Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Entity Registrant Name | 'REPUBLIC AIRWAYS HOLDINGS INC | ' |
Entity Central Index Key | '0001159154 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 48,558,312 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $191.90 | $210.80 |
Restricted cash | 32.2 | 19.6 |
Receivables—net of allowance for doubtful accounts of $1.5 and $1.3, respectively | 31 | 40.2 |
Inventories | 72.7 | 72.8 |
Prepaid expenses and other current assets | 13.9 | 12.2 |
Assets of Disposal Group, Including Discontinued Operation, Current | 594.8 | 756.7 |
Deferred income taxes | 48.3 | 31.3 |
Total current assets | 984.8 | 1,143.60 |
Aircraft and other equipment—net | 2,354.50 | 2,311.20 |
Maintenance deposits | 33 | 28.1 |
Intangible Assets, Net (Excluding Goodwill) | 9 | 9 |
Other Assets, Noncurrent | 239.8 | 163.4 |
Total assets | 3,621.10 | 3,655.30 |
Current Liabilities: | ' | ' |
Current portion of long-term debt | 234.8 | 220.7 |
Accounts payable | 21.7 | 22.9 |
Accrued liabilities | 163.6 | 148.4 |
Liabilities of Disposal Group, Including Discontinued Operation, Current | 517.8 | 522.2 |
Total current liabilities | 937.9 | 914.2 |
Long-term debt—less current portion | 1,760.90 | 1,752 |
Deferred credits and other non-current liabilities | 104.5 | 91 |
Deferred income taxes | 286.3 | 384.6 |
Total liabilities | 3,089.60 | 3,141.80 |
Commitments and contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock, $.001 par value; 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $.001 par value; one vote per share; 150,000,000 shares authorized; 59,372,192 and 58,529,449 shares issued and 49,425,176 and 48,558,312 shares outstanding, respectively | 0 | 0 |
Additional Paid in Capital | 418.9 | 412.1 |
Treasury stock, 9,333,266 shares at cost | -181.8 | -181.8 |
Accumulated other comprehensive loss | -4.9 | -5 |
Accumulated Earnings | 299.3 | 288.2 |
Total stockholders' equity | 531.5 | 513.5 |
Total liabilities and stockholders' equity | $3,621.10 | $3,655.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts Receivable, Current | $1.50 | $1.30 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 59,372,192 | 58,529,449 |
Common stock, shares outstanding | 49,425,176 | 48,558,312 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury Stock | 9,333,266 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING REVENUES: | ' | ' | ' | ' |
Fixed-Fee Service Revenue | $320.30 | $268.70 | $941.20 | $828.70 |
Passenger Service | 12.6 | 63.1 | 41.6 | 200.4 |
Charter and Other | 5.7 | 5.6 | 17.2 | 20.9 |
Total operating revenues | 338.6 | 337.4 | 1,000 | 1,050 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Wages and benefits | 87.1 | 79 | 256.6 | 227.6 |
Aircraft fuel | 11.3 | 25.4 | 37.1 | 139.6 |
Landings Fees and Airport Rents | 7.9 | 14.5 | 38.3 | 46.9 |
Aircraft and Engine Rent | 32 | 29 | 91.6 | 86.1 |
Maintenance Repairs | 67.3 | 66.6 | 184 | 178.1 |
Insurance and taxes | 6.5 | 5.8 | 18.5 | 18.6 |
Depreciation and amortization | 37 | 39.9 | 110.5 | 119.7 |
Promotion and sales | 0.6 | 3.3 | 2.1 | 10.2 |
Asset Impairment Charges | 21.2 | 0 | 21.2 | 0 |
Other | 34.9 | 34.5 | 105.4 | 97.1 |
Total operating expenses | 305.8 | 298 | 865.3 | 923.9 |
OPERATING INCOME | 32.8 | 39.4 | 134.7 | 126.1 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest expense | -27.4 | -28.9 | -83.1 | -88.7 |
Other—net | 0 | 0.1 | 0.1 | 0.1 |
Total other expense | -27.4 | -28.8 | -83 | -88.6 |
INCOME BEFORE INCOME TAXES | 5.4 | 10.6 | 51.7 | 37.5 |
INCOME TAX EXPENSE (BENEFIT) | 1.1 | 4.3 | 19.9 | 15 |
Income (Loss) from Continuing Operations Attributable to Parent | 4.3 | 6.3 | 31.8 | 22.5 |
Disposal Group, Including Discontinued Operations, Operating Income (Loss), net of tax | 29.8 | 19.5 | 27.2 | 16.2 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | -47.9 | 0 | -47.9 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | -18.1 | 19.5 | -20.7 | 16.2 |
NET INCOME | ($13.80) | $25.80 | $11.10 | $38.70 |
Income (Loss) from Continuing Operations, Per Basic Share | $0.09 | $0.13 | $0.64 | $0.46 |
Income (Loss) from Continuing Operations, Per Diluted Share | $0.09 | $0.13 | $0.60 | $0.46 |
Earnings Per Share, Basic | ($0.28) | $0.53 | $0.22 | $0.80 |
Earnings Per Share, Diluted | ($0.26) | $0.51 | $0.23 | $0.79 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
NET INCOME | ($13.80) | $25.80 | $11.10 | $38.70 |
Other Comprehensive Income, net, Reclassification adjustment for loss realized on derivatives, net of tax | 0 | 0.1 | 0.1 | 0.3 |
Total comprehensive income, net | ($13.80) | $25.90 | $11.20 | $39 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | $170 | $172.20 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 66.4 | 10.6 |
Net Cash Provided by (Used in) Operating Activities | 236.4 | 182.8 |
INVESTING ACTIVITIES: | ' | ' |
Purchase of aircraft and other equipment | -233.4 | -15.2 |
Proceeds from Sale of Other Assets | 40.1 | 23.1 |
Aircraft Deposits | -25 | 0 |
Other, net | -2.4 | -4.4 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | -220.7 | 3.5 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | -8 | -19.9 |
Net Cash Provided by (Used in) Investing Activities | -228.7 | -16.4 |
FINANCING ACTIVITIES: | ' | ' |
Payments on Debt | -147.9 | -144.1 |
Proceeds from debt issuance | 236.8 | 0 |
Payments on early extinguishment of debt | -58.7 | 0 |
Proceeds from Stock Options Exercised | 3.9 | 0 |
Other, net | -2.3 | -0.2 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 31.8 | -144.3 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | -31 | -14.2 |
NET CASH FROM FINANCING ACTIVITIES | 0.8 | -158.5 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 8.5 | 7.9 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations - Beginning | 247.2 | 219.3 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations - End | 255.7 | 227.2 |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | -63.8 | -21.2 |
CASH AND CASH EQUIVALENTS—End of period | 191.9 | 206 |
CASH PAID FOR INTEREST AND INCOME TAXES [Abstract] | ' | ' |
Interest paid | 86.4 | 95.2 |
Income taxes paid | 0.6 | 0.3 |
Noncash Investing and Financing Items [Abstract] | ' | ' |
AircraftPartsFinanced | 42.8 | 0 |
Chautauqua Restructuring Costs | 12 | 0 |
Capital Expenditures Incurred but Not yet Paid | $5.80 | $0 |
Organization_and_Business
Organization and Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization and Business [Abstract] | ' |
Nature of Operations [Text Block] | ' |
Organization and Business | |
We are a Delaware holding company organized in 1996 that offers scheduled passenger services through our wholly-owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. ("Chautauqua"), Shuttle America Corporation ("Shuttle"), Republic Airline, Inc. ("Republic Airline"), and Frontier Airlines, Inc. ("Frontier"). Unless the context indicates otherwise, the terms the "Company," "we," "us," or "our" refer to Republic Airways Holdings Inc. and our subsidiaries. | |
On October 1, 2013, the Company announced that it had entered into a stock purchase agreement to sell Frontier Airlines Holdings, Inc. (“Frontier”) to an affiliate of Indigo Partners LLC. As a result the Company reported Frontier Airlines, Inc. as discontinued operations on the condensed consolidated statement of operations and condensed consolidated statement of cash flows for all periods presented. In addition the assets and liabilities of Frontier have been reported as part of as held for sale on the condensed consolidated balance sheet. | |
