10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________________

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 FOR THE TRANSITION PERIOD FROM ______________ TO _____________

COMMISSION FILE NUMBER: 000-49697

REPUBLIC AIRWAYS HOLDINGS INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State or other jurisdiction of incorporation or organization) 06-1449146 (I.R.S. Employer Identification Number)

8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268

(Address of principal executive offices) (Zip Code)

(317) 484-6000

(Registrant’s telephone number, including area code)

_____________________________

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $.001 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. 

Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes   o   No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in the definitive proxy statement incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of ”large accelerated filer," "accelerated filer” and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o Accelerated filer x Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

The aggregate market value of Common Stock held by non-affiliates (based upon the closing sale price of the Common Stock on the NASDAQ National Market System (now the NASDAQ Global Market System) on June 30, 2014 was approximately $541,327,920.

Indicate the number of shares outstanding of the registrant’s Common Stock as of the latest practicable date: As of February 27, 2015,50,137,187 shares of common stock were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement to be used in connection with its 2015 Annual Meeting of Stockholders are incorporated by reference into Part III of this report.

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TABLE OF CONTENTS

	Part I
Item 1.	Business	4
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	22
Item 2.	Properties	23
Item 3.	Legal Proceedings	24
Item 4.	Mine Safety Disclosures	25
	Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases Of Equity Securities	26
Item 6.	Selected Financial Data	28
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 8.	Financial Statements and Supplementary Data	45
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	74
Item 9A.	Controls and Procedures	74
Item 9B.	Other Information	75
	Part III
Item 10.	Directors, Executive Officers and Corporate Governance	75
Item 11.	Executive Compensation	76
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	76
Item 13.	Certain Relationships and Related Transactions, and Director Independence	76
Item 14.	Principal Accounting Fees and Services	76
	Part IV
Item 15.	Exhibits, Financial Statements Schedules	76
Signatures		84

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Forward-Looking Statements

In addition to historical information, this Annual Report on Form 10-K contains forward-looking statements. Republic Airways Holdings Inc. (the “Company”) may, from time to time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass our beliefs, expectations, hopes or intentions regarding future events. Words such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other terminology are used to identify forward-looking statements. All forward-looking statements included in this Annual Report on Form 10-K are made as of the date hereof and are based on information available to us as of such date. We assume no obligation to update any forward-looking statement. Our results could differ materially from those anticipated in these forward-looking statements for many reasons, including, among others, the “Risk Factors” set forth herein.

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PART I

ITEM 1. BUSINESS

General

Overview

We are a Delaware holding company organized in 1996 that offers scheduled passenger services through our wholly-owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. (“Chautauqua”) through December 31, 2014, Shuttle America Corporation (“Shuttle”) and Republic Airline Inc. (“Republic Airline”). Unless the context indicates otherwise, the terms the “Company,” “we,” “us,” or “our,” refer to Republic Airways Holdings Inc. and our subsidiaries.

As of December 31, 2014, our operating subsidiaries offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada under scheduled passenger service through our fixed-fee code-share agreements with United Continental Holdings, Inc. ("United"), Delta Air Lines, Inc. ("Delta"), and US Airways/American Airlines Group, Inc. ("American") (collectively referred to as our "Partners"). Currently, we provide our Partners with fixed-fee regional airline services, operating as United Express, Delta Connection, or US Airways Express/American Eagle, including service out of their hubs and focus cities. The Company operated aircraft under a pro-rate agreement with Frontier Airlines, Inc. ("Frontier") which terminated during the first quarter of 2014.

The following table outlines the types of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014:

Operating Subsidiaries	Aircraft Size (Seats)	United	Delta	US Airways/American	Charters/Spares	Number of Aircraft
Chautauqua	44 to 50	—	41	—	—	41
Shuttle	70 to 76	38	30	—	—	68
Republic Airline	69 to 99	28	—	99	8	135
Total number of operating aircraft		66	71	99	8	244

During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft.

We have fixed-fee regional jet code-share agreements with each of our Partners that require us to maintain specified performance levels. Pursuant to these fixed-fee agreements, which provide for minimum aircraft utilization at fixed rates, we are authorized to use our Partners' two-character flight designation codes to identify our flights and fares in our Partners' computer reservation systems, to paint our aircraft in the style of our Partners, to use their service marks and to market ourselves as a carrier for our Partners. Our fixed-fee agreements have historically limited our exposure to fluctuations in fuel prices, fare competition and passenger volumes. Our development of relationships with multiple major airlines has enabled us to reduce our dependence on any single airline, allocate our overhead more efficiently among our Partners and reduce the cost of our services to our Partners.

Sale of Frontier

In October 2013, the Company entered into a stock purchase agreement for the sale of Frontier to an affiliate of Indigo Partners LLC. The sale was consummated on December 3, 2013. As a result, the Company reported Frontier as discontinued operations on the consolidated statements of operations and consolidated statements of cash flows for all periods presented.

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Certificate Consolidation

On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America's operation. Republic hopes to sell the remaining Chautauqua Airlines' entity and related assets during the first half of 2015. The consolidation is consistent with the Company's strategy to simplify its business by operating fewer fleet types on fewer certificates.

Fleet Transition

On September 16, 2014, the Company entered into new agreements and amended certain of their existing agreements resulting in (a) an increase of 50 E175 aircraft to be flown for United under the Company's United Express Agreement with United to be placed in service from the third quarter of 2015 to fourth quarter of 2017, (b) a corresponding increase in the number of aircraft to be purchased from Embraer S.A. (formerly known as Embraer-Empresa Brasileira de Aeronautica S.A.) ("Embraer") under the Company's Amended and Restated Purchase Agreement with Embraer, (c) the wind down of all Q400 aircraft in the Company's Capacity Purchase Agreement ("CPA") with United, and (d) the sublease of 24 Q400 aircraft to Flybe Limited pursuant to a Master Sublease Agreement and the return of three Q400 aircraft to the lessor in January of 2015. In January 2015, the Company finalized amendments to its agreements with United and Embraer to increase the number of E175 aircraft deliveries by five, to 55.

In December 2014, we completed the sale of two E190 aircraft and executed an agreement to sell three other E190 aircraft. The sale of these five aircraft will leave us with two owned E190 aircraft and three leased E190 aircraft that are expected to be removed from fixed-fee charter service in August of 2015. We expect to return the three leased aircraft to the lessor in 2015 and the remaining two aircraft are under a firm sales agreement.

Business Strategy

• Develop culture that attracts and retains qualified airline professionals - Working together, we will provide the safest, most reliable and most convenient travel experience for our passengers and a positive work environment for our associates. We strive to make our Company the employer of choice for regional airline professionals, enabling us to develop mutually beneficial working relationships with our business partners.

• Continue to operate a high-quality fleet of aircraft across an efficient network - We intend to maintain a modern, high-quality fleet of regional aircraft that meets or exceeds stringent industry operating standards and complies with the terms of our fixed-fee regional aircraft code-share agreements. Our operations are concentrated in the Northeast and Midwest and we staff our crew and maintenance bases to leverage our resources across our network. See route map on page 6.

• Continue to provide efficient and effective solutions to our Partners - We have strong, long-term relationships with each of our Partners and have historically worked together with them to meet their operational and network needs. Historically, we have provided safe, reliable, and cost-efficient solutions for our Partners. We remain focused on anticipating and continuing to assist our Partners with their business strategies.

• Continue to simplify our operating fleet by operating only larger regional jets - Network carrier consolidation, along with historically high fuel prices, has limited the economic use of smaller regional jets. The Company is actively seeking opportunities to transition out of its 50-seat operational fleet with the ultimate objective to operate a single fleet type.

Markets and Routes

Markets

As of December 31, 2014, we offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada.

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Routes

Our Partners determine the routes that we operate for them, which are subject to certain parameters in our agreements.  The following table illustrates the major hubs of our Partners into which we operated significant levels of service as of December 31, 2014:

Partner	Hub and Focus Cities
Delta	New York, NY (LGA and JFK); Detroit, MI (DTW); Cincinnati, OH (CVG)
United	Chicago, IL (ORD); Newark, NJ (EWR); Denver, CO (DEN); Houston, TX (IAH)
US Airways/American	Charlotte, NC (CLT); Philadelphia, PA (PHL); Washington Reagan (DCA); Chicago, IL (ORD); Miami, FL (MIA)

Routes

The following route map illustrates the routes we flew for our Partners as of December 31, 2014:

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Maintenance of Aircraft and Training

Using a combination of Federal Aviation Administration (“FAA”) certified maintenance vendors and our own personnel and facilities, we maintain our aircraft on a scheduled and "as-needed" basis. We emphasize preventive maintenance and inspect our aircraft engines and airframes as required.

