Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 11, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | REPUBLIC AIRWAYS HOLDINGS INC | ||
Entity Central Index Key | 1,159,154 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 50,948,385 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 467,234,754 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 173.5 | $ 223.9 |
Restricted cash | 4.5 | 21.7 |
Receivables - net of allowance for doubtful accounts of $1.8 and $2.6, respectively | 77.4 | 20.7 |
Inventories | 53.4 | 60.9 |
Prepaid expenses and other current assets | 10.4 | 13.7 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 45.4 | 1.9 |
Total current assets | 364.6 | 342.8 |
Aircraft and other equipment, net | 3,006.3 | 2,860.9 |
Maintenance deposits | 49.9 | 53.2 |
Intangible and other assets, net | 192.8 | 220.7 |
Total assets | 3,613.6 | 3,477.6 |
Current Liabilities: | ||
Current portion of long-term debt | 2,460.7 | 309 |
Accounts payable | 22.8 | 19.3 |
Accrued Liabilities, Current | 183.5 | 142.9 |
Total current liabilities | 2,667 | 471.2 |
Long-term debt - less current portion | 0 | 2,030.2 |
Deferred credits and other non-current liabilities | 86.9 | 88.1 |
Deferred income taxes | 259.6 | 267.6 |
Total liabilities | $ 3,013.5 | $ 2,857.1 |
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; 60,521,616 and 59,821,243 shares issued and 50,948,385 and 50,024,780 shares outstanding, respectively | 0 | 0 |
Additional paid-in capital | 434.1 | 427.4 |
Treasury stock, 9,546,147 shares at cost, respectively | (183.9) | (183.9) |
Accumulated other comprehensive loss | (2.2) | (2.2) |
Retained Earnings (Accumulated Deficit) | 352.1 | 379.2 |
Stockholders' Equity Attributable to Parent | 600.1 | 620.5 |
Total liabilities and stockholders' equity | $ 3,613.6 | $ 3,477.6 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for Doubtful Accounts Receivable, Current | $ 1.8 | $ 2.6 |
Stockholders' Equity: | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 60,521,616 | 59,821,243 |
Common Stock, Shares, Outstanding | 50,948,385 | 50,024,780 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
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 | 9,546,147 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING REVENUES: | |||
Fixed-fee service | $ 1,320.3 | $ 1,348.5 | $ 1,276.1 |
Passenger service | 0 | 0 | 46.3 |
Other Revenue | 23.7 | 26.9 | 24.1 |
Total operating revenues | 1,344 | 1,375.4 | 1,346.5 |
OPERATING EXPENSES: | |||
Wages and benefits | 399.4 | 368 | 342.1 |
Aircraft fuel | 9.3 | 22.4 | 44.9 |
Landing fees and airport rents | 24.2 | 26.9 | 46.4 |
Aircraft and engine rent | 142.3 | 126 | 122.6 |
Maintenance and repair | 269.6 | 251.1 | 251.6 |
Insurance and taxes | 19.3 | 19.9 | 25.1 |
Depreciation and amortization | 191.1 | 173 | 150.7 |
Impairment and other charges | 9.2 | 53.4 | 21.2 |
Other | 194.8 | 149.2 | 150.9 |
Total operating expenses | 1,259.2 | 1,189.9 | 1,155.5 |
OPERATING INCOME | 84.8 | 185.5 | 191 |
OTHER INCOME (EXPENSE): | |||
Interest expense | (121.2) | (119.7) | (112.2) |
Fair value gain on restructuring asset | 0 | 18.4 | 0 |
Other, net | 1.6 | 1 | 2.5 |
Total other expense | (119.6) | (100.3) | (109.7) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (34.8) | 85.2 | 81.3 |
INCOME TAX EXPENSE | (7.7) | 20.9 | 33 |
Income (Loss) from Continuing Operations | (27.1) | 64.3 | 48.3 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | (21.6) |
Net Income | $ (27.1) | $ 64.3 | $ 26.7 |
Income from Continuing Operations, Per Common Share - Basic | $ (0.54) | $ 1.29 | $ 0.98 |
Income from Continuing Operations, Per Common Share - Diluted | (0.54) | 1.24 | 0.92 |
NET INCOME PER COMMON SHARE - BASIC | (0.54) | 1.29 | 0.54 |
NET INCOME PER COMMON SHARE - DILUTED | $ (0.54) | $ 1.24 | $ 0.52 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income | $ (27.1) | $ 64.3 | $ 26.7 |
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 | (0.2) | 0.1 | 2.1 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 0.2 | 0.3 | 0.3 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (27.1) | $ 64.7 | $ 29.1 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions | Total | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Stockholders' Equity Attributable to Parent - Period Start 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 | 620.5 | 427.4 | (183.9) | (2.2) | 379.2 |
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 | 2.7 | 2.7 | |||
Net Income | (27.1) | ||||
Treasury stock repurchases | 0 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | (0.2) | (0.2) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (0.2) | (0.2) | |||
Stockholders' Equity Attributable to Parent - Period End at Dec. 31, 2015 | $ 600.1 | $ 434.1 | $ (183.9) | $ (2.2) | $ 352.1 |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity Stockholders Equity Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized (Gain) Loss Arising During Period, Tax | $ 0.1 | $ 0.1 | $ 1.4 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | $ 0.1 | $ 0.1 | $ 0.2 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | |||
Income (Loss) from Continuing Operations | $ (27.1) | $ 64.3 | $ 48.3 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Impairment and other charges | 9.2 | 53.4 | 21.2 |
Fair value gain on restructuring asset | 0 | (18.4) | 0 |
Depreciation and amortization | 191.1 | 173 | 150.7 |
Debt issue costs and other amortization | 19.5 | 13.5 | 5.7 |
Stock compensation expense | 4 | 4.6 | 4 |
Deferred income taxes | (8) | 22.6 | 19.2 |
Other, net | (3.4) | (8.2) | (6.2) |
Changes in certain assets and liabilities: | |||
Receivables | (36.5) | 26 | (18.3) |
Inventories | (0.4) | 6.9 | (3.5) |
Prepaid expenses and other current assets | 16.7 | (8) | (4.6) |
Accounts payable and accrued liabilities | 31.6 | (13) | 21.2 |
Other, net | 0 | 3.8 | 2.9 |
Net Cash from operating activities of continuing operations | 196.7 | 320.5 | 240.6 |
INVESTING ACTIVITIES: | |||
Purchase of aircraft and other equipment | (474.8) | (569.2) | (476) |
Proceeds from sale of other assets | 94.7 | 41.3 | 46.2 |
Aircraft deposits | (12.7) | (27.5) | (30) |
Change in restricted cash | 17.2 | 2.3 | (4.3) |
Net Cash from (used in) investing activities of continuing operations | (375.6) | (553.1) | (464.1) |
FINANCING ACTIVITIES: | |||
Payments on Debt | (326.9) | (271.1) | (205.6) |
Proceeds from debt issuance and refinancing | 469.6 | 539.2 | 470 |
Proceeds from line of credit | 83 | 0 | 0 |
Repayments of Convertible Debt | 0 | (48.7) | 0 |
Payments on early extinguishment of debt and refinancing | (94) | (37) | (58.7) |
Proceeds from exercise of stock options | 2.7 | 2.6 | 4.1 |
Treasury stock repurchases | 0 | (2.1) | 0 |
Other, net | (5.9) | (3.1) | (4.1) |
Net Cash from (used in) financing activities of continuing operations | 128.5 | 179.8 | 205.7 |
DISCONTINUED OPERATIONS | |||
Cash from operating activities - discontinued operations | 0 | 0 | 90.3 |
Cash from investing activities - discontinued operations | 0 | 0 | 70 |
Cash from financing activities - discontinued operations | 0 | 0 | (40.1) |
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 | 0 | 36.5 |
Proceeds from Divestiture of Businesses | 0 | 0 | 83.7 |
Net changes in cash and cash equivalents | (50.4) | (52.8) | 65.9 |
CASH AND CASH EQUIVALENTS—Beginning of period | 223.9 | 276.7 | 210.8 |
CASH AND CASH EQUIVALENTS—End of period | $ 173.5 | $ 223.9 | $ 276.7 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows Parenthetical for cash flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Proceeds from Divestiture of Businesses | $ 0 | $ 0 | $ 83.7 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
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: Shuttle America Corporation (“Shuttle”) and Republic Airline Inc. (“Republic”). 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, 2015 , our operating subsidiaries offered scheduled passenger service on 1,094 flights daily to 118 cities in 40 states, Canada and the Caribbean under scheduled passenger service through our fixed-fee code-share agreements with United Continental Holdings, Inc. ("United"), Delta Air Lines, Inc. ("Delta"), and American Airlines Group, Inc. ("American") (collectively referred to as our "Partners"). We provide our Partners with fixed-fee regional airline services, operating as United Express, Delta Connection, American Eagle, including service out of their hubs and focus cities. The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2015 : Operating Subsidiaries Aircraft Size (Seats) United Delta American Number of Aircraft Shuttle America 44 to 50 — 41 — 41 Shuttle America 70 to 76 38 30 — 68 Republic Airline 69 to 80 28 — 105 133 Total number of operating aircraft 66 71 105 242 During 2015 , our operational fleet decreased from 244 to 242 aircraft. The company took delivery of 18 E175 aircraft, removed five E190 aircraft from charter service ( two owned and three leased) and removed 15 Q400 aircraft. The three leased E190 aircraft were returned to the lessor, of the two owned E190 aircraft; one E190 aircraft was sold in early 2016, and we anticipate the other E190 aircraft will also be sold in early 2016. In addition, we returned four Q400 aircraft to the lessor, delivered five Q400 aircraft to Flybe, and permanently parked six Q400 aircraft; of which four will transition to Flybe and two will be returned to the lessor. 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. 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 American, Delta, and United (the "Partners") that authorize us to use their two-character flight designator codes ("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 American Eagle, Delta Connection, or United Express, respectively. Under the code-share agreements between our subsidiaries and each of 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, 2015 : Partner Aircraft Type Seats on Aircraft Number of Aircraft under CPAs Current Expiration Date(s) American E170 69 20 March 2019 to March 2023 American E175 80 38 February 2019 to March 2023 American E175 76 47 July 2025 to February 2027 Delta E145 50 41 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 E175 76 12 July 2027 to September 2029 United Q400 71 16 March 2016 American Code-Share Agreements As of December 31, 2015 , we operated 20 E170 aircraft and 85 E175 aircraft for American under a fixed-fee code-share agreement and provided 548 flights per day as American Eagle. In exchange for providing the designated number of flights and performing our other obligations under the code-share agreements, we receive compensation from American. Under the American E170 aircraft and E175 aircraft code-share agreements, we receive an additional amount per available seat mile flown and may also receive incentives or pay penalties based upon our performance, including fleet launch performance, on-time departure performance and completion percentage rates. In addition, certain operating costs are considered pass through costs whereby American 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. Under the American E175 code-share agreement for aircraft with 76 seats, 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. American provides fuel directly for all of our American operations. We do not record fuel expense and the related revenue for the American operations. Unless otherwise extended or amended, the code-share agreement for the E170/175 aircraft terminates between March 2019 and March 2023 with respect to the 20 E170 aircraft and eight of the E175 aircraft. The remaining 30 E175 aircraft ( 80 seats) are scheduled to terminate 12 years from each aircraft's in-service date and therefore would terminate from February 2019 to July 2020. American 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. Unless otherwise extended or amended, the code-share agreement for 47 E175 aircraft with 76 seats terminate 12 years from each aircraft's in-service date and therefore would terminate from July 2025 and February 2027. American has the option of extending this 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. The Delta Code-Share Agreements As of December 31, 2015 , we operated 41 E145 aircraft, 14 E170 aircraft, and 16 E175 aircraft for Delta under fixed-fee code-share agreements. As of December 31, 2015 , we provided 247 flights per day as Delta Connection. 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 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, after July 2015. If Delta exercises this right under the E170 agreement or if we terminate the 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 certain aircraft that we previously operated for Delta under that agreement. If we choose not to exercise our put right, or if Delta terminates the 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 E170 aircraft we previously operated for it under that agreement. The agreements may be subject to immediate or early termination under various circumstances. On February 26, 2015, Delta Air Lines purported to exercise a right to extend aircraft under the E145 code-share agreement from May 2016 to May 2021. The Company disputes the validity of the purported extension, which is contrary to the parties' previous communications and understanding. As the agreement does not contain any terms for an extension period, any such purported extension would be subject to mutual agreement on rates, terms, and conditions. No such mutual agreement has been reached and the Company believes that Delta has not made any good-faith efforts to engage in such discussions. Absent such an agreement the E145 code-share agreement would expire by its terms on May 31, 2016. The United Code-Share Agreement As of December 31, 2015 , we operated 38 E170 aircraft, 12 E175 aircraft and 16 Q400 aircraft for United under fixed-fee code-share agreements. As of December 31, 2015 , we provided 299 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. 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. On September 16, 2014, the Company entered into an agreement to operate 50 E175 aircraft under the United Express brand, which was subsequently amended to increase the number to 55 E175 aircraft. In December 2015, as a result of the Company's restructuring effort we entered into an amendment to the agreement to reduce the number of deliveries to 40 aircraft. As of December 31, 2015 , 12 of the 40 aircraft are in service; the remaining aircraft begin service between January 2016 and September 2017. Unless otherwise extended or amended, the E175 code-share agreement terminates on the 12 th anniversary of the implementation date of each aircraft with terms expiring between July 2027 and September 2029. The agreement is subject to early termination under various circumstances. 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. Concentrations As of December 31, 2015 , substantially all fixed-fee service revenues are derived from code-share agreements with Delta, 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 American December 31, 2015 22% 27% 48% December 31, 2014 24% 29% 43% December 31, 2013 24% 31% 35% Receivables as of: December 31, 2015 38% 26% 9% December 31, 2014 4% 3% 26% Delta has withheld in excess of $21.0 million of contractual payments through December 31, 2015 , which has resulted in past due receivables on the Company's balance sheet. The Company disputes Delta's right to withhold payments and intends to seek their recovery. The Company has deferred recognition of this revenue in accrued liabilities on the Company's balance sheet until this dispute can be resolved. |