In the opinion of management, these financial statements reflect all adjustments that are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal, recurring nature unless otherwise disclosed. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, filed March 15, 2013. | |
Unless otherwise indicated, information in these notes to consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. See note 5. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
Rental Income – Under the Company’s fixed-fee code-share and fixed-fee charter agreements, the Company is reimbursed an amount per aircraft designed to compensate the Company for certain aircraft ownership costs. The Company has concluded that a component of its fixed-fee service revenue under the agreement discussed above is rental income, inasmuch as the agreement identifies the “right of use” of a specific type and number of aircraft over a stated period of time. The amounts deemed to be rental income during the three months ended September 30, 2013 and 2012, were $97.2 million and $83.8 million, respectively. The amounts deemed to be rental income during the nine months ended September 30, 2013 and 2012 were $284.3 million and $250.2 million, respectively, and have been included in fixed-fee service revenues in the Company’s condensed consolidated statements of operations. | |||||||||||||||||
Charter and Other Revenue – Charter and other revenue primarily consists of revenue related to our dedicated and co-sold scheduled charters and lease revenue for aircraft subleased under operating leases. Charter revenues are recognized at the point that our charter service is realizable and earned, which is when the transportation is provided. All other revenue is recognized as revenue when the related goods and services are provided. | |||||||||||||||||
Restricted Cash – Restricted cash primarily consists of balances in escrow for our long-term charter agreement, restricted amounts for satisfying debt and lease payments due within the next year and certificates of deposit that secure certain letters of credit issued for workers' compensation claim reserves and certain airport authorities. Restricted cash is carried at cost, which management believes approximates fair value. | |||||||||||||||||
Assets/Liabilities Held for Sale – Assets/Liabilities held for sale at September 30, 2013 and December 31, 2012, consist of our Frontier operations, flight equipment and spare aircraft parts at the lower of carrying value or estimated fair value less costs to sell. We expect to sell all such assets during the fourth quarter 2013. See Note 5. | |||||||||||||||||
Stockholders’ Equity – For the period from December 31, 2012 through September 30, 2013, additional paid-in capital increased to $418.9 million from $412.1 million due to $2.9 million of stock compensation expense and $3.9 million of proceeds for options exercised, accumulated other comprehensive loss decreased to $4.9 million from $5.0 million due to the reclassification adjustment for loss realized on derivatives, and accumulated earnings increased from $288.2 million to $299.3 million based on current year to date net income. | |||||||||||||||||
Net Income (Loss) Per Common Share – The following table is based on the weighted average number of common shares outstanding during the period. The following is a reconciliation of the weighted average common shares for the basic and diluted per share computations (in millions, except per share information): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic and diluted income per share: | |||||||||||||||||
Income from continuing operations | $ | 4.3 | $ | 6.3 | $ | 31.8 | $ | 22.5 | |||||||||
Discontinued operations, net of tax | (18.1 | ) | 19.5 | (20.7 | ) | 16.2 | |||||||||||
Net income (loss) | (13.8 | ) | 25.8 | 11.1 | 38.7 | ||||||||||||
Income effect of assumed-conversion interest on convertible debt | 0.2 | 0.3 | 1.5 | 0.8 | |||||||||||||
Income (loss) after assumed conversion | $ | (13.6 | ) | $ | 26.1 | $ | 12.6 | $ | 39.5 | ||||||||
Weighted average common shares outstanding | 49.4 | 48.5 | 49.8 | 48.5 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 0.6 | 0.1 | 0.6 | 0.2 | |||||||||||||
Convertible debt | 2.5 | 2.2 | 4.7 | 1.6 | |||||||||||||
Shares used to compute diluted earnings per share | 52.5 | 50.8 | 55.1 | 50.3 | |||||||||||||
Income (loss) per share - basic: | |||||||||||||||||
Income from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.64 | $ | 0.46 | |||||||||
Discontinued operations, net of tax | (0.37 | ) | 0.4 | (0.42 | ) | 0.34 | |||||||||||
Net income (loss) | $ | (0.28 | ) | $ | 0.53 | $ | 0.22 | $ | 0.8 | ||||||||
Income (loss) per share - diluted: | |||||||||||||||||
Income from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.6 | $ | 0.46 | |||||||||
Discontinued operations, net of tax | (0.35 | ) | 0.38 | (0.37 | ) | 0.33 | |||||||||||
Net income (loss) | $ | (0.26 | ) | $ | 0.51 | $ | 0.23 | $ | 0.79 | ||||||||
The Company excluded 3.0 million and 4.0 million employee stock options from the calculation of diluted net income per share due to their anti-dilutive impact for the three months ended September 30, 2013 and 2012, respectively. The Company excluded 3.0 million and 4.1 million employee stock options from the calculation of diluted net income per share due to their anti-dilutive impact for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The Company has two convertible notes with face values of $22.3 million and $25.0 million that are convertible in whole or in part, at the option of the holder, for up to 2.2 million and 2.5 million shares, respectively, of the Company’s common stock as of September 30, 2013. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the three and nine months ended September 30, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for three months ended September 30, 2013, and dilutive for nine months ended September 30, 2013. The convertible note payable for 2.2 million shares was dilutive for the three and nine months ended September 30, 2012. | |||||||||||||||||
The Company has the ability to redeem each of the two convertible notes to the extent the notes have not previously been converted by the holder. Upon at least 10 days advance written notice to the holder, the Company can redeem the $22.3 million note at face value, plus any accrued and unpaid interest. Upon not less than 30 days nor more than 60 days advance written notice, the Company can redeem the $25.0 million note at a premium to face value at any time through October 28, 2016 at which point the note can be redeemed at face value thereafter. | |||||||||||||||||
Fair Value Measurements - Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, requires disclosures about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established. The Topic establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1 | quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||
Level 2 | quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||
Level 3 | unobservable inputs for the asset or liability. | ||||||||||||||||
The following table sets forth information regarding the Company's assets measured at fair value on a recurring basis (in millions): | |||||||||||||||||
Fair Value of Assets on a Recurring Basis | 30-Sep-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 83.6 | $ | — | $ | — | $ | 83.6 | |||||||||