The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E145, E170/175 and Q400 aircraft:

	Expiration Date of Agreement:
Maintenance Agreements	E145	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	July 2021
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. As of

December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs.

⁽³⁾ Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027.

⁽⁴⁾  Q400 maintenance agreements do not include wheels.

Under these agreements, we are charged for covered services based on a fixed rate for each flight hour or flight cycle accumulated by the engines or airframes in our service during each month. The rates are subject to annual revisions, generally based on certain Bureau of Labor Statistics' labor and material indices.  We believe these agreements, coupled with our ongoing maintenance program, reduce the likelihood of unexpected levels of engine, APU, avionics, wheels and brakes, emergency slides, and select rotable parts maintenance expense during their term. Certain of these agreements contain minimum guarantee amounts, penalty provisions for either the early removal of aircraft or agreement termination for activity levels below the minimums.

We perform our heavy and overnight maintenance at our facilities in Columbus, Indianapolis, Louisville, Pittsburgh and Kansas City, and we perform routine maintenance services from select line maintenance locations.

All mechanics and avionics specialists employed by us have appropriate training and experience and hold required licenses issued by the FAA. We provide periodic in-house and outside training for our maintenance and flight personnel and also take advantage of manufacturers’ training programs that are offered when acquiring new aircraft.

We have agreements with Flight Safety International to provide for aircraft simulator training for our pilots. We have no current plans to acquire our own simulator in the near term and believe that Flight Safety or other third party vendors will be able to provide us with adequate and cost effective flight simulator training for our pilots.

7

Employees

As of December 31, 2014, we employed 5,935 full-time equivalent employees. The following is a table of our principal collective bargaining agreements and their respective amendable dates as of December 31, 2014:

Employee Group	Number of Full- Time Equivalent Employees	Representing Union	Amendable Date
Pilots	2,116	International Brotherhood of Teamsters Airline Division Local 357 (Chautauqua, Republic, and Shuttle)	*Oct-07
Flight Attendants	2,001	International Brotherhood of Teamsters Airline Division Local 135	Jul-18
Dispatchers	85	Transport Workers Union of America Local 540	Aug-18

 _______________________

* The Company and IBT Local 357 continue to work towards a new labor agreement.

The Company is currently in a labor dispute with the International Brotherhood of Teamsters ("IBT") Local 357, which represents all of our pilots.  On April 4, 2014, the Company announced that members of the IBT Local 357 failed to ratify a proposed four-year pilot labor agreement, which would have increased pay, improved work rules and allotted a significant signing bonus to our pilots.  Our inability to pay our pilots, especially our new hire first officers, market level wages is negatively impacting our ability to hire qualified pilots and operate the number of aircraft our Partners desire for us to fly under fixed-fee agreements.  In 2014, we did not renew agreements to operate 27 Embraer Regional Jet ("ERJ") aircraft and permanently parked 15 E140 aircraft, temporarily parked 12 E145 aircraft and temporarily parked an operational spare. The Company may need to park additional ERJ aircraft in 2015 and 2016 as a result of the current labor dispute, which could cause us to fail to meet the required performance levels under our CPAs.

As of December 31, 2014, we had 1,733 employees who are not currently represented by any union.  Because of the high level of unionization among our employees, we are subject to risks of work interruption or stoppage and/or the incurrence of additional expenses associated with union representation of our employees. 

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Code-Share Agreements

Through our subsidiaries, we have entered into code-share agreements with US Airways, American, Delta, and United (the "Partners") that authorize us to use their two-character flight designator codes ("US," "AA," "DL," and "UA") to identify our flights and fares in their computer reservation systems, to paint our aircraft with their colors and/or logos, to use their service marks and to market and advertise our status as US Airways Express, American Eagle, Delta Connection, or United Express, respectively. Under the code-share agreements between our subsidiaries and each of US Airways, American, Delta, and United, we are compensated on a fixed-fee basis on all of our flights. In addition, under our code-share agreements, our passengers participate in frequent flyer programs of the Partners, and the Partners provide additional services such as reservations, ticket issuance, ground support services, commuter slot rights and airport facilities.

The following table is a summary representation of existing Capacity Purchase Agreements ("CPAs") with our Partners as of December 31, 2014:

Partner	Aircraft Type	Seats on Aircraft	Number of Aircraft under CPAs	Current Expiration Date(s)
US Airways	E170	69	20	March 2019 to March 2023
US Airways	E175	80	38	March 2019 to March 2023 and February 2019 to July 2020
American	E175	76	41	July 2025 to February 2027
Delta	E145	50	41	August 2015 to May 2016
Delta	E170	70	14	May 2021 to October 2021
Delta	E175	76	16	August 2023 to February 2024
United	E170	70	38	September 2019 to December 2022
United	Q400	71	28	January 2015 to September 2016

US Airways/American Code-Share Agreements

On December 9, 2013, US Airways Group, Inc. became a wholly owned subsidiary of American Airlines Group, Inc. (formerly known as AMR Corporation). The Company continues to operate the capacity purchase agreements with both entities independently as the agreements have not been assigned to the merged organization.

Under our fixed-fee Jet Services Agreements with US Airways, we operated, as of December 31, 2014, 20 E170 aircraft and 38 E175 aircraft. As of December 31, 2014, we were providing 355 flights per day as US Airways Express.

In exchange for providing the designated number of flights and performing our other obligations under the code-share agreements, we receive compensation from US Airways three times each month. We receive an additional amount per available seat mile flown and may also receive incentives or pay penalties based upon our performance, including fleet launch performance, on-time departure performance and completion percentage rates. In addition, certain operating costs are considered pass through costs whereby US Airways has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, passenger catering, passenger liability insurance and aircraft property tax costs are pass through costs and are included in our fixed-fee services revenue. US Airways provides fuel directly for all of our US Airways operations.

On November 6, 2014, the Company entered into an Amendment to the Amended and Restated Jet Service Agreement with US Airways, Inc., dated as of September 2, 2005. Under the amendment, the code-share agreement for the E170/175 aircraft was extended and now terminates between March 2019 and March 2023 with respect to the 20 E170 aircraft and eight of the E175 aircraft.   The service terms for the remaining 30 E175 aircraft were not extended and are scheduled to terminate 12 years from each aircraft’s in-service date and therefore would terminate from February 2019 to July 2020. US Airways may terminate the code-share agreements at any time for cause upon not less than 90 days notice and subject to our right to cure under certain conditions.

As of December 31, 2014, we operated 41 E175 aircraft for American under a fixed-fee code-share agreement and provided 224 flights per day as American Eagle.

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Under the code-share agreement, American retains all passenger, certain cargo and other revenues associated with each flight and is responsible for all revenue-related expenses. We share revenue with American for certain cargo shipments. Additionally, certain operating costs are considered pass through costs and American has agreed to reimburse us the actual amount of costs we incur for these items.  Landing fees, hull and liability insurance and aircraft property tax costs are pass through costs and included in our fixed-fee services revenue. We do not record fuel expense and the related revenue for the American operations.

As of December 31, 2014, 41 of the 47 aircraft are in service; the remaining six aircraft begin service between January 2015 and May 2015. Unless otherwise extended or amended, the E175 code-share agreement terminates on the 12th anniversary of the implementation date of each aircraft with terms expiring between July 2025 and February 2027. American has the option of extending the E175 agreement with respect to each aircraft for up to two additional two year terms. The agreement is subject to early termination under various circumstances.

On February 28, 2014, the Company announced that it had entered into an Amendment to the Amended and Restated Air Services Agreement with American Airlines Group, Inc. dated as of June 12, 2002. In the Amendment, the parties agreed to remove 15 E140 aircraft from service under the Air Services Agreement between March 2014 and August 2014. Upon removal of the last of the American Removed Aircraft, the Air Services Agreement terminated.

The Delta Code-Share Agreements

As of December 31, 2014, we operated 41 E145 aircraft, 14 E170 aircraft, and 16 E175 aircraft for Delta under fixed-fee code-share agreements.  As of December 31, 2014, we provided 367 flights per day as Delta Connection.

Unless otherwise extended or amended, the code-share agreement for the E145 aircraft terminates in May 2016. Delta may terminate the code-share agreements at any time, with or without cause, if it provides us 180 days written notice, for the E145 regional jet code-share agreement, or after July 2015 for the E175 regional jet code-share agreement. With respect to the E145 agreement, if Delta chooses to terminate any aircraft early, it may not reduce the number of aircraft in service to less than 12 during the 12-month period following the 180 day initial notice period unless it completely terminates the code-share agreement. We refer to this as Delta's partial termination right.