Note 2 - Chapter 11 Filing and
Note 2 - Chapter 11 Filing and Going Concern (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Chapter 11 Filing And Going Concern [Abstract] | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | CHAPTER 11 FILING AND GOING CONCERN The accompanying audited consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As disclosed in the accompanying consolidated financial statements, the Company incurred a net loss of $27.1 million for the year ended December 31, 2015. As of December 31, 2015, the Company had cash and cash equivalents of $173.5 million and will require additional working capital throughout 2016 to support a sustainable business operation. On February 25, 2016 (the “Petition Date”), Republic Airways Holdings Inc. and certain of its wholly-owned direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions for reorganization (the “Bankruptcy Filing”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Chapter 11 cases are being administered under the caption "In re Republic Airways Holdings Inc., et al.," Case Number 16-10429. The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The Bankruptcy Filing is intended to permit the Company to reorganize and improve liquidity, wind down unprofitable contracts and amend its capacity purchase agreements to enable sustainable profitability. The Company’s goal is to develop and implement a plan of reorganization that meets the standards for confirmation under the Bankruptcy Code. Confirmation of a plan of reorganization could materially alter the classifications and amounts reported in the Company’s consolidated financial statements, which do not give effect to any adjustments to the carrying values of assets or amounts of liabilities that might be necessary as a consequence of confirmation of a plan of reorganization or other arrangement, or the effect of any operational changes that may be implemented. Operation and Implication of the Bankruptcy Filing Under Section 362 of the Bankruptcy Code, the filing of voluntary bankruptcy petitions by the Debtors automatically stayed most actions against the Debtors, including most actions to collect indebtedness incurred prior to the Petition Date or to exercise control over the Debtors’ property. Accordingly, although the Bankruptcy Filing triggered defaults for certain of the Debtors’ debt and lease obligations, counterparties are stayed from taking any actions as a result of such defaults. Absent an order of the Bankruptcy Court, substantially all of the Company’s pre-petition liabilities are subject to settlement under a plan of reorganization. As a result of the Bankruptcy Filing, the realization of assets and the satisfaction of liabilities are subject to uncertainty. The Debtors, operating as debtors-in-possession under the Bankruptcy Code, may, subject to approval of the Bankruptcy Court, sell or otherwise dispose of assets and liquidate or settle liabilities for amounts other than those reflected in the consolidated financial statements. Further, a confirmed plan of reorganization or other arrangement may materially change the amounts and classifications in the Company’s consolidated financial statements. Subsequent to the Petition Date, the Debtors received approval from the Bankruptcy Court to pay or otherwise honor pre-petition obligations generally designed to stabilize the Company’s operations. These obligations relate to certain employee wages, salaries and benefits, taxes and certain vendors in the ordinary course for goods and services received after the Petition Date. The Debtors have retained, pursuant to Bankruptcy Court approval, legal and financial professionals to advise the Debtors in connection with the Bankruptcy Filing and certain other professionals to provide services and advice in the ordinary course of business. From time to time, the Debtors may seek Bankruptcy Court approval to retain additional professionals. Events Leading to the Chapter 11 Cases There is a growing national shortage of qualified pilots in the United States. This shortage is making it increasingly difficult to maintain the necessary pilot staffing levels to sustain reliable performance requirements under the agreements with the Company's Partners. As a result of the pilot shortage, the Company has been forced to ground operating aircraft and reduce scheduled flying for each of its Partners, which has adversely affected the Company's financial position and cash flows from operations. Although a new three year collective bargaining agreement reached with its pilots in late 2015 has enabled the Company to stem the rate of attrition and significantly increase new pilot hiring, the Company needs time to be able to train new pilots, return more of its idled aircraft to revenue service, and restore higher levels of scheduled service for its Partners. Government Regulation The current national pilot shortage noted above is the result of two primary factors: an aging pilot population and new government regulations that increase new pilot qualification requirements. These factors have created greater demand at mainline, low cost and cargo carriers, which recruit from the regional airlines and offer higher salaries and more extensive benefit programs than regional carriers are able to offer, and have made it more difficult for regional airlines, such as the Company, to retain sufficient pilots. On August 1, 2013, the congressionally-mandated pilot experience qualifications contained in the Airline Safety and FAA Extension Act of 2010 became effective. As a result of this legislation, the age and training requirements for the Company’s first officer pilots generally increased to 23 years and 1,500 hours of flight time. Military pilots are subject to somewhat lower standards, but as the wind-down of the U.S. involvement in conflicts in Iraq and Afghanistan has substantially concluded, there are fewer military-trained pilots entering the workforce. In addition, the FAA has implemented a new regulation that increases the flight crew duty, flight, and rest requirements for pilots. This update changed the length of time a pilot may be on duty and how much she or he may fly in a day, month, and year. These new limitations, together with the new, more restrictive certification and qualification requirements, have resulted in a growing scarcity of qualified new entrants and have contributed to the current severe nationwide pilot shortage. The new “time and duty rest” requirements have increased by approximately 5% - 7% the number of pilots that the Company historically needed to operate its schedules, thereby exacerbating an already acute labor shortage. The new minimum flight hour requirements have dramatically decreased the pool of qualified and competent new pilots available for hire by the Company (and other regional airlines) to meet its increased pilot needs in order to sustain its level of operations. This shortage has been further exacerbated by the aging population of experienced pilots employed at mainline carriers, who in order to address their own increased pilot needs due to the mandatory retirement of pilots at age 65, have heavily recruited pilots from Republic and other regional carriers by offering substantially higher pay and the prospect of greater opportunities for career advancement. As a consequence of there being fewer qualified pilots entering the work force, combined with increased attrition at the regional airlines to replace retirements at mainline, low cost and cargo airlines, the regional airline fleets are now underutilized and those aircraft that do operate do so with reduced schedules due to the reduced number of hours pilots can fly under the new regulations. Accordingly, the Company (and the regional airline industry generally) is experiencing declining revenue and higher costs. Collective Bargaining Agreement Concurrently with the changes discussed above, the Company was in negotiations with the International Brotherhood of Teamsters (“IBT Local 357 ” or the “IBT”), the union which represents the Company’s pilots. In October 2007, the Company’s collective bargaining agreement with the IBT became amendable. During the pendency of the amendable period, pilot wages under that agreement deteriorated significantly below industry standard, pilot attrition increased, and with the subsequent heightened requirements for non-military-trained pilots and a decreasing number of new entrant pilots who could satisfy the higher experience qualifications, the Company’s ability to attract qualified candidates was frustrated. Accordingly, over the eight years since its collective bargaining agreement with the IBT became amendable, the Company endeavored to negotiate increased compensation and improved benefits and work rules that might help the Company to retain its existing pilots and better position it to attract new pilots. At the same time, to address its pilot shortage, the Company, at times, provided premium pay for pilots when they agreed to perform additional unassigned flying on their scheduled days off and offered signing bonuses to prospective new-hires as an incentive to accept its employment offers. During the latter stages of negotiations, in July 2015, the IBT filed a complaint against the Company alleging that the Company unilaterally increased compensation for pilots and new hires in violation of the Railway Labor Act, which further affected the Company’s ability to hire new pilots. Disputing the merits of the complaint, the Company filed a motion to dismiss. This case was ultimately dismissed with prejudice. Negotiations with the IBT were protracted. The Company, however, worked resolutely toward a consensual resolution for its pilots. Though the Company and the collective bargaining representative for the pilots, IBT Local 747 , opened negotiations in 2007 and had reached tentative agreements on several sections of a new collective bargaining agreement over the next two years, in 2009, the IBT placed ots original Local 747 into trusteeship following complaints that Local 747 had failed to maintain proper financial controls. The trustee then withdrew Local 747 ’s agreement to the tentative agreements the parties had reached in the prior years of bargaining. Negotiations began anew the following year with the newly-established IBT Local 357 . In July 2011, after being unable to reach an agreement, the parties began to engage in collective bargaining negotiations supervised by the National Mediation Board (“NMB”), and thereafter in November 2013, under the auspices of a private mediator. Though the parties reached a tentative agreement three months later in February 2014, it was not ratified by the union membership, and the parties returned to contract negotiations under the auspices of the NMB. Over the course of the next year, the parties passed over 100 proposals on at least 18 sections of the contract and by May 1, 2015, had reached tentative agreements on 19 out of 30 sections of the contract. However, progress stalled thereafter on the issue of compensation. Ultimately, after a series of proposals, on September 28, 2015, the Company and the IBT reached a tentative agreement on the terms of a new three year contract, which the Company believes respects the role of its pilots in its long-term success and puts its pilots at the forefront of the regional airline industry. The IBT recommended the tentative agreement to its members, and at the conclusion of voting on October 27, 2015, it was ratified. Though the tentative agreement with the IBT has been ratified, ratification does not provide an immediate resolution and panacea for all of the issues facing the Company. The length and intensity of negotiations with the IBT has had a severe impact on operations: pilot attrition doubled, recruiting efforts suffered severely, and Republic was forced to ground significant portions of its operating fleet due to lack of qualified pilots, generating losses in revenue, higher costs, diminished cash flows, and an inability to meet minimum flying levels under its fixed-fee agreements. Moreover, new hires are subject to a mandatory minimum three -month training program. Accordingly, the Company’s staffing assumptions for months in the future, as well as its ability to agree to flight plans and scheduling with its Partners, have been impacted significantly. Recovery and growth will require time and achieving new agreements with key stakeholders. Partner Litigation On October 5, 2015, Delta Air Lines, Inc. (Delta) filed suit against Shuttle America Corporation and Republic Airways Holdings, Inc. alleging that Shuttle was in breach of its contractual obligations under both Delta Connection Agreements. Delta alleges, among other things, that Shuttle breached the Delta Connection Agreements by failing to operate all of Delta's flights, and claims damages. The Company believes the allegations are unfounded and without merit and intend to pursue its rights, remedies and defenses in the litigation. Delta has withheld in excess of $21.0 million of contractual payments through December 31, 2015 , which has resulted in past due receivables on the Company's balance sheet. The Company disputes Delta's right to withhold payments and intends to seek their recovery. The Company has deferred recognition of this revenue until this dispute can be resolved. Delta and the Company are currently engaged in confidential settlement discussions regarding all disputes between them, including the disputes in the Delta litigation. In connection with such settlement discussions, at the request of Delta and the Company, on February 8, 2016 the Court in the Delta litigation entered an order administratively closing the case and directed the parties to file within 60 days either (1) the necessary documents to dismiss this case or (2) a joint status update notifying the Court why they are unable to file such documents. No assurance can be given as to the value, if any, that may be ascribed to the Debtors’ various pre-petition liabilities and other securities. Accordingly, the Debtors urge that caution be exercised with respect to existing and future investments in any of these securities or other Debtor claims. In addition, trading in the Company’s common stock on the NASDAQ was suspended on March 8, 2016, and the Company’s common stock was delisted by the Securities and Exchange Commission from the NASDAQ on March 8, 2016. Plan of Reorganization