Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 | |
Entity Registrant Name | REPUBLIC AIRWAYS HOLDINGS INC | ||
Entity Central Index Key | 1159154 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 50,137,187 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $541,327,920 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $223.90 | $276.70 |
Restricted cash | 21.7 | 24 |
Receivables - net of allowance for doubtful accounts of $2.6 and $1.5, respectively | 20.7 | 48.3 |
Inventories | 60.9 | 71.9 |
Prepaid expenses and other current assets | 15.6 | 17.7 |
Deferred income taxes | 16.4 | 15.7 |
Total current assets | 359.2 | 454.3 |
Aircraft and other equipment, net | 2,860.90 | 2,563.60 |
Maintenance deposits | 53.2 | 36.6 |
Intangible and other assets, net | 220.7 | 216.8 |
Total assets | 3,494 | 3,271.30 |
Current Liabilities: | ||
Current portion of long-term debt | 309 | 276.2 |
Accounts payable | 19.3 | 28.9 |
Accrued Liabilities, Current | 142.9 | 163.8 |
Total current liabilities | 471.2 | 468.9 |
Long-term debt - less current portion | 2,030.20 | 1,890.60 |
Deferred credits and other non-current liabilities | 88.1 | 100.7 |
Deferred income taxes | 284 | 260.4 |
Total liabilities | 2,873.50 | 2,720.60 |
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; 59,821,243 and 59,704,943 shares issued and 50,024,780 and 49,525,594 shares outstanding, respectively | 0 | 0 |
Additional paid-in capital | 427.4 | 420.2 |
Treasury stock, 9,546,147 and 9,333,266 shares at cost, respectively | -183.9 | -181.8 |
Accumulated other comprehensive loss | -2.2 | -2.6 |
Retained Earnings (Accumulated Deficit) | 379.2 | 314.9 |
Stockholders' Equity Attributable to Parent | 620.5 | 550.7 |
Total liabilities and stockholders' equity | $3,494 | $3,271.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts Receivable, Current | $2.60 | $1.50 |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 59,821,243 | 59,704,943 |
Common Stock, Shares, Outstanding | 50,024,780 | 49,525,594 |
Preferred Stock, Par or Stated Value Per Share | $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, Shares | 9,546,147 | 9,333,266 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING REVENUES: | |||
Fixed-fee service | $1,348.50 | $1,276.10 | $1,102.10 |
Passenger service | 0 | 46.3 | 247.9 |
Other Revenue | 26.9 | 24.1 | 27.4 |
Total operating revenues | 1,375.40 | 1,346.50 | 1,377.40 |
OPERATING EXPENSES: | |||
Wages and benefits | 368 | 342.1 | 308.4 |
Aircraft fuel | 22.4 | 44.9 | 161.4 |
Landing fees and airport rents | 26.9 | 46.4 | 61.5 |
Aircraft and engine rent | 126 | 122.6 | 110.7 |
Maintenance and repair | 251.1 | 251.6 | 235.3 |
Insurance and taxes | 19.9 | 25.1 | 24.7 |
Depreciation and amortization | 173 | 150.7 | 160 |
Promotion and sales | 0 | 2.3 | 12.8 |
Impairment and other charges | 53.4 | 21.2 | 0 |
Other | 149.2 | 148.6 | 134.1 |
Total operating expenses | 1,189.90 | 1,155.50 | 1,208.90 |
OPERATING INCOME | 185.5 | 191 | 168.5 |
OTHER INCOME (EXPENSE): | |||
Interest expense | -119.7 | -112.2 | -117.6 |
Fair value gain on restructuring asset | 18.4 | 0 | 0 |
Other, net | 1 | 2.5 | 0.2 |
Total other expense | -100.3 | -109.7 | -117.4 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 85.2 | 81.3 | 51.1 |
INCOME TAX EXPENSE | 20.9 | 33 | 19.8 |
Income from Continuing Operations | 64.3 | 48.3 | 31.3 |
Income (loss) from discontinued operations, net of tax | 0 | -21.6 | 20 |
Net Income | $64.30 | $26.70 | $51.30 |
Income from Continuing Operations, Per Common Share - Basic | $1.29 | $0.98 | $0.65 |
Income from Continuing Operations, Per Common Share - Diluted | $1.24 | $0.92 | $0.63 |
NET INCOME PER COMMON SHARE - BASIC | $1.29 | $0.54 | $1.06 |
NET INCOME PER COMMON SHARE - DILUTED | $1.24 | $0.52 | $1.02 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | $64.30 | $26.70 | $51.30 |
Other comprehensive income (loss), net: | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 0.1 | 2.1 | -1.4 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 0.3 | 0.3 | 0.4 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $64.70 | $29.10 | $50.30 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Millions, unless otherwise specified | |||||
Stockholders' Equity Attributable to Parent - Period Start at Dec. 31, 2011 | $460.50 | $409.40 | ($181.80) | ($4) | $236.90 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3 | 3 | |||
Adjustments to Additional Paid in Capital, Other | -0.3 | -0.3 | |||
Net Income | 51.3 | 51.3 | |||
Treasury stock repurchases | 0 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -1.4 | -1.4 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | -0.4 | 0.4 | |||
Stockholders' Equity Attributable to Parent - Period End at Dec. 31, 2012 | 513.5 | 412.1 | -181.8 | -5 | 288.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4 | 4 | |||
Adjustments to Additional Paid in Capital, Other | 4.1 | 4.1 | |||
Net Income | 26.7 | 26.7 | |||
Treasury stock repurchases | 0 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 2.1 | 2.1 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | -0.3 | 0.3 | |||
Stockholders' Equity Attributable to Parent - Period End at Dec. 31, 2013 | 550.7 | 420.2 | -181.8 | -2.6 | 314.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4.6 | 4.6 | |||
Adjustments to Additional Paid in Capital, Other | 2.6 | 2.6 | |||
Net Income | 64.3 | 64.3 | |||
Treasury stock repurchases | -2.1 | -2.1 | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 0.1 | 0.1 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | -0.3 | -0.3 | |||
Stockholders' Equity Attributable to Parent - Period End at Dec. 31, 2014 | $620.50 | $427.40 | ($183.90) | ($2.20) | $379.20 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity Stockholders Equity Parenthetical (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized (Gain) Loss Arising During Period, Tax | $0.10 | $1.40 | $0.90 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | $0.10 | $0.20 | $0.30 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income from Continuing Operations | $64.30 | $48.30 | $31.30 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Impairment and other charges | 53.4 | 21.2 | 0 |
Fair value gain on restructuring asset | -18.4 | 0 | 0 |
Depreciation and amortization | 173 | 150.7 | 160 |
Debt issue costs and other amortization | 13.5 | 5.7 | 3.9 |
Stock compensation expense | 4.6 | 4 | 3 |
Deferred income taxes | 22.6 | 19.2 | 14.4 |
Other, net | -8.2 | -6.2 | 6 |
Changes in certain assets and liabilities: | |||
Receivables | 26 | -18.3 | 1.7 |
Inventories | 6.9 | -3.5 | 15.1 |
Prepaid expenses and other current assets | -8 | -4.6 | 1.3 |
Accounts payable and accrued liabilities | -13 | 21.2 | -6.5 |
Other, net | 3.8 | 2.9 | -9.4 |
Net Cash from operating activities of continuing operations | 320.5 | 240.6 | 220.8 |
INVESTING ACTIVITIES: | |||
Purchase of aircraft and other equipment | -569.2 | -476 | -24.4 |
Proceeds from sale of other assets | 41.3 | 46.2 | 84.2 |
Aircraft deposits | -27.5 | -30 | 0 |
Change in restricted cash | 2.3 | -4.3 | -0.4 |
Net Cash from (used in) investing activities of continuing operations | -553.1 | -464.1 | 59.4 |
FINANCING ACTIVITIES: | |||
Payments on Debt | -271.1 | -205.6 | -197.6 |
Proceeds from debt issuance and refinancing | 539.2 | 470 | 6.2 |
Repayments of Convertible Debt | -48.7 | 0 | 0 |
Payments on early extinguishment of debt and refinancing | -37 | -58.7 | -52 |
Proceeds from exercise of stock options | 2.6 | 4.1 | 0 |
Treasury stock repurchases | -2.1 | 0 | 0 |
Other, net | -3.1 | -4.1 | -0.5 |
Net Cash from (used in) financing activities of continuing operations | 179.8 | 205.7 | -243.9 |
DISCONTINUED OPERATIONS | |||
Cash from operating activities - discontinued operations | 0 | 90.3 | 29.7 |
Cash from investing activities - discontinued operations | 0 | 70 | -20.3 |
Cash from financing activities - discontinued operations | 0 | -40.1 | -17.8 |
NET CASH FROM DISCONTIUED OPERATIONS, excluding proceeds from sale of Frontier of $83.7 million included in cash from investing activities from discontinued operations in 2013 | 0 | 36.5 | -8.4 |
Proceeds from Divestiture of Businesses | 0 | 83.7 | 0 |
Net changes in cash and cash equivalents | -52.8 | 65.9 | 36.3 |
CASH AND CASH EQUIVALENTSbBeginning of period | 276.7 | 210.8 | 174.5 |
CASH AND CASH EQUIVALENTSbEnd of period | $223.90 | $276.70 | $210.80 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows Parenthetical for cash flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Elements [Abstract] | |||
Proceeds from Divestiture of Businesses | $0 | $83.70 | $0 |
Organization_and_Business
Organization and Business | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
ORGANIZATION & BUSINESS [Abstract] | ||||||||||||||||||
Nature of Operations [Text Block] | ORGANIZATION & 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”) through December 31, 2014, Shuttle America Corporation (“Shuttle”) and Republic Airline Inc. (“Republic Airline”). Unless the context indicates otherwise, the terms the “Company,” “we,” “us,” or “our,” refer to Republic Airways Holdings Inc. and our subsidiaries. | ||||||||||||||||||
As of December 31, 2014, our operating subsidiaries offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada under scheduled passenger service through our fixed-fee code-share agreements with United Continental Holdings, Inc. ("United"), Delta Air Lines, Inc. ("Delta"), and US Airways/American Airlines Group, Inc. ("American") (collectively referred to as our "Partners"). Currently, we provide our Partners with fixed-fee regional airline services, operating as United Express, Delta Connection, US Airways Express/American Eagle, including service out of their hubs and focus cities. The Company operated aircraft under a pro-rate agreement with Frontier Airlines, Inc. ("Frontier") which terminated during the first quarter of 2014. | ||||||||||||||||||
The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014: | ||||||||||||||||||
Operating Subsidiaries | Aircraft Size (Seats) | United | Delta | US Airways/American | Charters/Spares | Number of Aircraft | ||||||||||||
Chautauqua | 44 to 50 | — | 41 | — | — | 41 | ||||||||||||
Shuttle America | 70 to 76 | 38 | 30 | — | — | 68 | ||||||||||||
Republic Airline | 69 to 99 | 28 | — | 99 | 8 | 135 | ||||||||||||
Total number of operating aircraft | 66 | 71 | 99 | 8 | 244 | |||||||||||||
During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft. | ||||||||||||||||||
We have fixed-fee regional jet code-share agreements with each of our Partners that require us to maintain specified performance levels. Pursuant to these fixed-fee agreements, which provide for minimum aircraft utilization at fixed rates, we are authorized to use our Partners' two-character flight designation codes to identify our flights and fares in our Partners' computer reservation systems, to paint our aircraft in the style of our Partners, to use their service marks and to market ourselves as a carrier for our Partners. Our fixed-fee agreements have historically limited our exposure to fluctuations in fuel prices, fare competition and passenger volumes. Our development of relationships with multiple major airlines has enabled us to reduce our dependence on any single airline, allocate our overhead more efficiently among our Partners and reduce the cost of our services to our Partners. | ||||||||||||||||||
Sale of Frontier | ||||||||||||||||||
In October 2013, the Company entered into a stock purchase agreement for the sale of Frontier to an affiliate of Indigo Partners LLC. The sale was consummated on December 3, 2013. As a result, the Company reported Frontier as discontinued operations on the consolidated statements of operations and consolidated statements of cash flows for all periods presented. | ||||||||||||||||||
Certificate Consolidation | ||||||||||||||||||
On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America's operation. Republic hopes to sell the remaining Chautauqua Airlines' entity and related assets during the first half of 2015. The consolidation is consistent with the Company's strategy to simplify its business by operating fewer fleet types on fewer certificates. | ||||||||||||||||||
Code-Share Agreements | ||||||||||||||||||
Through our subsidiaries, we have entered into code-share agreements with US Airways, American, Delta, and United (the "Partners") that authorize us to use their two-character flight designator codes ("US," "AA," "DL," and "UA") 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, American Eagle, Delta Connection, or United Express, respectively. Under the code-share agreements between our subsidiaries and each of US Airways, American, Delta, and United, 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. | ||||||||||||||||||
The following table is a summary representation of existing Capacity Purchase Agreements ("CPAs") with our Partners as of December 31, 2014: | ||||||||||||||||||
Partner | Aircraft Type | Seats on Aircraft | Number of Aircraft under CPAs | Current Expiration Date(s) | ||||||||||||||
US Airways | E170 | 69 | 20 | March 2019 to March 2023 | ||||||||||||||
US Airways | E175 | 80 | 38 | March 2019 to March 2023 and February 2019 to July 2020 | ||||||||||||||
American | E175 | 76 | 41 | July 2025 to February 2027 | ||||||||||||||
Delta | E145 | 50 | 41 | August 2015 to May 2016 | ||||||||||||||
Delta | E170 | 70 | 14 | May 2021 to October 2021 | ||||||||||||||
Delta | E175 | 76 | 16 | August 2023 to February 2024 | ||||||||||||||
United | E170 | 70 | 38 | September 2019 to December 2022 | ||||||||||||||
United | Q400 | 71 | 28 | January 2015 to September 2016 | ||||||||||||||
US Airways/American Code-Share Agreements | ||||||||||||||||||
On December 9, 2013, US Airways Group, Inc. became a wholly owned subsidiary of American Airlines Group, Inc. (formerly known as AMR Corporation). The Company continues to operate the capacity purchase agreements with both entities independently as the agreements have not been assigned to the merged organization. | ||||||||||||||||||
Under our fixed-fee Jet Services Agreements with US Airways, we operated, as of December 31, 2014, 20 E170 aircraft and 38 E175 aircraft. As of December 31, 2014, we were providing 355 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. 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. 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. US Airways provides fuel directly for all of our US Airways operations. | ||||||||||||||||||
On November 6, 2014, the Company entered into an Amendment to the Amended and Restated Jet Service Agreement with US Airways, Inc., dated as of September 2, 2005. Under the amendment, the code-share agreement for the E170/175 aircraft was extended and now terminates between March 2019 and March 2023 with respect to the 20 E170 aircraft and eight of the E175 aircraft. The service terms for the remaining 30 E175 aircraft were not extended and are scheduled to 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. | ||||||||||||||||||
As of December 31, 2014, we operated 41 E175 aircraft for American under a fixed-fee code-share agreement and provided 224 flights per day as American Eagle. | ||||||||||||||||||
Under the code-share agreement, American retains all passenger, certain cargo and other revenues associated with each flight and is responsible for all revenue-related expenses. We share revenue with American for certain cargo shipments. Additionally, certain operating costs are considered pass through costs and American has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, hull and liability insurance and aircraft property tax costs are pass through costs and included in our fixed-fee services revenue. We do not record fuel expense and the related revenue for the American operations. | ||||||||||||||||||
As of December 31, 2013, 41 of the 47 aircraft are in service; the remaining six aircraft begin service between January 2015 and May 2015. Unless otherwise extended or amended, the E175 code-share agreement terminates on the 12th anniversary of the implementation date of each aircraft with terms expiring between July 2025 and February 2027. American has the option of extending the E175 agreement with respect to each aircraft, for up to two additional two year terms. The agreement is subject to early termination under various circumstances. | ||||||||||||||||||
On February 28, 2014, the Company announced that it had entered into an Amendment to the Amended and Restated Air Services Agreement with American Airlines Group, Inc. dated as of June 12, 2002. In the Amendment, the parties agreed to remove 15 E140 aircraft from service under the Air Services Agreement between March 2014 and August 2014. Upon removal of the last of the American Removed Aircraft, the Air Services Agreement terminated. | ||||||||||||||||||
The Delta Code-Share Agreements | ||||||||||||||||||
As of December 31, 2014, we operated 41 E145 aircraft, 14 E170 aircraft, and 16 E175 aircraft for Delta under fixed-fee code-share agreements. As of December 31, 2014, we provided 367 flights per day as Delta Connection. | ||||||||||||||||||
Unless otherwise extended or amended, the code-share agreement for the E145 aircraft terminates in May 2016. Delta may terminate the code-share agreements at any time, with or without cause, if it provides us 180 days written notice, for the E145 regional jet code-share agreement, or after July 2015 for the E175 regional jet code-share agreement. With respect to the E145 agreement, if Delta chooses to terminate any aircraft early, it may not reduce the number of aircraft in service to less than 12 during the 12-month period following the 180 days initial notice period unless it completely terminates the code-share agreement. We refer to this as Delta's partial termination right. | ||||||||||||||||||
If Delta exercises this right under the E145 agreement or the E175 agreement or if we terminate either agreement for cause, we have the right to require Delta either to purchase, sublease or assume the lease of aircraft leased by us with respect to any of the aircraft that we previously operated for Delta under that agreement. If we choose not to exercise our put right, or if Delta terminates either agreement for cause, they may require us to sell or sublease to them or Delta may assume the lease of aircraft leased by us with respect to any of the aircraft we previously operated for it under that agreement. There is no early termination provision under the E170 agreement. | ||||||||||||||||||
On December 11, 2014, the Company entered into Amendment Number Seven to the Delta Connection Agreement with Delta Airlines, Inc. dated as of January 20, 2005. Under the Agreement, the Company operates 14 E170 and 16 E175 aircraft as Delta Connection. The amendment provides for, among other things, an agreement for Shuttle to operate nine additional E170 aircraft to be placed into service between the third quarter of 2015 and the second quarter of 2016 for a term of six years per aircraft. The amendment also provides for an extension of the air transportation services provided by the Company with respect to the 14 E170 for another four years, for terms ending from May 2021 to October 2021, and extend the 16 E175 aircraft by approximately five years, for terms ending from August 2023 to February 2024. Delta may further extend the service terms for any or all of the 14 E170 and 16 E175 aircraft for an additional five years. The amendment also provides that Delta may purchase any or all of the E175 aircraft for an amount equal to the net book value of such aircraft at the end of the current terms for such aircraft or at any time during the extended terms, in which case Delta would lease the purchased aircraft to the Company for the Company's operation during the remainder of the terms. | ||||||||||||||||||