If Delta exercises this right under the E145 agreement or the E175 agreement or if we terminate either agreement for cause, we have the right to require Delta either to purchase, sublease or assume the lease of aircraft leased by us with respect to any of the aircraft we previously operated for Delta under that agreement.  As of December 31, 2014, the Company estimates a payment of $158.8 million and $171.3 million would be required from Delta should they exercise the early termination provision under the E145 or E175 agreement, respectively.  If we choose not to exercise our put right, or if Delta terminates either agreement for cause, they may require us to sell or sublease to them or Delta may assume the lease of aircraft leased by us with respect to any of the aircraft we previously operated for it under that agreement. There is no early termination provision for E170 aircraft under the E175 agreement.

On December 11, 2014, the Company entered into Amendment Number Seven to the Delta Connection Agreement with Delta Airlines, Inc. dated as of January 20, 2005. Under the Agreement, the Company operates 14 E170 and 16 E175 aircraft as Delta Connection. The amendment provides for, among other things, an agreement for Shuttle to operate nine additional E170 aircraft to be placed into service between the third quarter of 2015 and the second quarter of 2016 for a term of six years per aircraft. The amendment also provides for an extension of the air transportation services provided by the Company with respect to the 14 E170 for another four years, for terms ending from May 2021 to October 2021, and extend the 16 E175 aircraft by approximately five years, for terms ending from August 2023 to February 2024. Delta may further extend the service terms for any or all of the 14 E170 and 16 E175 aircraft for an additional five years. The amendment also provides that Delta may purchase any or all of the E175 aircraft for an amount equal to the net book value of such aircraft at the end of the current terms for such aircraft or at any time during the extended terms, in which case Delta would lease the purchased aircraft to the Company for the Company's operation during the remainder of the terms.

Certain of our operating costs are considered pass through costs, whereby Delta has agreed to reimburse us the actual amount of costs we incur for these items. Aircraft rent/ownership expenses are also considered a pass through cost, but the reimbursement is limited to specified amounts for certain aircraft. Engine maintenance expenses, landing fees, passenger liability insurance, hull insurance, war risk insurance, de-icing costs, and aircraft property taxes are some of the pass through costs included in our fixed-fee services revenue. All fuel is purchased directly by Delta and is not charged back to the Company.

The agreements may be subject to immediate or early termination under various circumstances.

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The United Code-Share Agreement

As of December 31, 2014, we operated 38 E170 aircraft and 28 Q400 aircraft for United under fixed-fee code-share agreements.  As of December 31, 2014, we provided 353 flights per day as United Express.

The fixed rates that we receive from United under the code-share agreements are annually adjusted in accordance with an agreed escalation formula. All fuel is purchased directly by United and is not charged back to the Company. Additionally, certain of our operating costs are considered pass through costs whereby United has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, war risk insurance, liability insurance and aircraft property taxes are pass through costs and included in our fixed-fee services revenue.  

On February 28, 2014, the Company announced that it had entered into the Fifth Amendment to the Capacity Purchase Agreement with United Airlines dated as of July 21, 2006. In the Amendment, the parties agreed to remove 12 E145 aircraft from service under the CPA Agreement on April 1, 2014. Upon removal of the last of the United Removed Aircraft, the CPA Agreement terminated.

On September 16, 2014, the Company announced that it had entered into an Amendment to Capacity Purchase Agreement amending the Capacity Purchase Agreement dated as of May 1, 2012. The amendment provides for the removal from service of the Q400 aircraft operating under the agreement beginning in January 2015 and ending in September 2016, subject to adjustment of the schedule to accommodate the parties operational schedules.

Also, on September 16, 2014, the Company announced that it had entered into a Seventh Amendment to the United Express Agreement, originally entered into on December 28, 2006. Pursuant to the amendment, the Company agreed to operate 50 E175 aircraft under the United Express brand with service to start in mid-2015. The new aircraft, which will seat 76 passengers in a two-class cabin, are expected to be phased into operation at approximately two to three aircraft per month beginning in mid-2015 through the third quarter of 2017. In addition, United has the option to add up to 50 additional E175 aircraft to the United Express Agreement by providing notice to the Company on or before December 31, 2016. Each new aircraft will be subject to the United Express Agreement for 12 years after the date it is placed in service thereunder, subject to United's right to extend the term for any group of 10 aircraft for four years. In January 2015, the Company finalized amendments to its agreements with United and Embraer to increase the number of E175 aircraft deliveries by five, to 55.

In addition to the foregoing provisions, the amendment extends the term of the UA Express Agreement with respect to the 38 existing E170 aircraft the Company is flying for United by approximately three years, with aircraft terms expiring between September 2019 and December 2022.

United has a call option to assume our ownership or leasehold interest in certain aircraft if we wrongfully terminate the code-share agreements or if United terminates the agreements for our breach for certain reasons.

Competition and Economic Conditions

The airline industry is highly competitive. The principal competitive factors in the airline industry are location, fare pricing, frequent flyer loyalty programs, customer service, routes served, flight schedules, aircraft types and code-share relationships. Certain of our competitors are larger and have significantly greater financial and other resources than we do. Moreover, federal deregulation of the industry allows competitors to rapidly enter our markets and to quickly discount and restructure fares. The airline industry is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats.

Generally, the airline industry is highly sensitive to general economic conditions, in large part due to the discretionary nature of a substantial percentage of both business and pleasure travel. In the past, many airlines have reported decreased earnings or substantial losses resulting from periods of economic recession, heavy fare discounting, high fuel prices and other factors. Economic downturns combined with competitive pressures have contributed to a number of bankruptcies and liquidations among major and regional carriers. The effect of economic downturns is somewhat mitigated by our fixed-fee code-share agreements with respect to our flights. In addition, if our Partners remain financially strained by current economic conditions or higher fuel prices, they may reduce the number of flights we operate in order to reduce their operating costs.

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The growth in the fixed fee business for regional carriers has been limited over the past few years as major carriers have reduced capacity and increased fuel prices have limited the cost efficiencies of small regional jets. In addition, recent legislation has increased the number of experience hours that a pilot must generally have logged to 1,500, which has decreased the amount of qualified pilots for all regional carriers. We believe as fixed-fee contracts come up for renewal, there will be competition for market share and pilots which may lead to lower margins and higher risks for regional carriers.

Regulatory Matters

Government Regulation

All interstate air carriers are subject to regulation by the Department of Transportation ("DOT"), the Federal Aviation Administration ("FAA"), the Transportation Security Administration ("TSA") and certain other governmental agencies. Regulations promulgated by the DOT primarily relate to economic aspects of air service, those of the TSA to security and those of the FAA to operations and safety. The FAA requires operating, airworthiness and other certifications; approval of personnel who may engage in flight maintenance or operations activities; record keeping procedures in accordance with FAA requirements; and FAA approval of flight training and retraining programs. Generally, governmental agencies enforce their regulations through, among other mechanisms, certifications, which are necessary for our continued operations, and proceedings, which can result in civil or criminal penalties or suspension or revocation of operating authority. The FAA can also issue maintenance directives and other mandatory orders relating to, among other things, grounding of aircraft, inspection of aircraft, installation of new safety-related items and the mandatory removal, replacement or modification of aircraft parts that have failed or may fail in the future.

We believe that we are operating in material compliance with FAA regulations and hold all necessary operating and airworthiness certificates and licenses. We incur substantial costs in maintaining our current certifications and otherwise complying with the laws, rules and regulations to which we are subject. Our flight operations, maintenance programs, record keeping and training programs are conducted under FAA approved procedures.

The DOT allows local airport authorities to implement procedures designed to abate special noise problems, provided such procedures do not unreasonably interfere with interstate or foreign commerce or the national transportation system. Certain airports, including major airports at Boston, Washington D.C., the New York area, Dallas, Philadelphia, Charlotte, Chicago, Los Angeles, San Diego, Orange County (California) and San Francisco, have established airport restrictions to limit noise, including restrictions on aircraft types to be used and limits on the number of hourly or daily operations or the time of such operations. In some instances, these restrictions have caused curtailments in service or increases in operating costs, and such restrictions could limit our ability to commence or expand our operations at affected airports. Local authorities at other airports are considering adopting similar noise regulations.

Pursuant to law and the regulations of the DOT, we must be actually controlled by United States citizens. In this regard, our President and at least two-thirds of our Board of Directors must be United States citizens and not more than 25% of our voting stock may be owned or controlled by foreign nationals, although subject to DOT approval the percentage of foreign economic ownership may be as high as 49%.