In order for the Company to emerge successfully from Chapter 11, the Company must obtain the Bankruptcy Court’s approval of a plan of reorganization, which will enable the Company to transition from Chapter 11 into ordinary course operations outside of bankruptcy. In connection with a plan of reorganization, the Company also may require a new credit facility, or “exit financing.” The Company’s ability to obtain such approval and financing will depend on, among other things, the timing and outcome of various ongoing matters related to the Bankruptcy Filing. A plan of reorganization determines the rights and satisfaction of claims of various creditors and parties-in-interest, and is subject to the ultimate outcome of negotiations and Bankruptcy Court decisions ongoing through the date on which the plan of reorganization is confirmed. The Company presently expects that any proposed plan of reorganization will provide, among other things, mechanisms for settlement of claims against the Debtors’ estates, treatment of the Company’s existing equity and debt holders, and certain corporate governance and administrative matters pertaining to the reorganized Company. Any proposed plan of reorganization will be subject to revision prior to submission to the Bankruptcy Court based upon discussions with the Company’s creditors and other interested parties, and thereafter in response to interested parties’ objections and the requirements of the Bankruptcy Code and Bankruptcy Court. There can be no assurance that the Company will be able to secure approval for the Company’s proposed plan of reorganization from the Bankruptcy Court. Going Concern These Consolidated Financial Statements have also been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business. Accordingly, the Consolidated Financial Statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Debtors be unable to continue as a going concern. As a result of the Chapter 11 proceedings, the satisfaction of the Company’s liabilities and funding of ongoing operations are subject to uncertainty and, accordingly, there is a substantial doubt of the Company’s ability to continue as a going concern. There is no assurance that the Company will be able to emerge successfully from Chapter 11. Additionally, there is no assurance that long-term funding of any type would be available to the Company, or that it would be available at rates and on terms and conditions that would be financially acceptable and viable to the Company in the long term. If the Company is unable to generate additional working capital and or raise additional financing when needed, it may be required to suspend operations, sell assets or enter into a merger or other combination with a third party, any of which could adversely affect the value of the Company’s common stock, or render it worthless. If the Company issues additional debt or equity securities, such securities may enjoy rights, privileges and priorities superior to those enjoyed by holders of the Company’s common stock, thereby diluting the value of the Company’s common stock. Additionally, in connection with the Chapter 11 Filing, material modifications could be made to the Company’s fleet and capacity purchase agreements. These modifications could materially affect the Company’s financial results going forward, and could result in future impairment charges. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, Shuttle and Republic. 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. 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) 2015 2014 2013 CASH PAID FOR INTEREST AND INCOME TAXES: Interest paid, net of amount capitalized $ 105.6 $ 110.1 $ 108.2 Income taxes paid, net of refunds — 0.8 2.1 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 13.1 23.1 11.6 Manufacturer credits applied to the purchase of aircraft 8.9 17.1 8.7 Engines received and not yet paid — — 5.8 Chautauqua restructuring asset - Aircraft Manufacturer's Incentive — — 12.0 (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, 2015 , 2014 and 2013 . Included in receivables are $21.0 million of receivables related to Delta that are disputed and, accordingly, the Company has deferred revenue in the same amount recorded in accrued liabilities. 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, 2015 and 2014 , this reserve was $36.3 million and $27.0 million , respectively. Prepaid Expenses and Other Current Assets consist of prepaid expenses, primarily deposits, facility and engine rent, and other current assets. Assets Held for Sale are reported at the lower of their carrying value or estimated fair value less costs to sell. We expect to sell all such assets during the next twelve months. Refer to Note 6 for more detail. 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, 2015 , 2014 and 2013 , respectively. See Note 7. 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 8 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 $0.3 million and $0.5 million (net of tax), as of December 31, 2015 and 2014 , respectively; and $1.9 million and $1.7 million (net of tax), relating to the pension plan as of December 31, 2015 and 2014 , 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, 2015 , 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 2015 , 2014 and 2013 was $439.4 million , $433.7 million , and $386.8 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) 2015 2014 2013 Income (loss) from continuing operations $ (27.1 ) $ 64.3 $ 48.3 Loss from discontinued operations, net of tax — — (21.6 ) Net income (loss) $ (27.1 ) $ 64.3 $ 26.7 Reduction in interest expense from convertible notes (net of tax) — 0.8 2.0 Net income (loss) after assumed conversion $ (27.1 ) $ 65.1 $ 28.7 Weighted-average common shares outstanding for basic net income per common share 50.7 49.8 49.2 Effect of dilutive employee stock options — 0.4 0.7 Effect of dilutive convertible notes — 2.2 4.7 Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share 50.7 52.4 54.6 Income (loss) per share - basic: Income (loss) from continuing operations $ (0.54 ) $ 1.29 $ 0.98 Loss from discontinued operations, net of tax — — (0.44 ) Net income (loss) per share - basic $ (0.54 ) $ 1.29 $ 0.54 Income (loss) per share - diluted: Income (loss) from continuing operations $ (0.54 ) $ 1.24 $ 0.92 Loss from discontinued operations, net of tax — — (0.40 ) Net income (loss) per share - diluted $ (0.54 ) $ 1.24 $ 0.52 The Company excluded 2.2 million , 2.5 million and 3.3 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, 2015 , 2014 and 2013 , respectively. The Company had 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. 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 February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which amends the FASB Accounting Standards Codification. The objective of the update is to improve financial reporting by increasing transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for (1) a public business entity, (2) a not-for-profit entity that has issued, or is a conduit bond obligor for securities that are traded, listed, or quoted on an exchange or an over-the-counter market or (3) an employee benefit plan that files financial statements with the U.S. Securities and Exchange Commission (SEC). For all other entities, the update is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application of the amendments is permitted for all entities. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The objective of the 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 users of financial statements. It is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company retrospectively adopted this standard and has appropriately reflected the impacts in the consolidated financial statements and related notes. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . 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 beginning after December 15, 2015 and interim periods within those fiscal years. The Company is evaluating the impact to the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The update is intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The definition of substantial doubt within the new standard incorporates a likelihood threshold of "probable" similar to the use of that term under current GAAP for loss contingencies. It is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to require the recognition of revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the transfer of promised goods or services to customers. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. On April 1, 2015, the FASB voted to propose a one-year deferral of the effective date. On July 9, 2015, the FASB voted to approve this deferral, permitting public organizations to apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Public organizations may adopt the new revenue standard early, but not before the original public organization effective date. The Company is evaluating the impact to the consolidated financial statements. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Level 1 Level 2 Level 3 Chautauqua restructuring asset $ 59.1 $ — $ — $ 59.1 Fair Value of Assets on a Recurring Basis December 31, 2014 Level 1 Level 2 Level 3 Chautauqua restructuring asset $ 81.2 $ — $ — $ 81.2 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 $1.1 million as of December 31, 2015 . 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 amortized 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, 2015 , the Company would owe approximately $59.4 million under certain circumstances of non-performance or voluntary repayment, however, the Company estimated the probability of repayment as remote. The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions): Chautauqua Restructuring Asset Year Ended December 31, 2015 Year Ended December 31, 2014 Beginning Balance $ 81.2 $ 79.6 Fair value gain — 18.4 Cash received or other (22.1 ) (16.8 ) Ending Balance $ 59.1 $ 81.2 Fair Value of Debt - Market risk associated with our fixed and variable rate 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. December 31 2015 2014 Net carrying amount $ 2,460.7 $ 2,339.2 Estimated fair value 2,222.7 2,215.0 Aircraft and Other Assets Impairment - Nonrecurring - In December 2015, we recorded a $7.7 million write down related to our decision to substantially reduce the flying completed by the E145 and Q400 fleet. In evaluating the repairables and expendables inventory related to the E145 aircraft and Q400 aircraft, we estimated the fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry and (2) recent market transactions, where available. The repairable and expendable inventory is classified in level 3 of the three-tier fair value hierarchy. The Company also recorded a $1.5 million impairment and other charge in 2015 for aircraft modifications on the E140 aircraft related to our decision to discontinue marketing the aircraft for sublease. The aircraft modifications is classified in level 3 of the three-tier fair value hierarchy. In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of the Q400 and E190 fleet. 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 $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry and (2) recent market transactions, where available. These aircraft are classified in level 3 of the three-tier fair value hierarchy. ($ in millions) Fair Value Measurements Using Description Year ended December 31, 2015 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 - E140 $ — $ — $ (1.5 ) Inventory - E145 $ 3.7 $ 3.7 $ (6.1 ) Inventory - Q400 1.4 1.4 (1.6 ) $ (9.2 ) 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 5 - Discontinued Operation
Note 5 - Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
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) Year Ended 2013 Total operating revenue $ 1,217.5 Income from discontinued operations before tax (2) $ 50.9 Income tax expense 18.7 Income from discontinued operations 32.2 Loss on disposal from discontinued operations (1) (53.8 ) Total discontinued operations, net of tax $ (21.6 ) (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 . The Company was not required to make any payment of indemnification claims under the stock purchase agreement claims as of December 31, 2015. 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. There were no transitional services billings in 2015. |
Note 6 - Assets Held For Sale A
Note 6 - Assets Held For Sale Assets Held for Sale Text Block (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Long Lived Assets Held-for-sale [Line Items] | |
Property, Plant, and Equipment and Intangible Assets [Text Block] | ASSETS HELD FOR SALE Assets held for sale consisted of the following aircraft and flight equipment as of December 31 (in millions): 2015 2014 E190 Aircraft $ 43.8 $ — Inventory 1.6 1.9 Assets held for sale $ 45.4 $ 1.9 Assets held for sale as of December 31, 2015 primarily consist of the two E190 aircraft, one E190 aircraft was sold in early 2016, and we anticipate the other E190 aircraft will also be sold in early 2016, after operating under fixed-fee charter service, and inventory relating to aircraft fleets the Company no longer operates. The inventory is being marketed for sale by a third party. |
Aircraft and Other Equipment
Aircraft and Other Equipment | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 Aircraft $ 3,951.6 $ 3,644.8 Flight equipment 194.0 171.7 Office equipment and leasehold improvements 43.1 44.4 Total aircraft and other equipment 4,188.7 3,860.9 Less accumulated depreciation and amortization (1,182.4 ) (1,000.0 ) Aircraft and other equipment—net $ 3,006.3 $ 2,860.9 Aircraft and other equipment depreciation and amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $191.1 million , $173.0 million , and $150.7 million , respectively. The Company also recorded a $1.5 million impairment charge to write-off leasehold improvements on the E140 aircraft related to our decision to discontinue marketing the aircraft for sublease. In October 2015, we accelerated depreciation on rotable inventory relating to the Q400 and E145 fleet, based on useful lives through March 31, 2016 and May 31, 2016, respectively, resulting in additional depreciation of $3.2 million . In December 2014 and March 2014, we recorded $27.7 million and $19.9 million in impairment charges, respectively, as discussed in Note 4. In December 2014, 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 8 - Intangible and Other A
