Airtran 2001 Annual Report Download - page 16

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Jl
financing will reduce our aggregate funding requirements for aircraft commitments to £211.3 million representing the aircraft to be purchased in 2003.
Funding is subject to finalization
of
definitive agreements and other conditions.
See
Note 4to the consolidated financial statements.
With respect to future B717 option deliveries,
we
had
21
options,
20
purchase rights and five rolling options at December
31,
2001. Three
of
the 25
options were exercised with
two
B717s having been delivered
in
2001, and one 8717 exercised for ascheduled delivery in 2003; one option expired
unexercised.
In
connection with the amendments discussed above,
we
will exercise an additional seven options, for which no additional purchase
deposit payments will be required, with delivery scheduled for 2002.
If
we
exercise our options to acquire additional aircraft, additional payments could
be required for these aircraft beginning
in
2002. There can be no assurance that sufficient financing will be available for
all
aircraft and other capital
expenditures not covered by firm financing commitments.
During 2001, we took delivery 0114 new B717 aircraft that were financed by Boeing Capital as follows: 13 were delivered and simultaneously sold and
leased-back from Boeing Capital, and one was purchased with aloan provided by Boeing Capita! (the loan was fully repaid in February 2001 and the
aircraft was contemporaneously sold and leased-back from Boeing Capital).
/J.s
of December
31,
2001, our
debt
obligations totaled $268.2 million, with respect to which substantially all our assets are pledged as security. Our
debt obligations are comprised
of
$130.2 million
of
10.63% EETGs,
of
which aportion
of
interest and principal is payable semiannualty through April
2017, and certain
debt
obligations due to Boeing Capital, as described in Other Information below. The EETG proceeds were used to replace loans for
the purchase
of
the first
10
B717 aircraft delivered
(all
10
aircraft were pledged as collateral for the EETGs). Eight EETC-financed B717s were delivered
in
1999, and the remaining two deliveries occurred in 2000. During 2000, we sold and leased back two
of
the EETC-financed B717s in aleveraged
lease transaction reducing the outstanding principal amount
of
the EETGs by $35.9 million.
In
addition to our £130.0 million in cash, cash equivalents and restricted cash as
of
December
31,
2001.
we
have other financing sources available
to meet our future liquidity requirements, including, but not limited to:
(i)
the receipt
of
the remaining $4.3 million
of
the U.S. government grant;
(ii)
securitization
of
future operating receipts;
(iii)
unsecured borrowings; and
(iv)
any borrowings backed by federal loan guarantees pursuant to
the Stabilization Act.
Our contractual obligations and commilments to be paid were the following as
of
December
31,
2001:
(In
millions)
Nature
of
commitment 2002 2003 2004 2005 2006 1hereafler
Operating lease payments for aircraft
and facility obligations $81.2 $81.1 $76.3 $74.3 $72.7
$668.0
Aircraft purchase commitments'"236.5 233.7
Long-term debt obligalions:ll 13.4 10.3 11.5 15.1 15.7 214.5
Total contractual obligations
and commitments $331.1 8325.1 887.8 889.4 888.4 $882.5
(1)
Net
0'
previously paid purchase deposits.
(2)
Excludes related interest paymenlS.