As of August 1, 2013, Congress created an action that creates new certification and qualification requirements for pilots in air carrier operations.  As a result of this action, a second in command (first officer) in domestic, flag, and supplemental operations must now hold an airline transport pilot certificate and an airplane type rating for the aircraft to be flown.  An airline transport pilot certificate requires that a pilot be 23 years of age and have 1,500 hours total time as a pilot. Pilots with fewer than 1,500 flight hours may qualify for a restricted privileges airline transport pilot certificate beginning at 21 years of age if they are a military-trained pilot, have a bachelor’s degree with an aviation major, or have an associate’s degree with an aviation major under a qualified program from an approved college or university. 

In addition to the new qualification requirement, the FAA has also implemented a new regulation that updates 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 they may fly in a day, month and year.  These more restrictive limitations have impacted a Pilot's availability and decreased their utilization.

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Environmental Regulation

The Airport Noise and Capacity Act of 1990 ("ANCA") generally recognizes the rights of airport operators with noise problems to implement local noise abatement programs so long as such programs do not interfere unreasonably with interstate or foreign commerce or the national air transportation system. The ANCA generally requires FAA approval of local noise restrictions on commercial aircraft. While we have had sufficient scheduling flexibility to accommodate local noise restrictions imposed to date, our operations could be adversely affected if locally-imposed regulations become more restrictive or widespread.

The Environmental Protection Agency ("EPA") regulates operations, including air carrier operations, which affect the quality of air in the United States. We believe the aircraft in our fleet meet all emission standards issued by the EPA. We may become subject to additional taxes or requirements to obtain permits for green house gas emissions.

Safety and Health Regulation

The Company and its third-party maintenance providers are subject to the jurisdiction of the FAA with respect to the Company’s aircraft maintenance and operations, including equipment, ground facilities, dispatch, communications, flight training personnel, and other matters affecting air safety. To ensure compliance with its regulations, the FAA requires airlines to obtain, and the Company has obtained, operating, airworthiness, and other certificates. These certificates are subject to suspension or revocation for cause. In addition, pursuant to FAA regulations, the Company has established, and the FAA has approved, the Company’s operations specifications and a maintenance program for the Company’s aircraft, ranging from frequent routine inspections to major overhauls. The FAA, acting through its own powers or through the appropriate U.S. Attorney, also has the power to bring proceedings for the imposition and collection of fines for violation of the Federal Aviation Regulations.

The Company is subject to various other federal, state, and local laws and regulations relating to occupational safety and health, including Occupational Safety and Health Administration and Food and Drug Administration regulations.

Security Regulation

Pursuant to the Aviation and Transportation Security Act (the “Aviation Security Act”), the TSA, a division of the U.S. Department of Homeland Security, is responsible for certain civil aviation security matters. The Aviation Security Act addresses procedures for, among other things, flight deck security; the use of federal air marshals onboard flights; airport perimeter access security; airline crew security training; security screening of passengers, baggage, cargo, mail, employees, and vendors; training and qualifications of security screening personnel; provision of passenger data to U.S. Customs and Border Protection; and background checks. Under the Aviation Security Act, substantially all security screeners at airports are federal employees, and significant other elements of airline and airport security are overseen and performed by federal employees, including federal security managers, federal law enforcement officers, and federal air marshals.

TSA-mandated security procedures can have a negative effect on the customer experience and the Company’s operations. For example, in 2006, the TSA implemented security measures regulating the types of liquid items that can be carried onboard aircraft. In 2009, the TSA introduced its Secure Flight Initiative. As part of that initiative, the Company has begun collecting additional customer data. The Secure Flight Initiative was created to help reduce the number of passengers who are misidentified as possible terrorists because their names are similar to those of people on security watch lists. The program standardized how names are matched, and added age and gender to a passenger’s profile. Under the program, the Company is required to ask for  customer names exactly as they appear on a government-issued photo ID such as a passport or driver’s license. In addition, the Company must ask customers for their gender and date of birth. The TSA has also indicated its intent to expand its use of whole body imaging machines around the United States.

Additional Information

The Company files annual, quarterly and current reports and other information with the SEC. These materials can be inspected and copied at the SEC's Public Reference Room at 100 F. Street, N.E., Washington, D.C. 20549. Copies of these materials may also be obtained by mail at prescribed rates from the SEC's Public Reference Room at the above address. Information about the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of the SEC's Internet site is www.sec.gov.

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On our website, www.rjet.com/investor_relations.aspx, we provide free of charge, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as soon as reasonably practicable after they have been electronically filed or furnished to the SEC. The code of ethics, adopted by our Board of Directors, which applies to all our employees, can also be found on our website, www.rjet.com/investorrelations.html. The charters for our audit committee, compensation committee and nominating and governance committee are also available on our website.

ITEM 1A. RISK FACTORS

The following risk factors, in addition to the information discussed elsewhere herein, should be carefully considered in evaluating us and our business:

Risks Related To Our Operations

Our fixed-fee business is dependent on our code-share relationships with our Partners.

We depend on relationships created by our regional jet fixed-fee code-share agreements with Delta, United and US Airways/American for all of our fixed-fee service revenues. Any material modification to, or termination of, our code-share agreements with any of these Partners could have a material adverse effect on our financial condition, results of our operations and the price of our common stock. Each of the code-share agreements contains a number of grounds for termination by our Partners, including our failure to meet specified performance levels.

In addition, because substantially all of our fixed-fee service revenues are currently generated under the fixed-fee code-share agreements, if any one of them is terminated, we cannot assure you that we would be able to enter into substitute code-share arrangements, or that any such substitute arrangements would be as favorable to us as the current code-share agreements.

We may experience difficulty finding, training and retaining qualified pilots and maintenance technicians.

The regional airline industry is experiencing a shortage of qualified personnel, specifically pilots and maintenance technicians. In addition, as is common within the regional airline industry, we have, from time to time, faced considerable turnover of our employees. Our pilots, flight attendants and maintenance technicians sometimes leave to work for mainline airlines, which generally offer higher salaries and more extensive benefit programs than regional airlines are financially able to offer. Should the turnover of employees, particularly pilots and maintenance technicians, sharply increase, we may not be able to hire sufficient pilots and maintenance technicians to replace those leaving, and in any event our training costs would likely significantly increase.

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 our first officer pilots generally increased to 23 years and 1,500 hours of flight time. Military-trained 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 currently entering the workforce. We believe that this factor, combined with the heightened requirements for non-military-trained pilots, has resulted in a growing scarcity of new entrant pilots who meet the new experience qualifications, making it difficult for us and other regional airlines to hire qualified candidates, which may lead to disruptions to service to smaller communities, higher labor costs, reduced revenue due to loss of incentive payments and/or penalties under our CPAs and potential early termination of CPAs.

In early February 2014, the Company announced it could not extend its CPAs with American Airlines and United Airlines (notwithstanding that American Airlines and United Airlines expressed an interest in negotiating an extension) for 27 E140/145 aircraft, due to the inability to recruit a sufficient number of qualified pilots to staff the Company's 2014 expected level of operations. In addition, we have had discussions with some of our Partners regarding the impact of this pilot shortage on our ability to fly their proposed flight schedules. Our Partners have certain rights and remedies under the CPAs if we fail to meet the required performance levels under those agreements, including under certain circumstances the right to terminate the agreements and/or seek significant damages from us. Any continued inability to recruit, train and retain qualified pilots and maintenance technicians may materially impact our financial condition, results of operations and the price of our common stock, including our ability to meet the contractual operational performance obligations within our fixed-fee agreements.

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Any labor disruption or labor strikes by our employees or those of our Partners would adversely affect our ability to conduct our business.

All of our pilots, flight attendants, and dispatchers are represented by unions. Collectively, these employees represent approximately 71% of our workforce. Although we have never had a work interruption or stoppage, we are subject to risks of work interruption or stoppage and/or may incur additional administrative expenses associated with union representation of our employees. If we are unable to reach agreement with any of our unionized work groups on the amended terms of their collective bargaining agreements, we may be subject to work interruptions and/or stoppages. Any sustained work stoppages could adversely affect our ability to fulfill our obligations under our code-share agreements and could have a material adverse effect on our financial condition, results of operations and the price of our common stock.

In addition, a labor disruption other than a union authorized strike may materially impact our results of operations and could cause us to be unable to meet contractual performance provisions of our capacity purchase agreements. Our Partners have certain rights and remedies under the capacity purchase agreements if we fail to meet the required performance levels, including under certain circumstances the right to terminate the agreements and/or seek significant damages from us.