Note 8 - Intangible and Other Assets (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 consist of the following (in millions): 2015 2014 Indefinite-lived intangible assets: Airport slots $ 9.0 $ 9.0 Other assets: Aircraft pre-delivery deposits 53.5 57.5 Aircraft lease and long-term deposits 26.8 26.0 Chautauqua restructuring asset - See Note 4 59.1 81.2 Prepaid aircraft rents 20.6 27.8 Debt issue costs and other non-current assets 23.8 19.2 Total Other assets 183.8 211.7 Intangible and other assets $ 192.8 $ 220.7 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 Accrued wages, benefits and related taxes $ 32.9 $ 29.0 Accrued maintenance 51.1 37.6 Accrued interest payable 16.8 18.0 Deferred revenue 30.8 19.9 Other 51.9 38.4 Total accrued liabilities $ 183.5 $ 142.9 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | DEBT The weighted average interest rate of debt for aircraft financings for December 31, 2015 and 2014, was 5.14% and 5.38% , respectively. Debt consists of the following as of December 31 (in millions): Secured debt: 2015 2014 Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 2.04% to 8.49% at December 31, 2015 and outstanding through 2027, net of unamortized debt discount of $74.8 million. (1) $ 2,317.7 $ 2,238.1 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 2015. — 41.6 Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.13% to 8.38% as of December 31, 2015 and outstanding through 2022. 56.7 53.7 Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.18% to 3.66% as of December 31, 2015 and outstanding through 2017. 1.7 3.4 Line of Credit, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin of 2.75% per annum, or another rate based on certain market rates, plus a margin of 1.75% per annum as of December 31, 2015 and outstanding through 2018. 83.0 — Other 1.6 2.4 Total debt secured by aircraft and parts 2,460.7 2,339.2 Total debt 2,460.7 2,339.2 Current portion (2) 2,460.7 309.0 Long term debt, less current portion $ — $ 2,030.2 (1) The Company entered into financing agreements to borrow $474.8 million for 18 E175 aircraft and other equipment primarily for the American and United E175 fixed-fee agreement and other equipment. (2) The Bankruptcy Filing constituted an event of default for certain of the Company's debt and lease obligations and therefore the debt has been reflected as current on the Company's consolidated balance sheet as of December 31, 2015. However, payment obligations under the debt and lease agreements are stayed as a result of the Bankruptcy Filing and the creditors' and lessors' rights of enforcement of the debt and lease agreements are subject to the applicable provisions of the Bankruptcy Code. On April 7 and April 24, 2015, Republic entered into Credit and Guaranty Agreements. The revolving credit facility provides that Republic may from time to time prior to certain times, borrow, repay, and reborrow loans and have letters of credit issued up to an aggregate amount of $65.0 million under revolving facilities, and have letters of credit issued up to an aggregate amount of $10.0 million under the letter of credit facility. Effective June 11, 2015, Republic, amended the April 7, Credit Facility to increase the Revolving Facility by $20.0 million to a total aggregate commitment of $85.0 million . The proceeds are available until April 7 and April 24, 2018 and will be used for refinancing certain aircraft and other general corporate purposes. The Company has drawn $83.0 million on the revolving credit facility, as of December 31, 2015 . Borrowings under these agreements bear interest at a variable rate equal to the London interbank offering rate, known as LIBOR, plus a margin of 2.75% per annum, or another rate based on certain market interest rates, plus a margin of 1.75% per annum. The Company has outstanding letters of credit as of December 31, 2015 and 2014 totaling $12.5 million and $14.1 million , respectively, all of which are collateralized by bond, cash, inventory and aircraft. Future maturities of debt are payable, as follows for the years ending December 31 (in millions): Total Secured Debt Amortization of Debt Discount, net 2016 $ 333.3 (13.4 ) 2017 377.7 (12.2 ) 2018 403.5 (10.9 ) 2019 365.5 (9.6 ) 2020 290.1 (8.2 ) Thereafter 765.4 (20.5 ) Total $ 2,535.5 $ (74.8 ) $ 2,460.7 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS [Abstract] | |
Commitments Disclosure [Text Block] | COMMITMENTS As of December 31, 2015 , the Company leased 62 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): 2015 2014 2013 Aircraft and engine rent $ 142.3 $ 126.0 $ 122.6 Other 12.1 10.3 11.7 Total rent expense $ 154.4 $ 136.3 $ 134.3 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 $1.8 million per year through December 2017 for the E145 family of aircraft and $9.8 million per year through April 2023 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 December 2016 July 2019 July 2021 Avionics December 2017 April 2023 NA (1) Wheels and Brakes December 2019 January 2022 August 2022 (4) Parts Pooling December 2017 February 2027 April 2016 Emergency Slides NA (1) December 2024 NA (1) Tires NA (1) NA (1) July 2021 Propellers NA (1) NA (1) July 2021 (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. (3) Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, American E175 aircraft, with 80 seats, expire December 2022, and American E175 aircraft, with 76 seats, expire March 2027. As of December 31, 2015 and 2014 , we had maintenance deposits of $49.9 million and $53.2 million , respectively, for the future replacement of LLPs. (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 $178.2 million , $173.0 million , and $163.8 million for the years ended December 31, 2015 , 2014 and 2013 , 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 $11.0 million and $2.3 million as of December 31, 2015 and December 31, 2014 , respectively, for maintenance commitments on E190, Q400 and E145 aircraft that will be returned to the lessor in 2016 and 2015, respectively. As of December 31, 2015, the Company also recorded a $17.4 million charge on permanently idled leased engines and aircraft for the E140/E145 and Q400 fleet. Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in millions): Aircraft Other Total 2016 $ 97.3 $ 15.9 $ 113.2 2017 80.0 14.0 94.0 2018 66.8 13.1 79.9 2019 65.0 11.1 76.1 2020 55.9 10.3 66.2 Thereafter 40.7 39.8 80.5 Total $ 405.7 $ 104.2 $ 509.9 As of December 31, 2015 , the Company has leased five E145 aircraft, three E170 aircraft, and five Q400 aircraft and one spare engine to a foreign airline, and it has leased one E145 aircraft to a domestic airline. The leased Q400 aircraft will gradually increase to 24 Q400 aircraft and two spare engines by February 2018. As of December 31, 2015 , the total amount of minimum rentals to be received in the future under non-cancelable leases is $173.6 million , of which $160.1 million relates to Q400 aircraft and Q400 spare engines, which will be used to pay the leases on these aircraft and engines. During the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized $20.7 million , $20.1 million and $18.7 million , respectively, of lease income that is included in other revenue in the consolidated statements of operations. As of December 31, 2015 , the Company has firm orders to purchase 40 CS300 aircraft that have scheduled delivery dates beginning in early 2015 and continuing through 2017. In 2015, Bombardier announced that the aircraft would not be expected into service until late 2016. The Company has stopped making pre-delivery deposit payments on these aircraft. The Company also had a commitment for 55 Embraer E175 aircraft, under the United brand that have scheduled delivery dates currently and through the third quarter of 2017. In addition, the Company had a commitment for six Embraer E175 aircraft under the American brand that had scheduled deliver dates through the first quarter of 2016. In December 2015, as a result of the Company's restructuring effort we reduced the number of deliveries by 21 to 40 E175 aircraft. As of December 31, 2015, 12 of these aircraft have been delivered and placed into service with United and the remaining 28 will be placed in to service with United through the third quarter of 2017 (the first four of which were delivered in February 2016). The Company also has a commitment to acquire 19 spare aircraft engines (of which six have been delivered as of December 31, 2015 ). The Company expects to take delivery of all engines as follows: five engines in 2016, seven engines in 2017 and one engine in 2018. The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions): Payments Due By Period 2016 2017 2018 2019 2020 Total Debt or lease financed aircraft under purchase obligations (1) $ 1,211.8 $ 1,471.0 $ 778.4 $ — $ — $ 3,461.2 Engines under firm orders 33.7 48.7 7.0 — — 89.4 Total contractual obligations for aircraft and engines $ 1,245.5 $ 1,519.7 $ 785.4 $ — $ — $ 3,550.6 (1) Represents delivery of CS300s based on estimated service date of late 2016 and E175 aircraft through the third quarter of 2017. The information in the table above reflects a purchase price of the aircraft at projected delivery dates. The Company had aircraft return costs of $21.4 million for the twelve months ended December 31, 2015 . These costs were associated with the transition of Q400 and E190 aircraft, which is included in other operating expense. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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. As of December 31, 2015 , approximately 69% of the Company's workforce is employed under union contracts. 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. We have never experienced any work stoppages or other job actions and generally consider our relationship with our employees to be good. On October 27, 2015, the IBT Local 357 voted by a margin of 76% to ratify a new three -year contract, with approximately 90% of the eligible pilots voting. The three year agreement became effective on its date of signing, October 29, 2015. The agreement costs approximately $50.0 million per year on average over the three year duration of the agreement, including both the ratification bonus and the anniversary bonus. The ratification bonus of approximately $17.0 million will be paid during the fourth quarter of 2015; and the anniversary bonus, currently estimated at approximately $14.0 million is expected to be paid during the fourth quarter of 2016. Primarily as a result of pilot supply constraints caused by industry regulatory changes and the pilot labor dispute between the Company and Local 357 , the Company's ability to meet its operational and financial targets in 2015 has been adversely affected. In order to address the effects of its pilot shortage, the Company worked with its CPA partners to reduce levels of flying during the second half of 2015 and beyond. In connection with this effort the Company is seeking to restructure its operational and contractual commitments. There can be no assurance that these efforts to reach consensual agreements with its stakeholders will be successful or that such agreements will fully restore the Companies operational and financial performance. On October 5, 2015, Delta Air Lines, Inc. (Delta) filed suit against Shuttle America Corporation and Republic Airways Holdings Inc. alleging that Shuttle was in breach of its contractual obligations under both Delta Connection Agreements. Delta alleges, among other things, that Shuttle breached the Delta Connection Agreements by failing to operate all of Delta's flights, and claims damages. The Company believes the allegations are unfounded and without merit and intend to pursue its rights, remedies and defenses in the litigation. Delta has withheld in excess of $21.0 million of contractual payments through December 31, 2015 , which has resulted in past due receivables on the Company's balance sheet. The Company disputes Delta's right to withhold payments and intends to seek their recovery. The Company has deferred recognition of this revenue until this dispute can be resolved. Delta and the Company are currently engaged in confidential settlement discussions regarding all disputes between them, including the disputes in the Delta litigation. In connection with such settlement discussions, at the request of Delta and the Company, on February 8, 2016 the Court in the Delta litigation entered an order administratively closing the case and directed the parties to file within 60 days either (1) the necessary documents to dismiss this case or (2) a joint status update notifying the Court why they are unable to file such documents. |
Capital Stock and Stock Options
Capital Stock and Stock Options | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 , and 2013 : (in millions) Common Stock 2015 2014 2013 Beginning balance 50.0 49.5 48.6 Shares issued for stock options exercised 0.5 0.4 0.7 Vesting of restricted stock and other 0.4 0.1 0.2 Ending balance 50.9 50.0 49.5 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, 2015, 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 1,965,453 shares, remain available for issuance under the plan as of December 31, 2015 . 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 $4.94 to $20.27 . The following table summarizes option activity under the stock option plans as of December 31, 2015 : Options Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Contractual Term (in years) Outstanding at January 1, 2015 3,135,505 $ 14.25 Granted 65,000 12.38 Exercised (490,297 ) 8.51 Forfeited (455,705 ) 16.82 Outstanding at December 31, 2015 2,254,503 $ 14.93 $ — 3.57 Vested or expected to vest at December 31, 2015 2,225,999 $ 14.97 $ — 3.50 Exercisable at December 31, 2015 1,934,919 $ 15.51 $ — 2.81 The intrinsic value of options exercised during the years ended December 31, 2014 and 2013 was not material. There were 2,671,717 and 3,513,999 options exercisable at December 31, 2014 and 2013 , respectively. The weighted average exercise price for the options exercisable at December 31, 2014 and 2013 was $14.90 and $14.26 , respectively. The remaining contractual life for the options outstanding at December 31, 2014 and 2013 was 5.39 years and 4.63 years, respectively. During the years ended December 31, 2015 , 2014 and 2013 , $0.2 million ( $0.0 million net of tax), $0.9 million ( $0.5 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, 2015 there was $0.2 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 2015 , 2014 and 2013 was $3.94 , $4.80 , and $5.28 , 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, 2015 2014 2013 Dividend yield —% —% —% Expected volatility 38 % - 65% 56 % - 58% 59 % - 62% Risk-free interest rate 1.7 % - 1.7% 1.7 % - 1.8% 0.9 % - 1.4% 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 . In 2015 , the restricted stock was valued at $55,000 , which will vest on the later of (a) the first anniversary of the award date, (b) the date the director retires from the Board after at least five years of service as a director, or (c) the occurrence of a change in control. Directors are required to hold vested shares until they cease being a director of the Company. Compensation expense for our restricted stock grants was $3.8 million , $3.7 million , and $2.8 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , we have $8.2 million in total unrecognized future compensation expense that will be recognized over the next three or four years relating to awards for 876,119 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/Units Unvested at January 1, 2015 763,232 Vested (394,988 ) Granted 