Certain of our operating costs are considered pass through costs, whereby Delta has agreed to reimburse us the actual amount of costs we incur for these items. Aircraft rent/ownership expenses are also considered a pass through cost, but the reimbursement is limited to specified amounts for certain aircraft. Engine maintenance expenses, landing fees, passenger liability insurance, hull insurance, war risk insurance, de-icing costs, and aircraft property taxes are some of the pass through costs included in our fixed-fee services revenue. All fuel is purchased directly by Delta and is not charged back to the Company. | ||||||||||||||||||
The agreements may be subject to immediate or early termination under various circumstances. | ||||||||||||||||||
The United Code-Share Agreement | ||||||||||||||||||
As of December 31, 2014, we operated 38 E170 aircraft and 28 Q400 aircraft for United under fixed-fee code-share agreements. As of December 31, 2014, we provided 353 flights per day as United Express. | ||||||||||||||||||
The fixed rates that we receive from United under the code-share agreements are annually adjusted in accordance with an agreed escalation formula. All fuel is purchased directly by United and is not charged back to the Company. Additionally, certain of our operating costs are considered pass through costs whereby United has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, war risk insurance, liability insurance and aircraft property taxes are pass through costs and included in our fixed-fee services revenue. | ||||||||||||||||||
On February 28, 2014, the Company announced that it had entered into the Fifth Amendment to the Capacity Purchase Agreement with United Airlines dated as of July 21, 2006. In the Amendment, the parties agreed to remove 12 E145 aircraft from service under the CPA Agreement on April 1, 2014. Upon removal of the last of the United Removed Aircraft, the CPA Agreement terminated. | ||||||||||||||||||
On September 16, 2014, the Company announced that it had entered into an Amendment to Capacity Purchase Agreement amending the Capacity Purchase Agreement dated as of May 1, 2012. The amendment provides for the removal from service of the Q400 aircraft operating under the agreement beginning in January 2015 and ending in September 2016, subject to adjustment of the schedule to accommodate the parties operational schedules. | ||||||||||||||||||
Also, on September 16, 2014, the Company announced that it had entered into a Seventh Amendment to the United Express Agreement, originally entered into on December 28, 2006. Pursuant to the amendment, the Company agreed to operate 50 E175 aircraft under the United Express brand with service to start in mid-2015. The new aircraft, which will seat 76 passengers in a two-class cabin, are expected to be phased into operation at approximately two to three aircraft per month beginning in mid-2015 through the third quarter of 2017. In addition, United has the option to add up to 50 additional E175 aircraft to the United Express Agreement by providing notice to the Company on or before December 31, 2016. Each new aircraft will be subject to the United Express Agreement for 12 years after the date it is placed in service thereunder, subject to United's right to extend the term for any group of 10 aircraft for four years. In January 2015, the Company finalized amendments to its agreements with United and Embraer to increase the number of E175 aircraft deliveries by five, to 55. | ||||||||||||||||||
In addition to the foregoing provisions, the amendment extends the term of the UA Express Agreement with respect to the 38 existing E170 aircraft the Company is flying for United by approximately three years, with aircraft terms expiring between September 2019 and December 2022. | ||||||||||||||||||
United has a call option to assume our ownership or leasehold interest in certain aircraft if we wrongfully terminate the code-share agreements or if United terminates the agreements for our breach for certain reasons. | ||||||||||||||||||
Concentrations | ||||||||||||||||||
As of December 31, 2014, substantially all fixed-fee service revenues are derived from code-share agreements with Delta, US Airways/American, and United. Termination of any of these code-share agreements could have a material adverse effect on the Company’s financial position, results of operations and cash flows. | ||||||||||||||||||
The following sets forth our Partners' regional airline services revenue and accounts receivable as a percentage of total regional airline services revenue and net receivables: | ||||||||||||||||||
Revenues for the years ended: | Delta | United | US Airways/American | |||||||||||||||
31-Dec-14 | 24% | 29% | 43% | |||||||||||||||
31-Dec-13 | 24% | 31% | 35% | |||||||||||||||
31-Dec-12 | 19% | 27% | 34% | |||||||||||||||
Receivables as of: | ||||||||||||||||||
31-Dec-14 | 4% | 3% | 26% | |||||||||||||||
31-Dec-13 | 7% | 23% | 19% |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Basis of Consolidation—The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries, Chautauqua Airlines, Shuttle America, and Republic Airline. Frontier Airlines is also included in the consolidated financial statements as discontinued operations until the sale on December 3, 2013. Intercompany transactions and balances are eliminated in consolidation. | ||||||||||||
Risk Management—The Company has recorded settlements of treasury lock agreements from prior periods within accumulated other comprehensive loss. Such amounts are reclassified to interest expense over the term of the respective aircraft debt. During 2014, 2013 and 2012, the amount reclassified to interest expense was not material to the financial statements. | ||||||||||||
Cash and Cash Equivalents—Cash equivalents consist of money market funds and short-term, highly liquid investments with maturities of three months or less when purchased and approximates fair value. Substantially all of our cash is on hand with two banks. | ||||||||||||
Supplemental Statement of Cash Flow Information: | ||||||||||||
Years ended December 31, | ||||||||||||
(amounts in millions) | 2014 | 2013 | 2012 | |||||||||
CASH PAID FOR INTEREST AND INCOME TAXES: | ||||||||||||
Interest paid-net of amount capitalized | $ | 110.1 | $ | 108.2 | $ | 116.1 | ||||||
Income taxes paid-net of refunds | 0.8 | 2.1 | 0.1 | |||||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||||||||||||
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1) | — | 42.8 | — | |||||||||
Other equipment acquired through manufacturer credits | 23.1 | 11.6 | — | |||||||||
Manufacturer credits applied to the purchase of aircraft | 17.1 | 8.7 | — | |||||||||
Engines received and not yet paid | — | 5.8 | — | |||||||||
Issuance of convertible debt | — | — | 22.9 | |||||||||
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive | — | 12 | 86.4 | |||||||||
(1) During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement. | ||||||||||||
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. | ||||||||||||
Receivables primarily consist of amounts due from our partners, OEMs and insurance providers. We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical write-offs and other specific analysis. Bad debt expense and write-offs were not material for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Inventories consist of spare parts and supplies, which are charged to expense as they are used in operations. Inventories are valued at the lower of cost or net realizable value using an average cost methodology. An allowance for obsolescence is provided to reduce inventory to estimated net realizable value. As of December 31, 2014 and 2013, this reserve was $27.0 million and $22.6 million, respectively. | ||||||||||||
Prepaid Expenses and Other Current Assets consist of prepaid expenses, primarily deposits, facility and engine rent, and other current assets. | ||||||||||||
Aircraft and Other Equipment is carried at cost. Incentives received from the aircraft manufacturer are recorded as reductions to the cost of the aircraft. Depreciation for aircraft is computed on a straight-line basis, to an estimated residual value, over the estimated useful life of 16.5 to 20 years. Depreciation for other equipment, including rotable parts, is computed on a straight-line basis, to an estimated residual value, over the estimated useful lives of three to ten years. Leasehold improvements are amortized over the expected life or lease term, whichever is shorter. Interest related to deposits on aircraft on firm order from the manufacturer is capitalized and was not material for the years ended December 31, 2014, 2013 and 2012, respectively. See Note 5. | ||||||||||||
Intangible and Other Assets that have indefinite useful lives are not amortized but are tested if a triggering event occurred, or at least annually, for impairment. Other assets consists primarily of aircraft leases and long-term deposits, Chautauqua restructuring asset, prepaid aircraft rents, and debt issue costs and other non-current assets. Debt issue costs are capitalized and are amortized using the effective interest method to interest expense over the term of the related debt. Refer to Note 6 for more detail. | ||||||||||||
Long-Lived Assets—Management reviews long-lived assets for possible impairment, if there is a triggering event that detrimentally affects operations. The primary financial indicator used by the Company to assess the recoverability of its long-lived assets held and used is undiscounted future cash flows from operations. The amount of impairment, if any, is measured based on carrying value over the estimated fair value. | ||||||||||||
Deferred Credits and Other Non Current Liabilities consist primarily of credits for parts and training from the aircraft and engine manufacturers, deferred gains from the sale and leaseback of aircraft and spare jet engines and deferred revenue. Deferred credits are amortized on a straight-line basis as a reduction of aircraft or engine rent expense over the term of the respective leases. The deferred revenue is amortized as an adjustment to fixed-fee services revenue based on the weighted average aircraft in service over the life of the respective agreements. | ||||||||||||
Accumulated Other Comprehensive Loss—The Company had accumulated other comprehensive loss relating to treasury lock agreements of $0.5 million and $0.8 million (net of tax), as of December 31, 2014 and 2013, respectively; and $1.7 million and $1.8 million (net of tax), relating to the pension plan as of December 31, 2014 and 2013, respectively. | ||||||||||||
Income Taxes—The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is adjusted by a valuation allowance, if necessary, to recognize the future tax benefits to the extent, based on available evidence; it is more likely than not they will be realized. | ||||||||||||
Aircraft Maintenance and Repair charges are expensed as incurred under the direct expense method. Engines and certain airframe component overhaul and repair costs are subject to power-by-the-hour contracts with external vendors and are expensed as the aircraft are flown. The Company also has refundable deposits related to leased aircraft. Deposits are reimbursed based on the specific event for each specified deposit, as determined by the lease. As of December 31, 2014, the Company has evaluated the carrying amount of maintenance deposits and believes the deposits are recoverable when the future maintenance event occurs and the Company is reimbursed. The Company has determined that it is probable that substantially all maintenance deposits will be refunded through qualifying maintenance activities. This analysis was performed by lease and by deposit type. The Company will continue to evaluate whether it is probable the deposits will be returned to reimburse the costs of the maintenance activities incurred. Deposits will be recognized as additional expense when they are less than probable of being returned. | ||||||||||||
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such management estimates include, but are not limited to, recognition of revenue, estimated useful lives and residual values of aircraft and other equipment, provision for accrued aircraft return costs, recoverability of maintenance deposits, fair value of financial instruments and valuation of deferred tax assets. Under the code-share agreements, the Company estimates operating costs for certain pass through costs and records revenue based on these estimates. Actual results could differ from these estimates. | ||||||||||||
Fixed-fee Service Revenues—Under our fixed-fee arrangements with our Partners, the Company receives fixed-fees for our capacity purchase agreements, as well as reimbursement of specified pass through costs on a gross basis with additional possible incentives from our Partners for superior service. These revenues are recognized in the period the service is provided, and we record an estimate of the profit component based upon the information available at the end of the accounting period. | ||||||||||||
The reimbursement of specified costs, known as pass through costs, may include aircraft ownership cost, passenger liability and hull insurance, aircraft property taxes, fuel, landing fees and catering. All revenue recognized under these contracts is presented at the gross amount billed for reimbursement. | ||||||||||||
Under the Company’s code-share 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 revenues under the agreements discussed above is rental income, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The amount deemed to be rental income during 2014, 2013 and 2012 was $433.7 million, $386.8 million, and $338.5 million, respectively, and has been included in fixed-fee service revenues in the Company’s consolidated statements of operations. | ||||||||||||
Other Revenue—Other revenue primarily consists of revenue related to lease revenue for aircraft leased under operating leases. | ||||||||||||
Lease Return Conditions—The Company must meet specified return conditions upon lease expiration for both the airframes and engines. The Company estimates lease return conditions specified in leases and accrues these amounts as contingent rent ratably over the lease term while the aircraft are operating once such costs are probable and reasonably estimable. These expenses are included in accrued liabilities in the consolidated balance sheets. | ||||||||||||
Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period. The following is a reconciliation of the diluted net income (loss) per common share computations: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Income from continuing operations | $ | 64.3 | $ | 48.3 | $ | 31.3 | ||||||
Income (loss) from discontinued operations, net of tax | — | (21.6 | ) | 20 | ||||||||
Net income | $ | 64.3 | $ | 26.7 | $ | 51.3 | ||||||
Reduction in interest expense from convertible notes (net of tax) | 0.8 | 2 | 1.3 | |||||||||
Net income after assumed conversion | $ | 65.1 | $ | 28.7 | $ | 52.6 | ||||||
Weighted-average common shares outstanding for basic net income per common share | 49.8 | 49.2 | 48.5 | |||||||||
Effect of dilutive employee stock options | 0.4 | 0.7 | 0.2 | |||||||||
Effect of dilutive convertible notes | 2.2 | 4.7 | 2.7 | |||||||||
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share | 52.4 | 54.6 | 51.4 | |||||||||
Income (loss) per share - basic: | ||||||||||||
Income from continuing operations | $ | 1.29 | $ | 0.98 | $ | 0.65 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.44 | ) | 0.41 | ||||||||
Net income per share - basic | $ | 1.29 | $ | 0.54 | $ | 1.06 | ||||||
Income (loss) per share - diluted: | ||||||||||||
Income from continuing operations | $ | 1.24 | $ | 0.92 | $ | 0.63 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.40 | ) | 0.39 | ||||||||
Net income per share - diluted | $ | 1.24 | $ | 0.52 | $ | 1.02 | ||||||
The Company excluded 2.5 million, 3.3 million, and 4.1 million of employee stock options from the calculation of diluted net income (loss) per share due to their anti-dilutive impact for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
The Company had two convertible notes with face values of $22.3 million and $25.0 million that were 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, which were both redeemed during 2014. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the twelve months ended December 31, 2014 and December 31, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for the twelve months ended December 31, 2014, and dilutive for the twelve months ended December 31, 2013 and 2012, respectively. | ||||||||||||
On April 7, 2014, the board authorized management to utilize up to $75 million to buy back shares and/or early retire convertible debt during the twelve months thereafter. The authorization approved Company repurchases of up to $50 million of common shares and retirements of up to $50 million of convertible notes, or combination thereof. Also, on April 7, 2014, the Company redeemed the convertible note with a face value of $22.3 million, by paying $22.3 million of cash. | ||||||||||||
On October 28, 2014, the Company redeemed the convertible note with a face value of $25.0 million, by paying $26.5 million in cash. At the time of redemption the convertible note had a nominal value of $28.0 million, which included accrued interest. | ||||||||||||
Segment Information—As a result of the sale of Frontier there is only one reportable segment for the scheduled transportation of passengers under code-share agreements. | ||||||||||||
Fair Value of Financial Instruments—The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, receivables, and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments. | ||||||||||||
Accounting Pronouncements—In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The objective of this update is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and the Company is still evaluating the impact to the consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after Requisite Service Period . The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to rewards with performance conditions that affect vesting to account for such awards. The Performance Target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. It is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and the impact to the consolidated financial statements is not expected to be material. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and the Company is still evaluating the impact to the consolidated financial statements. | ||||||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The objective of the standard is to update the requirements for reporting discontinued operations in Subtopic 205-20. | ||||||||||||