The Company is currently in a labor dispute with the International Brotherhood of Teamsters ("IBT") Local 357, which represents all of our pilots.  On April 4, 2014, the Company announced that members of the IBT Local 357 failed to ratify a proposed four-year pilot labor agreement, which would have increased pay, improved work rules and allotted a significant signing bonus to our pilots.  Our inability to pay our pilots, especially our new hire first officers, market level wages is negatively impacting our ability to hire qualified pilots and operate the number of aircraft our Partners desire for us to fly under fixed-fee agreements.  In 2014, we did not renew agreements to operate 27 Embraer Regional Jet ("ERJ") aircraft and permanently parked 15 E140 aircraft, temporarily parked 12 E145 aircraft and temporarily parked an operational spare. The Company may need to park additional ERJ aircraft in 2015 and 2016 as a result of the current labor dispute, which could cause us to fail to meet the required performance levels under our CPAs.

Increases in our labor costs, which constitute a substantial portion of our total operating costs, will directly impact our earnings and our ability to compete for new fixed-fee business.

Labor costs constitute a significant percentage of our total operating costs, and we have experienced pressure to increase wages and benefits for our employees. Under our code-share agreements, our reimbursement rates contemplate labor costs that increase on a set schedule generally tied to an increase in the consumer price index or the actual increase in the contract. We are entirely responsible for our labor costs, and we may not be entitled to receive increased payments for our flights from our Partners if our labor costs increase above the assumed costs included in the reimbursement rates. As a result, a significant increase in our labor costs above the levels assumed in our reimbursement rates could result in a material reduction in our earnings.

We have collective bargaining agreements with our pilots, flight attendants, and dispatchers. We cannot assure that future agreements with our employees' unions will be on terms in line with our expectations or comparable to agreements entered into by our competitors, and any future agreements may increase our labor costs and reduce both our income and our competitiveness for future business opportunities. As of December 31, 2014, approximately 71% of the Company's workforce is employed under union contracts. Because of the high level of unionization among our employees, we are subject to risks of work interruption or stoppage and/or the incurrence of additional expenses associated with union representation of our employees.  

We may be unable to mitigate the cost of 50-seat aircraft expiring from fixed-fee agreements.

As of December 31, 2014, we have 41 50-seat regional jets operating under fixed-fee code-share agreements which are scheduled to expire between August 2015 and May 2016. In most cases, the term of the aircraft lease or debt agreement exceeds the term of the aircraft under its respective code-share agreement. To the extent that aircraft are removed from service, we must either sell or sublease the aircraft to another party in order to cover our carrying expenses for that aircraft. Our inability to sell or sublease aircraft that are removed from fixed-fee service could have a material adverse effect on our financial condition, results of operations and the price of our common stock.

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Reduced utilization levels of our aircraft under the fixed-fee agreements would adversely impact our revenues, earnings and liquidity.

Our agreements with our Partners require each of them to schedule our aircraft to a minimum level of utilization. However, the aircraft have historically been utilized more than the minimum requirement. Even though the fixed-fee rates may adjust, either up or down, based on scheduled utilization levels or require a fixed amount per day to compensate us for our fixed costs, if our aircraft are at or below the minimum requirement (including taking into account the stage length and frequency of our scheduled flights) we will likely lose both the opportunity to recover a margin on the variable costs of flights that would have been flown if our aircraft were more fully utilized and the opportunity to earn incentive compensation on such flights.

Our maintenance expenses will increase as our fleet ages and may be higher than we anticipate.

The average age of our primary fleet of E170/175 aircraft is approximately 6.4 years old. Our aircraft require less maintenance now than they will in the future. We have incurred lower maintenance expenses because most of the parts on our aircraft are under multi-year warranties. Our maintenance costs will increase as these warranties expire and our fleet ages. For example, our recent engine expenses for our E170/175 aircraft do not reflect the full mature cost of maintaining the aircraft as they do not include any expenses for LLPs.  As the Company incurs expense to replace these LLPs, only a portion of our expense may be passed through to our partners, thus our future results of operations and liquidity will be materially impacted.

We bear the cost of all routine and major maintenance on our owned and leased aircraft. Maintenance expenses comprise a significant portion of our operating expenses. In addition, we are required periodically to take aircraft out of service for heavy maintenance checks, which can increase costs and reduce revenue. We also may be required to comply with regulations and airworthiness directives the FAA issues, the cost of which our aircraft lessors may only partially assume depending upon the magnitude of the expense. Although we believe that our owned and leased aircraft are currently in compliance with all FAA issued airworthiness directives, additional airworthiness directives likely will be required in the future, necessitating additional expense.

If the financial strength of any of our Partners decreases, our financial strength is at risk.

We are directly affected by the financial and operating strength of the Partners. In the event of a decrease in the financial or operational strength of any of our Partners, such Partner may be unable to make the payments due to us under its code-share agreement. In addition, it may reduce utilization of our aircraft to the minimum levels specified in the code-share agreements, and it is possible that any code-share agreement with a code-share Partner that files for reorganization under Chapter 11 of the U.S. Bankruptcy Code may not be assumed in bankruptcy and could be modified or terminated. Any such event could have an adverse effect on our operations and the price of our common stock. As of January 27, 2015, Standard & Poor's and Moody's, respectively, maintained ratings of B+ and Ba1 for US Airways, B+ and Baa1 for American Airlines Inc., BB and Ba3 for Delta, and B and B1 for United Continental Holdings, Inc., the parent of United and Continental.

Our Partners may choose to operate regional aircraft under a wholly owned subsidiary, thus limiting the expansion of our relationships with them.

We depend on major airlines, such as our Partners, to contract with us instead of purchasing and operating their own aircraft; however, some major airlines own their own regional airlines and operate their own aircraft instead of entering into contracts with us or other independent regional carriers. For example, Delta and US Airways/American have acquired many aircraft which they fly under their affiliated carriers. We have no guarantee that in the future our Partners will choose to enter into contracts with us instead of purchasing their own aircraft or entering into relationships with competing regional airlines, as they are not prohibited from doing so under our code-share agreements. A decision by US Airways/American, Delta or United to phase out our contract-based code-share relationships as they expire and instead acquire and operate their own aircraft or to enter into similar agreements with one or more of our competitors could have a material adverse effect on our financial condition, results of operations and the price of our common stock.

Our Partners may be restricted in increasing the level of business that they conduct with us, thereby limiting our growth.

In general, the pilots' unions of certain major airlines have negotiated “scope clauses” in their collective bargaining agreements, known as CBAs, that restrict the number and/or size of aircraft that can be operated by the regional code-share partners of such major airlines. These CBAs limit regional airlines to flying aircraft with a maximum take-off weight (MTOW) of 86,000 pounds and a maximum passenger configuration of 76 seats. In addition, CBAs for Delta and United limit the total number of 76-seat aircraft that can be flown by a regional airline to 325 and 255, respectively. It is still unclear how the merger of American and US Airways will affect their combined scope.

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The amounts we receive under our code-share agreements may be less than the corresponding costs we incur.

Under our code-share agreements, we are compensated for certain costs we incur in providing services. With respect to costs that are defined as pass through costs, our code-share partner is obligated to pay to us the actual amount of the cost. With respect to other costs, our code-share partner is obligated to pay to us amounts based, in part, on pre-determined rates for certain costs. During the year ended December 31, 2014, approximately 16% of our costs were pass through costs and approximately 84% of our costs were reimbursable at pre-determined rates. These pre-determined rates are not based on the actual expenses we incur, and generally escalate based on a consumer price index, subject to a maximum cap. If our annual rate increases are less than our actual cost escalations or if we incur expenses that are greater than the pre-determined amounts payable by our code-share partners, our financial results will be negatively affected.

A majority of the Company's limited life parts are not under power by the hour agreements.  Once the maintenance event occurs for the limited life part, the Company records the expense for the event under the direct expense method.  However, these maintenance events are not a pass through cost under all of our fixed-fee arrangements.  Therefore, we could experience a significant amount of volatility in our results of operations and cash flow depending on the amount and timing of when these non-pass through maintenance events occur.

Our substantial aircraft indebtedness may limit our financial and operating activities and may adversely affect our ability to incur additional debt to fund future needs.

We have substantial aircraft indebtedness, which could:

• require us to dedicate a substantial portion of cash flow from operations to the payment of principal and interest on indebtedness, thereby reducing the funds available for operations and future business opportunities;

• make it more difficult for us to satisfy our payment and other obligations under our indebtedness;

• limit our ability to borrow additional money for working capital, capital expenditures, acquisitions or other purposes, if needed, and increase the cost of any of these borrowings; and/or

• reduce our flexibility in planning for or responding to changing business and economic conditions.

We have historically needed substantial liquidity to fund the growth of our fixed-fee business.

We currently depend on Embraer and other original equipment manufacturers ("OEMs") to support our fleet of aircraft.

