a liability for the
return conditions of $1.9 million as of December 31, 2010 for the Q400 aircraft being returned to the lessor. The Company will record a
liability for lease return conditions for the remaining leased aircraft once it is probable and estimable.
Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in thousands):
Aircraft Other Total
2011 $233,748 $ 22,298 $ 256,046
2012 232,464 19,416 251,880
2013 225,764 17,817 243,581
2014 206,303 16,412 222,715
2015 182,110 13,090 195,200
Thereafter 449,020 58,239 507,259
Total $1,529,409 $ 147,272 $ 1,676,681
As of December 31, 2010, the Company has subleased eleven E145 aircraft to a foreign airline and one Q400 aircraft to another
airline. As of December 31, 2010, the total amount of minimum rentals to be received in the future under non-cancelable subleases is $62.1
million. During the years ended December 31, 2010, 2009, and 2008, the Company recognized $14.7 million, $12.2 million and $7.8 million,
respectively, of sublease income that is included in cargo and other revenue in the consolidated statements of income (loss).
As of December 31, 2010, the Company had firm orders to purchase eight A320 aircraft that have scheduled delivery dates
beginning in February 2013 and continuing through November 2014, forty CS300 aircraft that have scheduled delivery dates beginning in
early 2015 and continuing through 2017, and six E190 jets with a conditional firm order for eighteen E190 or E195 jets, the first six aircraft
will be delivered between August and December 2011. The Company also has a commitment to acquire nine spare aircraft engines and
expects to take delivery of one engine in 2011, two engines in 2012, two engines in 2015, and four engines beyond 2016.
During 2010, the Company entered into agreements to lease seven A320 aircraft for six years from the date of delivery. These
aircraft will be delivered between January 2011 and June 2011.
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