In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force . The objective of the update is to specify that an operating entity should not account for a service concession arrangement within the scope of this update as a lease in accordance with Topic 840, Leases. It is effective for fiscal years beginning after December 15, 2014, and the impact to the consolidated financial statements was not material. | ||||||||||||
In July 2013, the FASB issued 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. It became effective for fiscal years beginning after December 15, 2013, and the impact to the consolidated financial statements was not material. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
Fair Value Disclosures [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 (liabilities) measured at fair value on a recurring basis (in millions): | |||||||||||||||||
Fair Value of Assets on a Recurring Basis | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 81.2 | $ | — | $ | — | $ | 81.2 | |||||||||
Fair Value of Assets on a Recurring Basis | 31-Dec-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 79.6 | $ | — | $ | — | $ | 79.6 | |||||||||
Chautauqua restructuring asset - In October 2012, the Company restructured aircraft ownership obligations related to its 50-seat regional jet platform, Chautauqua. In connection with the restructuring, the Company issued a convertible note payable with a face value of $25.0 million, provided call rights on 28 of its owned aircraft and agreed to parent company guarantees related to future minimum lease payments, among other commitments. | |||||||||||||||||
The Company elected the fair value option under ASC 825-10, "Financial Instruments" for the agreement related to its 28 owned aircraft because management believes the fair value option provides the most accurate representation of the economic benefit of this agreement to Chautauqua in the Company's financial statements. Under the fair value option, the Company recorded an $86.4 million asset representing the combined fair value of expected future cash inflows under the agreement, net of the value of the Company's obligations attributable to the call rights on the 28 aircraft. The recurring fair value measurement of this agreement 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 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. A 100 basis point change in the discount rate used would have changed the fair value of the restructuring asset by approximately $2.0 million as of December 31, 2014. Similarly, a change in the assumed probability of whether the call option on the restructured aircraft will be exercised could result in either a gain or loss of up to $3.2 million per aircraft during the period in which that assumption changed. | |||||||||||||||||
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 that will amortize as a reduction to the basis of future aircraft deliveries through second quarter of 2015. | |||||||||||||||||
On February 11, 2014, the Company announced the early termination of its 44 to 50 seat fixed-fee agreements with United Airlines and American Airlines, which were scheduled to terminate in 2014. These agreements began to wind down in March 2014 and resulted in the grounding of 27 small jet aircraft. The Company notified the counterparty that 15 of the 27 aircraft to be grounded are subject to this agreement and callable by the counterparty. The Company was notified by the counterparty during the first quarter of 2014 that it did not intend to exercise its call option on these aircraft. The Company recorded a fair value gain of $18.4 million for the twelve months ended December 31, 2014, which represents the fair value of the increase in cash flows expected to be received over the remaining term of the agreement, due to the counterparty's obligation to increase its payment to the Company for aircraft that cease to have applicable capacity purchase agreement reimbursement rates. | |||||||||||||||||
As of December 31, 2014, the Company would owe approximately $36.7 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): | |||||||||||||||||
Chautauqua Restructuring Asset | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||
Beginning Balance | $ | 79.6 | $ | 86.4 | |||||||||||||
Amendment to agreement | — | 12 | |||||||||||||||
Fair value gain | 18.4 | — | |||||||||||||||
Cash received or other | (16.8 | ) | (18.8 | ) | |||||||||||||
Ending Balance | $ | 81.2 | $ | 79.6 | |||||||||||||
Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt primarily 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 and underlying collateral and is classified primarily as level 3 within the fair value hierarchy. | |||||||||||||||||
31-Dec | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net carrying amount | $ | 2,339.20 | $ | 2,166.80 | |||||||||||||
Estimated fair value | 2,215.00 | 2,099.80 | |||||||||||||||
Aircraft and Other Assets Impairment - Nonrecurring - In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of Q400 and E190 aircraft over the next few years. 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, maintenance record and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. | |||||||||||||||||
In March 2014, we recorded a 19.9 million impairment charge related to our decision to permanently park our owned E140 fleet in March 2014, impairing these aircraft to zero. | |||||||||||||||||
In September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. | |||||||||||||||||
There were no aircraft and other asset impairment charges recorded for the year ended December 31, 2012. | |||||||||||||||||
($ in millions) | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | Year ended December 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | ||||||||||||
Long-lived assets abandoned - E140 | $ | — | $ | — | $ | (19.9 | ) | ||||||||||
Long-lived assets held and used - Q400 | 49.7 | 49.7 | (13.3 | ) | |||||||||||||
Long-lived assets held and used - E190 | 101.6 | 101.6 | (14.4 | ) | |||||||||||||
$ | (47.6 | ) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | Year ended December 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | ||||||||||||
Long-lived assets held and used | $ | 152.5 | $ | 152.5 | $ | (12.0 | ) | ||||||||||
Note_4_Discontinued_Operations
Note 4 - Discontinued Operations (Notes) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS | |||||||||
In October, 2013, the Company entered into a stock purchase agreement for the sale of Frontier Airlines Holdings, Inc. (“Frontier”) to an affiliate of Indigo Partners LLC and the sale was completed on December 3, 2013. As a result the Company reported Frontier as discontinued operations on the consolidated statement of operations and consolidated statement of cash flows for all periods presented. | ||||||||||
Summarized financial information for discontinued operations is shown below: | ||||||||||
($ in millions) | Years Ended | |||||||||
2013 | 2012 | |||||||||
Total operating revenue | $ | 1,217.50 | $ | 1,433.50 | ||||||
Income from discontinued operations before tax(2) | $ | 50.9 | $ | 35 | ||||||
Income tax expense | 18.7 | 15 | ||||||||
Income from discontinued operations | 32.2 | 20 | ||||||||
Loss on disposal from discontinued operations (1) | (53.8 | ) | — | |||||||
Total discontinued operations, net of tax | $ | (21.6 | ) | $ | 20 | |||||
(1) In connection with the exit of our Frontier business, we recorded a pre-tax loss of $210.5 million, net of income tax benefit of $156.7 million for the year ended December 31, 2013. Included in the $156.7 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 Company incurred $7.1 million of transaction costs that are included in the loss on disposal for the year ended December 31, 2013. | ||||||||||
(2) In addition to the Frontier operations, income from discontinued operations before taxes includes certain adjustments required by discontinued operation presentation. | ||||||||||
Pursuant to the terms of the stock purchase agreement between the Company and Falcon Acquisition Group, Inc. ("Buyer"), the Company and Buyer finalized the share purchase price in the fourth quarter of 2014. The final share purchase price did not result in an adjustment to the share purchase price. In addition, the stock purchase agreement contains an obligation for the Company to indemnify the Buyer under certain circumstances and subject to certain conditions and limitations. With certain exceptions that are not subject to any limitation, the Company's indemnity obligation is capped under the stock purchase agreement at a maximum of $25.0 million. However, the Company believes that the likelihood that it will be required to make any payment of significant indemnification claims under the stock purchase agreement is remote and therefore the Company has not recorded any contingent liabilities for Buyer’s indemnification claims as of December 31, 2014. | ||||||||||
Republic has retained all liabilities for all United States federal and foreign income tax on income prior to separation, as well as certain non-income taxes attributable to Frontier's business. Frontier generally will be liable for all other taxes attributable to its business. In connection with the separation, Republic separated its defined contribution plan from Frontier's business. | ||||||||||
Republic and Frontier entered into a transition services agreement pursuant to which Republic provided Frontier, on an interim transitional basis, various services. Transition services were provided for nine months from the closing with an option for extension by the recipient. The transition services agreement was extended for certain information technology and operation support through December 31, 2014. Services provided by Republic under the original agreement included certain information technology, operations and back office support. Billings by Republic under these transitional services agreements of $2.8 million for the year ended December 31, 2014, are recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statements of Operations. This transitional support enabled Frontier to establish its stand-alone processes for various activities that were previously provided by Republic and did not constitute significant continuing involvement in Frontier’s operations. |
Aircraft_and_Other_Equipment
Aircraft and Other Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
AIRCRAFT AND OTHER EQUIPMENT [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | AIRCRAFT AND OTHER EQUIPMENT | |||||||
Aircraft and other equipment, excluding other equipment held for sale, consist of the following as of December 31 (in millions): | ||||||||
2014 | 2013 | |||||||
Aircraft | $ | 3,644.80 | $ | 3,221.80 | ||||
Flight equipment | 171.7 | 173.8 | ||||||
Office equipment and leasehold improvements | 44.4 | 44.8 | ||||||
Total aircraft and other equipment | 3,860.90 | 3,440.40 | ||||||
Less accumulated depreciation and amortization | (1,000.0 | ) | (876.8 | ) | ||||
Aircraft and other equipment—net | $ | 2,860.90 | $ | 2,563.60 | ||||
Aircraft and other equipment depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $173.0 million, $150.7 million, and $160.0 million, respectively. In December 2014, March 2014 and September 2013, we recorded $27.7 million, $19.9 million and $12.0 million in impairment charges, respectively, as discussed in Note 3. The Company also recorded a $5.8 million loss on the sale of two E190 aircraft that was recorded in impairment charges and other. |
Note_6_Intangible_and_Other_As
Note 6 - Intangible and Other Assets (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
schedule of intangible and other assets [Line Items] | ||||||||
intangible and other assets [Text Block] | INTANGIBLE AND OTHER ASSETS | |||||||
Intangible and other assets as of December 31, 2014 and 2013 consist of the following (in millions): | ||||||||
2014 | 2013 | |||||||
Indefinite-lived intangible assets: | ||||||||
Airport slots | $ | 9 | $ | 9 | ||||
Other assets: | ||||||||
Aircraft pre-delivery deposits | 57.5 | 30 | ||||||
Aircraft lease and long-term deposits | 26 | 38.4 | ||||||
Chautauqua restructuring asset - See Note 3 | 81.2 | 79.6 | ||||||
Prepaid aircraft rents | 27.8 | 34.5 | ||||||
Debt issue costs and other non-current assets | 19.2 | 25.3 | ||||||
Total Other assets | 211.7 | 207.8 | ||||||
Intangible and other assets | $ | 220.7 | $ | 216.8 | ||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ACCRUED LIABILITIES | |||||||
Accrued liabilities consist of the following as of December 31 (in millions): | ||||||||
2014 | 2013 | |||||||
Accrued wages, benefits and related taxes | $ | 29 | $ | 29.2 | ||||
Accrued maintenance | 37.6 | 50.2 | ||||||
Accrued interest payable | 18 | 18.1 | ||||||
Deferred revenue | 19.9 | 23.8 | ||||||
Other | 38.4 | 42.5 | ||||||
Total accrued liabilities | $ | 142.9 | $ | 163.8 | ||||
Debt
Debt | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Disclosure [Text Block] | DEBT | ||||||||||
The weighted average rate of debt for aircraft financings for December 31, 2014 and 2013, was 5.38% and 5.76%, respectively. | |||||||||||
Debt consists of the following as of December 31 (in millions): | |||||||||||
Secured debt: | 2014 | 2013 | |||||||||
Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 3.63% to 8.49% at December 31, 2014 and outstanding through 2025, net of unamortized debt discount of $73.4 million. (3) | $ | 2,238.10 | $ | 1,995.00 | |||||||
Promissory notes payable, collateralized by aircraft, bearing interest at variable rates based on LIBOR plus a margin, ranging from 1.80% to 1.82% at December 31, 2014 and outstanding through 2020. | 41.6 | 80 | |||||||||
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.25% to 8.38% as of December 31, 2014 and outstanding through 2020. | 53.7 | 37 | |||||||||
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.61% to 5.34% as of December 31, 2014 and outstanding through 2018. | 3.4 | 4.3 | |||||||||
Other | 2.4 | 3.7 | |||||||||
Total debt secured by aircraft and parts | 2,339.20 | 2,120.00 | |||||||||
Unsecured debt: | |||||||||||
Convertible note payable, bearing interest at a fixed rate of 8%, due in full in July 2014. (1) | — | 22.3 | |||||||||
Convertible note payable, bearing interest at a fixed rate of 6%, face value of $25.0 million, net of discount $0.5 million, due in full in 2019. (2) | — | 24.5 | |||||||||
Total unsecured debt | — | 46.8 | |||||||||
Total debt | 2,339.20 | 2,166.80 | |||||||||
Current portion | 309 | 276.2 | |||||||||
Long term debt, less current portion | $ | 2,030.20 | $ | 1,890.60 | |||||||
(1) The Company redeemed the convertible note by paying $22.3 million of cash on April 7, 2014 as discussed in Note 2. | |||||||||||
(2) The Company redeemed the convertible note by paying $26.5 million in cash on October 28, 2014, which included accrued interest as discussed in Note 2. | |||||||||||
(3) | The Company entered into financing agreements to borrow $569.2 million for 22 E175 aircraft and other equipment primarily for the American E175 fixed-fee agreement and other equipment. | ||||||||||
Included in the current portion of long term debt as of December 31, 2014, are approximately $28.7 million of aircraft related debt obligations that the Company expects to refinance. | |||||||||||
The Company has outstanding letters of credit as of December 31, 2014 and 2013 totaling $14.1 million and $17.0 million, respectively, that are collateralized by restricted cash. | |||||||||||
Future maturities of debt are payable, as follows for the years ending December 31 (in millions): | |||||||||||
Total Secured Debt | Amortization of Debt Discount, net | ||||||||||
2015 | $ | 321.2 | (12.2 | ) | |||||||
2016 | 303 | (11.2 | ) | ||||||||
2017 | 352.8 | (10.1 | ) | ||||||||
2018 | 295 | (9.0 | ) | ||||||||
2019 | 339.5 | (7.9 | ) | ||||||||
Thereafter | 801.1 | (23.0 | ) | ||||||||
Total | $ | 2,412.60 | $ | (73.4 | ) | $ | 2,339.20 | ||||
Commitments
Commitments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
COMMITMENTS [Abstract] | ||||||||||||||||||||||||
Commitments Disclosure [Text Block] | COMMITMENTS | |||||||||||||||||||||||
As of December 31, 2014, the Company leased 76 aircraft and 29 spare engines with varying terms extending through 2024 and terminal space, operating facilities and office equipment with terms extending through 2033 under operating leases. The components of rent expense for the years ended December 31 are as follows (in millions): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Aircraft and engine rent | $ | 126 | $ | 122.6 | $ | 110.7 | ||||||||||||||||||
Other | 10.3 | 11.7 | 9.2 | |||||||||||||||||||||
Total rent expense | $ | 136.3 | $ | 134.3 | $ | 119.9 | ||||||||||||||||||
The Company has long-term maintenance agreements with an avionics equipment manufacturer and maintenance provider that has a guaranteed minimum annual flight hour requirement. The minimum guaranteed amount based on the Company's current operations is $2.6 million per year through December 2016 for the E145 family of aircraft and $10.3 million per year through December 2014 for the E170 family of aircraft. | ||||||||||||||||||||||||
The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E140/145, E170/175 and Q400 aircraft: | ||||||||||||||||||||||||
Expiration Date of Agreement: | ||||||||||||||||||||||||
Maintenance Agreements | E140/145 | E170/175 | Q400 | |||||||||||||||||||||
Engines | December 2017(2) | March 2027(3) | June 2021(2) | |||||||||||||||||||||
APU | Dec-16 | Jul-19 | Jul-21 | |||||||||||||||||||||
Avionics | Dec-17 | Apr-23 | NA(1) | |||||||||||||||||||||
Wheels and Brakes | Dec-19 | Jan-22 | August 2022 (4) | |||||||||||||||||||||
Parts Pooling | Dec-17 | Feb-27 | Jul-21 | |||||||||||||||||||||
Emergency Slides | NA(1) | Dec-24 | NA(1) | |||||||||||||||||||||
Tires | NA(1) | NA(1) | Jul-21 | |||||||||||||||||||||
Propellers | NA(1) | NA(1) | Jul-21 | |||||||||||||||||||||
(1) Agreements do not exist for the specified maintenance item for the related aircraft type. | ||||||||||||||||||||||||
(2) Maintenance agreements for engines include life limited parts ("LLPs") for E140/145 and Q400 aircraft. As of | ||||||||||||||||||||||||
December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs. | ||||||||||||||||||||||||
-3 | Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027. | |||||||||||||||||||||||
(4) | Q400 maintenance agreements do not include wheels. | |||||||||||||||||||||||
Under these agreements, we are charged for covered services based on a fixed rate for each flight hour or flight cycle accumulated by the engines or airframes in our service during each month. The rates are subject to annual revisions, generally based on certain Bureau of Labor Statistics' labor and material indices. We believe these agreements, coupled with our ongoing maintenance program, reduce the likelihood of unexpected levels of engine, APU, avionics, wheels and brakes, emergency slides, and select rotable parts maintenance expense during their term. Certain of these agreements contain minimum guarantee amounts, penalty provisions for either the early removal of aircraft or agreement termination for activity levels below the minimums. | ||||||||||||||||||||||||