Fair Value of Assets on a Recurring Basis | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 86.4 | $ | — | $ | — | $ | 86.4 | |||||||||
Chautauqua restructuring asset - In October 2012, the Company restructured certain aircraft ownership obligations related to its 50-seat regional jet platform, Chautauqua. The asset is recorded in the condensed consolidated balance sheet in other assets. The recurring fair value measurement of this restructuring has been calculated using an income approach, which requires the use of subjective assumptions that are considered level 3 inputs. Fair values have been estimated by discounting the cash flows expected to be received over the term of the applicable agreement, using a discount rate based on observable yields on instruments bearing comparable risks and credit worthiness of the counterparty. Critical assumptions used in the fair value measurement primarily include the amount and timing of cash inflows, the discount rate and the probability of whether the call option on the restructured aircraft will be exercised by the counterparty. A change in these assumptions could result in a significantly higher or lower fair value measurement, which would result in a gain or loss during the period in which the assumption changes. The difference between the fair value of the restructuring asset and the fair value of the convertible note will be recognized as a reduction to depreciation expense over the remaining useful life of the related aircraft subject to this agreement. There have been no significant changes in assumptions or fair value calculation during the nine months ended September 30, 2013. | |||||||||||||||||
In March 2013 the agreement was amended, which resulted in a $12.0 million increase in the restructuring asset under the fair value option. The $12.0 million increase represents the fair value of expected future cash inflows under the amendment. In addition, this amendment resulted in a $12.0 million deferred credit, which is included in accrued liabilities. As of September 30, 2013, the Company would owe approximately $14.4 million under certain circumstances of non-performance or voluntary repayment, however, the Company estimated the probability of repayment as remote. | |||||||||||||||||
The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions): | |||||||||||||||||
3 Months Ended September 30, 2013 | Chautauqua Restructuring Asset | ||||||||||||||||
Beginning Balance, June 30, 2013 | $ | 86.7 | |||||||||||||||
Cash received or other | (3.1 | ) | |||||||||||||||
Ending Balance, September 30, 2013 | $ | 83.6 | |||||||||||||||
9 Months Ended September 30, 2013 | Chautauqua Restructuring Asset | ||||||||||||||||
Beginning Balance, December 31, 2012 | $ | 86.4 | |||||||||||||||
Amendment to agreement | 12 | ||||||||||||||||
Cash received or other | (14.8 | ) | |||||||||||||||
Ending Balance, September 30, 2013 | $ | 83.6 | |||||||||||||||
Aircraft and Other Assets Impairment - Nonrecurring - in September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. For additional information on the loss on the disposal group see note 5. | |||||||||||||||||
($ in millions) | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | 9 mos ended September 30, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Pre-tax Losses | ||||||||||||
Long-lived assets held and used | $ | 152.5 | $ | 152.5 | $ | (12.0 | ) | ||||||||||
Net assets of disposal group | 77 | 77 | (203.0 | ) | |||||||||||||
$ | (215.0 | ) | |||||||||||||||
Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt relates to the potential change in fair value and impact to future earnings, respectively, from a change in interest rates. In the table below, the aggregate fair value of debt was based primarily on recently completed market transactions and estimates based on interest rates, maturities, credit risk, Black-Scholes assumptions and underlying collateral and is classified primarily as level 3 within the fair value hierarchy. | |||||||||||||||||
($ in millions) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Total debt at par value | $ | 1,997.50 | $ | 1,974.80 | |||||||||||||
Unamortized discount, net | (1.8 | ) | (2.1 | ) | |||||||||||||
Net carrying amount | $ | 1,995.70 | $ | 1,972.70 | |||||||||||||
Estimated fair value | 1,995.90 | 1,922.50 | |||||||||||||||
New Accounting Pronouncements – In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11–Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard provides updated guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendment becomes affective for fiscal years beginning after December 15, 2013, and the impending impact to the consolidated financial statements will not be material. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard revises the guidance for providing information about the amounts reclassified out of accumulated other comprehensive income. It became effective for fiscal years beginning after December 15, 2012. The Company adopted this accounting standard on January 1, 2013, and the impact to the consolidated financial statements was not material. | |||||||||||||||||
In July 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The standard revises the guidance for evaluating impairment on indefinite-lived intangible assets. It was effective for the Company on January 1, 2013, and the impact to the consolidated financial statements was not material. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
Debt | |
During the nine months ended September 30, 2013, the Company sold aircraft for proceeds of $39.9 million. The proceeds from the sale of these aircraft were used to extinguish the debt associated with these aircraft of $34.6 million. | |
We are required to comply with certain operational related non-financial covenants on certain financing agreements. As of September 30, 2013, the Company was in compliance with all of our covenants. |
Commitments_Contingincies
Commitments & Contingincies | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||||||
The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions): | |||||||||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||||||||
Beyond | |||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||||||
Debt or lease financed aircraft under purchase obligations(1) | $ | 553.5 | $ | 651.4 | $ | 889.1 | $ | 1,037.90 | $ | 778.4 | $ | — | $ | 3,910.30 | |||||||||||||||
Engines under firm orders | 15.9 | 21.2 | 19.3 | 21 | 7 | — | 84.4 | ||||||||||||||||||||||
Total contractual obligations for aircraft and engines | $ | 569.4 | $ | 672.6 | $ | 908.4 | $ | 1,058.90 | $ | 785.4 | $ | — | $ | 3,994.70 | |||||||||||||||
(1) The Company has finance commitments at current market terms. | |||||||||||||||||||||||||||||
The information in the table above reflects a purchase price of the aircraft at projected delivery dates. | |||||||||||||||||||||||||||||
Contingencies | |||||||||||||||||||||||||||||
The Company is subject to certain legal and administrative actions which management considers routine to its business activities. As of September 30, 2013, management believes, after consultation with legal counsel, the ultimate outcome of any pending legal matters, except the information discussed below, will not have a material adverse effect on the Company's financial position, liquidity or results of operations. | |||||||||||||||||||||||||||||
