Republic 4th qtr and year end results

[StaySeated]

They raised close to $100 million of that in an equity offering during Q4 to raise some money to start paying for the E-190 aircraft that start coming this year. So basically they still have $200 million in the bank and a FFD operation that will cross-subsidize Frontier if needed.

Bedford and crew did some talking today on the conference call about what they could do (with respect to capacity) if energy prices stayed high. Wonder if Gary Kelly will hold off on DEN, MKE, and MCI ticket price increases to put the squeeze on Frontier if energy prices stay high? Going to be an interesting 2011.

This is not accurate.

The EMB 190 agreement actually results in positive cash flow and a reduction of debt.

NONE of the stock offering is pledged to EMB for the 190.

RJET owns several 140 and 145, and they are sub leasing these off shore.

RJET also leases several 145's, and they are exchanging these long term leases for new 190 leases.

If you look at the 2010 numbers, RJET managed to increase cash, reduce restricted cash, AND reduce debt.

Cash increased by $80.1 MM
Restricted cash decrease by $53.6 MM
Debt decreased by $210 MM

Total balance sheet repair = $343.7 MM

If and when RJET makes a similar deal with Airbus you will see older, smaller 319's replaced by newer 320's, for less money.

I am not a fan of what is happening here from a selfish personal perspective, but 2010 was a rather impressive coup with regard to the balance sheet.