551,155 Surrendered (43,280 ) Unvested at December 31, 2015 876,119 The grant date weighted-average fair value per share of restricted stock awards granted during the years ended December 31, 2015 , 2014 , and 2013 , was $7.76 , $10.50 and $11.23 , respectively. The total fair value of shares vested during the years ended December 31, 2015 , 2014 , and 2013 , was $5.1 million , $3.1 million , and $2.8 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 2013 Federal: Current $ — $ — $ — Deferred (9.4 ) 29.6 30.9 Total Federal (9.4 ) 29.6 30.9 State: Current 0.4 (1.4 ) 4.1 Deferred 0.6 (2.5 ) (9.8 ) Total State 1.0 (3.9 ) (5.7 ) Valuation allowance 0.7 (4.8 ) 8.8 Expense for uncertain tax positions — — (1.0 ) Income tax expense $ (7.7 ) $ 20.9 $ 33.0 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): 2015 2014 2013 Federal income tax expense at statutory rate $ (12.3 ) $ 29.8 $ 28.4 State income tax expense, net of federal benefit (0.8 ) 2.6 2.7 Valuation allowance 0.7 (4.8 ) 8.8 Adjustment to deferred tax liabilities 2.5 (3.1 ) (8.8 ) Change in State tax rate — (4.2 ) — Permanent tax adjustments 2.2 2.0 1.7 Other — (1.4 ) 0.2 Income tax expense $ (7.7 ) $ 20.9 $ 33.0 During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective December 31, 2015 on a retrospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. As of December 31, 2014, this retrospective adoption resulted in a $16.4 million reclassification from a current deferred tax asset to a non-current deferred tax liability . The components of deferred tax assets and liabilities as of December 31 are as follows (in millions): 2015 2014 DEFERRED TAX ASSETS: Nondeductible accruals and deferred revenue $ 48.6 $ 52.1 Federal and state net operating loss carryforwards, net of liability for uncertain tax positions 494.7 453.2 AMT credits 6.1 6.1 Prepaid rent 14.9 8.5 Deferred credits and other non-current liabilities 14.0 5.7 Other 20.7 22.8 Total 599.0 548.4 Valuation allowance (180.5 ) (182.9 ) Total deferred tax assets 418.5 365.5 DEFERRED TAX LIABILITIES: Other intangible assets (3.4 ) (3.4 ) Maintenance deposits (19.0 ) (20.2 ) Accelerated depreciation and fixed asset basis differences for tax purposes (655.7 ) (609.5 ) Total deferred tax liabilities (678.1 ) (633.1 ) Total net deferred tax liabilities $ (259.6 ) $ (267.6 ) 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): 2015 2014 2013 Balance at January 1, $ 7.1 $ 7.1 $ 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 $ 7.1 The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions): 2015 2014 2013 Balance at January 1, $ 182.9 $ 191.3 $ 182.5 Reduction for net operating losses previously reserved that were utilized or expired (3.1 ) (3.6 ) — Additions (deductions) for current year change in estimate 0.7 (4.8 ) 8.8 Balance at December 31, $ 180.5 $ 182.9 $ 191.3 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, 2015 , the Company has federal NOL carryforwards totaling $1.4 billion , which begin expiring in 2016 , and of which approximately $398.4 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. The Company decreased its valuation allowance related to net operating losses by approximately $2.4 million , of which $3.1 million was attributable to losses that were utilized or expired and $0.7 million additional valuation allowance was recorded. 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. Impact of Chapter 11 Filing on Availability and Utilization of Net Operating Losses— The availability and utilization of net operating losses after the Company’s emergence from Chapter 11 is uncertain at this time and will be highly influenced by the composition of the plan of reorganization that is ultimately pursued. However, the Company’s net operating losses (“NOLs”) could be utilized in the near term to offset gains on the expected disposition of aircraft. On February 25, 2016, we filed the motion to request the Bankruptcy Court to establish Notification Procedures on Certain Transfers of Claims Against and Interests in the Debtors’ Estates, which restricts trading in the Company’s common stock and claims. The order is intended to prevent certain transfers of the Company’s common stock and certain transfers of claims against the Debtors that could impair the ability of one or more of the Debtors’ estates to use their net operating loss carryovers and certain other tax attributes currently or on a reorganized basis. Any acquisition, disposition, or other transfer of equity or claims on or after February 25, 2016 in violation of the restrictions set forth in the order will be null and void ab initio and/or subject to sanctions as an act in violation of the automatic stay under sections 105(a) and 362 of the Bankruptcy Code. The order applies to (i) “Substantial Equity holders,” i.e., persons who are, or as a result of a transaction would become, the beneficial owner of approximately 4.75 percent of the outstanding shares of the Company’s common stock and (ii) “Substantial Claimholders,” i.e., persons who are, or as a result of a transaction become, the beneficial owner of unsecured claims in excess of a threshold amount of unsecured claims (initially $4.9 million of unsecured claims, but which may be subsequently increased or decreased under certain circumstances in connection with the Debtors’ filing of a Chapter 11 plan). In the case of Substantial Equity holders, the order imposes current restrictions with respect to the acquisition or disposition of the Company’s stock, and certain notifications may be required. In the case of Substantial Claimholders, the order imposes a procedure pursuant to which, under certain circumstances, the claims acquired during the Chapter 11 cases may have to be resold, and certain notifications may be required. 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 NOLs 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, 2015 | |
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 $7.6 million , $6.3 million , and $5.9 million for the years ended December 31, 2015 , 2014 and 2013 , 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 $3.5 million and $3.4 million as of December 31, 2015 and 2014 , respectively. The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2015 were $12.8 million , $12.8 million and $9.3 million , 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 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 Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS (amounts in millions) Description Balance at Beginning of Year Additions Charged to Expense Deductions Balance at End of Year Allowance for doubtful accounts receivables: 12/31/2015 $ 2.6 $ — $ (0.8 ) (1) $ 1.8 12/31/2014 1.5 1.4 (0.3 ) (1) 2.6 12/31/2013 $ 1.3 $ 0.4 $ (0.2 ) (1) $ 1.5 (1) Uncollectible accounts written off net of recoveries, if any. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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, Shuttle and Republic. 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. |
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) 2015 2014 2013 CASH PAID FOR INTEREST AND INCOME TAXES: Interest paid, net of amount capitalized $ 105.6 $ 110.1 $ 108.2 Income taxes paid, net of refunds — 0.8 2.1 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 13.1 23.1 11.6 Manufacturer credits applied to the purchase of aircraft 8.9 17.1 8.7 Engines received and not yet paid — — 5.8 Chautauqua restructuring asset - Aircraft Manufacturer's Incentive — — 12.0 (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, 2015 , 2014 and 2013 . Included in receivables are $21.0 million of receivables related to Delta that are disputed and, accordingly, the Company has deferred revenue in the same amount recorded in accrued liabilities. |
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, 2015 and 2014 , this reserve was $36.3 million and $27.0 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, 2015 , 2014 and 2013 , respectively. See Note 7. |
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 8 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 $0.3 million and $0.5 million (net of tax), as of December 31, 2015 and 2014 , respectively; and $1.9 million and $1.7 million (net of tax), relating to the pension plan as of December 31, 2015 and 2014 , 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, 2015 , 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 2015 , 2014 and 2013 was $439.4 million , $433.7 million , and $386.8 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) 2015 2014 2013 Income (loss) from continuing operations $ (27.1 ) $ 64.3 $ 48.3 Loss from discontinued operations, net of tax — — (21.6 ) Net income (loss) $ (27.1 ) $ 64.3 $ 26.7 Reduction in interest expense from convertible notes (net of tax) — 0.8 2.0 Net income (loss) after assumed conversion $ (27.1 ) $ 65.1 $ 28.7 Weighted-average common shares outstanding for basic net income per common share 50.7 49.8 49.2 Effect of dilutive employee stock options — 0.4 0.7 Effect of dilutive convertible notes — 2.2 4.7 Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share 50.7 52.4 54.6 Income (loss) per share - basic: Income (loss) from continuing operations $ (0.54 ) $ 1.29 $ 0.98 Loss from discontinued operations, net of tax — — (0.44 ) Net income (loss) per share - basic $ (0.54 ) $ 1.29 $ 0.54 Income (loss) per share - diluted: Income (loss) from continuing operations $ (0.54 ) $ 1.24 $ 0.92 Loss from discontinued operations, net of tax — — (0.40 ) Net income (loss) per share - diluted $ (0.54 ) $ 1.24 $ 0.52 The Company excluded 2.2 million , 2.5 million and 3.3 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, 2015 , 2014 and 2013 , respectively. The Company had 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. |
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 February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which amends the FASB Accounting Standards Codification. The objective of the update is to improve financial reporting by increasing transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for (1) a public business entity, (2) a not-for-profit entity that has issued, or is a conduit bond obligor for securities that are traded, listed, or quoted on an exchange or an over-the-counter market or (3) an employee benefit plan that files financial statements with the U.S. Securities and Exchange Commission (SEC). For all other entities, the update is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application of the amendments is permitted for all entities. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The objective of the 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 users of financial statements. It is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company retrospectively adopted this standard and has appropriately reflected the impacts in the consolidated financial statements and related notes. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . 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 beginning after December 15, 2015 and interim periods within those fiscal years. The Company is evaluating the impact to the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The update is intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The definition of substantial doubt within the new standard incorporates a likelihood threshold of "probable" similar to the use of that term under current GAAP for loss contingencies. It is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to require the recognition of revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the transfer of promised goods or services to customers. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. On April 1, 2015, the FASB voted to propose a one-year deferral of the effective date. On July 9, 2015, the FASB voted to approve this deferral, permitting public organizations to apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Public organizations may adopt the new revenue standard early, but not before the original public organization effective date. The Company is evaluating the impact to the consolidated financial statements. |
Note 1 - Organization and Busin
Note 1 - Organization and Business Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 : Operating Subsidiaries Aircraft Size (Seats) United Delta American Number of Aircraft Shuttle America 44 to 50 — 41 — 41 Shuttle America 70 to 76 38 30 — 68 Republic Airline 69 to 80 28 — 105 133 Total number of operating aircraft 66 71 105 242 |
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, 2015 : Partner Aircraft Type Seats on Aircraft Number of Aircraft under CPAs Current Expiration Date(s) American E170 69 20 March 2019 to March 2023 American E175 80 38 February 2019 to March 2023 American E175 76 47 July 2025 to February 2027 Delta E145 50 41 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 E175 76 12 July 2027 to September 2029 United Q400 71 16 March 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 American December 31, 2015 22% 27% 48% December 31, 2014 24% 29% 43% December 31, 2013 24% 31% 35% Receivables as of: December 31, 2015 38% 26% 9% December 31, 2014 4% 3% 26% Delta has withheld in excess of $21.0 million of contractual payments through December 31, 2015 , which has resulted in past due receivables on the Company's balance sheet. The Company disputes Delta's right to withhold payments and intends to seek their recovery. The Company has deferred recognition of this revenue in accrued liabilities on the Company's balance sheet until this dispute can be resolved. |
Note 3 - Summary of Significa28