On June 10, 2011, Frontier reached a tentative agreement with the Frontier pilots (the “Pilots”), then represented by the Frontier Airlines Pilot Association ("FAPA"), pursuant to which FAPA agreed in principle to the restructuring of certain wages and benefits. On June 17, 2011, the tentative agreement was ratified by the Pilots. | |||||||||||||||||||||||||||||
On June 28, 2011, the International Brotherhood of Teamsters, Airline Division (the "IBT") replaced FAPA as the representative of Frontier pilots when the IBT was certified as the exclusive bargaining representative of the pilots. On August 3, 2011, the IBT filed suit against the Company and Frontier seeking to have the restructuring agreement declared null and void, or alternatively, seeking that the IBT manage the equity investment of the Frontier pilots due to accusations that the Company interfered with the election process. | |||||||||||||||||||||||||||||
We believe that these allegations are baseless and that we did not interfere in the election process, which in fact the IBT won. We intend to vigorously defend ourselves and Frontier against this complaint, but there can be no assurance that we will be successful. | |||||||||||||||||||||||||||||
As of September 30, 2013, approximately 71% of the Company's workforce is employed under union contracts. The union contracts for Republic pilots are currently amendable. Although we have never had a work interruption or stoppage, we are subject to risks of work interruption or stoppage and/or may incur additional administrative expenses associated with union representation of our employees. If we are unable to reach agreement with any of our unionized work groups on the amended terms of their collective bargaining agreements, we may be subject to work interruptions and/or stoppages. Any sustained work stoppages could adversely affect our ability to fulfill our obligations under our fixed-fee and pro-rate agreements and could have a material adverse effect on our financial condition and results of operations. | |||||||||||||||||||||||||||||
Contract negotiations with Republic pilots, which began in July 2007, have been in federal mediation since June 2011. In February 2013, the Company presented its last, best and final offer in Washington, D.C. at the National Mediation Board ("NMB"). Because the union's local representatives did not respond to the Company's offer, the federal mediator suspended negotiations. However on February 27, 2013, the Company received notice from the union's national division that it will allow the Republic pilots to vote on the offer, although no such vote was ever scheduled. The Company has scheduled a meeting with the union's national division and a private mediator in November 2013. The Company believes that any new agreement would significantly increase it's wage and benefits costs for its Republic pilots. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||||||
Discontinued Operations | |||||||||||||||||
On October 1, 2013, the Company announced that it had entered into a stock purchase agreement to sell Frontier Airlines Holdings, Inc. (“Frontier”) to an affiliate of Indigo Partners LLC. As a result the Company reported Frontier Airlines, Inc. as discontinued operations on the condensed consolidated statement of operations and condensed consolidated statement of cash flows for all periods presented. In addition the assets and liabilities of Frontier have been reported as held for sale on the condensed consolidated balance sheet. As a result of the sale of Frontier there is only one reportable segment. | |||||||||||||||||
Summarized financial information for discontinued operations is shown below: | |||||||||||||||||
($ in millions) | Three Months Ended | Nine Months Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total operating revenue | $ | 372.4 | $ | 375.8 | $ | 1,011.00 | $ | 1,088.80 | |||||||||
Income from discontinued operations before tax(2) | $ | 49.1 | $ | 31.8 | $ | 44.7 | $ | 27.2 | |||||||||
Income tax expense | 19.3 | 12.3 | 17.5 | 11 | |||||||||||||
Income from discontinued operations | 29.8 | 19.5 | 27.2 | 16.2 | |||||||||||||
Gain (loss) on disposal from discontinued operations (1) | (47.9 | ) | — | (47.9 | ) | — | |||||||||||
Total discontinued operations, net of tax | $ | (18.1 | ) | $ | 19.5 | $ | (20.7 | ) | $ | 16.2 | |||||||
(1) In connection with the exit of our Frontier business, we recorded a pre-tax loss of $203.0 million, net of income tax benefit of $155.1 million for the three and nine month ended September 30, 2013. This represents the difference between the net book value of our Frontier business and the projected sales price. Included in the $155.1 million of income tax benefit is the release of $78 million of deferred tax liabilities associated with the Company's tax basis in the stock of Frontier as the transaction will be treated as an asset sale for tax purposes. The amount included in discontinued operations will be adjusted at the closing of the transaction based on actual purchase price adjustments. | |||||||||||||||||
(2) In addition to the Frontier operations, income from discontinued operations before taxes includes certain adjustments required by discontinued operation presentation. | |||||||||||||||||
Assets/Liabilities held for sale consisted of our Frontier operations and aircraft and flight equipment as of September 30, 2013 (in millions): | |||||||||||||||||
Assets held for sale | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Cash and cash equivalents | $ | 63.8 | 36.4 | ||||||||||||||
Receivables | 45.7 | 39.2 | |||||||||||||||
Restricted cash | 136.2 | 127.5 | |||||||||||||||
Other current assets | 67 | 71.1 | |||||||||||||||
Non-current assets | 282.1 | 482.5 | |||||||||||||||
Total assets held for sale | 594.8 | 756.7 | |||||||||||||||
Liabilities held for sale | |||||||||||||||||
Current portion of long-term debt | $ | 33.5 | $ | 55.5 | |||||||||||||
Air traffic liability | 157 | 146.6 | |||||||||||||||
Accrued liabilities | 95 | 90.5 | |||||||||||||||
Other current liabilities | 59.5 | 61.7 | |||||||||||||||
Non-current liabilities | 172.8 | 167.9 | |||||||||||||||
Total liabilities held for sale | $ | 517.8 | $ | 522.2 | |||||||||||||
The value of the net assets and liabilities included in held for sale from above was $77.0 million, which represents estimated cash proceeds based on purchase price adjustments calculated as of September 30, 2013. Included in the $155.1 million of income tax benefit is the release of $78.0 million of deferred tax liabilities associated with the Company's tax basis in the stock of Frontier as the transaction will be treated as an asset sale for tax purposes. The difference in net assets and liabilities will be adjusted in future periods because the actual purchase price adjustments determined at the closing will be different from current estimates. Such future period adjustments will also result in adjusting our $47.9 million net loss on sale reported at September 30, 2013 and $77.0 million of estimated cash amounts. | |||||||||||||||||
Republic and Frontier entered into a transition services agreement pursuant to which Republic is providing Frontier, on an interim transitional basis, various services. Transition services may be provided for up to nine months with an option for extension by the recipient. Services being provided by Republic include certain information technology, operations and back office support. Billings by Republic under these transitional services agreements will be recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statement of Operations. This transitional support enables Frontier to establish its stand-alone processes for various activities that were previously provided by Republic and does not constitute significant continuing support of Frontier’s operations. |