Total payments under these long-term maintenance agreements were $173.0 million, $163.8 million, and $119.4 million for the years ended December 31, 2014, 2013 and 2012, 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 $2.3 million as of December 31, 2014 for maintenance commitments on three E190 aircraft that will be returned to the lessor in 2015. | ||||||||||||||||||||||||
Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in millions): | ||||||||||||||||||||||||
Aircraft | Other | Total | ||||||||||||||||||||||
2015 | $ | 106.5 | $ | 16.2 | $ | 122.7 | ||||||||||||||||||
2016 | 101.6 | 15.1 | 116.7 | |||||||||||||||||||||
2017 | 87.8 | 13.1 | 100.9 | |||||||||||||||||||||
2018 | 77.1 | 12 | 89.1 | |||||||||||||||||||||
2019 | 73.9 | 9.9 | 83.8 | |||||||||||||||||||||
Thereafter | 103.9 | 44.5 | 148.4 | |||||||||||||||||||||
Total | $ | 550.8 | $ | 110.8 | $ | 661.6 | ||||||||||||||||||
As of December 31, 2014, the Company has leased eight E145 aircraft, three E170 aircraft, and three E190 aircraft to a foreign airline, and it has leased one E135 aircraft and three E145 aircraft to domestic airlines. As of December 31, 2014, the total amount of minimum rentals to be received in the future under non-cancelable leases is $104.0 million. During the years ended December 31, 2014, 2013, and 2012, the Company recognized $20.1 million, $18.7 million and $15.9 million, respectively, of lease income that is included in other revenue in the consolidated statements of operations. | ||||||||||||||||||||||||
As of December 31, 2014, the Company has firm orders to purchase 40 CS300 aircraft that have scheduled delivery dates beginning in early 2015 and continuing through 2017. In January 2014, Bombardier announced that the aircraft would not be expected into service until early 2016. The Company has stopped making pre-delivery deposit payments on these aircraft. | ||||||||||||||||||||||||
The Company also has a commitment for 47 Embraer E175 aircraft (of which 41 have been delivered as of December 31, 2014) under the American Eagle brand that have scheduled delivery dates currently and through the second quarter of 2015. In addition, the Company has a commitment for 55 Embraer E175 aircraft under the United brand that have scheduled delivery dates between the third quarter of 2015 and the third quarter of 2017. The Company also has a commitment to acquire 11 spare aircraft engines (of which three have been delivered as of December 31, 2014) and expects to take delivery of four engines in 2015, three engines in 2016, and one engine in 2017. | ||||||||||||||||||||||||
The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions): | ||||||||||||||||||||||||
Payments Due By Period | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||||||
Debt or lease financed aircraft under purchase obligations (1) | $ | 554.2 | $ | 2,447.00 | $ | 1,385.50 | $ | — | $ | — | $ | 4,386.70 | ||||||||||||
Engines under firm orders | 24.6 | 21 | 7 | — | — | 52.6 | ||||||||||||||||||
Total contractual obligations for aircraft and engines | $ | 578.8 | $ | 2,468.00 | $ | 1,392.50 | $ | — | $ | — | $ | 4,439.30 | ||||||||||||
(1) Represents delivery of CS300s based on estimated service date of early 2016. | ||||||||||||||||||||||||
The information in the table above reflects a purchase price of the aircraft at projected delivery dates. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |
Legal Matters and Contingencies [Text Block] | CONTINGENCIES |
We are subject to certain legal and administrative actions, which we consider routine to our business activities. Management believes that the ultimate outcome of any pending legal matters will not have a material adverse effect on our financial position, liquidity or results of operations. | |
During the third quarter of 2014, the suit filed by the International Brotherhood of Teamsters ("IBT") 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 was dismissed. The dismissal arose after the Frontier Airlines Pilots Association ("FAPA") was certified to replace the IBT as the collective bargaining representative of the Frontier pilots. After that occurred, the Company and Frontier sought to have the case dismissed on the ground that the IBT no longer had standing to represent the interests of the Frontier pilots. The IBT then moved to have FAPA substituted as the party in interest. The court granted that motion, after which FAPA indicated that it did not intend to continue to prosecute the case, leading to the dismissal. | |
As of December 31, 2014, approximately 71% of the Company's workforce is employed under union contracts. The union contracts for our pilots is 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. | |
The Company is currently in a labor dispute with the International Brotherhood of Teamsters ("IBT") Local 357, which represents all of our pilots. On April 4, 2014, the Company announced that members of the IBT Local 357 failed to ratify a proposed four-year pilot labor agreement, which would have increased pay, improved work rules and allotted a significant signing bonus to our pilots. Our inability to pay our pilots, especially our new hire first officers, market level wages is negatively impacting our ability to hire qualified pilots and operate the number of aircraft our Partners desire for us to fly under fixed-fee agreements. In 2014, we did not renew agreements to operate 27 ERJ aircraft and permanently parked 15 E140 aircraft, temporarily parked 12 E145 aircraft and temporarily parked an operational spare. The Company may need to park additional ERJ aircraft in 2015 and 2016 as a result of the current labor dispute, which could cause us to fail to meet the required performance levels under our CPAs. |
Capital_Stock_and_Stock_Option
Capital Stock and Stock Options | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | CAPITAL STOCK AND STOCK OPTIONS | ||||||||||||||
The following table summarizes common stock activity for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||
(in millions) | Common Stock | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Beginning balance | 49.5 | 48.6 | 48.4 | ||||||||||||
Shares issued for stock options exercised | 0.4 | 0.7 | — | ||||||||||||
Vesting of restricted stock and other | 0.1 | 0.2 | 0.2 | ||||||||||||
Ending balance | 50 | 49.5 | 48.6 | ||||||||||||
Employee Stock Options | |||||||||||||||
The 2002 Equity Incentive Plan expired on April 19, 2012 with 22,434 shares available to be issued. These shares were canceled in April of 2012 and as of December 31, 2014, there are no shares available for future issuance under the 2002 plan. | |||||||||||||||
On December 23, 2013, the Company filed a registration statement for 3.5 million additional shares, increasing the total shares available for granting under the 2007 Equity Incentive Plan to 8.5 million, of which 2,596,474 shares, remain available for issuance under the plan as of December 31, 2014. Stock options granted typically vest ratably between 36 and 48 months and are granted with exercise prices equal to market prices on the date of grant. The options normally expire 10 years from the date of grant. Options are typically granted to officers and key employees selected by the Compensation Committee of the Board of Directors, and outstanding options have exercise prices ranging from $4.10 to $20.27. | |||||||||||||||
Non-employee Director Stock Options | |||||||||||||||
For 2012, the non-employee directors received 2,500 stock options on the first trading day after the annual meeting of stockholders at which they were re-elected as non-employee directors. These options vest ratable over 12 months of continuous service. The non-employee director options are exercisable until 10 years from the date of grant. Beginning in 2013, the equity portion of the non-employee directors' compensation is payable in restricted stock. | |||||||||||||||
The following table summarizes option activity under the stock option plans as of December 31, 2014: | |||||||||||||||
Options | Weighted | Aggregate | Weighted Average | ||||||||||||
Average | Intrinsic Value (in millions) | Contractual Term | |||||||||||||
Exercise Price | (in years) | ||||||||||||||
Outstanding at January 1, 2014 | 4,176,666 | $ | 13.5 | ||||||||||||
Granted | 135,750 | 10.53 | |||||||||||||
Exercised | (900,801 | ) | 10.48 | ||||||||||||
Forfeited | (276,110 | ) | 13.43 | ||||||||||||
Outstanding at December 31, 2014 | 3,135,505 | $ | 14.25 | $ | 6.9 | 6.18 | |||||||||
Vested or expected to vest at December 31, 2014 | 3,095,611 | $ | 14.31 | $ | 6.7 | 6.11 | |||||||||
Exercisable at December 31, 2014 | 2,671,717 | $ | 14.9 | $ | 5 | 5.39 | |||||||||
The intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was not material. | |||||||||||||||
There were 3,513,999 and 3,790,942 options exercisable at December 31, 2013 and 2012, respectively. The weighted average exercise price for the options exercisable at December 31, 2013 and 2012 was $14.26 and $13.59, respectively. The remaining contractual life for the options outstanding at December 31, 2013 and 2012 was 4.63 years and 4.91 years, respectively. | |||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, $0.9 million ($0.5 million net of tax), $1.2 million ($0.7 million net of tax) and $1.2 million ($0.7 million net of tax), respectively, was charged to expense relating to the stock option plans. The Company has a policy of issuing new common shares to satisfy the exercise of stock options. At December 31, 2014 there was $1.8 million of unrecognized stock-based employee compensation expense for unvested stock options, and the expected remaining expense period is 4 years. The Company did not recognize excess tax benefits related to stock option exercises for the last 3 years due to net operating losses. | |||||||||||||||
The weighted average grant date fair value of options granted in 2014, 2013 and 2012 was $4.80, $5.28, and $2.02, respectively. The Company estimates the fair value of stock options issued using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. Dividends were based on an estimated dividend yield. The risk-free rates for the periods within the contractual life of the option are based on the U.S. Treasury rates in effect at the time of the grant. The forfeiture rate is based on historical information and management’s best estimate of future forfeitures. The expected term of options granted is derived from historical exercise experience and represents the period of time the Company expects options granted to be outstanding. Option valuation models require the input of subjective assumptions including the expected volatility and lives. | |||||||||||||||
The following assumptions were used to value stock option grants during the following periods: | |||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||
Expected volatility | 56 | % | - | 58% | 59 | % | - | 62% | 59 | % | - | 62% | |||
Risk-free interest rate | 1.7 | % | - | 1.80% | 0.9 | % | - | 1.40% | 0.6 | % | - | 1.00% | |||
Expected life (in years) | 4 | - | 5 | 4 | - | 5 | 4 | - | 5 | ||||||
Restricted Stock Grants | |||||||||||||||
Restricted stock awards have been granted to certain of our officers, directors, and key employees. Restricted stock awards are grants of shares of our common stock which typically vest over time (generally three or four years). | |||||||||||||||
Non-employee director restricted stock grants | |||||||||||||||
For service in 2013 and 2014 the non-employee directors received restricted stock valued at $50,000, which became vested on the earliest of (a) one year from the date of grant, (b) the date the director ceases to be a board member after at least five years of service and (c) the occurrence of a change in control. | |||||||||||||||
Compensation expense for our restricted stock grants was $3.7 million, $2.8 million, and $1.8 million during the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, we have $6.6 million in total unrecognized future compensation expense that will be recognized over the next three or four years relating to awards for 763,232 restricted shares which were issued but which had not yet vested. | |||||||||||||||
A summary of restricted stock activity under the aforementioned plan is as follows: | |||||||||||||||
Restricted Stock | |||||||||||||||
Awards | |||||||||||||||
Unvested at January 1, 2014 | 846,083 | ||||||||||||||
Vested | (317,500 | ) | |||||||||||||
Issued | 293,318 | ||||||||||||||
Surrendered | (58,669 | ) | |||||||||||||
Unvested at December 31, 2014 | 763,232 | ||||||||||||||
The grant date weighted-average fair value per share of restricted stock awards granted during the years ended December 31, 2014, 2013, and 2012, was $10.50, $11.23 and $4.98, respectively. The total fair value of shares vested during the years ended December 31, 2014, 2013, and 2012, was $3.1 million, $2.8 million, and $0.7 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||
Income Tax Disclosure [Text Block] | INCOME TAXES | |||||||||||
The components of the provision for income tax expense for the years ended December 31 are as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal: | ||||||||||||
Current | $ | — | $ | — | $ | — | ||||||
Deferred | 29.6 | 30.9 | 13.6 | |||||||||
Total Federal | 29.6 | 30.9 | 13.6 | |||||||||
State: | ||||||||||||
Current | (1.4 | ) | 4.1 | — | ||||||||
Deferred | (2.5 | ) | (9.8 | ) | 6.1 | |||||||
Total State | (3.9 | ) | (5.7 | ) | 6.1 | |||||||
Valuation allowance | (4.8 | ) | 8.8 | 0.1 | ||||||||
Expense for uncertain tax positions | — | (1.0 | ) | — | ||||||||
Income tax expense | $ | 20.9 | $ | 33 | $ | 19.8 | ||||||
A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for the years ended December 31 are as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax expense at statutory rate | $ | 29.8 | $ | 28.4 | $ | 17.9 | ||||||
State income tax expense, net of federal benefit | 2.6 | 2.7 | 1.6 | |||||||||
Valuation allowance | (4.8 | ) | 8.8 | 0.1 | ||||||||
Adjustment to deferred tax liabilities | (3.1 | ) | (8.8 | ) | (5.5 | ) | ||||||
Change in State tax rate | (4.2 | ) | — | 4.3 | ||||||||
Permanent tax adjustments | 2 | 1.7 | 1.2 | |||||||||
Other | (1.4 | ) | 0.2 | 0.2 | ||||||||
Income tax expense | $ | 20.9 | $ | 33 | $ | 19.8 | ||||||
The components of deferred tax assets and liabilities as of December 31 are as follows (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
DEFERRED TAX ASSETS: | ||||||||||||
Current: | ||||||||||||
Nondeductible accruals and deferred revenue | 24.6 | 24.2 | ||||||||||
Total | 24.6 | 24.2 | ||||||||||
Valuation allowance | (8.2 | ) | (8.5 | ) | ||||||||
Total current deferred tax assets | $ | 16.4 | $ | 15.7 | ||||||||
Noncurrent: | ||||||||||||
Nondeductible accruals and deferred revenue | $ | 27.5 | $ | 21.1 | ||||||||
Federal and state net operating loss carryforwards, net of liability for uncertain tax positions | 453.2 | 443.4 | ||||||||||
AMT credits | 6.1 | 6.1 | ||||||||||
Prepaid rent | 8.5 | 8.6 | ||||||||||
Deferred credits and other non-current liabilities | 5.7 | 17.4 | ||||||||||
Other | 22.8 | 23.2 | ||||||||||
Total | 523.8 | 519.8 | ||||||||||
Valuation allowance | (174.7 | ) | (182.8 | ) | ||||||||
Total noncurrent deferred tax assets | 349.1 | 337 | ||||||||||
DEFERRED TAX LIABILITIES: | ||||||||||||
Noncurrent: | ||||||||||||
Other intangible assets | (3.4 | ) | (3.4 | ) | ||||||||
Maintenance deposits | (20.2 | ) | (14.0 | ) | ||||||||
Accelerated depreciation and fixed asset basis differences for tax purposes | (609.5 | ) | (580.0 | ) | ||||||||
Total noncurrent deferred tax liabilities | (633.1 | ) | (597.4 | ) | ||||||||
Total net noncurrent deferred tax liabilities | $ | (284.0 | ) | $ | (260.4 | ) | ||||||
The Company monitors ongoing tax cases related to its unrecognized tax benefits. The unrecognized tax benefits, which if recognized, would impact the effective tax rate. The Company does not anticipate that total unrecognized tax benefits would significantly change within the next 12 months. The following table reconciles the Company’s tax liability for uncertain tax positions for the year ended December 31 (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at January 1, | $ | 7.1 | $ | 8.1 | $ | 8.1 | ||||||
Additions for tax positions taken in prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | — | (1.0 | ) | — | ||||||||
Balance at December 31, | $ | 7.1 | $ | 7.1 | $ | 8.1 | ||||||
The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at January 1, | $ | 191.3 | $ | 182.5 | $ | 182.5 | ||||||
Reduction for net operating losses previously reserved that were utilized or expired | (3.6 | ) | — | (0.1 | ) | |||||||
Additions (deductions) for current year change in estimate | (4.8 | ) | 8.8 | 0.1 | ||||||||
Balance at December 31, | $ | 182.9 | $ | 191.3 | $ | 182.5 | ||||||
The future use of the net operating losses (“NOLs”) acquired from previous acquisitions are limited based on Internal Revenue Code Section 382 due to the change in control that occurred from the acquisitions. Management evaluated the deferred tax assets and determined that more likely than not, certain deferred tax assets would not be utilized and therefore a valuation allowance was required. The net operating losses generated by the Company after the change in control date, generally do not have a related valuation allowance. As of December 31, 2014, the Company has federal NOL carryforwards totaling $1.3 billion, which begin expiring in 2015, and of which approximately $398.0 million are not expected to be realized prior to expiration mostly due to the limitations under Internal Revenue Code Section 382. Therefore, a valuation allowance has been recorded for these net operating loss carryforwards. In 2014, the Company reduced its state effective tax rate, which decreased its net deferred tax asset by approximately $4.2 million. In addition, the Company decreased its valuation allowance related to net operating losses by approximately $8.4 million, of which $3.6 million was attributable to losses that were utilized or expired. | ||||||||||||
Deferred tax assets include benefits expected to be realized from the utilization of alternative minimum tax (“AMT”) credit carryforwards of $6.1 million, which do not expire. A valuation allowance of $5.2 million has been recorded against AMT credit carryforwards that were acquired from previous acquisitions as these credits are not expected to be realized. | ||||||||||||
The Company's federal income tax returns for tax years after 1998 remain subject to examination by the Internal Revenue Service (“IRS”) and state taxing jurisdictions. The Company concluded its audit by the IRS for the 2009 tax year in 2012. The Company's NOL's from prior tax years would remain subject to examination by major tax jurisdictions due to our net operating loss carryforwards. |
Retirement_and_Benefit_Plans
Retirement and Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | RETIREMENT AND BENEFIT PLANS |