We rely on Embraer as the primary manufacturer of all of our regional jets and other OEMs who supply critical aircraft parts.  Our risks in relying primarily on a single manufacturer for each aircraft type include: 

• the failure or inability of Embraer or an OEM to provide sufficient parts or related support services on a timely basis;

• the interruption of fleet service as a result of unscheduled or unanticipated maintenance requirements for these aircraft;

• the issuance of FAA directives restricting or prohibiting the use of Embraer aircraft or requiring time-consuming inspections and maintenance; and

• the adverse public perception of a manufacturer as a result of an accident or other adverse publicity.

Our operations could be materially adversely affected by the failure or inability of Embraer or an OEM to provide sufficient parts or related support services on a timely basis or by an interruption of fleet service as a result of unscheduled or unanticipated maintenance requirements for our aircraft.

Our business could be harmed if we lose the services of our key personnel.

Our business depends upon the efforts of our Chief Executive Officer, Bryan Bedford, and our other key management and operating personnel. We may have difficulty replacing management or other key personnel who leave and, therefore, the loss of the services of any of these individuals could harm our business. We maintain a “key man” life insurance policy in the amount of $5 million for Mr. Bedford, but this amount may not adequately compensate us in the event we lose his services.

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Our ability to utilize net operating loss carry-forwards may be limited.

At December 31, 2014, we had estimated federal net operating loss carry-forwards, which we refer to as NOLs, of $1.3 billion for federal income tax purposes that begin to expire in 2015. We have recorded a valuation allowance for $398.0 million of those NOLs. Section 382 of the Internal Revenue Code, imposes limitations on a corporation's ability to utilize NOLs if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. In the event of an ownership change, utilization of our NOLs would be subject to an annual limitation under Section 382. Any unused NOLs in excess of the annual limitation may be carried over to later years.

The imposition of a limitation on our ability to use our NOLs to offset future taxable income could cause U.S. federal income taxes to be paid earlier than otherwise would be paid if such limitation were not in effect and could cause such NOLs to expire unused, reducing or eliminating the benefit of such NOLs. Based on analysis that we performed, we believe we have not experienced a change in ownership as defined by Section 382; however; certain of our NOLs generated prior to July 2005 and acquired from previous business acquisitions are subject to an annual limitation under Section 382.

We are at risk of losses stemming from an accident involving any of our aircraft.

While we have never had a crash causing death or serious injury in over 40 years of operations, it is possible that one or more of our aircraft may crash or be involved in an accident in the future, causing death or serious injury to individual air travelers and our employees and destroying the aircraft and the property of third parties.

In addition, if one of our aircraft were to crash or be involved in an accident, we would be exposed to significant tort liability. Such liability could include liability arising from the claims of passengers or their estates seeking to recover damages for death or injury. There can be no assurance that the insurance we carry to cover such damages will be adequate. Accidents could also result in unforeseen mechanical and maintenance costs. In addition, any accident involving an aircraft that we operate could create a public perception that our aircraft are not safe, which could result in air travelers being reluctant to fly on our aircraft and a decrease in revenues. Such a decrease could materially adversely affect our financial condition, results of operations

and the price of our common stock.

We are increasingly dependent on technology, and if our technology fails or we are unable to continue to invest in new technology, our business may be adversely affected.

We have become increasingly dependent on technology initiatives to reduce costs and compete in the current business environment. The performance and reliability of our technology are critical to our ability to compete effectively. Technology initiatives will continue to require significant capital investments in order to deliver these expected benefits. If we are unable to make these investments or the expected benefit does not materialize, our business and operations could be negatively affected.

In addition, any internal technological error or failure or large scale external interruption in the technology infrastructure we depend on, such as power, telecommunications or the internet, may disrupt our internal network. Any individual, sustained or repeated failure of technology could impact our customer service and result in increased costs. Like most companies, our technology systems and related data may be vulnerable to a variety of sources of interruption due to events beyond our control, including natural disasters, terrorist attacks, telecommunications failures, computer viruses, hackers and other security issues. While we have in place, and continue to invest in, technology security initiatives and disaster recovery plans, these measures may not be adequate or implemented properly to prevent a business disruption and mitigate the resulting adverse financial consequences.

Risks Associated with the Airline Industry

If passengers perceive the operations of regional aircraft as being unsafe, our business may be harmed.

In February 2009, Colgan Flight 3407, operating as Continental Connection, crashed on its approach into Buffalo, New York. A total of 50 people were killed. Since the date of this tragedy, there have been numerous press reports questioning some of the operating policies of regional airlines. In response, there have also been legislative initiatives aimed at heightening safety requirements, such as The Airline Safety and Pilot Training Improvement Act of 2009. Although our regional jets have never had a crash causing death or serious injury in over 40 years of operations, should the public perceive regional aircraft as less safe making our Partners less inclined to renew our contracts in the future, or should new legislation impose additional burdens on us, our financial condition, results of operations and the price of our common stock could be materially adversely affected.

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The airline industry has been subject to a number of strikes, which could affect our business.

The airline industry has been negatively impacted by a number of labor strikes. Any new collective bargaining agreement entered into by other carriers may result in higher industry wages and increase pressure on us to increase the wages and benefits of our employees. Furthermore, since each of our Partners is a significant source of our operating revenues, any labor disruption or labor strike by the employees of any one of our Partners could have a material adverse effect on our financial condition, results of operations and the price of our common stock.

Airlines are often affected by certain factors beyond their control, including economic conditions and weather events, which can affect their operations.

Generally, revenues for airlines depend on the number of passengers carried, the fare paid by each passenger and service factors, such as the timeliness of departure and arrival. Demand for air travel could weaken in an economic recession. Economic weakness in the United States and international economies could have a significant negative impact on our results of operations. During periods of fog, ice, low temperatures, storms or other adverse weather conditions, flights may be canceled or significantly delayed. For example, in the first two months of 2014, the Company canceled approximately 12% of its scheduled flights due to extreme weather, which had a negative impact to pre-tax earnings of roughly $7.0 million for the first quarter. Under our fixed-fee code-share agreements, our regional airline business is partially protected against cancellations due to weather or air traffic control, although these factors may affect our ability to receive incentive payments for flying more than the minimum number of flights specified in our code-share agreements.

The airline industry is heavily regulated.

Airlines are subject to extensive regulatory and legal compliance requirements, both domestically and internationally, that involve significant costs. In the last several years, the FAA has issued a number of directives and other regulations relating to the maintenance and operation of aircraft that have required us to make significant expenditures. FAA requirements cover, among other things, retirement of older aircraft, security measures, collision avoidance systems, airborne wind shear avoidance systems, noise abatement, commuter aircraft safety and increased inspection and maintenance procedures to be conducted on older aircraft.

We incur substantial costs in maintaining our current certifications and otherwise complying with the laws, rules and regulations to which we are subject. We cannot predict whether we will be able to comply with all present and future laws, rules, regulations and certification requirements or that the cost of continued compliance will not significantly increase our costs of doing business.

The FAA has the authority to issue mandatory orders relating to, among other things, pilot rest rules, the grounding of aircraft, inspection of aircraft, installation of new safety-related items and removal, replacement or modification of aircraft parts that have failed or may fail in the future. A decision by the FAA to ground, or require time consuming inspections of or maintenance on, all or any of our Embraer or Bombardier aircraft, for any reason, could negatively impact our results of operations.

In addition to state and federal regulation, airports and municipalities enact rules and regulations that affect our operations. From time to time, various airports throughout the country have considered limiting the use of smaller aircraft, such as Embraer or Bombardier aircraft, at such airports. The imposition of any limits on the use of Embraer or Bombardier aircraft at any airport at which we operate could interfere with our obligations under our code-share agreements and severely interrupt our business operations.

Additional laws, regulations, taxes and airport rates and charges have been proposed from time to time that could significantly increase the cost of airline operations or reduce revenues. For instance, “passenger bill of rights” legislation was introduced in Congress that, if enacted, would have, among other things, required the payment of compensation to passengers as a result of certain delays and limited the ability of carriers to prohibit or restrict usage of certain tickets. This legislation is not currently active, but if it is reintroduced, these measures could have the effect of raising ticket prices, reducing revenue and increasing costs. Several state legislatures have also considered such legislation, and the State of New York in fact implemented a “passenger bill of rights” that was overturned by a federal appeals court in 2008. The DOT has imposed restrictions on the ownership and transfer of airline routes and takeoff and landing slots at certain high-density airports, including New York LaGuardia and Reagan National. In addition, as a result of the terrorist attacks in New York and Washington, D.C. in September 2001, the FAA and the TSA have imposed stringent security requirements on airlines. We cannot predict what other new regulations may be imposed on airlines and we cannot assure you that laws or regulations enacted in the future will not materially adversely affect our financial condition, results of operations and the price of our common stock.