Recent_Business_Developments_a
Recent Business Developments and Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Schedule of Subsequent Events [Text Block] | ' |
Recent Business Developments | |
On October 1, 2013, the company reported that it had agreed to sell its Frontier business to an affiliate of Indigo Partners LLC (Indigo). Indigo will acquire all the outstanding shares of Frontier Airlines Holdings, Inc. As part of the transaction, under a separate agreement, Republic will assign to Frontier all of Republic’s rights under agreements relating to Republic’s Airbus A320neo order. The transaction is subject to receipt of certain third-party consents and releases and other customary closing conditions. | |
On November 6, 2013, Indigo informed the company that it had satisfied or waived certain key conditions to close under the transaction. The company expects the transaction to close later this month. |
Significant_Accounting_Policie1
Significant Accounting Policies Significant Accounting (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
fixed fee service revenues [Policy Text Block] | ' | ||||||||||||||||
Rental Income – Under the Company’s fixed-fee code-share and fixed-fee charter agreements, the Company is reimbursed an amount per aircraft designed to compensate the Company for certain aircraft ownership costs. The Company has concluded that a component of its fixed-fee service revenue under the agreement discussed above is rental income, inasmuch as the agreement identifies the “right of use” of a specific type and number of aircraft over a stated period of time. The amounts deemed to be rental income during the three months ended September 30, 2013 and 2012, were $97.2 million and $83.8 million, respectively. The amounts deemed to be rental income during the nine months ended September 30, 2013 and 2012 were $284.3 million and $250.2 million, respectively, and have been included in fixed-fee service revenues in the Company’s condensed consolidated statements of operations. | |||||||||||||||||
charter and other revenue [Policy Text Block] | ' | ||||||||||||||||
Charter and Other Revenue – Charter and other revenue primarily consists of revenue related to our dedicated and co-sold scheduled charters and lease revenue for aircraft subleased under operating leases. Charter revenues are recognized at the point that our charter service is realizable and earned, which is when the transportation is provided. All other revenue is recognized as revenue when the related goods and services are provided. | |||||||||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
Restricted Cash – Restricted cash primarily consists of balances in escrow for our long-term charter agreement, restricted amounts for satisfying debt and lease payments due within the next year and certificates of deposit that secure certain letters of credit issued for workers' compensation claim reserves and certain airport authorities. Restricted cash is carried at cost, which management believes approximates fair value. | |||||||||||||||||
Discontinued Operations, Policy [Policy Text Block] | ' | ||||||||||||||||
Assets/Liabilities Held for Sale – Assets/Liabilities held for sale at September 30, 2013 and December 31, 2012, consist of our Frontier operations, flight equipment and spare aircraft parts at the lower of carrying value or estimated fair value less costs to sell. We expect to sell all such assets during the fourth quarter 2013. See Note 5. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
Net Income (Loss) Per Common Share – The following table is based on the weighted average number of common shares outstanding during the period. The following is a reconciliation of the weighted average common shares for the basic and diluted per share computations (in millions, except per share information): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic and diluted income per share: | |||||||||||||||||
Income from continuing operations | $ | 4.3 | $ | 6.3 | $ | 31.8 | $ | 22.5 | |||||||||
Discontinued operations, net of tax | (18.1 | ) | 19.5 | (20.7 | ) | 16.2 | |||||||||||
Net income (loss) | (13.8 | ) | 25.8 | 11.1 | 38.7 | ||||||||||||
Income effect of assumed-conversion interest on convertible debt | 0.2 | 0.3 | 1.5 | 0.8 | |||||||||||||
Income (loss) after assumed conversion | $ | (13.6 | ) | $ | 26.1 | $ | 12.6 | $ | 39.5 | ||||||||
Weighted average common shares outstanding | 49.4 | 48.5 | 49.8 | 48.5 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 0.6 | 0.1 | 0.6 | 0.2 | |||||||||||||
Convertible debt | 2.5 | 2.2 | 4.7 | 1.6 | |||||||||||||
Shares used to compute diluted earnings per share | 52.5 | 50.8 | 55.1 | 50.3 | |||||||||||||
Income (loss) per share - basic: | |||||||||||||||||
Income from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.64 | $ | 0.46 | |||||||||
Discontinued operations, net of tax | (0.37 | ) | 0.4 | (0.42 | ) | 0.34 | |||||||||||
Net income (loss) | $ | (0.28 | ) | $ | 0.53 | $ | 0.22 | $ | 0.8 | ||||||||
Income (loss) per share - diluted: | |||||||||||||||||
Income from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.6 | $ | 0.46 | |||||||||
Discontinued operations, net of tax | (0.35 | ) | 0.38 | (0.37 | ) | 0.33 | |||||||||||
Net income (loss) | $ | (0.26 | ) | $ | 0.51 | $ | 0.23 | $ | 0.79 | ||||||||
The Company excluded 3.0 million and 4.0 million employee stock options from the calculation of diluted net income per share due to their anti-dilutive impact for the three months ended September 30, 2013 and 2012, respectively. The Company excluded 3.0 million and 4.1 million employee stock options from the calculation of diluted net income per share due to their anti-dilutive impact for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The Company has two convertible notes with face values of $22.3 million and $25.0 million that are convertible in whole or in part, at the option of the holder, for up to 2.2 million and 2.5 million shares, respectively, of the Company’s common stock as of September 30, 2013. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the three and nine months ended September 30, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for three months ended September 30, 2013, and dilutive for nine months ended September 30, 2013. The convertible note payable for 2.2 million shares was dilutive for the three and nine months ended September 30, 2012. | |||||||||||||||||
The Company has the ability to redeem each of the two convertible notes to the extent the notes have not previously been converted by the holder. Upon at least 10 days advance written notice to the holder, the Company can redeem the $22.3 million note at face value, plus any accrued and unpaid interest. Upon not less than 30 days nor more than 60 days advance written notice, the Company can redeem the $25.0 million note at a premium to face value at any time through October 28, 2016 at which point the note can be redeemed at face value thereafter. | |||||||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair Value Measurements - Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, requires disclosures about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established. The Topic establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1 | quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||