Defined Contributions Plans — The Company has defined contribution retirement plans covering all employees meeting the eligibility requirements. The Company matches up to 6% of employees' eligible compensation as defined by the Plan document. Employees are generally vested in matching contributions after three years of service with the Company. Employees are also permitted to make pre-tax deferrals and after-tax Roth contributions of up to 90% (up to the annual Internal Revenue Code limit) of their eligible compensation. The Company's expense under this plan was $6.3 million, $5.9 million, and $5.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Qualified Defined Benefit Plan — The Company has a qualified defined benefit plan. The accrued benefit liability (recorded in deferred credits and other noncurrent liabilities) was $3.4 million and $3.3 million as of December 31, 2014 and 2013, respectively. The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2014 were $9.9 million, $13.3 million and $9.9 million, respectively. The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2013 were $16.7 million, $16.7 million, and $13.4 million, respectively. | |
The net periodic benefit cost, employer contributions, and future benefit payments are not material to the Company’s consolidated statements of operations or consolidated financial position. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(amounts in millions) | Balance at Beginning of Year | Additions Charged to Expense | Deductions | Balance at End of Year | |||||||||||||
Description | |||||||||||||||||
Allowance for doubtful accounts receivables: | |||||||||||||||||
12/31/14 | $ | 1.5 | $ | 1.4 | $ | (0.3 | ) | (1) | $ | 2.6 | |||||||
12/31/13 | 1.3 | 0.4 | (0.2 | ) | (1) | 1.5 | |||||||||||
12/31/12 | $ | 0.5 | $ | 0.9 | $ | (0.1 | ) | (1) | $ | 1.3 | |||||||
(1) | Uncollectible accounts written off net of recoveries, if any. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
On February 26, 2015, the Company received written notice from Delta exercising their right to extend 24 aircraft under the E145 code-share agreement from May 2016 to May 2021. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies Level 2 (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||||||||
Consolidation, Policy [Policy Text Block] | Basis of Consolidation—The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries, Chautauqua Airlines, Shuttle America, and Republic Airline. Frontier Airlines is also included in the consolidated financial statements as discontinued operations until the sale on December 3, 2013. Intercompany transactions and balances are eliminated in consolidation. | |||||||||||
Derivatives, Policy [Policy Text Block] | Risk Management—The Company has recorded settlements of treasury lock agreements from prior periods within accumulated other comprehensive loss. Such amounts are reclassified to interest expense over the term of the respective aircraft debt. During 2014, 2013 and 2012, the amount reclassified to interest expense was not material to the financial statements. | |||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents—Cash equivalents consist of money market funds and short-term, highly liquid investments with maturities of three months or less when purchased and approximates fair value. Substantially all of our cash is on hand with two banks. | |||||||||||
Supplemental Statement of Cash Flow Information: | ||||||||||||
Years ended December 31, | ||||||||||||
(amounts in millions) | 2014 | 2013 | 2012 | |||||||||
CASH PAID FOR INTEREST AND INCOME TAXES: | ||||||||||||
Interest paid-net of amount capitalized | $ | 110.1 | $ | 108.2 | $ | 116.1 | ||||||
Income taxes paid-net of refunds | 0.8 | 2.1 | 0.1 | |||||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||||||||||||
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1) | — | 42.8 | — | |||||||||
Other equipment acquired through manufacturer credits | 23.1 | 11.6 | — | |||||||||
Manufacturer credits applied to the purchase of aircraft | 17.1 | 8.7 | — | |||||||||
Engines received and not yet paid | — | 5.8 | — | |||||||||
Issuance of convertible debt | — | — | 22.9 | |||||||||
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive | — | 12 | 86.4 | |||||||||
(1) During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement. | ||||||||||||
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. | ||||||||||||
Receivables, Policy [Policy Text Block] | Receivables primarily consist of amounts due from our partners, OEMs and insurance providers. We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical write-offs and other specific analysis. Bad debt expense and write-offs were not material for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Inventory, Policy [Policy Text Block] | Inventories consist of spare parts and supplies, which are charged to expense as they are used in operations. Inventories are valued at the lower of cost or net realizable value using an average cost methodology. An allowance for obsolescence is provided to reduce inventory to estimated net realizable value. As of December 31, 2014 and 2013, this reserve was $27.0 million and $22.6 million, respectively. | |||||||||||
Prepaid expenses and Other Current Assets [Policy Text Block] | Prepaid Expenses and Other Current Assets consist of prepaid expenses, primarily deposits, facility and engine rent, and other current assets. | |||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Aircraft and Other Equipment is carried at cost. Incentives received from the aircraft manufacturer are recorded as reductions to the cost of the aircraft. Depreciation for aircraft is computed on a straight-line basis, to an estimated residual value, over the estimated useful life of 16.5 to 20 years. Depreciation for other equipment, including rotable parts, is computed on a straight-line basis, to an estimated residual value, over the estimated useful lives of three to ten years. Leasehold improvements are amortized over the expected life or lease term, whichever is shorter. Interest related to deposits on aircraft on firm order from the manufacturer is capitalized and was not material for the years ended December 31, 2014, 2013 and 2012, respectively. See Note 5. | |||||||||||
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | Intangible and Other Assets that have indefinite useful lives are not amortized but are tested if a triggering event occurred, or at least annually, for impairment. | |||||||||||
other assets [Policy Text Block] | Other assets consists primarily of aircraft leases and long-term deposits, Chautauqua restructuring asset, prepaid aircraft rents, and debt issue costs and other non-current assets. Debt issue costs are capitalized and are amortized using the effective interest method to interest expense over the term of the related debt. Refer to Note 6 for more detail. | |||||||||||
Property, Plant and Equipment, Impairment [Policy Text Block] | Long-Lived Assets—Management reviews long-lived assets for possible impairment, if there is a triggering event that detrimentally affects operations. The primary financial indicator used by the Company to assess the recoverability of its long-lived assets held and used is undiscounted future cash flows from operations. The amount of impairment, if any, is measured based on carrying value over the estimated fair value. | |||||||||||
deferred credits and other non current liabilities [Policy Text Block] | Deferred Credits and Other Non Current Liabilities consist primarily of credits for parts and training from the aircraft and engine manufacturers, deferred gains from the sale and leaseback of aircraft and spare jet engines and deferred revenue. Deferred credits are amortized on a straight-line basis as a reduction of aircraft or engine rent expense over the term of the respective leases. The deferred revenue is amortized as an adjustment to fixed-fee services revenue based on the weighted average aircraft in service over the life of the respective agreements. | |||||||||||
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Loss—The Company had accumulated other comprehensive loss relating to treasury lock agreements of $0.5 million and $0.8 million (net of tax), as of December 31, 2014 and 2013, respectively; and $1.7 million and $1.8 million (net of tax), relating to the pension plan as of December 31, 2014 and 2013, respectively. | |||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes—The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is adjusted by a valuation allowance, if necessary, to recognize the future tax benefits to the extent, based on available evidence; it is more likely than not they will be realized. | |||||||||||
Maintenance Cost, Policy [Policy Text Block] | Aircraft Maintenance and Repair charges are expensed as incurred under the direct expense method. Engines and certain airframe component overhaul and repair costs are subject to power-by-the-hour contracts with external vendors and are expensed as the aircraft are flown. The Company also has refundable deposits related to leased aircraft. Deposits are reimbursed based on the specific event for each specified deposit, as determined by the lease. As of December 31, 2014, the Company has evaluated the carrying amount of maintenance deposits and believes the deposits are recoverable when the future maintenance event occurs and the Company is reimbursed. The Company has determined that it is probable that substantially all maintenance deposits will be refunded through qualifying maintenance activities. This analysis was performed by lease and by deposit type. The Company will continue to evaluate whether it is probable the deposits will be returned to reimburse the costs of the maintenance activities incurred. Deposits will be recognized as additional expense when they are less than probable of being returned. | |||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such management estimates include, but are not limited to, recognition of revenue, estimated useful lives and residual values of aircraft and other equipment, provision for accrued aircraft return costs, recoverability of maintenance deposits, fair value of financial instruments and valuation of deferred tax assets. Under the code-share agreements, the Company estimates operating costs for certain pass through costs and records revenue based on these estimates. Actual results could differ from these estimates. | |||||||||||
fixed fee service revenues [Policy Text Block] | Fixed-fee Service Revenues—Under our fixed-fee arrangements with our Partners, the Company receives fixed-fees for our capacity purchase agreements, as well as reimbursement of specified pass through costs on a gross basis with additional possible incentives from our Partners for superior service. These revenues are recognized in the period the service is provided, and we record an estimate of the profit component based upon the information available at the end of the accounting period. | |||||||||||
The reimbursement of specified costs, known as pass through costs, may include aircraft ownership cost, passenger liability and hull insurance, aircraft property taxes, fuel, landing fees and catering. All revenue recognized under these contracts is presented at the gross amount billed for reimbursement. | ||||||||||||
Under the Company’s code-share 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 revenues under the agreements discussed above is rental income, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The amount deemed to be rental income during 2014, 2013 and 2012 was $433.7 million, $386.8 million, and $338.5 million, respectively, and has been included in fixed-fee service revenues in the Company’s consolidated statements of operations. | ||||||||||||
other revenue [Policy Text Block] | Other Revenue—Other revenue primarily consists of revenue related to lease revenue for aircraft leased under operating leases. | |||||||||||
Lease, Policy [Policy Text Block] | Lease Return Conditions—The Company must meet specified return conditions upon lease expiration for both the airframes and engines. The Company estimates lease return conditions specified in leases and accrues these amounts as contingent rent ratably over the lease term while the aircraft are operating once such costs are probable and reasonably estimable. These expenses are included in accrued liabilities in the consolidated balance sheets. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period. The following is a reconciliation of the diluted net income (loss) per common share computations: | |||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Income from continuing operations | $ | 64.3 | $ | 48.3 | $ | 31.3 | ||||||
Income (loss) from discontinued operations, net of tax | — | (21.6 | ) | 20 | ||||||||
Net income | $ | 64.3 | $ | 26.7 | $ | 51.3 | ||||||
Reduction in interest expense from convertible notes (net of tax) | 0.8 | 2 | 1.3 | |||||||||
Net income after assumed conversion | $ | 65.1 | $ | 28.7 | $ | 52.6 | ||||||
Weighted-average common shares outstanding for basic net income per common share | 49.8 | 49.2 | 48.5 | |||||||||
Effect of dilutive employee stock options | 0.4 | 0.7 | 0.2 | |||||||||
Effect of dilutive convertible notes | 2.2 | 4.7 | 2.7 | |||||||||
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share | 52.4 | 54.6 | 51.4 | |||||||||
Income (loss) per share - basic: | ||||||||||||
Income from continuing operations | $ | 1.29 | $ | 0.98 | $ | 0.65 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.44 | ) | 0.41 | ||||||||
Net income per share - basic | $ | 1.29 | $ | 0.54 | $ | 1.06 | ||||||
Income (loss) per share - diluted: | ||||||||||||
Income from continuing operations | $ | 1.24 | $ | 0.92 | $ | 0.63 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.40 | ) | 0.39 | ||||||||
Net income per share - diluted | $ | 1.24 | $ | 0.52 | $ | 1.02 | ||||||
The Company excluded 2.5 million, 3.3 million, and 4.1 million of employee stock options from the calculation of diluted net income (loss) per share due to their anti-dilutive impact for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
The Company had two convertible notes with face values of $22.3 million and $25.0 million that were 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, which were both redeemed during 2014. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the twelve months ended December 31, 2014 and December 31, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for the twelve months ended December 31, 2014, and dilutive for the twelve months ended December 31, 2013 and 2012, respectively. | ||||||||||||
On April 7, 2014, the board authorized management to utilize up to $75 million to buy back shares and/or early retire convertible debt during the twelve months thereafter. The authorization approved Company repurchases of up to $50 million of common shares and retirements of up to $50 million of convertible notes, or combination thereof. Also, on April 7, 2014, the Company redeemed the convertible note with a face value of $22.3 million, by paying $22.3 million of cash. | ||||||||||||
On October 28, 2014, the Company redeemed the convertible note with a face value of $25.0 million, by paying $26.5 million in cash. At the time of redemption the convertible note had a nominal value of $28.0 million, which included accrued interest. | ||||||||||||
Segment Reporting, Policy [Policy Text Block] | Segment Information—As a result of the sale of Frontier there is only one reportable segment for the scheduled transportation of passengers under code-share agreements. | |||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments—The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, receivables, and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments. | |||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements—In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The objective of this update is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and the Company is still evaluating the impact to the consolidated financial statements. | |||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after Requisite Service Period . The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to rewards with performance conditions that affect vesting to account for such awards. The Performance Target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. It is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and the impact to the consolidated financial statements is not expected to be material. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and the Company is still evaluating the impact to the consolidated financial statements. | ||||||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The objective of the standard is to update the requirements for reporting discontinued operations in Subtopic 205-20. | ||||||||||||
In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force . The objective of the update is to specify that an operating entity should not account for a service concession arrangement within the scope of this update as a lease in accordance with Topic 840, Leases. It is effective for fiscal years beginning after December 15, 2014, and the impact to the consolidated financial statements was not material. | ||||||||||||
In July 2013, the FASB issued 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. It became effective for fiscal years beginning after December 15, 2013, and the impact to the consolidated financial statements was not material. |
Note_1_Organization_and_Busine
Note 1 - Organization and Business Level 3 (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
ORGANIZATION & BUSINESS [Abstract] | ||||||||||||||||||
schedule of passenger service [Table Text Block] | The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014: | |||||||||||||||||
Operating Subsidiaries | Aircraft Size (Seats) | United | Delta | US Airways/American | Charters/Spares | Number of Aircraft | ||||||||||||
Chautauqua | 44 to 50 | — | 41 | — | — | 41 | ||||||||||||
Shuttle America | 70 to 76 | 38 | 30 | — | — | 68 | ||||||||||||
Republic Airline | 69 to 99 | 28 | — | 99 | 8 | 135 | ||||||||||||
Total number of operating aircraft | 66 | 71 | 99 | 8 | 244 | |||||||||||||
CPA Agreements Details [Table Text Block] | The following table is a summary representation of existing Capacity Purchase Agreements ("CPAs") with our Partners as of December 31, 2014: | |||||||||||||||||
Partner | Aircraft Type | Seats on Aircraft | Number of Aircraft under CPAs | Current Expiration Date(s) | ||||||||||||||
US Airways | E170 | 69 | 20 | March 2019 to March 2023 | ||||||||||||||
US Airways | E175 | 80 | 38 | March 2019 to March 2023 and February 2019 to July 2020 | ||||||||||||||
American | E175 | 76 | 41 | July 2025 to February 2027 | ||||||||||||||
Delta | E145 | 50 | 41 | August 2015 to May 2016 | ||||||||||||||
Delta | E170 | 70 | 14 | May 2021 to October 2021 | ||||||||||||||
Delta | E175 | 76 | 16 | August 2023 to February 2024 | ||||||||||||||
United | E170 | 70 | 38 | September 2019 to December 2022 | ||||||||||||||
United | Q400 | 71 | 28 | January 2015 to September 2016 | ||||||||||||||