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The airline industry is highly competitive.

Within the airline industry, we not only compete with other regional airlines, some of which are owned by or operated as partners of major airlines, but we also face competition from low-fare airlines and major airlines on many of our routes, including carriers that fly point to point instead of to or through a hub.

In addition, some of our competitors are larger and have significantly greater financial and other resources than we do. Moreover, federal deregulation of the industry allows competitors to rapidly enter our markets and to quickly discount and restructure fares. The airline industry is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats.

In addition to traditional competition among airlines, the industry faces competition from video teleconferencing and other methods of electronic communication. New advances in technology may add a new dimension of competition to the industry as business travelers seek lower-cost substitutes for air travel.

Risks Related To Our Common Stock

Our stock price is volatile.

Since our common stock began trading on The NASDAQ National Market (now the NASDAQ Global Select Market) on May 27, 2004, the market price of our common stock has ranged from a low of $2.53 to a high of $23.88 per share.  The market price of our common stock may continue to fluctuate substantially due to a variety of factors, many of which are beyond our control, including:

• announcements concerning our Partners, competitors, the airline industry or the economy in general;

• strategic actions by us, our Partners or our competitors, such as acquisitions or restructurings;

• the results of our operations;

• media reports and publications about the safety of our aircraft or the aircraft types we operate;

• new regulatory pronouncements and changes in regulatory guidelines;

• general and industry specific economic conditions, including the price of oil;

• changes in financial estimates or recommendations by securities analysts;

• sales of our common stock or other actions by investors with significant shareholdings; and

• general market conditions.

The stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of particular companies.  These broad market fluctuations may adversely affect the trading price of our common stock.

In the past, stockholders have sometimes instituted securities class action litigation against companies following periods of volatility in the market price of their securities.  Any similar litigation against us could result in substantial costs, divert management’s attention and resources, and harm our business.

Future sales of our common stock by our stockholders or insiders could depress the price of our common stock.

Sales of a large number of shares of our common stock or the availability of a large number of shares for sale could adversely affect the market price of our common stock. Sales of shares by insiders could be perceived negatively by the investment community.

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Our incorporation documents and Delaware law have provisions that could delay or prevent a change in control of our company, which could negatively affect your investment.

Our certificate of incorporation and bylaws and Delaware law contain provisions that could delay or prevent a change in control of the Company that stockholders may consider favorable.  Certain of these provisions:

• authorize the issuance of up to 5,000,000 shares of preferred stock that can be created and issued by our board of directors without prior stockholder approval, commonly referred to as “blank check” preferred stock, with rights senior to those of our common stock;

• limit the persons who can call special stockholder meetings;

• provide that a supermajority vote of our stockholders is required to amend certain provisions of our certificate of incorporation; and

• establish advance notice requirements to nominate directors for election to our board of directors or to propose matters that can be acted on by stockholders at stockholder meetings.

These and other provisions in our incorporation documents and Delaware law could allow our board of directors to affect your rights as a stockholder by making it more difficult for stockholders to replace board members.  Because our board of directors is responsible for appointing members of our management team, these provisions could in turn affect any attempt to replace the current management team.  In addition, these provisions could deprive our stockholders of opportunities to realize a premium on the shares of common stock owned by them.

Our charter documents include provisions limiting voting by foreign owners.

Our certificate of incorporation provides that shares of capital stock may not be voted by or at the direction of persons who are not citizens of the United States if the number of such shares would exceed applicable foreign ownership restrictions. U.S. law currently requires that no more than 25% of the voting stock of our company or any other domestic airline may be owned directly or indirectly by persons who are not citizens of the United States. However, up to 49% of the total equity of our company or any other domestic airline may be owned directly or indirectly by persons who are not citizens of the United States.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

None

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ITEM 2. PROPERTIES

Flight Equipment

As of December 31, 2014, we operated 244 aircraft as described in the following table:

Type	Total Aircraft	Owned	Leased	Average Age (in years)	Seats in Current Configuration
E145LR	41	18	23	12.3	50
E170/175LR	167	144	23	6.4	69-80
E190LR	5	2	3	4.4	99
Q400	31	4	27	5.6	71
Total	244	168	76

In addition to the aircraft listed above, we have parked 15 E140 aircraft and 13 E145 aircraft, we have leased eight E145 aircraft, three E170 aircraft and three E190 aircraft to a foreign airline, and we have leased one E135 aircraft and three E145 aircraft to domestic airlines as of December 31, 2014.

All of our leased aircraft are leased by us pursuant to operating leases, with current lease expirations ranging from 2015 to 2023. We have fixed-price purchase options under most of these leases after nine to fourteen years of the lease term. Furthermore, we have options to renew most of the leases for an additional three to four years, or purchase the leased aircraft at the conclusion of their current lease terms at fair market value.

Ground Operations and Properties

As of December 31, 2014, our facilities are summarized in the following table:

Facility	Square Feet	Location
Corporate Headquarters	89,000	Indianapolis, IN
Training Facility	20,400	Plainfield, IN
Maintenance Hangar	113,200	Indianapolis, IN
Maintenance Hangar/Office	236,334	Columbus, OH
Maintenance Hangar	73,500	Louisville, KY
Maintenance Hangar/Office	135,518	Pittsburgh, PA
Maintenance Hangar	98,600	Kansas City, MO
Maintenance Hangars	194,300	Milwaukee, WI

Our employees perform substantially all routine airframe and engine maintenance and periodic inspection of equipment. Our Partners or third parties provide ground support services and ticket handling services in all cities we serve our Partners.

We lease all of our facilities. All leased facilities are subject to either long-term leases or on a month-to-month basis.

We believe that our current facilities, along with our planned additional facilities, are adequate for the current and for needs of our business. 

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ITEM 3. LEGAL PROCEEDINGS

The Company is subject to certain legal and administrative actions, which management considers routine to its business activities. As of December 31, 2014, management believes, after consultation with legal counsel, the ultimate outcome of any pending legal matters will not have a material adverse effect on the Company's financial position, liquidity or results of operations.

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ITEM 4. Mine Safety Disclosures

Not Applicable.

25

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Price

Our common stock is traded on the NASDAQ Global Select Market under the symbol "RJET." The following table sets forth the high and low sales prices of our common stock for the periods indicated.

Year Ended December 31, 2013	High		Low
First Quarter	$	11.95	$	6.05
Second Quarter	11.82		9.44
Third Quarter	13.92		10.81
Fourth Quarter	12.68		9.17
Year Ended December 31, 2014
First Quarter	$	11.80	$	8.56
Second Quarter	11.24		7.82
Third Quarter	12.03		9.49
Fourth Quarter	14.74		10.05

As of December 31, 2014 there were 10,334 stockholders of record of our common stock. We have never paid cash dividends on our common stock. The payment of future dividends is within the discretion of our board of directors and will depend upon our future earnings, our capital requirements, bank or other lender financing, financial condition and other relevant factors.

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Performance Graph

The above graph compares the performance of the Company from December 31, 2009 through December 31, 2014, against the performance of (i) the Composite Index for NASDAQ Stock Market (U.S. Companies) and (ii) an index of companies engaged in air transportation (SIC 4512), including regional airlines, whose stocks trade on the NASDAQ, for the same period.

Below is a summary of certain information with respect to the equity compensation plans of the Company as of December 31, 2014:

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column A)
Equity compensation plans approved by security holders
Options outstanding under the 2002 Equity Incentive Plan (1)	526,963	$	16.55	—
Options outstanding under the 2007 Equity Incentive Plan (2)	2,608,542	13.78		2,596,474
Equity compensation plans not approved by security holders	—	—		—
Total	3,135,505	$	14.25	2,596,474

⁽¹⁾ The 2002 Equity Incentive Plan expired on April 19, 2012 with 22,434 shares available to be issued. There are no shares available for future issuance as of December 31, 2014.

⁽²⁾ On September 17, 2013, the Company's stockholders approved an amended and restated plan providing for 3.5 million additional shares, increasing the total shares issuable under the 2007 Equity Incentive Plan, including shares previously issued, to 8.5 million.

Unregistered Sales of Equity Securities

None

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ITEM 6. SELECTED FINANCIAL DATA

The following selected financial data and operating statistics should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations, and the consolidated financial statements and related notes included in Item 8 of this Annual Report on Form 10-K.

