Frontier Airlines 2010 Annual Report Download - page 15

Manager and he is a certified public accountant. Mr. Plaumann is the Chair of our Audit Committee, is an “audit committee financial expert”
and is independent as defined under applicable SEC and NASDAQ rules.
Richard P. Schifter has been a director since July 2009. He has been a partner at TPG Capital (formerly Texas Pacific Group) since
1994. Prior to joining TPG, Mr. Schifter was a partner at the law firm of Arnold & Porter in Washington, D.C., where he specialized in
bankruptcy law and corporate restructuring and represented Air Partners in connection with the acquisition of Continental Airlines in
1993. Mr. Schifter joined Arnold & Porter in 1979 and was a partner from 1986 through 1994. Mr. Schifter also served on the Boards of
Directors of Ryanair Holdings, PLC from 1996 through 2003, America West Holdings from 1994 to 2005, US Airways Group from 2005 to
2006 and Midwest Airlines, Inc. from 2007 to 2009.
Neal S. Cohen has been a director since October 2009. He is president and chief operating officer for Laureate Education, Inc.
Previously, Mr. Cohen was executive vice president for international strategy and chief executive officer for regional airlines at Northwest
Airlines. In addition, Mr. Cohen had served as executive vice president and chief financial officer at Northwest Airlines. Prior to his tenure
with Northwest Airlines Inc., Mr. Cohen was executive vice president and chief financial officer for US Airways. Mr. Cohen has served as
chief financial officer for various service and financial organizations as well as Sylvan Learning Systems, Inc., the predecessor company of
Laureate Education, Inc.
David N. Siegel has been a director since October 2009. He was Executive Chairman of XOJET, a private aviation company, in
2010, where he previously served as CEO, and continues to serve as a board member. Mr. Siegel has commercial aviation experience
spanning more than two decades including serving as the president and chief executive officer of US Airways and in senior executive roles at
Northwest Airlines and Continental Airlines. From June 2004 to September 2008, Mr. Siegel was chairman and chief executive officer of
Gate Gourmet Group, Inc., the world's largest independent airline catering, hospitality and logistics company. Prior to Gate Gourmet Group,
Mr. Siegel served as president, chief executive and member of the board of US Airways Group, Inc., and US Airways, Inc., the airline
operating unit. Prior to joining US Airways, Mr. Siegel was chairman and chief executive officer of Avis Rent A Car System, Inc., a
subsidiary of Cendant Corp. Mr. Siegel’ s extensive experience in the airline industry includes seven years at Continental Airlines in various
senior management roles, including president of its Continental Express subsidiary.
Code-Share Agreements
Through our subsidiaries, we have entered into code-share agreements with US Airways, American, Delta, United and Continental
that authorize us to use their two-character flight designator codes ("US," "AA," "DL," "UA" and "CO") to identify our flights and fares in
their computer reservation systems, to paint our aircraft with their colors and/or logos, to use their service marks and to market and advertise
our status as US Airways Express, AmericanConnection, Delta Connection, United Express or Continental Express, respectively. Under the
code-share agreements between our subsidiaries and each of US Airways, American, Delta, United and Continental, we are compensated on a
fixed-fee basis on all of our flights. In addition, under our code-share agreements, our passengers participate in frequent flyer programs of the
Partners, and the Partners provide additional services such as reservations, ticket issuance, ground support services, commuter slot rights and
airport facilities.
US Airways Code-Share Agreements
Under our fixed-fee Jet Services Agreements with US Airways, we operated, as of December 31, 2010, nine E145 aircraft, 20 E170
aircraft and 38 E175 aircraft. As of December 31, 2010, we were providing 426 flights per day as US Airways Express.
In exchange for providing the designated number of flights and performing our other obligations under the code-share agreements,
we receive compensation from US Airways three times each month in consideration for the services provided under the code-share
agreements. We receive an additional amount per available seat mile flown and may also receive incentives or pay penalties based upon our
performance, including fleet launch performance, on-time departure performance and completion percentage rates. In addition, certain
operating costs are considered "pass through" costs whereby US Airways has agreed to reimburse us the actual amount of costs we incur for
these items. US Airways provides fuel directly for all of our US Airways operations. Landing fees, passenger catering, passenger liability
insurance and aircraft property tax costs are pass through costs and are included in our fixed-fee services revenue.
Unless otherwise extended or amended, the code-share agreement for the E145 aircraft terminates in July 2014 and the code-share
agreement for the E170/175 aircraft terminates in September 2015 with respect to the 20 E170 aircraft and eight of the E175 aircraft. The
remaining 30 E175 aircraft terminate 12 years from each aircraft’ s in-service date and therefore would terminate from February 2019 to July
2020. US Airways may terminate the code-share agreements at any time for cause upon not less than 90 days notice and subject to our right
to cure under certain conditions.
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