partner related revenues and receivables table text block [Table Text Block] | The following sets forth our Partners' regional airline services revenue and accounts receivable as a percentage of total regional airline services revenue and net receivables: | |||||||||||||||||
Revenues for the years ended: | Delta | United | US Airways/American | |||||||||||||||
31-Dec-14 | 24% | 29% | 43% | |||||||||||||||
31-Dec-13 | 24% | 31% | 35% | |||||||||||||||
31-Dec-12 | 19% | 27% | 34% | |||||||||||||||
Receivables as of: | ||||||||||||||||||
31-Dec-14 | 4% | 3% | 26% | |||||||||||||||
31-Dec-13 | 7% | 23% | 19% |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental Statement of Cash Flow Information: | |||||||||||
Years ended December 31, | ||||||||||||
(amounts in millions) | 2014 | 2013 | 2012 | |||||||||
CASH PAID FOR INTEREST AND INCOME TAXES: | ||||||||||||
Interest paid-net of amount capitalized | $ | 110.1 | $ | 108.2 | $ | 116.1 | ||||||
Income taxes paid-net of refunds | 0.8 | 2.1 | 0.1 | |||||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||||||||||||
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1) | — | 42.8 | — | |||||||||
Other equipment acquired through manufacturer credits | 23.1 | 11.6 | — | |||||||||
Manufacturer credits applied to the purchase of aircraft | 17.1 | 8.7 | — | |||||||||
Engines received and not yet paid | — | 5.8 | — | |||||||||
Issuance of convertible debt | — | — | 22.9 | |||||||||
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive | — | 12 | 86.4 | |||||||||
(1) During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement. | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period. The following is a reconciliation of the diluted net income (loss) per common share computations: | |||||||||||
For the Years Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Income from continuing operations | $ | 64.3 | $ | 48.3 | $ | 31.3 | ||||||
Income (loss) from discontinued operations, net of tax | — | (21.6 | ) | 20 | ||||||||
Net income | $ | 64.3 | $ | 26.7 | $ | 51.3 | ||||||
Reduction in interest expense from convertible notes (net of tax) | 0.8 | 2 | 1.3 | |||||||||
Net income after assumed conversion | $ | 65.1 | $ | 28.7 | $ | 52.6 | ||||||
Weighted-average common shares outstanding for basic net income per common share | 49.8 | 49.2 | 48.5 | |||||||||
Effect of dilutive employee stock options | 0.4 | 0.7 | 0.2 | |||||||||
Effect of dilutive convertible notes | 2.2 | 4.7 | 2.7 | |||||||||
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share | 52.4 | 54.6 | 51.4 | |||||||||
Income (loss) per share - basic: | ||||||||||||
Income from continuing operations | $ | 1.29 | $ | 0.98 | $ | 0.65 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.44 | ) | 0.41 | ||||||||
Net income per share - basic | $ | 1.29 | $ | 0.54 | $ | 1.06 | ||||||
Income (loss) per share - diluted: | ||||||||||||
Income from continuing operations | $ | 1.24 | $ | 0.92 | $ | 0.63 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.40 | ) | 0.39 | ||||||||
Net income per share - diluted | $ | 1.24 | $ | 0.52 | $ | 1.02 | ||||||
Note_3_Fair_Value_Measurement_
Note 3 - Fair Value Measurement Level 3 (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following table sets forth information regarding the Company's assets (liabilities) measured at fair value on a recurring basis (in millions): | ||||||||||||||||
Fair Value of Assets on a Recurring Basis | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 81.2 | $ | — | $ | — | $ | 81.2 | |||||||||
Fair Value of Assets on a Recurring Basis | 31-Dec-13 | Level 1 | Level 2 | Level 3 | |||||||||||||
Chautauqua restructuring asset | $ | 79.6 | $ | — | $ | — | $ | 79.6 | |||||||||
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): | ||||||||||||||||
Chautauqua Restructuring Asset | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||
Beginning Balance | $ | 79.6 | $ | 86.4 | |||||||||||||
Amendment to agreement | — | 12 | |||||||||||||||
Fair value gain | 18.4 | — | |||||||||||||||
Cash received or other | (16.8 | ) | (18.8 | ) | |||||||||||||
Ending Balance | $ | 81.2 | $ | 79.6 | |||||||||||||
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 primarily 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 and underlying collateral and is classified primarily as level 3 within the fair value hierarchy. | ||||||||||||||||
31-Dec | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net carrying amount | $ | 2,339.20 | $ | 2,166.80 | |||||||||||||
Estimated fair value | 2,215.00 | 2,099.80 | |||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | Aircraft and Other Assets Impairment - Nonrecurring - In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of Q400 and E190 aircraft over the next few years. 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, maintenance record and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. | ||||||||||||||||
In March 2014, we recorded a 19.9 million impairment charge related to our decision to permanently park our owned E140 fleet in March 2014, impairing these aircraft to zero. | |||||||||||||||||
In September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy. | |||||||||||||||||
There were no aircraft and other asset impairment charges recorded for the year ended December 31, 2012. | |||||||||||||||||
($ in millions) | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | Year ended December 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | ||||||||||||
Long-lived assets abandoned - E140 | $ | — | $ | — | $ | (19.9 | ) | ||||||||||
Long-lived assets held and used - Q400 | 49.7 | 49.7 | (13.3 | ) | |||||||||||||
Long-lived assets held and used - E190 | 101.6 | 101.6 | (14.4 | ) | |||||||||||||
$ | (47.6 | ) | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Description | Year ended December 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) | ||||||||||||
Long-lived assets held and used | $ | 152.5 | $ | 152.5 | $ | (12.0 | ) | ||||||||||
Note_4_Discontinued_Operations1
Note 4 - Discontinued Operations (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
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) | Years Ended | |||||||||
2013 | 2012 | |||||||||
Total operating revenue | $ | 1,217.50 | $ | 1,433.50 | ||||||
Income from discontinued operations before tax(2) | $ | 50.9 | $ | 35 | ||||||
Income tax expense | 18.7 | 15 | ||||||||
Income from discontinued operations | 32.2 | 20 | ||||||||
Loss on disposal from discontinued operations (1) | (53.8 | ) | — | |||||||
Total discontinued operations, net of tax | $ | (21.6 | ) | $ | 20 | |||||
(1) In connection with the exit of our Frontier business, we recorded a pre-tax loss of $210.5 million, net of income tax benefit of $156.7 million for the year ended December 31, 2013. Included in the $156.7 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 Company incurred $7.1 million of transaction costs that are included in the loss on disposal for the year ended December 31, 2013. | ||||||||||
(2) In addition to the Frontier operations, income from discontinued operations before taxes includes certain adjustments required by discontinued operation presentation. |
Note_5_Aircraft_and_Other_Equi
Note 5 - Aircraft and Other Equipment Aircraft and other equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Aircraft and other equipment, excluding other equipment held for sale, consist of the following as of December 31 (in millions): | |||||||
2014 | 2013 | |||||||
Aircraft | $ | 3,644.80 | $ | 3,221.80 | ||||
Flight equipment | 171.7 | 173.8 | ||||||
Office equipment and leasehold improvements | 44.4 | 44.8 | ||||||
Total aircraft and other equipment | 3,860.90 | 3,440.40 | ||||||
Less accumulated depreciation and amortization | (1,000.0 | ) | (876.8 | ) | ||||
Aircraft and other equipment—net | $ | 2,860.90 | $ | 2,563.60 | ||||
Note_6_Intangible_and_Other_As1
Note 6 - Intangible and Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
schedule of intangible and other assets [Line Items] | ||||||||
schedule of intangible and other assets [Table Text Block] | Intangible and other assets as of December 31, 2014 and 2013 consist of the following (in millions): | |||||||
2014 | 2013 | |||||||
Indefinite-lived intangible assets: | ||||||||
Airport slots | $ | 9 | $ | 9 | ||||
Other assets: | ||||||||
Aircraft pre-delivery deposits | 57.5 | 30 | ||||||
Aircraft lease and long-term deposits | 26 | 38.4 | ||||||
Chautauqua restructuring asset - See Note 3 | 81.2 | 79.6 | ||||||
Prepaid aircraft rents | 27.8 | 34.5 | ||||||
Debt issue costs and other non-current assets | 19.2 | 25.3 | ||||||
Total Other assets | 211.7 | 207.8 | ||||||
Intangible and other assets | $ | 220.7 | $ | 216.8 | ||||
Note_7_Accrued_Liabilities_Acc
Note 7 - Accrued Liabilities Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consist of the following as of December 31 (in millions): | |||||||
2014 | 2013 | |||||||
Accrued wages, benefits and related taxes | $ | 29 | $ | 29.2 | ||||
Accrued maintenance | 37.6 | 50.2 | ||||||
Accrued interest payable | 18 | 18.1 | ||||||
Deferred revenue | 19.9 | 23.8 | ||||||
Other | 38.4 | 42.5 | ||||||
Total accrued liabilities | $ | 142.9 | $ | 163.8 | ||||
Note_8_Debt_Debt_Tables
Note 8 - Debt Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt [Abstract] | |||||||||
Schedule of Debt [Table Text Block] | Debt consists of the following as of December 31 (in millions): | ||||||||
Secured debt: | 2014 | 2013 | |||||||
Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 3.63% to 8.49% at December 31, 2014 and outstanding through 2025, net of unamortized debt discount of $73.4 million. (3) | $ | 2,238.10 | $ | 1,995.00 | |||||
Promissory notes payable, collateralized by aircraft, bearing interest at variable rates based on LIBOR plus a margin, ranging from 1.80% to 1.82% at December 31, 2014 and outstanding through 2020. | 41.6 | 80 | |||||||
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.25% to 8.38% as of December 31, 2014 and outstanding through 2020. | 53.7 | 37 | |||||||
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.61% to 5.34% as of December 31, 2014 and outstanding through 2018. | 3.4 | 4.3 | |||||||
Other | 2.4 | 3.7 | |||||||
Total debt secured by aircraft and parts | 2,339.20 | 2,120.00 | |||||||
Unsecured debt: | |||||||||
Convertible note payable, bearing interest at a fixed rate of 8%, due in full in July 2014. (1) | — | 22.3 | |||||||
Convertible note payable, bearing interest at a fixed rate of 6%, face value of $25.0 million, net of discount $0.5 million, due in full in 2019. (2) | — | 24.5 | |||||||
Total unsecured debt | — | 46.8 | |||||||
Total debt | 2,339.20 | 2,166.80 | |||||||
Current portion | 309 | 276.2 | |||||||
Long term debt, less current portion | $ | 2,030.20 | $ | 1,890.60 | |||||
(1) The Company redeemed the convertible note by paying $22.3 million of cash on April 7, 2014 as discussed in Note 2. | |||||||||
(2) The Company redeemed the convertible note by paying $26.5 million in cash on October 28, 2014, which included accrued interest as discussed in Note 2. | |||||||||
(3) | The Company entered into financing agreements to borrow $569.2 million for 22 E175 aircraft and other equipment primarily for the American E175 fixed-fee agreement and other equipment. |
Note_8_Debt_Schedule_of_Maturi
Note 8 - Debt Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Schedule of Maturities of Long-term debt [Abstract] | |||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Future maturities of debt are payable, as follows for the years ending December 31 (in millions): | ||||||||||
Total Secured Debt | Amortization of Debt Discount, net | ||||||||||
2015 | $ | 321.2 | (12.2 | ) | |||||||
2016 | 303 | (11.2 | ) | ||||||||
2017 | 352.8 | (10.1 | ) | ||||||||
2018 | 295 | (9.0 | ) | ||||||||
2019 | 339.5 | (7.9 | ) | ||||||||
Thereafter | 801.1 | (23.0 | ) | ||||||||
Total | $ | 2,412.60 | $ | (73.4 | ) | $ | 2,339.20 | ||||
Note_9_Commitments_Level_3_Tab
Note 9 - Commitments Level 3 (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
COMMITMENTS [Abstract] | ||||||||||||||||||||||||
Schedule of Rent Expense [Table Text Block] | As of December 31, 2014, the Company leased 76 aircraft and 29 spare engines with varying terms extending through 2024 and terminal space, operating facilities and office equipment with terms extending through 2033 under operating leases. The components of rent expense for the years ended December 31 are as follows (in millions): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Aircraft and engine rent | $ | 126 | $ | 122.6 | $ | 110.7 | ||||||||||||||||||
Other | 10.3 | 11.7 | 9.2 | |||||||||||||||||||||
Total rent expense | $ | 136.3 | $ | 134.3 | $ | 119.9 | ||||||||||||||||||
summary of maintenance agreement expiration dates [Table Text Block] | The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E140/145, E170/175 and Q400 aircraft: | |||||||||||||||||||||||
Expiration Date of Agreement: | ||||||||||||||||||||||||
Maintenance Agreements | E140/145 | E170/175 | Q400 | |||||||||||||||||||||
Engines | December 2017(2) | March 2027(3) | June 2021(2) | |||||||||||||||||||||
APU | Dec-16 | Jul-19 | Jul-21 | |||||||||||||||||||||
Avionics | Dec-17 | Apr-23 | NA(1) | |||||||||||||||||||||
Wheels and Brakes | Dec-19 | Jan-22 | August 2022 (4) | |||||||||||||||||||||
Parts Pooling | Dec-17 | Feb-27 | Jul-21 | |||||||||||||||||||||
Emergency Slides | NA(1) | Dec-24 | NA(1) | |||||||||||||||||||||
Tires | NA(1) | NA(1) | Jul-21 | |||||||||||||||||||||
Propellers | NA(1) | NA(1) | Jul-21 | |||||||||||||||||||||
(1) Agreements do not exist for the specified maintenance item for the related aircraft type. | ||||||||||||||||||||||||
(2) Maintenance agreements for engines include life limited parts ("LLPs") for E140/145 and Q400 aircraft. As of | ||||||||||||||||||||||||
December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs. | ||||||||||||||||||||||||
-3 | Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027. | |||||||||||||||||||||||
(4) | Q400 maintenance agreements do not include wheels. | |||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in millions): | |||||||||||||||||||||||
Aircraft | Other | Total | ||||||||||||||||||||||
2015 | $ | 106.5 | $ | 16.2 | $ | 122.7 | ||||||||||||||||||
2016 | 101.6 | 15.1 | 116.7 | |||||||||||||||||||||
2017 | 87.8 | 13.1 | 100.9 | |||||||||||||||||||||
2018 | 77.1 | 12 | 89.1 | |||||||||||||||||||||
2019 | 73.9 | 9.9 | 83.8 | |||||||||||||||||||||
Thereafter | 103.9 | 44.5 | 148.4 | |||||||||||||||||||||
Total | $ | 550.8 | $ | 110.8 | $ | 661.6 | ||||||||||||||||||
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 | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||||||
Debt or lease financed aircraft under purchase obligations (1) | $ | 554.2 | $ | 2,447.00 | $ | 1,385.50 | $ | — | $ | — | $ | 4,386.70 | ||||||||||||
Engines under firm orders | 24.6 | 21 | 7 | — | — | 52.6 | ||||||||||||||||||
Total contractual obligations for aircraft and engines | $ | 578.8 | $ | 2,468.00 | $ | 1,392.50 | $ | — | $ | — | $ | 4,439.30 | ||||||||||||
(1) Represents delivery of CS300s based on estimated service date of early 2016. | ||||||||||||||||||||||||
The information in the table above reflects a purchase price of the aircraft at projected delivery dates. |
Note_11_Capital_Stock_and_Stoc
Note 11 - Capital Stock and Stock Options Level 3 (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
CAPITAL STOCK AND STOCK OPTIONS [Abstract] | |||||||||||||||
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | The following table summarizes common stock activity for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||
(in millions) | Common Stock | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Beginning balance | 49.5 | 48.6 | 48.4 | ||||||||||||
Shares issued for stock options exercised | 0.4 | 0.7 | — | ||||||||||||
Vesting of restricted stock and other | 0.1 | 0.2 | 0.2 | ||||||||||||
Ending balance | 50 | 49.5 | 48.6 | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes option activity under the stock option plans as of December 31, 2014: | ||||||||||||||
Options | Weighted | Aggregate | Weighted Average | ||||||||||||
Average | Intrinsic Value (in millions) | Contractual Term | |||||||||||||
Exercise Price | (in years) | ||||||||||||||
Outstanding at January 1, 2014 | 4,176,666 | $ | 13.5 | ||||||||||||
Granted | 135,750 | 10.53 | |||||||||||||
Exercised | (900,801 | ) | 10.48 | ||||||||||||
Forfeited | (276,110 | ) | 13.43 | ||||||||||||
Outstanding at December 31, 2014 | 3,135,505 | $ | 14.25 | $ | 6.9 | 6.18 | |||||||||
Vested or expected to vest at December 31, 2014 | 3,095,611 | $ | 14.31 | $ | 6.7 | 6.11 | |||||||||
Exercisable at December 31, 2014 | 2,671,717 | $ | 14.9 | $ | 5 | 5.39 | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following assumptions were used to value stock option grants during the following periods: | ||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||
Expected volatility | 56 | % | - | 58% | 59 | % | - | 62% | 59 | % | - | 62% | |||
Risk-free interest rate | 1.7 | % | - | 1.80% | 0.9 | % | - | 1.40% | 0.6 | % | - | 1.00% | |||
Expected life (in years) | 4 | - | 5 | 4 | - | 5 | 4 | - | 5 | ||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of restricted stock activity under the aforementioned plan is as follows: | ||||||||||||||
Restricted Stock | |||||||||||||||
Awards | |||||||||||||||
Unvested at January 1, 2014 | 846,083 | ||||||||||||||
Vested | (317,500 | ) | |||||||||||||
Issued | 293,318 | ||||||||||||||
Surrendered | (58,669 | ) | |||||||||||||
Unvested at December 31, 2014 | 763,232 | ||||||||||||||
Note_12_Income_Taxes_Level_3_T
Note 12 - Income Taxes Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INCOME TAXES [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income tax expense for the years ended December 31 are as follows (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal: | ||||||||||||
Current | $ | — | $ | — | $ | — | ||||||
Deferred | 29.6 | 30.9 | 13.6 | |||||||||
Total Federal | 29.6 | 30.9 | 13.6 | |||||||||
State: | ||||||||||||
Current | (1.4 | ) | 4.1 | — | ||||||||
Deferred | (2.5 | ) | (9.8 | ) | 6.1 | |||||||
Total State | (3.9 | ) | (5.7 | ) | 6.1 | |||||||
Valuation allowance | (4.8 | ) | 8.8 | 0.1 | ||||||||
Expense for uncertain tax positions | — | (1.0 | ) | — | ||||||||
Income tax expense | $ | 20.9 | $ | 33 | $ | 19.8 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for the years ended December 31 are as follows (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal income tax expense at statutory rate | $ | 29.8 | $ | 28.4 | $ | 17.9 | ||||||
State income tax expense, net of federal benefit | 2.6 | 2.7 | 1.6 | |||||||||
Valuation allowance | (4.8 | ) | 8.8 | 0.1 | ||||||||
Adjustment to deferred tax liabilities | (3.1 | ) | (8.8 | ) | (5.5 | ) | ||||||
Change in State tax rate | (4.2 | ) | — | 4.3 | ||||||||
Permanent tax adjustments | 2 | 1.7 | 1.2 | |||||||||
Other | (1.4 | ) | 0.2 | 0.2 | ||||||||
Income tax expense | $ | 20.9 | $ | 33 | $ | 19.8 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred tax assets and liabilities as of December 31 are as follows (in millions): | |||||||||||
2014 | 2013 | |||||||||||
DEFERRED TAX ASSETS: | ||||||||||||
Current: | ||||||||||||
Nondeductible accruals and deferred revenue | 24.6 | 24.2 | ||||||||||
Total | 24.6 | 24.2 | ||||||||||