Note 3 - Summary of Significant Accounting Policies Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 CASH PAID FOR INTEREST AND INCOME TAXES: Interest paid, net of amount capitalized $ 105.6 $ 110.1 $ 108.2 Income taxes paid, net of refunds — 0.8 2.1 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 13.1 23.1 11.6 Manufacturer credits applied to the purchase of aircraft 8.9 17.1 8.7 Engines received and not yet paid — — 5.8 Chautauqua restructuring asset - Aircraft Manufacturer's Incentive — — 12.0 (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) 2015 2014 2013 Income (loss) from continuing operations $ (27.1 ) $ 64.3 $ 48.3 Loss from discontinued operations, net of tax — — (21.6 ) Net income (loss) $ (27.1 ) $ 64.3 $ 26.7 Reduction in interest expense from convertible notes (net of tax) — 0.8 2.0 Net income (loss) after assumed conversion $ (27.1 ) $ 65.1 $ 28.7 Weighted-average common shares outstanding for basic net income per common share 50.7 49.8 49.2 Effect of dilutive employee stock options — 0.4 0.7 Effect of dilutive convertible notes — 2.2 4.7 Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share 50.7 52.4 54.6 Income (loss) per share - basic: Income (loss) from continuing operations $ (0.54 ) $ 1.29 $ 0.98 Loss from discontinued operations, net of tax — — (0.44 ) Net income (loss) per share - basic $ (0.54 ) $ 1.29 $ 0.54 Income (loss) per share - diluted: Income (loss) from continuing operations $ (0.54 ) $ 1.24 $ 0.92 Loss from discontinued operations, net of tax — — (0.40 ) Net income (loss) per share - diluted $ (0.54 ) $ 1.24 $ 0.52 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurement Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Level 1 Level 2 Level 3 Chautauqua restructuring asset $ 59.1 $ — $ — $ 59.1 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, 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, 2015 Year Ended December 31, 2014 Beginning Balance $ 81.2 $ 79.6 Fair value gain — 18.4 Cash received or other (22.1 ) (16.8 ) Ending Balance $ 59.1 $ 81.2 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value of Debt - Market risk associated with our fixed and variable rate 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. December 31 2015 2014 Net carrying amount $ 2,460.7 $ 2,339.2 Estimated fair value 2,222.7 2,215.0 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Aircraft and Other Assets Impairment - Nonrecurring - In December 2015, we recorded a $7.7 million write down related to our decision to substantially reduce the flying completed by the E145 and Q400 fleet. In evaluating the repairables and expendables inventory related to the E145 aircraft and Q400 aircraft, we estimated the fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry and (2) recent market transactions, where available. The repairable and expendable inventory is classified in level 3 of the three-tier fair value hierarchy. The Company also recorded a $1.5 million impairment and other charge in 2015 for aircraft modifications on the E140 aircraft related to our decision to discontinue marketing the aircraft for sublease. The aircraft modifications is classified in level 3 of the three-tier fair value hierarchy. In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of the Q400 and E190 fleet. 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 $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry and (2) recent market transactions, where available. These aircraft are classified in level 3 of the three-tier fair value hierarchy. ($ in millions) Fair Value Measurements Using Description Year ended December 31, 2015 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 - E140 $ — $ — $ (1.5 ) Inventory - E145 $ 3.7 $ 3.7 $ (6.1 ) Inventory - Q400 1.4 1.4 (1.6 ) $ (9.2 ) 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 5 - Discontinued Operati30
Note 5 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) Year Ended 2013 Total operating revenue $ 1,217.5 Income from discontinued operations before tax (2) $ 50.9 Income tax expense 18.7 Income from discontinued operations 32.2 Loss on disposal from discontinued operations (1) (53.8 ) Total discontinued operations, net of tax $ (21.6 ) (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 6 - Assets Held For Sale (
Note 6 - Assets Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long Lived Assets Held-for-sale [Line Items] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Assets held for sale consisted of the following aircraft and flight equipment as of December 31 (in millions): 2015 2014 E190 Aircraft $ 43.8 $ — Inventory 1.6 1.9 Assets held for sale $ 45.4 $ 1.9 Assets held for sale as of December 31, 2015 primarily consist of the two E190 aircraft, one E190 aircraft was sold in early 2016, and we anticipate the other E190 aircraft will also be sold in early 2016, after operating under fixed-fee charter service, and inventory relating to aircraft fleets the Company no longer operates. The inventory is being marketed for sale by a third party. |
Note 7 - Aircraft and Other Equ
Note 7 - Aircraft and Other Equipment Aircraft and other equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 Aircraft $ 3,951.6 $ 3,644.8 Flight equipment 194.0 171.7 Office equipment and leasehold improvements 43.1 44.4 Total aircraft and other equipment 4,188.7 3,860.9 Less accumulated depreciation and amortization (1,182.4 ) (1,000.0 ) Aircraft and other equipment—net $ 3,006.3 $ 2,860.9 |
Note 8 - Intangible and Other33
Note 8 - Intangible and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 consist of the following (in millions): 2015 2014 Indefinite-lived intangible assets: Airport slots $ 9.0 $ 9.0 Other assets: Aircraft pre-delivery deposits 53.5 57.5 Aircraft lease and long-term deposits 26.8 26.0 Chautauqua restructuring asset - See Note 4 59.1 81.2 Prepaid aircraft rents 20.6 27.8 Debt issue costs and other non-current assets 23.8 19.2 Total Other assets 183.8 211.7 Intangible and other assets $ 192.8 $ 220.7 |
Note 9 - Accrued Liabilities Ac
Note 9 - Accrued Liabilities Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consist of the following as of December 31 (in millions): 2015 2014 Accrued wages, benefits and related taxes $ 32.9 $ 29.0 Accrued maintenance 51.1 37.6 Accrued interest payable 16.8 18.0 Deferred revenue 30.8 19.9 Other 51.9 38.4 Total accrued liabilities $ 183.5 $ 142.9 |
Note 10 - Debt Debt (Tables)
Note 10 - Debt Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Schedule of Debt [Table Text Block] | Debt consists of the following as of December 31 (in millions): Secured debt: 2015 2014 Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 2.04% to 8.49% at December 31, 2015 and outstanding through 2027, net of unamortized debt discount of $74.8 million. (1) $ 2,317.7 $ 2,238.1 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 2015. — 41.6 Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.13% to 8.38% as of December 31, 2015 and outstanding through 2022. 56.7 53.7 Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.18% to 3.66% as of December 31, 2015 and outstanding through 2017. 1.7 3.4 Line of Credit, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin of 2.75% per annum, or another rate based on certain market rates, plus a margin of 1.75% per annum as of December 31, 2015 and outstanding through 2018. 83.0 — Other 1.6 2.4 Total debt secured by aircraft and parts 2,460.7 2,339.2 Total debt 2,460.7 2,339.2 Current portion (2) 2,460.7 309.0 Long term debt, less current portion $ — $ 2,030.2 (1) The Company entered into financing agreements to borrow $474.8 million for 18 E175 aircraft and other equipment primarily for the American and United E175 fixed-fee agreement and other equipment. (2) The Bankruptcy Filing constituted an event of default for certain of the Company's debt and lease obligations and therefore the debt has been reflected as current on the Company's consolidated balance sheet as of December 31, 2015. However, payment obligations under the debt and lease agreements are stayed as a result of the Bankruptcy Filing and the creditors' and lessors' rights of enforcement of the debt and lease agreements are subject to the applicable provisions of the Bankruptcy Code. |
Note 10 - Debt Schedule of Matu
Note 10 - Debt Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2016 $ 333.3 (13.4 ) 2017 377.7 (12.2 ) 2018 403.5 (10.9 ) 2019 365.5 (9.6 ) 2020 290.1 (8.2 ) Thereafter 765.4 (20.5 ) Total $ 2,535.5 $ (74.8 ) $ 2,460.7 |
Note 11 - Commitments Level 3 (
Note 11 - Commitments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS [Abstract] | |
Schedule of Rent Expense [Table Text Block] | As of December 31, 2015 , the Company leased 62 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): 2015 2014 2013 Aircraft and engine rent $ 142.3 $ 126.0 $ 122.6 Other 12.1 10.3 11.7 Total rent expense $ 154.4 $ 136.3 $ 134.3 |
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 December 2016 July 2019 July 2021 Avionics December 2017 April 2023 NA (1) Wheels and Brakes December 2019 January 2022 August 2022 (4) Parts Pooling December 2017 February 2027 April 2016 Emergency Slides NA (1) December 2024 NA (1) Tires NA (1) NA (1) July 2021 Propellers NA (1) NA (1) July 2021 (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. (3) Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, American E175 aircraft, with 80 seats, expire December 2022, and American E175 aircraft, with 76 seats, expire March 2027. As of December 31, 2015 and 2014 , we had maintenance deposits of $49.9 million and $53.2 million , respectively, for the future replacement of LLPs. (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 2016 $ 97.3 $ 15.9 $ 113.2 2017 80.0 14.0 94.0 2018 66.8 13.1 79.9 2019 65.0 11.1 76.1 2020 55.9 10.3 66.2 Thereafter 40.7 39.8 80.5 Total $ 405.7 $ 104.2 $ 509.9 |
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 2016 2017 2018 2019 2020 Total Debt or lease financed aircraft under purchase obligations (1) $ 1,211.8 $ 1,471.0 $ 778.4 $ — $ — $ 3,461.2 Engines under firm orders 33.7 48.7 7.0 — — 89.4 Total contractual obligations for aircraft and engines $ 1,245.5 $ 1,519.7 $ 785.4 $ — $ — $ 3,550.6 (1) Represents delivery of CS300s based on estimated service date of late 2016 and E175 aircraft through the third quarter of 2017. The information in the table above reflects a purchase price of the aircraft at projected delivery dates. The Company had aircraft return costs of $21.4 million for the twelve months ended December 31, 2015 . These costs were associated with the transition of Q400 and E190 aircraft, which is included in other operating expense. |
Note 13 - Capital Stock and Sto
Note 13 - Capital Stock and Stock Options Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 , and 2013 : (in millions) Common Stock 2015 2014 2013 Beginning balance 50.0 49.5 48.6 Shares issued for stock options exercised 0.5 0.4 0.7 Vesting of restricted stock and other 0.4 0.1 0.2 Ending balance 50.9 50.0 49.5 |
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, 2015 : Options Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Weighted Average Contractual Term (in years) Outstanding at January 1, 2015 3,135,505 $ 14.25 Granted 65,000 12.38 Exercised (490,297 ) 8.51 Forfeited (455,705 ) 16.82 Outstanding at December 31, 2015 2,254,503 $ 14.93 $ — 3.57 Vested or expected to vest at December 31, 2015 2,225,999 $ 14.97 $ — 3.50 Exercisable at December 31, 2015 1,934,919 $ 15.51 $ — 2.81 |
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, 2015 2014 2013 Dividend yield —% —% —% Expected volatility 38 % - 65% 56 % - 58% 59 % - 62% Risk-free interest rate 1.7 % - 1.7% 1.7 % - 1.8% 0.9 % - 1.4% 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/Units Unvested at January 1, 2015 763,232 Vested (394,988 ) Granted 551,155 Surrendered (43,280 ) Unvested at December 31, 2015 876,119 |
Note 14 - Income Taxes Level 3
Note 14 - Income Taxes Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 2013 Federal: Current $ — $ — $ — Deferred (9.4 ) 29.6 30.9 Total Federal (9.4 ) 29.6 30.9 State: Current 0.4 (1.4 ) 4.1 Deferred 0.6 (2.5 ) (9.8 ) Total State 1.0 (3.9 ) (5.7 ) Valuation allowance 0.7 (4.8 ) 8.8 Expense for uncertain tax positions — — (1.0 ) Income tax expense $ (7.7 ) $ 20.9 $ 33.0 |
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): 2015 2014 2013 Federal income tax expense at statutory rate $ (12.3 ) $ 29.8 $ 28.4 State income tax expense, net of federal benefit (0.8 ) 2.6 2.7 Valuation allowance 0.7 (4.8 ) 8.8 Adjustment to deferred tax liabilities 2.5 (3.1 ) (8.8 ) Change in State tax rate — (4.2 ) — Permanent tax adjustments 2.2 2.0 1.7 Other — (1.4 ) 0.2 Income tax expense $ (7.7 ) $ 20.9 $ 33.0 |
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): 2015 2014 DEFERRED TAX ASSETS: Nondeductible accruals and deferred revenue $ 48.6 $ 52.1 Federal and state net operating loss carryforwards, net of liability for uncertain tax positions 494.7 453.2 AMT credits 6.1 6.1 Prepaid rent 14.9 8.5 Deferred credits and other non-current liabilities 14.0 5.7 Other 20.7 22.8 Total 599.0 548.4 Valuation allowance (180.5 ) (182.9 ) Total deferred tax assets 418.5 365.5 DEFERRED TAX LIABILITIES: Other intangible assets (3.4 ) (3.4 ) Maintenance deposits (19.0 ) (20.2 ) Accelerated depreciation and fixed asset basis differences for tax purposes (655.7 ) (609.5 ) Total deferred tax liabilities (678.1 ) (633.1 ) Total net deferred tax liabilities $ (259.6 ) $ (267.6 ) |
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): 2015 2014 2013 Balance at January 1, $ 7.1 $ 7.1 $ 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 $ 7.1 |
Summary of Valuation Allowance [Table Text Block] | The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions): 2015 2014 2013 Balance at January 1, $ 182.9 $ 191.3 $ 182.5 Reduction for net operating losses previously reserved that were utilized or expired (3.1 ) (3.6 ) — Additions (deductions) for current year change in estimate 0.7 (4.8 ) 8.8 Balance at December 31, $ 180.5 $ 182.9 $ 191.3 |
Note 16 - Valuation and Qualify
Note 16 - Valuation and Qualifying Accounts Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
valuation and qualifying accounts [Table Text Block] | VALUATION AND QUALIFYING ACCOUNTS (amounts in millions) Description Balance at Beginning of Year Additions Charged to Expense Deductions Balance at End of Year Allowance for doubtful accounts receivables: 12/31/2015 $ 2.6 $ — $ (0.8 ) (1) $ 1.8 12/31/2014 1.5 1.4 (0.3 ) (1) 2.6 12/31/2013 $ 1.3 $ 0.4 $ (0.2 ) (1) $ 1.5 (1) Uncollectible accounts written off net of recoveries, if any. |
Note 1 - Organization and Bus41
Note 1 - Organization and Business Schedule of Aircraft (Details) | 12 Months Ended | |
Dec. 31, 2015flightsAircraftcitiesStates | Dec. 31, 2014Aircraft | |
Scheduled Passenger Service Stats [Abstract] | ||
number of daily flights | flights | 1,094 | |
scheduled passenger service to cities | cities | 118 | |
number of states served | States | 40 | |
Schedule of Offered Passenger Service [Line Items] | ||
total aircraft in operating subsidiaries | 242 | 244 |
number of AA 175 aircraft delivered | 18 | |
Total E190 aircraft removed from service | 5 | |
Owned E190 Aircraft | 2 | |
Leased E190 Aircraft | 3 | |
E190 Sold in Early 2016 | 1 | |
Total Q400 Aircraft Removed From Service | 15 | |
Q400's returned to lessor | 4 | |
Q400's delivered to FlyBe | 5 | |
Q400's parked | 6 | |
Q400's transitioning to FlyBe | 4 | |
Q400's transitioning back to lessor | 2 | |
fixed fee code share agreement, United [Member] | ||
Schedule of Offered Passenger Service [Line Items] | ||
Operating Subsidiary Shuttle, Small Jet | 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 Subsidiary Shuttle, Small Jet | 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 Subsidiary Shuttle, Small Jet | 0 | |
operating subsiduary, shuttle | 0 | |
operating subsiduary, Republic | 105 | |
total aircraft in operating subsidiaries | 105 | |
total aircraft in operating subsidiaries [Domain] | ||
Schedule of Offered Passenger Service [Line Items] | ||
Operating Subsidiary Shuttle, Small Jet | 41 | |
operating subsiduary, shuttle | 68 | |
operating subsiduary, Republic | 133 | |
total aircraft in operating subsidiaries | 242 |
Note 1 - Organization and Bus42
Note 1 - Organization and Business CPA Agreement Details (Details) | Dec. 31, 2015AircraftSeats |
CPA Agreement Details [Line Items] | |
Seats on E175s under code-share agreement with American | Seats | 80 |