Level 2 | quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||
Level 3 | unobservable inputs for the asset or liability. | ||||||||||||||||
The following table sets forth information regarding the Company's assets measured at fair value on a recurring basis (in millions): | |||||||||||||||||
Fair Value of Assets on a Recurring Basis | 30-Sep-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 83.6 | $ | — | $ | — | $ | 83.6 | |||||||||
Fair Value of Assets on a Recurring Basis | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 86.4 | $ | — | $ | — | $ | 86.4 | |||||||||
Chautauqua restructuring asset - In October 2012, the Company restructured certain aircraft ownership obligations related to its 50-seat regional jet platform, Chautauqua. The asset is recorded in the condensed consolidated balance sheet in other assets. The recurring fair value measurement of this restructuring has been calculated using an income approach, which requires the use of subjective assumptions that are considered level 3 inputs. Fair values have been estimated by discounting the cash flows expected to be received over the term of the applicable agreement, using a discount rate based on observable yields on instruments bearing comparable risks and credit worthiness of the counterparty. Critical assumptions used in the fair value measurement primarily include the amount and timing of cash inflows, the discount rate and the probability of whether the call option on the restructured aircraft will be exercised by the counterparty. A change in these assumptions could result in a significantly higher or lower fair value measurement, which would result in a gain or loss during the period in which the assumption changes. The difference between the fair value of the restructuring asset and the fair value of the convertible note will be recognized as a reduction to depreciation expense over the remaining useful life of the related aircraft subject to this agreement. There have been no significant changes in assumptions or fair value calculation during the nine months ended September 30, 2013. | |||||||||||||||||
In March 2013 the agreement was amended, which resulted in a $12.0 million increase in the restructuring asset under the fair value option. The $12.0 million increase represents the fair value of expected future cash inflows under the amendment. In addition, this amendment resulted in a $12.0 million deferred credit, which is included in accrued liabilities. As of September 30, 2013, the Company would owe approximately $14.4 million under certain circumstances of non-performance or voluntary repayment, however, the Company estimated the probability of repayment as remote. | |||||||||||||||||
The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions): | |||||||||||||||||
3 Months Ended September 30, 2013 | Chautauqua Restructuring Asset | ||||||||||||||||
Beginning Balance, June 30, 2013 | $ | 86.7 | |||||||||||||||
Cash received or other | (3.1 | ) | |||||||||||||||
Ending Balance, September 30, 2013 | $ | 83.6 | |||||||||||||||
9 Months Ended September 30, 2013 | Chautauqua Restructuring Asset | ||||||||||||||||
Beginning Balance, December 31, 2012 | $ | 86.4 | |||||||||||||||
Amendment to agreement | 12 | ||||||||||||||||
Cash received or other | (14.8 | ) | |||||||||||||||
Ending Balance, September 30, 2013 | $ | 83.6 | |||||||||||||||
Aircraft and Other Assets Impairment - Nonrecurring - in September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. For additional information on the loss on the disposal group see note 5. | |||||||||||||||||
($ in millions) | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | 9 mos ended September 30, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Pre-tax Losses | ||||||||||||
Long-lived assets held and used | $ | 152.5 | $ | 152.5 | $ | (12.0 | ) | ||||||||||
Net assets of disposal group | 77 | 77 | (203.0 | ) | |||||||||||||
$ | (215.0 | ) | |||||||||||||||
Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt relates to the potential change in fair value and impact to future earnings, respectively, from a change in interest rates. In the table below, the aggregate fair value of debt was based primarily on recently completed market transactions and estimates based on interest rates, maturities, credit risk, Black-Scholes assumptions and underlying collateral and is classified primarily as level 3 within the fair value hierarchy. | |||||||||||||||||
($ in millions) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Total debt at par value | $ | 1,997.50 | $ | 1,974.80 | |||||||||||||
Unamortized discount, net | (1.8 | ) | (2.1 | ) | |||||||||||||
Net carrying amount | $ | 1,995.70 | $ | 1,972.70 | |||||||||||||
Estimated fair value | 1,995.90 | 1,922.50 | |||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
New Accounting Pronouncements – In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11–Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard provides updated guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendment becomes affective for fiscal years beginning after December 15, 2013, and the impending impact to the consolidated financial statements will not be material. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard revises the guidance for providing information about the amounts reclassified out of accumulated other comprehensive income. It became effective for fiscal years beginning after December 15, 2012. The Company adopted this accounting standard on January 1, 2013, and the impact to the consolidated financial statements was not material. | |||||||||||||||||
In July 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The standard revises the guidance for evaluating impairment on indefinite-lived intangible assets. It was effective for the Company on January 1, 2013, and the impact to the consolidated financial statements was not material. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Net Income (Loss) Per Common Share – The following table is based on the weighted average number of common shares outstanding during the period. The following is a reconciliation of the weighted average common shares for the basic and diluted per share computations (in millions, except per share information): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic and diluted income per share: | |||||||||||||||||
Income from continuing operations | $ | 4.3 | $ | 6.3 | $ | 31.8 | $ | 22.5 | |||||||||
Discontinued operations, net of tax | (18.1 | ) | 19.5 | (20.7 | ) | 16.2 | |||||||||||
Net income (loss) | (13.8 | ) | 25.8 | 11.1 | 38.7 | ||||||||||||
Income effect of assumed-conversion interest on convertible debt | 0.2 | 0.3 | 1.5 | 0.8 | |||||||||||||
Income (loss) after assumed conversion | $ | (13.6 | ) | $ | 26.1 | $ | 12.6 | $ | 39.5 | ||||||||
Weighted average common shares outstanding | 49.4 | 48.5 | 49.8 | 48.5 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 0.6 | 0.1 | 0.6 | 0.2 | |||||||||||||
Convertible debt | 2.5 | 2.2 | 4.7 | 1.6 | |||||||||||||
Shares used to compute diluted earnings per share | 52.5 | 50.8 | 55.1 | 50.3 | |||||||||||||
Income (loss) per share - basic: | |||||||||||||||||
Income from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.64 | $ | 0.46 | |||||||||