Valuation allowance | (8.2 | ) | (8.5 | ) | ||||||||
Total current deferred tax assets | $ | 16.4 | $ | 15.7 | ||||||||
Noncurrent: | ||||||||||||
Nondeductible accruals and deferred revenue | $ | 27.5 | $ | 21.1 | ||||||||
Federal and state net operating loss carryforwards, net of liability for uncertain tax positions | 453.2 | 443.4 | ||||||||||
AMT credits | 6.1 | 6.1 | ||||||||||
Prepaid rent | 8.5 | 8.6 | ||||||||||
Deferred credits and other non-current liabilities | 5.7 | 17.4 | ||||||||||
Other | 22.8 | 23.2 | ||||||||||
Total | 523.8 | 519.8 | ||||||||||
Valuation allowance | (174.7 | ) | (182.8 | ) | ||||||||
Total noncurrent deferred tax assets | 349.1 | 337 | ||||||||||
DEFERRED TAX LIABILITIES: | ||||||||||||
Noncurrent: | ||||||||||||
Other intangible assets | (3.4 | ) | (3.4 | ) | ||||||||
Maintenance deposits | (20.2 | ) | (14.0 | ) | ||||||||
Accelerated depreciation and fixed asset basis differences for tax purposes | (609.5 | ) | (580.0 | ) | ||||||||
Total noncurrent deferred tax liabilities | (633.1 | ) | (597.4 | ) | ||||||||
Total net noncurrent deferred tax liabilities | $ | (284.0 | ) | $ | (260.4 | ) | ||||||
Summary of Income Tax Contingencies [Table Text Block] | The Company monitors ongoing tax cases related to its unrecognized tax benefits. The unrecognized tax benefits, which if recognized, would impact the effective tax rate. The Company does not anticipate that total unrecognized tax benefits would significantly change within the next 12 months. The following table reconciles the Company’s tax liability for uncertain tax positions for the year ended December 31 (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at January 1, | $ | 7.1 | $ | 8.1 | $ | 8.1 | ||||||
Additions for tax positions taken in prior years | — | — | — | |||||||||
Reductions for tax positions of prior years | — | (1.0 | ) | — | ||||||||
Balance at December 31, | $ | 7.1 | $ | 7.1 | $ | 8.1 | ||||||
Summary of Valuation Allowance [Table Text Block] | The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at January 1, | $ | 191.3 | $ | 182.5 | $ | 182.5 | ||||||
Reduction for net operating losses previously reserved that were utilized or expired | (3.6 | ) | — | (0.1 | ) | |||||||
Additions (deductions) for current year change in estimate | (4.8 | ) | 8.8 | 0.1 | ||||||||
Balance at December 31, | $ | 182.9 | $ | 191.3 | $ | 182.5 | ||||||
Note_14_Valuation_and_Qualifyi
Note 14 - Valuation and Qualifying Accounts Level 3 (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
valuation and qualifying accounts [Table Text Block] | VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(amounts in millions) | Balance at Beginning of Year | Additions Charged to Expense | Deductions | Balance at End of Year | |||||||||||||
Description | |||||||||||||||||
Allowance for doubtful accounts receivables: | |||||||||||||||||
12/31/14 | $ | 1.5 | $ | 1.4 | $ | (0.3 | ) | (1) | $ | 2.6 | |||||||
12/31/13 | 1.3 | 0.4 | (0.2 | ) | (1) | 1.5 | |||||||||||
12/31/12 | $ | 0.5 | $ | 0.9 | $ | (0.1 | ) | (1) | $ | 1.3 | |||||||
(1) | Uncollectible accounts written off net of recoveries, if any. |
Note_1_Organization_and_Busine1
Note 1 - Organization and Business Schedule of Aircraft (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Aircraft | Aircraft | |
flights | ||
States | ||
cities | ||
Scheduled Passenger Service Stats [Abstract] | ||
number of daily flights | 1,229 | |
scheduled passenger service to cities | 101 | |
number of states served | 38 | |
Schedule of Offered Passenger Service [Line Items] | ||
total aircraft in operating subsidiaries | 244 | 258 |
number of AA 175 aircraft delivered | 22 | |
number of E140 aircraft permanently parked | 15 | |
number of E145 aircraft temporarily parked | 13 | |
number of E190 aircraft sold during the year | 2 | |
number of E145 aircraft leased during the year | 3 | |
Number of E190 Aircraft that were leased during the year | 3 | |
fixed fee code share agreement, United [Member] | ||
Schedule of Offered Passenger Service [Line Items] | ||
operating subsiduary, chautauqua | 0 | |
operating subsiduary, shuttle | 38 | |
operating subsiduary, Republic | 28 | |
total aircraft in operating subsidiaries | 66 | |
fixed fee code share agreement, Delta [Member] | ||
Schedule of Offered Passenger Service [Line Items] | ||
operating subsiduary, chautauqua | 41 | |
operating subsiduary, shuttle | 30 | |
operating subsiduary, Republic | 0 | |
total aircraft in operating subsidiaries | 71 | |
fixed fee code share agreement, US airways/American [Member] | ||
Schedule of Offered Passenger Service [Line Items] | ||
operating subsiduary, chautauqua | 0 | |
operating subsiduary, shuttle | 0 | |
operating subsiduary, Republic | 99 | |
total aircraft in operating subsidiaries | 99 | |
fixed fee code share agreement, spares [Member] | ||
Schedule of Offered Passenger Service [Line Items] | ||
operating subsiduary, chautauqua | 0 | |
operating subsiduary, shuttle | 0 | |
operating subsiduary, Republic | 8 | |
total aircraft in operating subsidiaries | 8 | |
total aircraft in operating subsidiaries [Domain] | ||
Schedule of Offered Passenger Service [Line Items] | ||
operating subsiduary, chautauqua | 41 | |
operating subsiduary, shuttle | 68 | |
operating subsiduary, Republic | 135 | |
total aircraft in operating subsidiaries | 244 |
Note_1_Organization_and_Busine2
Note 1 - Organization and Business CPA Agreement Details (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Aircraft | |
CPA Agreement Details [Line Items] | |
number of E140 aircraft permanently parked | 15 |
E170 aircraft operating under US Airways | 20 |
seats on aircraft [Member] | |
CPA Agreement Details [Line Items] | |
number of seats on E170 aircraft flying with US Airways | 69 |
Seats on E175s under code-share agreement with US Airways | 80 |
Seats on E175 aircraft under CPA with America | 76 |
Seats on E145 aircraft under CPA with Delta | 50 |
Seats on E170 aircraft under CPA with Delta | 70 |
Seats on E175 aircraft under CPA with Delta | 76 |
Seats on E170 aircraft under CPA with United | 70 |
Seats on Q400 aircraft under CPA with United | 71 |
number of aircraft under related CPA agreement [Member] | |
CPA Agreement Details [Line Items] | |
E170 aircraft operating under US Airways | 20 |
E175 aircraft flying under fixed-fee agreements with US Airways | 38 |
E175 aircraft operating under American Eagle brand | 41 |
E145 aircraft under code-share agreements with Delta | 41 |
E170 aircraft operating under code-share agreements with Delta | 14 |
E175 aircraft under code-share agreements with Delta | 16 |
E170 aircraft under code-share agreements with United | 38 |
Q400 Aircraft under code-share agreements with United Continental | 28 |
Note_1_Organization_and_Busine3
Note 1 - Organization and Business Code-Share Text Detail (Details) | 12 Months Ended |
Dec. 31, 2014 | |
aircraftcabins | |
amendmentnumber | |
Aircraft | |
agrmntext | |
flights | |
Seats | |
US Airways Code-Share Agreement [Abstract] | |
Flights per day as US Airways Express | 355 |
E175 aircraft under fixed-fee code-share agreements with US airways that terminate in 2019-2020 | 30 |
Number of E175 aircraft operating under Delta which come out of service between March 2019 and March 2023 | 8 |
Length of US Airways agreement for E175s | 12 years |
days until written termination notice | 90 days |
American Code-Share Agreement [Abstract] | |
Flights per day as AmericanConnection | 224 |
Amended number of E175 aircraft agreed upon to operate under American Eagle brand | 47 |
Remaining E175 aircraft under American to begin service through 2015 | 6 |
E175 code-share agreement will terminate on this anniversary | 12 years |
Number of additional agreement extensions for American | 2 |
Number of years American can extend the E175 agreement | 2 years |
Delta Code-Share Agreements [Abstract] | |
Flights provided per day as Delta Connection | 367 |
days notice required by Delta before termination of agreement | 180 days |
E145 minimum aircraft in service under Delta code-share agreement | 12 |
Months following Delta's written termination notice | 12 months |
Amendment Number Seven to the Delta Agreement | 7 |
Number of E170 aircraft to be added for Delta under Amendment Number Seven | 9 |
Number of years the additional E170 aircraft will fly for Delta under Amendment Number Seven | 6 years |
Number of years the 14 E170 aircraft flying for Delta were extended under Amendment Number Seven | 4 years |
Number of years the 16 E175 aircraft flying for Delta were extended under Amendment Number Seven | 5 years |
Number of years the 14 E170 and 16 E175 aircraft flying for Delta may be extended under Amendment Number Seven | 5 years |
United Code-Share Agreements [Abstract] | |
Flights per day as United Express | 353 |
Fifth Amendment with United Airlines | 5 |
Number of E145s to be removed from service under CPA agreement with United | 12 |
Seventh Amendment with United Express | 7 |
Number of E175 aircraft under United agreement | 50 |
Seats on E170 aircraft under CPA with United | 76 |
Number of cabins on the E175 aircraft under United Express | 2 |
Minimum number of E175 aircraft to be delivered per month | 2 |
Maximum number of E175 aircraft per month under United Express Seventh Amendment | 3 |
Number of additional E175 aircraft United has an option to add under United Express Seventh Amendment | 50 |
Number of years each E175 aircraft will be subject to under UA Express Agreement | 12 years |
Number of E175 aircraft in a group, which may be extended up to four years | 10 |
Number of years a group of 10 aircraft may be extended by United | 4 years |
number of E175 aircraft added to fly under the United brand | 5 |
Total number of E175 aircraft that will fly under the United brand after amendment was signed in January 2015 | 55 |
Number of E170 aircraft flying for United that were extended | 38 |
Number of years E170 aircraft were extended | 3 years |
Note_1_Organization_and_Busine4
Note 1 - Organization and Business Partner Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Concentrations [Abstract] | |||
Percentage of Operating Revenues for Delta | 24.00% | 24.00% | 19.00% |
Percentage of Operating Revenues for United | 29.00% | 31.00% | 27.00% |
Percentage of Opearting Revenues for US Airways | 43.00% | 35.00% | 34.00% |
Percent of Receivables related to Delta | 4.00% | 7.00% | |
Percentage of Receivables related to United | 3.00% | 23.00% | |
Percentage of Receivables related to US Airways American | 26.00% | 19.00% |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies Level 4 Text (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2014 | Apr. 07, 2014 |
segment | |||||
banks | |||||
maturityofcashandcashequiv | 3 months | ||||
number of banks that contain most of our cash | 2 | ||||
Inventory Valuation Reserves | $27 | $22.60 | |||
Minimum Aircraft Estimated Useful Life | 16 years 6 months | ||||
Maximum Aircraft Estimated Useful Life | 20 years | ||||
Minimum Estimated Useful Life of Other Equipment | 3 years | ||||
Maximum Estimated Useful Life of Other Equipment | 10 years | ||||
accumulated other comprehensive loss related to treasury lock | 0.5 | 0.8 | |||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 1.7 | 1.8 | |||
Fixed-Fee Rental Income | 433.7 | 386.8 | 338.5 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.5 | 3.3 | 4.1 | ||
Convertible Notes Payable - TPG | 0 | 22.3 | |||
Convertible Notes Payable - EMB Fair Value | 25 | ||||
TPG - Stock Issued During Period, Shares, Conversion of Convertible Securities | 2.2 | ||||
EMB - Stock Issued During Period, Shares, Conversion of Convertible Securities | 2.5 | ||||
Stock Repurchase Program, Authorized Amount | 75 | ||||
Authorized amount available to repurchase common shares | 50 | ||||
Authorized amount to retire convertible notes | 50 | ||||
Repayment of TPG Convertible note | 22.3 | ||||
Convertible note payable - EMB redeemed | 26.5 | ||||
Convertible Notes Payable - EMB | $0 | $24.50 | $28 | ||
Number of Reportable Segments | 1 |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies Supplemental Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Paid, Net | $110.10 | $108.20 | $116.10 |
Income Taxes Paid, Net | 0.8 | 2.1 | 0.1 |
Aircraft, inventories and other equipment sold through financing arrangements from manufacturer | 0 | 42.8 | 0 |
deferred gain on the parts sale | 4 | ||
other equipment acquired utilizing manufacturer credits | 23.1 | 11.6 | 0 |
aircraft acquired through manufacturing credits | 17.1 | 8.7 | 0 |
engines received and not yet paid | 0 | 5.8 | 0 |
Proceeds from Convertible Debt | 0 | 0 | 22.9 |
Chautauqua restructuring asset - Aircraft manufacturers incentive | $0 | $12 | $86.40 |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies Net Income per Common Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income from Continuing Operations | $64.30 | $48.30 | $31.30 |
Income (loss) from discontinued operations, net of tax | 0 | -21.6 | 20 |
Net Income | 64.3 | 26.7 | 51.3 |
Interest on Convertible Debt, Net of Tax | 0.8 | 2 | 1.3 |
Net Income (Loss) Available to Common Stockholders, Diluted | $65.10 | $28.70 | $52.60 |
Weighted Average Number of Shares Outstanding, Basic | 49.8 | 49.2 | 48.5 |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0.4 | 0.7 | 0.2 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2.2 | 4.7 | 2.7 |
Weighted Average Number of Shares Outstanding, Diluted | 52.4 | 54.6 | 51.4 |
Income from Continuing Operations, Per Common Share - Basic | $1.29 | $0.98 | $0.65 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $0 | ($0.44) | $0.41 |
Earnings Per Share, Basic | $1.29 | $0.54 | $1.06 |
Income from Continuing Operations, Per Common Share - Diluted | $1.24 | $0.92 | $0.63 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | $0 | ($0.40) | $0.39 |
Earnings Per Share, Diluted | $1.24 | $0.52 | $1.02 |
Note_3_Fair_Value_Measurement_1
Note 3 - Fair Value Measurement Fair Value of Assets measured Recurring and Nonrecurring basis (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $81.20 | $79.60 |
asset impairment charge for aicraft and related inventory - Q400 and E190 | 27.7 | |
assets, fair value disclosure - E140 | 0 | |
asset impairment charge for aircraft and related inventory - E140 | 19.9 | |
assets, fair value disclosure - Q400 | 49.7 | |
asset impairment charge for aircraft and related inventory - Q400 | 13.3 | |
assets, fair value disclosure - E190 | 101.6 | |
asset impairment charge for aircraft and related inventory - E190 | 14.4 | |
asset impairment charge for aircraft and related inventory | 47.6 | 12 |
Assets, Fair Value Disclosure | 152.5 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 81.2 | 79.6 |
Assets, Fair Value Disclosure | $152.50 |
Note_3_Fair_Value_Measurement_2
Note 3 - Fair Value Measurement Fair Value Measurements Recurring with Unobservable Inputs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Seats | |||
Aircraft | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - Begin | $79.60 | $86.40 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 12 | |
Fair value gain on restructuring asset | 18.4 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | -16.8 | -18.8 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - End | 81.2 | 79.6 | 86.4 |
Chautauqua Seats on Aircraft | 50 | ||
Convertible Notes Payable - EMB Fair Value | 25 | ||
CHQ restructuring call rights provided on owned aircraft | 28 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
change in fair value of the restructuring asset per a 100 basis point change in discount rate | 2 | ||
possible gain or loss if there is a change in assumed probability of call option on restructured aircrat | 3.2 | ||
number of seats on E140 aircraft flying for American Airlines | 44 | ||
Seats on E145 aircraft under CPA with United | 50 | ||
Number of E140 and E145 aircraft which were grounded during the year | 27 | ||
Number of aircraft that were grounded and subject to the agreement and callable by the counterparty | 15 | ||
CHQ Restrucuring - possible voluntary repayment under circumstances of non-performance | $36.70 |
Note_3_Fair_Value_Measurement_3
Note 3 - Fair Value Measurement Fair Value by Balance sheet grouping Table (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Long-term Debt | $2,339.20 | $2,166.80 |
Long-term Debt, Fair Value | $2,215 | $2,099.80 |
Note_4_Discontinued_Operations2
Note 4 - Discontinued Operations Income Statement of Discontinued Ops(Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Revenue | $1,217.50 | $1,433.50 | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 50.9 | 35 | |
Discontinued Operation, Tax Effect of Discontinued Operation | 18.7 | 15 | |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 32.2 | 20 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | -53.8 | 0 | |
Income (loss) from discontinued operations, net of tax | 0 | -21.6 | 20 |
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Pretax | -210.5 | ||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | 156.7 | ||
Deferred Tax Liabilities, Parent's Basis in Discontinued Operation | 78 | ||
Disposal Group, Including Discontinued Operation, Other Expense | 7.1 | ||
maximum indemnity obligation under stock purchase agreement | 25 | ||
Amount billed under TSA | $2.80 |
Note_5_Aircraft_and_Other_Equi1
Note 5 - Aircraft and Other Equipment Level 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Aircraft | |||
Property, Plant and Equipment [Line Items] | |||
Aircraft included in Other PPE | $3,644.80 | $3,221.80 | |
Flight Equipment Owned, Gross | 171.7 | 173.8 | |
office equipment and leasehold improvements, gross | 44.4 | 44.8 | |
Aircraft and other equipmentbnet | 3,860.90 | 3,440.40 | |
accumulated depreciation and amortization for aircraft and other equipment | -1,000 | -876.8 | |
Property, Plant and Equipment, Other, Net | 2,860.90 | 2,563.60 | |
Depreciation and amortization | 173 | 150.7 | 160 |
asset impairment charge for aicraft and related inventory - Q400 and E190 | 27.7 | ||
asset impairment charge for aircraft and related inventory - E140 | 19.9 | ||
asset impairment charge for aircraft and related inventory | -47.6 | -12 | |
loss on sale of two E190 aircraft that is included in impairment charges and other | $5.80 | ||
number of e190 aircraft sold | 2 |
Note_6_Intangible_and_Other_As2
Note 6 - Intangible and Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
schedule of intangible and other assets [Line Items] | ||
Indefinite-Lived Domestic Slots and Routes | $9 | $9 |
aircraft predelivery deposits | 57.5 | 30 |
aircraft lease and long term deposits (non-current assets) | 26 | 38.4 |
financial instrument, other non-current assets | 81.2 | 79.6 |
prepaid aircraft rent | 27.8 | 34.5 |
debt issue costs and other non-current assets | 19.2 | 25.3 |
Other Assets | 211.7 | 207.8 |
Intangible and other assets, net | $220.70 | $216.80 |
Note_7_Accrued_Liabilities_Lev
Note 7 - Accrued Liabilities Level 4 (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
accruals table [Abstract] | ||
Accrued Salaries, Current | $29 | $29.20 |
accrued maintenance, current | 37.6 | 50.2 |
Interest Payable, Current | 18 | 18.1 |
Deferred Revenue, Current | 19.9 | 23.8 |