Seats on E175 aircraft under CPA with America | Seats | 76 |
E175 Aircraft Under United CPA Agreement | 12 |
seats on aircraft [Member] | |
CPA Agreement Details [Line Items] | |
number of seats on E170 aircraft flying with US Airways | Seats | 69 |
Seats on E175s under code-share agreement with American | Seats | 80 |
Seats on E175 aircraft under CPA with America | Seats | 76 |
Seats on E145 aircraft under CPA with Delta | Seats | 50 |
Seats on E170 aircraft under CPA with Delta | Seats | 70 |
Seats on E175 aircraft under CPA with Delta | Seats | 76 |
Seats on E170 aircraft under CPA with United | Seats | 70 |
Seats on E175 aircraft under CPA with United | 76 |
Seats on Q400 aircraft under CPA with United | Seats | 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 | 47 |
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 |
E175 Aircraft Under United CPA Agreement | 12 |
Q400 Aircraft under code-share agreements with United Continental | 16 |
Note 1 - Organization and Bus43
Note 1 - Organization and Business Code-Share Text Detail (Details) | 12 Months Ended |
Dec. 31, 2015YearsflightsAircraft | |
American Code-Share Agreement [Abstract] | |
Total Number of E175 Aircraft at American | 85 |
Flights per day as AmericanConnection | flights | 548 |
8 E175 Aircraft at American Mar 2019 to March 2023 | 8 |
30 E175 aircraft at American Feb 2019 to July 2020 | 30 |
E175 code-share agreement will terminate from anniversary | 12 years |
days of notice required by American before termination | 90 days |
Number of additional agreement extensions for American | Years | 2 |
Number of years American can extend the E175 agreement | 2 years |
Delta Code-Share Agreements [Abstract] | |
Flights provided per day as Delta Connection | flights | 247 |
United Code-Share Agreements [Abstract] | |
Flights per day as United Express | flights | 299 |
Number of E175 aircraft under United agreement | 50 |
Total number of E175 aircraft that will fly under the United brand after amendment was signed in January 2015 | 55 |
Final Number of E175 Aircraft at United | 40 |
E175 Aircraft Under United CPA Agreement | 12 |
Number of years each E175 aircraft will be subject to under UA Express Agreement | 12 years |
Number of additional E175 aircraft United has an option to add under United Express Seventh Amendment | 50 |
Length of United agreement for E175s | 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 |
Note 1 - Organization and Bus44
Note 1 - Organization and Business Partner Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentrations [Abstract] | |||
Deferred Revenue Delta Agreement | $ 21 | ||
Percentage of Operating Revenues for Delta | 22.00% | 24.00% | 24.00% |
Percentage of Operating Revenues for United | 27.00% | 29.00% | 31.00% |
Percentage of Opearting Revenues for US Airways | 48.00% | 43.00% | 35.00% |
Percent of Receivables related to Delta | 38.00% | 4.00% | |
Percentage of Receivables related to United | 26.00% | 3.00% | |
Percentage of Receivables related to US Airways American | 9.00% | 26.00% |
Note 2 - Chapter 11 Filing an45
Note 2 - Chapter 11 Filing and Going Concern (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)local_union_reference | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Collective Bargaining Agreement [Abstract] | ||||
Net Income | $ | $ (27.1) | $ 64.3 | $ 26.7 | |
Cash and cash equivalents | $ | 173.5 | 223.9 | 276.7 | $ 210.8 |
Income (Loss) from Continuing Operations | $ | $ (27.1) | $ 64.3 | $ 48.3 | |
Number of years in the pilot labor agreement | 3 years | |||
Number of months for pilot new hire training program | 3 months | |||
Number of Factors to Pilot Shortage | 2 | |||
Starting Age of Pilots | 23 | |||
New Pilot Hours | 1,500 | |||
Low end of pilot increase due to new duty regs | 5.00% | |||
High end of pilot increase due to new duty regs | 7.00% | |||
Companys Union Number for Pilots | 357 | |||
Old Union Local Number | 747 | |||
Amount of years negotiated with IBT 747 | 2 years | |||
Amount of time to reach tentative agreement after negotiations | 3 months | |||
Number of proposals reviewed in negotiations | 100 | |||
18 sections reviewed on 100 proposals | 18 | |||
Number of Sections TA by May 1, 2015 | 19 | |||
Total Number of Sections in Labor Agreement | 30 | |||
Deferred Revenue Delta Agreement | $ | $ 21 | |||
Amount of days delta and company have to settle | 60 days |
Note 3 - Summary of Significa46
Note 3 - Summary of Significant Accounting Policies Level 4 Text (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)bankssegmentshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
maturityofcashandcashequiv | 3 months | ||
number of banks that contain most of our cash | banks | 2 | ||
Deferred Revenue Delta Agreement | $ 21 | ||
Inventory Valuation Reserves | $ 36.3 | $ 27 | |
Expected sale period for assets classified as held for sale | 12 months | ||
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 | $ 0.3 | 0.5 | |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 1.9 | 1.7 | |
Fixed-Fee Rental Income | $ 439.4 | $ 433.7 | $ 386.8 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 2.2 | 2.5 | 3.3 |
Convertible Notes Payable - TPG | $ 22.3 | ||
Convertible Notes Payable - EMB Fair Value | $ 25 | ||
TPG - Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 2.2 | ||
EMB - Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 2.5 | ||
Number of Reportable Segments | segment | 1 |
Note 3 - Summary of Significa47
Note 3 - Summary of Significant Accounting Policies Supplemental Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Paid, Net | $ 105.6 | $ 110.1 | $ 108.2 |
Income Taxes Paid, Net | 0 | 0.8 | 2.1 |
Aircraft, inventories and other equipment sold through financing arrangements from manufacturer | 0 | 0 | 42.8 |
deferred gain on the parts sale | 4 | ||
other equipment acquired utilizing manufacturer credits | 13.1 | 23.1 | 11.6 |
aircraft acquired through manufacturing credits | 8.9 | 17.1 | 8.7 |
engines received and not yet paid | 0 | 0 | 5.8 |
Chautauqua restructuring asset - Aircraft manufacturers incentive | $ 0 | $ 0 | $ 12 |
Note 3 - Summary of Significa48
Note 3 - Summary of Significant Accounting Policies Net Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (Loss) from Continuing Operations | $ (27.1) | $ 64.3 | $ 48.3 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | (21.6) |
Net Income | (27.1) | 64.3 | 26.7 |
Interest on Convertible Debt, Net of Tax | 0 | 0.8 | 2 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (27.1) | $ 65.1 | $ 28.7 |
Weighted Average Number of Shares Outstanding, Basic | 50.7 | 49.8 | 49.2 |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 0.4 | 0.7 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 2.2 | 4.7 |
Weighted Average Number of Shares Outstanding, Diluted | 50.7 | 52.4 | 54.6 |
Income from Continuing Operations, Per Common Share - Basic | $ (0.54) | $ 1.29 | $ 0.98 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | (0.44) |
Earnings Per Share, Basic | (0.54) | 1.29 | 0.54 |
Income from Continuing Operations, Per Common Share - Diluted | (0.54) | 1.24 | 0.92 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | (0.40) |
Earnings Per Share, Diluted | $ (0.54) | $ 1.24 | $ 0.52 |
Note 4 - Fair Value Measureme49
Note 4 - Fair Value Measurement Fair Value Measurements Recurring with Unobservable Inputs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)AircraftSeats | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 59.1 | $ 81.2 | |
Chautauqua Seats on Aircraft | Seats | 50 | ||
Convertible Notes Payable - EMB Fair Value | 25 | ||
CHQ restructuring call rights provided on owned aircraft | Aircraft | 28 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - End | $ 59.1 | 81.2 | $ 79.6 |
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 | $ 1.1 | ||
possible gain or loss if there is a change in assumed probability of call option on restructured aircrat | $ 3.2 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 12 | ||
number of seats on E140 aircraft flying for American Airlines | Seats | 44 | ||
Seats on E145 aircraft under CPA with United | Seats | 50 | ||
Number of E140 and E145 aircraft which were grounded during the year | Aircraft | 27 | ||
Number of aircraft that were grounded and subject to the agreement and callable by the counterparty | Aircraft | 15 | ||
CHQ Restrucuring - possible voluntary repayment under circumstances of non-performance | $ 59.4 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - Begin | 81.2 | 79.6 | 86.4 |
Fair value gain on restructuring asset | 0 | 18.4 | $ 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | $ (22.1) | $ (16.8) |
Note 4 - Fair Value Measureme50
Note 4 - Fair Value Measurement Fair Value by Balance sheet grouping Table (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Long-term Debt | $ 2,460.7 | $ 2,339.2 |
Long-term Debt, Fair Value | $ 2,222.7 | $ 2,215 |
Note 4 - Fair Value Measureme51
Note 4 - Fair Value Measurement Fair Value of Assets measured Recurring and Nonrecurring basis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | 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 | $ 59,100,000 | $ 81,200,000 | |
asset fair value disclosure - E140 Leaseholds | 0 | ||
asset impairment charge - E140 Leaseholds | (1,500,000) | ||
asset fair value disclosure - E145 Inventory | 3,700,000 | ||
asset impairment charge - E145 Inventory | (6,100,000) | ||
asset fair value disclosure - Q400 Inventory | 1,400,000 | ||
asset impairment charge - Q400 Inventory | (1,600,000) | ||
assets, fair value disclosure - E140 | 0 | ||
asset impairment charge for aircraft and related inventory - E140 | 19,900,000 | ||
Ending value of E140 fleet after impairments | 0 | ||
assets, fair value disclosure - Q400 | 49,700,000 | ||
asset impairment charge for aircraft and related inventory - Q400 | 13,300,000 | ||
assets, fair value disclosure - E190 | 101,600,000 | ||
asset impairment charge for aircraft and related inventory - E190 | 14,400,000 | ||
Assets, Fair Value Disclosure | $ 152,500,000 | ||
asset impairment charge for aircraft and related inventory | 9,200,000 | 47,600,000 | 12,000,000 |
asset impairment charge - E145 and Q400 Inventory | (7,700,000) | ||
asset impairment charge for aicraft and related inventory - Q400 and E190 | 27,700,000 | ||
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 | $ 59,100,000 | $ 81,200,000 | |
Assets, Fair Value Disclosure | $ 152,500,000 |
Note 5 - Discontinued Operati52
Note 5 - Discontinued Operations Income Statement of Discontinued Ops(Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Revenue | $ 1,217.5 | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 50.9 | ||
Discontinued Operation, Tax Effect of Discontinued Operation | 18.7 | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 32.2 | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (53.8) | ||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | (21.6) |
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 | $ 0 | $ 2.8 |
Note 6 - Assets Held For Sale53
Note 6 - Assets Held For Sale (Details) $ in Millions | Dec. 31, 2015USD ($)Aircraft | Dec. 31, 2014USD ($) |
Long Lived Assets Held-for-sale [Line Items] | ||
E190 Aircraft Held For Sale | $ 43.8 | $ 0 |
Inventory and other assets held for sale | 1.6 | 1.9 |
Assets Held-for-sale, Not Part of Disposal Group | $ 45.4 | $ 1.9 |
Owned E190 Aircraft | Aircraft | 2 | |
E190 Sold in Early 2016 | Aircraft | 1 |
Note 7 - Aircraft and Other E54
Note 7 - Aircraft and Other Equipment Level 4 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)Aircraft | Dec. 31, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Aircraft included in Other PPE | $ 3,951.6 | $ 3,644.8 | |
Flight Equipment Owned, Gross | 194 | 171.7 | |
office equipment and leasehold improvements, gross | 43.1 | 44.4 | |
Aircraft and other equipment—net | 4,188.7 | 3,860.9 | |
accumulated depreciation and amortization for aircraft and other equipment | (1,182.4) | (1,000) | |
Property, Plant and Equipment, Other, Net | 3,006.3 | 2,860.9 | |
Depreciation and amortization | 191.1 | 173 | $ 150.7 |
asset impairment charge - E140 Leaseholds | 1.5 | ||
Restructuring and Related Cost, Accelerated Depreciation | $ 3.2 | ||
asset impairment charge for aicraft and related inventory - Q400 and E190 | 27.7 | ||
asset impairment charge for aircraft and related inventory - E140 | 19.9 | ||
loss on sale of two E190 aircraft that is included in impairment charges and other | $ 5.8 | ||
number of e190 aircraft sold | Aircraft | 2 |
Note 8 - Intangible and Other55
Note 8 - Intangible and Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
schedule of intangible and other assets [Line Items] | ||
Indefinite-Lived Domestic Slots and Routes | $ 9 | $ 9 |
aircraft predelivery deposits | 53.5 | 57.5 |
aircraft lease and long term deposits (non-current assets) | 26.8 | 26 |
financial instrument, other non-current assets | 59.1 | 81.2 |
prepaid aircraft rent | 20.6 | 27.8 |
debt issue costs and other non-current assets | 23.8 | 19.2 |
Other Assets | 183.8 | 211.7 |
Intangible and other assets, net | $ 192.8 | $ 220.7 |
Note 9 - Accrued Liabilities Le
Note 9 - Accrued Liabilities Level 4 (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
accruals table [Abstract] | ||
Accrued Salaries, Current | $ 32.9 | $ 29 |
accrued maintenance, current | 51.1 | 37.6 |
Interest Payable, Current | 16.8 | 18 |
Deferred Revenue, Current | 30.8 | 19.9 |
Other Accrued Liabilities, Current | 51.9 | 38.4 |
Accrued Liabilities, Current | $ 183.5 | $ 142.9 |
Note 10 - Debt Level 4 (Details
Note 10 - Debt Level 4 (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($)Aircraft | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 11, 2015USD ($) | Apr. 24, 2015USD ($) | Apr. 07, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||
Weighted average rate of debt for aircraft financings for current year | 5.14% | 5.38% | ||||
Aircraft Secured Debt (Fixed Rate) | $ 2,317.7 | $ 2,238.1 | ||||
Aircraft Secured Debt (Variable Rate) | 0 | 41.6 | ||||
Equipment Secured Debt (Fixed Rates) | 56.7 | 53.7 | ||||
Q400 Equipment Secured Debt at Variable Rates | 1.7 | 3.4 | ||||
Line of Credit, Current | 83 | 0 | ||||
Secured Debt, Other | 1.6 | 2.4 | ||||
Secured Debt | 2,460.7 | 2,339.2 | ||||
Current portion of long-term debt | (2,460.7) | (309) | ||||
Long-term debt - less current portion | 0 | 2,030.2 | ||||
Payments to Acquire Property, Plant, and Equipment | $ 474.8 | 569.2 | $ 476 | |||
number of AA 175 aircraft delivered | Aircraft | 18 | |||||
Commitment for Revolving Facilities | $ 65 | |||||
Commitment for letter of credit facility | $ 10 | |||||
Line of Credit Facility, Increase (Decrease), Net | $ 20 | |||||
Total LOC Commitment Amount | $ 85 | |||||
Funds held for cash supported letters of credit and deposits on charter flights | $ 12.5 | $ 14.1 | ||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||
Aircraft Secured Debt (at fixed rates) - Lower percentage range [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.04% | |||||