Discontinued operations, net of tax | (0.37 | ) | 0.4 | (0.42 | ) | 0.34 | |||||||||||
Net income (loss) | $ | (0.28 | ) | $ | 0.53 | $ | 0.22 | $ | 0.8 | ||||||||
Income (loss) per share - diluted: | |||||||||||||||||
Income from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.6 | $ | 0.46 | |||||||||
Discontinued operations, net of tax | (0.35 | ) | 0.38 | (0.37 | ) | 0.33 | |||||||||||
Net income (loss) | $ | (0.26 | ) | $ | 0.51 | $ | 0.23 | $ | 0.79 | ||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
The following table sets forth information regarding the Company's assets measured at fair value on a recurring basis (in millions): | |||||||||||||||||
Fair Value of Assets on a Recurring Basis | 30-Sep-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 83.6 | $ | — | $ | — | $ | 83.6 | |||||||||
Fair Value of Assets on a Recurring Basis | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 86.4 | $ | — | $ | — | $ | 86.4 | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions): | |||||||||||||||||
3 Months Ended September 30, 2013 | Chautauqua Restructuring Asset | ||||||||||||||||
Beginning Balance, June 30, 2013 | $ | 86.7 | |||||||||||||||
Cash received or other | (3.1 | ) | |||||||||||||||
Ending Balance, September 30, 2013 | $ | 83.6 | |||||||||||||||
9 Months Ended September 30, 2013 | Chautauqua Restructuring Asset | ||||||||||||||||
Beginning Balance, December 31, 2012 | $ | 86.4 | |||||||||||||||
Amendment to agreement | 12 | ||||||||||||||||
Cash received or other | (14.8 | ) | |||||||||||||||
Ending Balance, September 30, 2013 | $ | 83.6 | |||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||
Aircraft and Other Assets Impairment - Nonrecurring - in September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. For additional information on the loss on the disposal group see note 5. | |||||||||||||||||
($ in millions) | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | 9 mos ended September 30, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Pre-tax Losses | ||||||||||||
Long-lived assets held and used | $ | 152.5 | $ | 152.5 | $ | (12.0 | ) | ||||||||||
Net assets of disposal group | 77 | 77 | (203.0 | ) | |||||||||||||
$ | (215.0 | ) | |||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||
Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt relates to the potential change in fair value and impact to future earnings, respectively, from a change in interest rates. In the table below, the aggregate fair value of debt was based primarily on recently completed market transactions and estimates based on interest rates, maturities, credit risk, Black-Scholes assumptions and underlying collateral and is classified primarily as level 3 within the fair value hierarchy. | |||||||||||||||||
($ in millions) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Total debt at par value | $ | 1,997.50 | $ | 1,974.80 | |||||||||||||
Unamortized discount, net | (1.8 | ) | (2.1 | ) | |||||||||||||
Net carrying amount | $ | 1,995.70 | $ | 1,972.70 | |||||||||||||
Estimated fair value | 1,995.90 | 1,922.50 | |||||||||||||||
Commitments_Contingincies_Tabl
Commitments & Contingincies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ||||||||||||||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions): | |||||||||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||||||||
Beyond | |||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||||||
Debt or lease financed aircraft under purchase obligations(1) | $ | 553.5 | $ | 651.4 | $ | 889.1 | $ | 1,037.90 | $ | 778.4 | $ | — | $ | 3,910.30 | |||||||||||||||
Engines under firm orders | 15.9 | 21.2 | 19.3 | 21 | 7 | — | 84.4 | ||||||||||||||||||||||
Total contractual obligations for aircraft and engines | $ | 569.4 | $ | 672.6 | $ | 908.4 | $ | 1,058.90 | $ | 785.4 | $ | — | $ | 3,994.70 | |||||||||||||||
(1) The Company has finance commitments at current market terms. | |||||||||||||||||||||||||||||
The information in the table above reflects a purchase price of the aircraft at projected delivery dates. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Results of Discontinued Operations [Abstract] | ' | ||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||||||||||
Summarized financial information for discontinued operations is shown below: | |||||||||||||||||
($ in millions) | Three Months Ended | Nine Months Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total operating revenue | $ | 372.4 | $ | 375.8 | $ | 1,011.00 | $ | 1,088.80 | |||||||||
Income from discontinued operations before tax(2) | $ | 49.1 | $ | 31.8 | $ | 44.7 | $ | 27.2 | |||||||||
Income tax expense | 19.3 | 12.3 | 17.5 | 11 | |||||||||||||
Income from discontinued operations | 29.8 | 19.5 | 27.2 | 16.2 | |||||||||||||
Gain (loss) on disposal from discontinued operations (1) | (47.9 | ) | — | (47.9 | ) | — | |||||||||||
Total discontinued operations, net of tax | $ | (18.1 | ) | $ | 19.5 | $ | (20.7 | ) | $ | 16.2 | |||||||
(1) In connection with the exit of our Frontier business, we recorded a pre-tax loss of $203.0 million, net of income tax benefit of $155.1 million for the three and nine month ended September 30, 2013. This represents the difference between the net book value of our Frontier business and the projected sales price. Included in the $155.1 million of income tax benefit is the release of $78 million of deferred tax liabilities associated with the Company's tax basis in the stock of Frontier as the transaction will be treated as an asset sale for tax purposes. The amount included in discontinued operations will be adjusted at the closing of the transaction based on actual purchase price adjustments. | |||||||||||||||||
assets and liabiltities held for sale [Table Text Block] | ' | ||||||||||||||||
Assets/Liabilities held for sale consisted of our Frontier operations and aircraft and flight equipment as of September 30, 2013 (in millions): | |||||||||||||||||
Assets held for sale | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Cash and cash equivalents | $ | 63.8 | 36.4 | ||||||||||||||
Receivables | 45.7 | 39.2 | |||||||||||||||
Restricted cash | 136.2 | 127.5 | |||||||||||||||
Other current assets | 67 | 71.1 | |||||||||||||||
Non-current assets | 282.1 | 482.5 | |||||||||||||||
Total assets held for sale | 594.8 | 756.7 | |||||||||||||||
Liabilities held for sale | |||||||||||||||||
Current portion of long-term debt | $ | 33.5 | $ | 55.5 | |||||||||||||
Air traffic liability | 157 | 146.6 | |||||||||||||||
Accrued liabilities | 95 | 90.5 | |||||||||||||||
Other current liabilities | 59.5 | 61.7 | |||||||||||||||
Non-current liabilities | 172.8 | 167.9 | |||||||||||||||
Total liabilities held for sale | $ | 517.8 | $ | 522.2 | |||||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) Text (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' |
Fixed-Fee Rental Income | $97.20 | $83.80 | $284.30 | $250.20 | ' |
Additional Paid in Capital | 418.9 | ' | 418.9 | ' | 412.1 |
Share-based Compensation | ' | ' | 2.9 | ' | ' |
Proceeds from Stock Options Exercised | ' | ' | 3.9 | 0 | ' |
Accumulated other comprehensive loss | 4.9 | ' | 4.9 | ' | 5 |
Accumulated Earnings | $299.30 | ' | $299.30 | ' | $288.20 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details) EPS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Summary Of Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
