Frontier Airlines 2010 Annual Report Download - page 25
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Please find page 25 of the 2010 Frontier Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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• the adverse public perception of a manufacturer as a result of an accident or other adverse publicity.
Our operations could be materially adversely affected by the failure or inability of Embraer, Airbus or any key component
manufacturers to provide sufficient parts or related support services on a timely basis or by an interruption of fleet service as a result of
unscheduled or unanticipated maintenance requirements for our aircraft.
Reduced utilization levels of our aircraft under the fixed-fee agreements would adversely impact our revenues, earnings and
liquidity.
Our agreements with our Partners require each of them to schedule our aircraft to a minimum level of utilization. However, the
aircraft have historically been utilized more than the minimum requirement. Even though the fixed-fee rates may adjust, either up or down,
based on scheduled utilization levels or require a fixed amount per day to compensate us for our fixed costs, if our aircraft are at or below the
minimum requirement (including taking into account the stage length and frequency of our scheduled flights) we will likely lose both the
opportunity to recover a margin on the variable costs of flights that would have been flown if our aircraft were more fully utilized and the
opportunity to earn incentive compensation on such flights.
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