Other Accrued Liabilities, Current | 38.4 | 42.5 |
Accrued Liabilities, Current | $142.90 | $163.80 |
Note_8_Debt_Level_4_Details
Note 8 - Debt Level 4 (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2014 | Apr. 07, 2014 |
Aircraft | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||
Weighted average rate of debt for aircraft financings for current year | 5.38% | 5.76% | |||
Aircraft Secured Debt (Fixed Rate) | $2,238.10 | $1,995 | |||
Aircraft Secured Debt (Variable Rate) | 41.6 | 80 | |||
Equipment Secured Debt (Fixed Rates) | 53.7 | 37 | |||
Q400 Equipment Secured Debt at Variable Rates | 3.4 | 4.3 | |||
Other Long-term Debt | 2.4 | 3.7 | |||
Secured Debt | 2,339.20 | 2,120 | |||
Convertible Notes Payable - TPG | 0 | 22.3 | |||
Convertible Notes Payable - EMB | 0 | 24.5 | 28 | ||
Unsecured Debt | 0 | 46.8 | |||
Long-term Debt | 2,339.20 | 2,166.80 | |||
Current portion of long-term debt | -309 | -276.2 | |||
Long-term debt - less current portion | 2,030.20 | 1,890.60 | |||
Repayment of TPG Convertible note | 22.3 | ||||
Convertible note payable - EMB redeemed | 26.5 | ||||
Payments to Acquire Property, Plant, and Equipment | 569.2 | 476 | 24.4 | ||
number of AA 175 aircraft delivered | 22 | ||||
Aircraft related debt obligations that the company expects to refinance | 28.7 | ||||
Funds held for cash supported letters of credit and deposits on charter flights | 14.1 | 17 | |||
Convertible Notes Payable - EMB Fair Value | 25 | ||||
Aircraft Secured Debt (at fixed rates) - Lower percentage range [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.63% | ||||
Aircraft Secured Debt (at fixed rates) - Upper percentage range [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.49% | ||||
Aircraft Secured Debt (at variable rates) - Lower percentage range [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.80% | ||||
Aircraft Secured Debt (at variable rates) - Upper percentage range [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.82% | ||||
Equipment Secured Debt (at fixed rates) - Lower percentage range [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||
Equipment Secured Debt (at fixed rates) - Upper percentage range [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.38% | ||||
Q400 Equipment Secured Debt Lower range (variable rates) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.61% | ||||
Q400 Equipment Secured Debt (variable rates) - Upper range [Member] [Domain] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.34% | ||||
Convertible Note Payable - TPG, Due 2014 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||
Convertible Note Payable - EMB, Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||
Debt Instrument, Unamortized Discount | $0.50 |
Note_8_Debt_Future_maturities_
Note 8 - Debt Future maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $321.20 | |
debt discount amortization in the next 12 months | -12.2 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 303 | |
debt discount amortization in Year Two | -11.2 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 352.8 | |
debt discount amortization in Year Three | -10.1 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 295 | |
debt discount amortization in Year Four | -9 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 339.5 | |
debt discount amortization in Year Five | -7.9 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 801.1 | |
debt discount amortization After Year Five | -23 | |
Long-term Debt, Gross | 2,412.60 | |
total debt discount amortization | -73.4 | |
Long-term Debt | $2,339.20 | $2,166.80 |
Note_9_Commitments_Statement_D
Note 9 - Commitments Statement (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Engines | |||
Aircraft | |||
Commitments and Contingencies Disclosure [Abstract] | |||
number of leased aircraft under operating leases | 76 | ||
Number of Spare Engines under Operating Leases | 29 | ||
minimum guaranteed maintenance payments for E145s | $2.60 | ||
minimum guaranteed maintenance payments for E170 aircraft | 10.3 | ||
Maintenance deposits | 53.2 | 36.6 | |
Cost of Services, Licenses and Maintenance Agreements | 173 | 163.8 | 119.4 |
liability for return conditions of aircraft | 2.3 | ||
E190 aircraft with maintenance commitments | 3 | ||
E145 Aircraft subelased to Aeroliteral | 8 | ||
E170 Aircraft that were subleased to Aeroliteral | 3 | ||
Number of E190 Aircraft that were subleased to Aeroliteral | 3 | ||
number of E135 aircraft subleased | 1 | ||
number of E145 aircraft subleased | 3 | ||
Capital Leases, Future Minimum Sublease Rentals | 104 | ||
Operating Leases, Income Statement, Sublease Revenue | $20.10 | $18.70 | $15.90 |
Firm Purchase Orders for CS300 Aircraft | 40 | ||
Amended number of E175 aircraft agreed upon to operate under American Eagle brand | 47 | ||
number of E175 aircraft under CPA for American | 41 | ||
Number of E175 aircraft to operate under United brand | 55 | ||
Number of Spare Aircraft Engines under commitment | 11 | ||
Number of spare engines received during the current year, under the commitment | 3 | ||
Number of engines to be delivered in year 1 | 4 | ||
Number of Engines to be Delivered in Year Two | 3 | ||
Number of Engines to be Delivered in Year Three | 1 |
Note_9_Commitments_Schedule_of
Note 9 - Commitments Schedule of Rent Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Aircraft and engine rent | $126 | $122.60 | $110.70 |
other rent expenses | 10.3 | 11.7 | 9.2 |
Operating Leases, Rent Expense | $136.30 | $134.30 | $119.90 |
Note_9_Commitments_Operating_L
Note 9 - Commitments Operating Lease Payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Aircraft Operating Leases, Future Minimum Payments Due, Next Twelve Months | $106.50 |
Aircrfat Operating Leases, Future Minimum Payments, Due in Two Years | 101.6 |
Aircraft Operating Leases, Future Minimum Payments, Due in Three Years | 87.8 |
Aircraft Operating Leases, Future Minimum Payments, Due in Four Years | 77.1 |
Aircraft Operating Leases, Future Minimum Payments, Due in Five Years | 73.9 |
Aircraft Operating Leases, Future Minimum Payments, Due Thereafter | 103.9 |
Aircraft Operating Leases, Future Minimum Payments Due, Total | 550.8 |
Engine and Facilities Operating Leases, Future Minimum Payments Due, Next Twelve Months | 16.2 |
Engines and Facilities Operating Leases, Future Minimum Payments, Due in Two Years | 15.1 |
Engine and Facilities Operating Leases, Future Minimum Payments, Due in Three Years | 13.1 |
Engine and Facility Operating Leases, Future Minimum Payments, Due in Four Years | 12 |
Engines and Facilities Operating Leases, Future Minimum Payments, Due in Five Years | 9.9 |
Engines and Facilities Operating Leases, Future Minimum Payments, Due Thereafter | 44.5 |
Engines and Facilities Operating Leases, Future Minimum Payments Due, Total | 110.8 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 122.7 |
Operating Leases, Future Minimum Payments, Due in Two Years | 116.7 |
Operating Leases, Future Minimum Payments, Due in Three Years | 100.9 |
Operating Leases, Future Minimum Payments, Due in Four Years | 89.1 |
Operating Leases, Future Minimum Payments, Due in Five Years | 83.8 |
Operating Leases, Future Minimum Payments, Due Thereafter | 148.4 |
Operating Leases, Future Minimum Payments Due | $661.60 |
Note_9_Commitments_Unrecorded_
Note 9 - Commitments Unrecorded Unconditional Purchase Committments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation for Aircraft due within one year | $554.20 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years | 2,447 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years | 1,385.50 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within four years | 0 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within five years | 0 |
Unrecorded Unconditional Purchase Obligation for Aircraft | 4,386.70 |
Unrecorded Unconditional Purchase Obligations for Engines, due within one year | 24.6 |
Unrecorded Unconditional Purchase Obligation for Engines, due within two years | 21 |
Unrecorded Unconditional Purchase Obligation for Engines, due within three years | 7 |
Unrecorded Unconditional Purchase Obligation for Engines, due within four years | 0 |
Unrecorded Unconditional Purchase Obligation for Engines, due within five year | 0 |
Unrecorded Unreconciled Purchase Obligation for Engines, Total | 52.6 |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | 578.8 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 2,468 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 1,392.50 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 0 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 |
Unrecorded Unconditional Purchase Obligation | $4,439.30 |
Note_10_Contingencies_Statemen
Note 10 - Contingencies Statement (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Aircraft | |
Commitments and Contingencies Disclosure [Abstract] | |
Union Employees | 71.00% |
Number of E140 and E145 aircraft which were grounded during the year | 27 |
number of E140 aircraft permanently parked | 15 |
Number of E145s to be removed from service under CPA agreement with United | 12 |
Note_11_Capital_Stock_and_Stoc1
Note 11 - Capital Stock and Stock Options Common Stock Activity Rollforward (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common Stock, Shares, Outstanding - begin | 49,525,594 | 48,600,000 | 48,400,000 |
Stock Issued During Period, Shares, New Issues | 400,000 | 700,000 | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 100,000 | 200,000 | 200,000 |
Common Stock, Shares, Outstanding - end | 50,024,780 | 49,525,594 | 48,600,000 |
Note_11_Capital_Stock_and_Stoc2
Note 11 - Capital Stock and Stock Options Share-based compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
number of stock options non-employee directors received on first day of trading after annual meeting of stockholders | 2,500 | ||
number of months non-employee directors stock options will vest | 12 months | ||
number of years non-employee director options are exercisable from the date of the grant | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number - Begin | 4,176,666 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 135,750 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -900,801 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | -276,110 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number - End | 3,135,505 | 4,176,666 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,095,611 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,671,717 | 3,513,999 | 3,790,942 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price - Begin | $13.50 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $10.53 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $10.48 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $13.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price- End | $14.25 | $13.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $14.31 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $14.90 | $14.26 | $13.59 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $6.90 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 6.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Contractual Term | 6 years 2 months 5 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Contractual Term | 6 years 1 month 10 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Contractual Term | 5 years 4 months 20 days | 4 years 7 months 17 days | 4 years 10 months 27 days |
Stock or Unit Option Plan Expense | 0.9 | 1.2 | 1.2 |
Allocated Share-based Compensation Expense, Net of Tax | 0.5 | 0.7 | 0.7 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||
Excess tax benefits related to stock option exercises, period for recognition | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $4.80 | $5.28 | $2.02 |
Employee Stock Option [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 3,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Up to Number | 8,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Lower Limit to Award Vesting Period | 36 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Upper Limit to Award Vesting Period | 48 months | ||
Share-based compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $4.10 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $20.27 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $1.80 | ||
2002 Equity Incentive Stock Option Plan [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 22,434 | ||
2007 Equity Incentive Stock Option Plan [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,596,474 |
Note_11_Capital_Stock_and_Stoc3
Note 11 - Capital Stock and Stock Options Share-based payment award, stock options, valuation assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 56.00% | 59.00% | 59.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.70% | 0.90% | 0.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | 4 years | 4 years |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 58.00% | 62.00% | 62.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.80% | 1.40% | 1.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | 5 years |
Note_11_Capital_Stock_and_Stoc4
Note 11 - Capital Stock and Stock Options Restricted Stock (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
restricted stock vesting low end years | 3 years | ||
restricted stock vesting high end years | 4 years | ||
Years of Service Required by board | 5 years | ||
Restricted Stock or Unit Expense | $3,700,000 | $2,800,000 | $1,800,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $10.50 | $11.23 | $4.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 3,100,000 | 2,800,000 | 700,000 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares received by non-employee directors after annual meeting | 50,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $6,600,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 846,083 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -317,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 293,318 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -58,669 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 763,232 |
Note_12_Income_Taxes_Income_Ta
Note 12 - Income Taxes Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Federal Tax Expense (Benefit) | $0 | $0 | $0 |
Deferred Federal Income Tax Expense (Benefit) | 29.6 | 30.9 | 13.6 |
Federal Income Tax Expense (Benefit), Continuing Operations | 29.6 | 30.9 | 13.6 |
Current State and Local Tax Expense (Benefit) | -1.4 | 4.1 | 0 |
Deferred State and Local Income Tax Expense (Benefit) | -2.5 | -9.8 | 6.1 |
current and deferred state income tax expense | -3.9 | -5.7 | 6.1 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -4.8 | 8.8 | 0.1 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 0 | 1 | 0 |
INCOME TAX EXPENSE | $20.90 | $33 | $19.80 |
Note_12_Income_Taxes_Income_Ta1
Note 12 - Income Taxes Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $29.80 | $28.40 | $17.90 |
Income Tax Reconciliation, State and Local Income Taxes | 2.6 | 2.7 | 1.6 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -4.8 | 8.8 | 0.1 |
income tax reconciliation, adjustments to DTA and DTL | -3.1 | -8.8 | -5.5 |
change in state effective tax rate | -4.2 | 0 | 4.3 |
income tax reconciliation, permanent tax adjustments | 2 | 1.7 | 1.2 |
Income Tax Reconciliation, Other Reconciling Items | -1.4 | 0.2 | 0.2 |
INCOME TAX EXPENSE | $20.90 | $33 | $19.80 |
Note_12_Income_Taxes_Deferred_
Note 12 - Income Taxes Deferred Taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | $24.60 | $24.20 |
Deferred Tax Assets, Gross, Current | 24.6 | 24.2 |
Deferred Tax Assets, Valuation Allowance | -8.2 | -8.5 |
Deferred income taxes | 16.4 | 15.7 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Noncurrent | 27.5 | 21.1 |
Deferred Tax Assets, Operating Loss Carryforwards | 453.2 | 443.4 |
Deferred Tax Assets, Tax Credit Carryforwards | 6.1 | 6.1 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 8.5 | 8.6 |
deferred tax asset, deferred credits and sale leaseback gain | 5.7 | 17.4 |
Deferred Tax Assets, Other | 22.8 | 23.2 |
Deferred Tax Assets, Gross, Noncurrent | 523.8 | 519.8 |
Deferred Tax Assets, Valuation Allowance, Noncurrent | -174.7 | -182.8 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 349.1 | 337 |
Deferred Tax Liabilities, Intangible Assets | -3.4 | -3.4 |
Deferred Tax Liabilities, Other | -20.2 | -14 |
Deferred Tax Liabilities, Property, Plant and Equipment | -609.5 | -580 |
Deferred Tax Liabilities, Gross, Noncurrent | -633.1 | -597.4 |
Deferred Tax Liabilities, Net, Noncurrent | $284 | $260.40 |
Note_12_Income_Taxes_Unrecogni
Note 12 - Income Taxes Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, period of recognition | 12 months | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits - Begin | $7.10 | $8.10 | $8.10 |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | 0 | -1 | 0 |
Unrecognized Tax Benefits - End | $7.10 | $7.10 | $8.10 |
Note_12_Income_Taxes_Valuation
Note 12 - Income Taxes Valuation Allowance (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Valuation Allowance, Amount - Begin | $191.30 | $182.50 | $182.50 |
reductions in valuation allowance for net operating losses previously forgone | 3.6 | 0 | 0.1 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -4.8 | 8.8 | 0.1 |
Valuation Allowance, Amount - End | 182.9 | 191.3 | 182.5 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $8.40 |
Note_12_Income_Taxes_Statement
Note 12 - Income Taxes Statements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Operating Loss Carryforwards | $1,300,000,000 | |
NOL carryforwards not expected to be realized prior to expiration | 398,000,000 | |
Deferred Tax Assets, Tax Credit Carryforwards | 6,100,000 | 6,100,000 |
Tax Credit Carryforward, Valuation Allowance | $5,200,000 |
Note_13_Retirement_and_Benefit
Note 13 - Retirement and Benefit Plans Defined contribution Plan Statement (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | ||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 3 years | ||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 90.00% | ||
Defined Contribution Plan, Cost Recognized | $6.30 | $5.90 | $5.20 |
Note_13_Retirement_and_Benefit1
Note 13 - Retirement and Benefit Plans Qualified Defined Benefit Plan (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Funded Status of Plan | $3.40 | $3.30 |
Defined Benefit Plan, Accumulated Benefit Obligation | 9.9 | 16.7 |
Defined Benefit Plan, Benefit Obligation | 13.3 | 16.7 |
Defined Benefit Plan, Fair Value of Plan Assets | $9.90 | $13.40 |
Note_14_Valuation_and_Qualifyi1
Note 14 - Valuation and Qualifying Accounts Valuation Allowance for doubtful accounts and notes receivable (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance - Begin | $1.50 | $1.30 | $0.50 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1.4 | 0.4 | 0.9 |
Valuation Allowances and Reserves, Deductions | -0.3 | -0.2 | -0.1 |
Valuation Allowances and Reserves, Balance - End | $2.60 | $1.50 | $1.30 |
Note_15_Subsequent_Events_Stat
Note 15 - Subsequent Events Statement (Details) | Dec. 31, 2014 |
Aircraft | |
Number of Aircraft extended under the E145 code-share agreement with Delta [Abstract] | |
number of E145 aircraft extended from May 2015 to May 2021 under CPA with Delta | 24 |