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 | 5.13% | |||||
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 | 3.18% | |||||
Q400 Equipment Secured Debt (variable rates) - Upper range [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.66% | |||||
Percent Margin [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% |
Note 10 - Debt Future maturitie
Note 10 - Debt Future maturities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 333.3 | |
debt discount amortization in the next 12 months | (13.4) | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 377.7 | |
debt discount amortization in Year Two | (12.2) | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 403.5 | |
debt discount amortization in Year Three | (10.9) | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 365.5 | |
debt discount amortization in Year Four | (9.6) | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 290.1 | |
debt discount amortization in Year Five | (8.2) | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 765.4 | |
debt discount amortization After Year Five | (20.5) | |
Secured Debt | 2,460.7 | $ 2,339.2 |
Long-term Debt, Gross | 2,535.5 | |
total debt discount amortization | $ 74.8 |
Note 11 - Commitments Statement
Note 11 - Commitments Statement (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)AircraftSeatsEngines | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
number of leased aircraft under operating leases | 62 | ||
Number of Spare Engines under Operating Leases | Engines | 29 | ||
minimum guaranteed maintenance payments for E145s | $ | $ 1.8 | ||
minimum guaranteed maintenance payments for E170 aircraft | $ | $ 9.8 | ||
Seats on E175s under code-share agreement with American | Seats | 80 | ||
Maintenance deposits | $ | $ 49.9 | $ 53.2 | |
Cost of Services, Licenses and Maintenance Agreements | $ | 178.2 | 173 | $ 163.8 |
liability for return conditions of aircraft | $ | 11 | 2.3 | |
Accelerated Rent Charge | $ | $ 17.4 | ||
E145 Aircraft subelased to Aeroliteral | 5 | ||
E170 Aircraft that were subleased to Aeroliteral | 3 | ||
Q400's delivered to FlyBe | 5 | ||
Foreign Engine Sublease | Engines | 1 | ||
number of E145 aircraft subleased | 1 | ||
Total Number of Aircraft Transitioning to Flybe | 24 | ||
Total Number of Engines to be delivered to airline | Engines | 2 | ||
Capital Leases, Future Minimum Sublease Rentals | $ | $ 173.6 | ||
future non-cancelable leases Q400 | $ | 160.1 | ||
Operating Leases, Income Statement, Sublease Revenue | $ | $ 20.7 | $ 20.1 | $ 18.7 |
Firm Purchase Orders for CS300 Aircraft | 40 | ||
Number of E175 aircraft to operate under United brand | 55 | ||
New E175 American Aircraft scheduled for Delivery | 6 | ||
Total amount of canceled aircraft commitments | 21 | ||
E175 Aircraft Under United CPA Agreement | 12 | ||
Remaining aircraft to be delivered to United | 28 | ||
Aircraft Delivered to United in Feb 2016 | 4 | ||
Number of Spare Aircraft Engines under commitment | Engines | 19 | ||
Number of spare engines received during the current year, under the commitment | Engines | 6 | ||
Number of engines to be delivered in year 1 | Engines | 5 | ||
Number of Engines to be Delivered in Year Two | Engines | 7 | ||
Number of Engines to be Delivered in Year Three | Engines | 1 | ||
Amount of aircraft return costs associated with the transition of Q400 and E190 aircraft | $ | $ 21.4 |
Note 11 - Commitments Schedule
Note 11 - Commitments Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Aircraft and engine rent | $ 142.3 | $ 126 | $ 122.6 |
other rent expenses | 12.1 | 10.3 | 11.7 |
Operating Leases, Rent Expense | $ 154.4 | $ 136.3 | $ 134.3 |
Note 11 - Commitments Operating
Note 11 - Commitments Operating Lease Payments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Aircraft Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 97.3 |
Aircrfat Operating Leases, Future Minimum Payments, Due in Two Years | 80 |
Aircraft Operating Leases, Future Minimum Payments, Due in Three Years | 66.8 |
Aircraft Operating Leases, Future Minimum Payments, Due in Four Years | 65 |
Aircraft Operating Leases, Future Minimum Payments, Due in Five Years | 55.9 |
Aircraft Operating Leases, Future Minimum Payments, Due Thereafter | 40.7 |
Aircraft Operating Leases, Future Minimum Payments Due, Total | 405.7 |
Engine and Facilities Operating Leases, Future Minimum Payments Due, Next Twelve Months | 15.9 |
Engines and Facilities Operating Leases, Future Minimum Payments, Due in Two Years | 14 |
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 | 11.1 |
Engines and Facilities Operating Leases, Future Minimum Payments, Due in Five Years | 10.3 |
Engines and Facilities Operating Leases, Future Minimum Payments, Due Thereafter | 39.8 |
Engines and Facilities Operating Leases, Future Minimum Payments Due, Total | 104.2 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 113.2 |
Operating Leases, Future Minimum Payments, Due in Two Years | 94 |
Operating Leases, Future Minimum Payments, Due in Three Years | 79.9 |
Operating Leases, Future Minimum Payments, Due in Four Years | 76.1 |
Operating Leases, Future Minimum Payments, Due in Five Years | 66.2 |
Operating Leases, Future Minimum Payments, Due Thereafter | 80.5 |
Operating Leases, Future Minimum Payments Due | $ 509.9 |
Note 11 - Commitments Unrecorde
Note 11 - Commitments Unrecorded Unconditional Purchase Committments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation for Aircraft due within one year | $ 1,211.8 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years | 1,471 |
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years | 778.4 |
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 | 3,461.2 |
Unrecorded Unconditional Purchase Obligations for Engines, due within one year | 33.7 |
Unrecorded Unconditional Purchase Obligation for Engines, due within two years | 48.7 |
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 | 89.4 |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | 1,245.5 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 1,519.7 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 785.4 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 0 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 0 |
Unrecorded Unconditional Purchase Obligation | $ 3,550.6 |
Note 12 - Contingencies Stateme
Note 12 - Contingencies Statement (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)local_union_reference | |
Commitments and Contingencies Disclosure [Abstract] | |
Union Employees | 69.00% |
Companys Union Number for Pilots | local_union_reference | 357 |
percentage of approved labor votes | 76.00% |
Percent of pilots that voted | 90.00% |
Number of years in the pilot labor agreement | 3 years |
Average cost per year of pilot deal | $ 50 |
Ratification bonus | 17 |
Anniversary Bonus | 14 |
Deferred Revenue Delta Agreement | $ 21 |
Amount of days delta and company have to settle | 60 days |
Note 13 - Capital Stock and S64
Note 13 - Capital Stock and Stock Options Common Stock Activity Rollforward (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common Stock, Shares, Outstanding - begin | 50,024,780 | 49,500,000 | 48,600,000 |
Stock Issued During Period, Shares, New Issues | 500,000 | 400,000 | 700,000 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 400,000 | 100,000 | 200,000 |
Common Stock, Shares, Outstanding - end | 50,948,385 | 50,024,780 | 49,500,000 |
Note 13 - Capital Stock and S65
Note 13 - Capital Stock and Stock Options Share-based compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number - Begin | 3,135,505 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 65,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (490,297) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (455,705) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number - End | 2,254,503 | 3,135,505 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 2,225,999 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,934,919 | 2,671,717 | 3,513,999 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price - Begin | $ 14.25 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 12.38 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 8.51 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 16.82 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price- End | 14.93 | $ 14.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 14.97 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 15.51 | $ 14.90 | $ 14.26 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Contractual Term | 3 years 6 months 25 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Contractual Term | 3 years 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Contractual Term | 2 years 9 months 22 days | 5 years 4 months 19 days | 4 years 7 months 17 days |
Stock or Unit Option Plan Expense | $ 0.2 | $ 0.9 | $ 1.2 |
Allocated Share-based Compensation Expense, Net of Tax | $ 0 | $ 0.5 | $ 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 | $ 3.94 | $ 4.80 | $ 5.28 |
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 | $ 4.94 | ||
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 | $ 0.2 | ||
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 | 1,965,453 |
Note 13 - Capital Stock and S66
Note 13 - Capital Stock and Stock Options Share-based payment award, stock options, valuation assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 38.00% | 56.00% | 59.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.70% | 1.70% | 0.90% |
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 | 65.00% | 58.00% | 62.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.70% | 1.80% | 1.40% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | 5 years |
Note 13 - Capital Stock and S67
Note 13 - Capital Stock and Stock Options Restricted Stock (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 3,800,000 | $ 3,700,000 | $ 2,800,000 |
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 | $ 7.76 | $ 10.50 | $ 11.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 5,100,000 | $ 3,100,000 | $ 2,800,000 |
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 | ||
Value of Restricted Shares awarded to directors | 55,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 8,200,000 | ||
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 | 763,232 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (394,988) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 551,155 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (43,280) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 876,119 | 763,232 |
Note 14 - Income Taxes Income T
Note 14 - Income Taxes Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Deferred Federal Income Tax Expense (Benefit) | (9.4) | 29.6 | 30.9 |
Federal Income Tax Expense (Benefit), Continuing Operations | (9.4) | 29.6 | 30.9 |
Current State and Local Tax Expense (Benefit) | 0.4 | (1.4) | 4.1 |
Deferred State and Local Income Tax Expense (Benefit) | 0.6 | (2.5) | (9.8) |
current and deferred state income tax expense | 1 | (3.9) | (5.7) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0.7 | (4.8) | 8.8 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 0 | 0 | 1 |
INCOME TAX EXPENSE | $ (7.7) | $ 20.9 | $ 33 |
Note 14 - Income Taxes Income69
Note 14 - Income Taxes Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ (12.3) | $ 29.8 | $ 28.4 |
Income Tax Reconciliation, State and Local Income Taxes | (0.8) | 2.6 | 2.7 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0.7 | (4.8) | 8.8 |
income tax reconciliation, adjustments to DTA and DTL | 2.5 | (3.1) | (8.8) |
change in state effective tax rate | 0 | (4.2) | 0 |
income tax reconciliation, permanent tax adjustments | 2.2 | 2 | 1.7 |
Income Tax Reconciliation, Other Reconciling Items | 0 | (1.4) | 0.2 |
INCOME TAX EXPENSE | $ (7.7) | $ 20.9 | $ 33 |
Note 14 - Income Taxes Deferred
Note 14 - Income Taxes Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Noncurrent | $ 48.6 | $ 52.1 |
Deferred Tax Assets, Operating Loss Carryforwards | 494.7 | 453.2 |
Deferred Tax Assets, Tax Credit Carryforwards | 6.1 | 6.1 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 14.9 | 8.5 |
deferred tax asset, deferred credits and sale leaseback gain | 14 | 5.7 |
Deferred Tax Assets, Other | 20.7 | 22.8 |
Deferred Tax Assets, Gross, Noncurrent | 599 | 548.4 |
Deferred Tax Assets, Valuation Allowance, Noncurrent | (180.5) | (182.9) |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 418.5 | 365.5 |
Deferred Tax Liabilities, Intangible Assets | (3.4) | (3.4) |
Deferred Tax Liabilities, Other | (19) | (20.2) |
Deferred Tax Liabilities, Property, Plant and Equipment | (655.7) | (609.5) |
Deferred Tax Liabilities, Gross, Noncurrent | (678.1) | (633.1) |
Deferred Tax Liabilities, Net, Noncurrent | $ 259.6 | $ 267.6 |
Note 14 - Income Taxes Unrecogn
Note 14 - Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 7.1 | $ 7.1 | $ 8.1 |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | 0 | 0 | (1) |
Unrecognized Tax Benefits - End | $ 7.1 | $ 7.1 | $ 7.1 |
Note 14 - Income Taxes Valuatio
Note 14 - Income Taxes Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Valuation Allowance, Amount - Begin | $ 182.9 | $ 191.3 | $ 182.5 |
reductions in valuation allowance for net operating losses previously forgone | 3.1 | 3.6 | 0 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0.7 | (4.8) | 8.8 |
Valuation Allowance, Amount - End | 180.5 | $ 182.9 | $ 191.3 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 2.4 |
Note 14 - Income Taxes Statemen
Note 14 - Income Taxes Statements (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
reclassification of current deferred tax asset | $ 16,400,000 | |
Operating Loss Carryforwards | 1,400,000,000 | |
NOL carryforwards not expected to be realized prior to expiration | 398,400,000 | |
Deferred Tax Assets, Tax Credit Carryforwards | 6,100,000 | $ 6,100,000 |
Tax Credit Carryforward, Valuation Allowance | 5,200,000 | |
Beneficial Interest Liability | 0.0475 | |
Bankruptcy Claims, Amount of Claims under Review by Management | $ 4,900,000 |
Note 15 - Retirement and Benefi
Note 15 - Retirement and Benefit Plans Defined contribution Plan Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 7.6 | $ 6.3 | $ 5.9 |
Note 15 - Retirement and Bene75
Note 15 - Retirement and Benefit Plans Qualified Defined Benefit Plan (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Funded Status of Plan | $ 3.5 | $ 3.4 |
Defined Benefit Plan, Accumulated Benefit Obligation | 12.8 | 9.9 |
Defined Benefit Plan, Benefit Obligation | 12.8 | 13.3 |
Defined Benefit Plan, Fair Value of Plan Assets | $ 9.3 | $ 9.9 |
Note 16 - Valuation and Quali76
Note 16 - Valuation and Qualifying Accounts Valuation Allowance for doubtful accounts and notes receivable (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Balance - Begin | $ 2.6 | $ 1.5 | $ 1.3 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 1.4 | 0.4 |
Valuation Allowances and Reserves, Deductions | (0.8) | (0.3) | (0.2) |
Valuation Allowances and Reserves, Balance - End | $ 1.8 | $ 2.6 | $ 1.5 |