Income (Loss) from Continuing Operations Attributable to Parent | $4.30 | $6.30 | $31.80 | $22.50 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | -18.1 | 19.5 | -20.7 | 16.2 |
NET INCOME | -13.8 | 25.8 | 11.1 | 38.7 |
Interest on Convertible Debt, Net of Tax | 0.2 | 0.3 | 1.5 | 0.8 |
Net Income (Loss) Available to Common Stockholders, Diluted | -13.6 | 26.1 | 12.6 | 39.5 |
Weighted average number of shares outstanding | 49.4 | 48.5 | 49.8 | 48.5 |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0.6 | 0.1 | 0.6 | 0.2 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2.5 | 2.2 | 4.7 | 1.6 |
Shares used to computed diluted earnings per share | 52.5 | 50.8 | 55.1 | 50.3 |
Income (Loss) from Continuing Operations, Per Basic Share | $0.09 | $0.13 | $0.64 | $0.46 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | ($0.37) | $0.40 | ($0.42) | $0.34 |
Basic income per share | ($0.28) | $0.53 | $0.22 | $0.80 |
Income (Loss) from Continuing Operations, Per Diluted Share | $0.09 | $0.13 | $0.60 | $0.46 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | ($0.35) | $0.38 | ($0.37) | $0.33 |
Earnings Per Share, Diluted | ($0.26) | $0.51 | $0.23 | $0.79 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 4 | 3 | 4.1 |
Convertible Notes Payable - TPG | 22.3 | ' | 22.3 | ' |
Convertible Notes Payable - EMB | $25 | ' | $25 | ' |
TPG - Convertible debt | 2.2 | ' | ' | ' |
EMB - Convertible Debt | 2.5 | ' | ' | ' |
period of time needed for written advance notice to holder to redeem note | '10 days | ' | ' | ' |
minimum period of time needed for written advance notice to holder to redeem note | '30 days | ' | ' | ' |
maximum period of time needed for written advance notice to redeem note | '60 days | ' | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies (Details) Fair Value (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Seats | Seats | ||
Derivative Asset, Fair Value, Gross Asset | $83.60 | $83.60 | $86.40 |
Chautauqua Seats on Aircraft | 50 | 50 | ' |
CHQ Restrucuring - possible voluntary repayment under circumstances of non-performance | ' | 14.4 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | ' | 12 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value (begin) | 86.7 | 86.4 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | -3.1 | -14.8 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value (end) | 83.6 | 83.6 | ' |
asset impairment charges for aircraft related to inventory | ' | -12 | ' |
Amount of estimated cash proceeds from sale of Frontier | 77 | 77 | ' |
Value of net assets and liabilities held for sale | -203 | -203 | ' |
Other Asset Impairment Charges | ' | -215 | ' |
Long-term Debt, Gross | 1,997.50 | 1,997.50 | 1,974.80 |
Unamortized Discount, Net | -1.8 | -1.8 | -2.1 |
Long-term Debt, net carrying amount | 1,995.70 | 1,995.70 | 1,972.70 |
Long-term Debt, Fair Value | 1,995.90 | 1,995.90 | 1,922.50 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 83.6 | 83.6 | 86.4 |
Assets, Fair Value Disclosure | 152.5 | 152.5 | ' |
Amount of estimated cash proceeds from sale of Frontier | 77 | 77 | ' |
Fair Value Measurement [Domain] | ' | ' | ' |
Assets, Fair Value Disclosure | 152.5 | 152.5 | ' |
Amount of estimated cash proceeds from sale of Frontier | $77 | $77 | ' |
Debt_Details_Details
Debt Details (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Debt Disclosure [Abstract] | ' |
Proceeds from Sale of Other Assets | $39.90 |
Payments on early extinguishment of debt | $34.60 |
Commitments_Contingincies_Deta
Commitments & Contingincies (Details) Committments Table (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Long-term Purchase Commitment [Line Items] | ' |
Unrecorded Unconditional Purchase Obligation for Aircraft due within one year | $553.50 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within two years | 651.4 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years | 889.1 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within four years | 1,037.90 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within five years | 778.4 |
Unrecorded Unconditional Purchase Obligation for Aircraft due after five years | 0 |
Unrecorded Unconditional Purchase Obligation for Aircraft | 3,910.30 |
unconditional purchase obligations for engines | 15.9 |
Unrecorded Unconditional Purchase Obligation for Engines, due within two years | 21.2 |
Unrecorded Unconditional Purchase Obligation for Engines, due within three years | 19.3 |
Unrecorded Unconditional Purchase Obligation for Engines, due within four years | 21 |
Unrecorded Unconditional Purchase Obligation for Engines, due within five year | 7 |
Unrecorded Unconditional Purchase Obligation for Engines, due after five year | 0 |
Unrecorded Unreconciled Purchase Obligation for Engines, Total | 84.4 |
Unrecorded Unconditional Purchase Obligation, Due within One Year | 569.4 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 672.6 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 908.4 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 1,058.90 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 785.4 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 0 |
Unrecorded Unconditional Purchase Obligation | $3,994.70 |
Commitments_Contingincies_Deta1
Commitments & Contingincies (Details) Contingencies | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Percent of Union Employees | 71.00% |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Discontinued ops [Abstract] | ' | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Revenue | $372.40 | $375.80 | $1,011 | $1,088.80 | ' |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 49.1 | 31.8 | 44.7 | 27.2 | ' |
Discontinued Operation, Tax Effect of Discontinued Operation | 19.3 | 12.3 | 17.5 | 11 | ' |
Disposal Group, Including Discontinued Operations, Operating Income (Loss), net of tax | 29.8 | 19.5 | 27.2 | 16.2 | ' |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | -47.9 | 0 | -47.9 | 0 | ' |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | -18.1 | 19.5 | -20.7 | 16.2 | ' |
Value of net assets and liabilities held for sale | 203 | ' | 203 | ' | ' |
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | ' | ' | 155.1 | ' | ' |
Deferred Tax Liabilities, Parent's Basis in Discontinued Operation | 78 | ' | 78 | ' | ' |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 63.8 | 21.2 | 63.8 | 21.2 | 36.4 |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 45.7 | ' | 45.7 | ' | 39.2 |
Restricted Cash and Equivelants, Discontinued Operations | 136.2 | ' | 136.2 | ' | 127.5 |
Disposal Group, Including Discontinued Operation, Other Current Assets | 67 | ' | 67 | ' | 71.1 |
Assets of Disposal Group, Including Discontinued Operation, Noncurrent | 282.1 | ' | 282.1 | ' | 482.5 |
Assets of Disposal Group, Including Discontinued Operation, Current | 594.8 | ' | 594.8 | ' | 756.7 |
Current Maturities of Long-Term Debt, Including Discontinued Operations, Disposal Group | 33.5 | ' | 33.5 | ' | 55.5 |
Air Traffic Liability for Discontinued Ops | 157 | ' | 157 | ' | 146.6 |
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 95 | ' | 95 | ' | 90.5 |
Disposal Group, Including Discontinued Operation, Other Current Liabilities | 59.5 | ' | 59.5 | ' | 61.7 |
Liabilities of Disposal Group, Including Discontinued Operation, Noncurrent | 172.8 | ' | 172.8 | ' | 167.9 |
Liabilities of Disposal Group, Including Discontinued Operation, Current | 517.8 | ' | 517.8 | ' | 522.2 |
Amount of estimated cash proceeds from sale of Frontier | $77 | ' | $77 | ' | ' |