	Years Ended December 31,
	2014			2013			2012			2011			2010
	(in millions, except per share amounts)
Statement of Operations Data:
Operating revenues:
Fixed-fee service	$	1,348.5		$	1,276.1		$	1,102.1		$	1,079.0		$	1,231.8
Passenger service	—			46.3			247.9			388.9			—
Other	26.9			24.1			27.4			46.5			27.2
Total operating revenues	1,375.4			1,346.5			1,377.4			1,514.4			1,259.0
Operating expenses:
Wages and benefits	368.0			342.1			308.4			297.1			290.3
Aircraft fuel (2)	22.4			44.9			161.4			303.4			68.0
Landing fees and airport rents (1)	26.9			46.4			61.5			64.9			51.8
Aircraft and engine rent	126.0			122.6			110.7			117.0			128.9
Maintenance and repair	251.1			251.6			235.3			237.2			205.8
Insurance and taxes	19.9			25.1			24.7			26.2			28.0
Depreciation and amortization	173.0			150.7			160.0			162.9			161.3
Promotion and sales	—			2.3			12.8			21.2			—
Impairment and other charges (3)	53.4			21.2			—			191.1			—
Other	149.2			148.6			134.1			116.7			113.6
Total operating expenses	1,189.9			1,155.5			1,208.9			1,537.7			1,047.7
Operating income (loss)	185.5			191.0			168.5			(23.3		)	211.3
Other income (expense):
Interest expense	(119.7		)	(112.2		)	(117.6		)	(126.0		)	(137.9		)
Fair value gain - restructuring asset (3)	18.4			—			—			—			—
Other - net	1.0			2.5			0.2			0.2			3.4
Total other expense	(100.3		)	(109.7		)	(117.4		)	(125.8		)	(134.5		)
Income (loss) from continuing operations before income taxes	85.2			81.3			51.1			(149.1		)	76.8
Income tax expense (benefit) (4)	20.9			33.0			19.8			(55.8		)	29.2
Net income (loss) of the Company from continuing operations	64.3			48.3			31.3			(93.3		)	47.6
Net income (loss) from discontinued operations, net of tax	—			(21.6		)	20.0			(58.5		)	(61.4		)
Net income (loss)	$	64.3		$	26.7		$	51.3		$	(151.8	)	$	(13.8	)

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Income (loss) per share basic:
Income (loss) from continuing operations	$	1.29	$	0.98		$	0.65	$	(1.94	)	$	1.32
Discontinued operations, net of tax	—		(0.44		)	0.41		(1.20		)	(1.70		)
Net income (loss) per share basic	$	1.29	$	0.54		$	1.06	$	(3.14	)	$	(0.38	)
Income (loss) per share diluted:
Income (loss) from continuing operations	$	1.24	$	0.92		$	0.63	$	(1.94	)	$	1.25
Discontinued operations, net of tax	—		(0.40		)	0.39		(1.20		)	(1.63		)
Net income (loss) per share diluted	$	1.24	$	0.52		$	1.02	$	(3.14	)	$	(0.38	)
Weighted average common shares outstanding:
Basic	49.8		49.2			48.5		48.2			36.0
Diluted	52.4		54.6			51.4		48.2			38.0

⁽¹⁾ The decrease in landing fees in 2013 and 2014 was primarily attributable to United paying the fees directly beginning June, 2013.

⁽²⁾ The increase in 2011 and 2012 in fuel expense compared to 2010, was primarily attributable to flying under the pro-rate operations with Frontier. The increase in 2012 was partially offset by a decrease in pass through costs, as all of our partners, as of December 31, 2012, are providing fuel for our aircraft under capacity purchase agreements. The decrease in 2013 and 2014 was related to a reduction of pro-rate operations with Frontier.

⁽³⁾ See note 3 of the Consolidated Financial Statements for further discussion.

⁽⁴⁾ The decrease in tax expense in 2014 was primarily attributable to the Company releasing valuation allowances for state NOL's resulting in a $4.8 million in tax benefit. In addition, the Company's effective state tax rate decreased, which resulted in $4.2 million in tax benefit.

	Years Ended December 31,
	2014		2013		2012		2011		2010
Airline Operating Data:
Block hours	763,011		749,931		701,040		731,440		740,489
Departures	425,596		440,255		409,058		429,564		440,452
Passengers carried (millions)	22.6		21.5		20.1		20.8		21.9
Revenue passenger miles (millions) (1)	11,494		10,290		10,120		10,691		11,534
Available seat miles (millions)(2)	14,651		13,486		13,437		14,449		15,054
Passenger load factor (3)	78.5	%	76.3	%	75.3	%	74.0	%	76.6	%
Average passenger trip length (miles)	498		472		490		498		527
Number of aircraft in operations (end of period):
Regional Jets:
Owned	164		164		146		152		150
Leased	49		63		63		67		72
Q400:
Owned	4		4		4		2		3
Leased	27		27		13		—		—
Total aircraft	244		258		226		221		225

⁽¹⁾ Passengers carried multiplied by miles flown.

⁽²⁾ Passenger seats available multiplied by miles flown.

⁽³⁾ Revenue passenger miles divided by available seat miles.

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	2014		2013		2012		2011		2010
Consolidated Balance Sheet Data:	(in millions)
Cash and cash equivalents	$	223.9	$	276.7	$	210.8	$	174.5	$	110.3
Aircraft and other equipment—net	2,860.9		2,563.6		2,311.2		2,564.3		2,861.9
Total assets	3,494.0		3,271.3		3,655.2		3,901.7		4,348.7
Long-term debt, including current maturities	2,339.2		2,166.8		1,972.7		2,194.4		2,349.6
Total stockholders' equity	620.5		550.7		513.5		460.5		609.6

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We are a Delaware holding company organized in 1996 that offers scheduled passenger services through our wholly-owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. (“Chautauqua”) through December 31, 2014, Shuttle America Corporation (“Shuttle”) and Republic Airline Inc. (“Republic Airline”). Unless the context indicates otherwise, the terms the “Company,” “we,” “us,” or “our,” refer to Republic Airways Holdings Inc. and our subsidiaries.

As of December 31, 2014, our operating subsidiaries offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada under scheduled passenger service through our fixed-fee code-share agreements with United Continental Holdings, Inc. ("United"), Delta Air Lines, Inc. ("Delta"), and US Airways/American Airlines Group, Inc. ("American") (collectively referred to as our "Partners"). Currently, we provide our Partners with fixed-fee regional airline services, operating as Delta Connection, United Express, or US Airways Express/American Eagle, including service out of their hubs and focus cities. The Company operated aircraft under a pro-rate agreement with Frontier Airlines, Inc. ("Frontier") which terminated during the first quarter of 2014.

The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014:

Operating Subsidiaries	Aircraft Size (Seats)	United	Delta	US Airways/American	Charters/Spares	Number of Aircraft
Chautauqua	44 to 50	—	41	—	—	41
Shuttle	70 to 76	38	30	—	—	68
Republic Airline	69 to 99	28	—	99	8	135
Total number of operating aircraft		66	71	99	8	244

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.

During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft. The combination of Congressionally mandated pilot experience qualifications, our inability to pay our pilots market-level wages due to the ongoing labor dispute with our pilots’ union, and other factors has continued to negatively affect our ability to hire qualified pilots to fly our aircraft and operate the number of aircraft we are required to fly under our fixed fee agreements with our Partners.   We expect that we may need to park additional aircraft in 2015 and 2016, which would negatively affect our revenues and operating results and further impair our ability to meet the required performance levels under our capacity purchase agreements.   See “Risk Factors”.

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.

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Certificate Consolidation

On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America's operation. Republic hopes to sell the remaining Chautauqua Airlines' entity and related assets during the first half of 2015. The consolidation is consistent with the Company's strategy to simplify its business by operating fewer fleet types on fewer certificates.

Fleet Transition

On September 16, 2014, the Company entered into new agreements and amended certain of their existing agreements resulting in (a) an increase of 50 E175 aircraft to be flown for United under the Company's United Express Agreement with United to be placed in service from the third quarter of 2015 to fourth quarter of 2017, (b) a corresponding increase in the number of aircraft to be purchased from Embraer S.A. (formerly known as Embraer-Empresa Brasileira de Aeronautica S.A.) ("Embraer") under the Company's Amended and Restated Purchase Agreement with Embraer, (c) the wind down of all Q400 aircraft in the Company's Capacity Purchase Agreement with United, and (d) the sublease of 24 Q400 aircraft to Flybe Limited pursuant to a Master Sublease Agreement and the return of three Q400 aircraft to the lessor in January of 2015. In January 2015, the Company finalized amendments to its agreements with United and Embraer to increase the number of E175 aircraft deliveries by five, to 55.

In December 2014, we completed the sale of two E190 aircraft and executed an agreement to sell three other E190 aircraft. The sale of these five aircraft will leave us with two owned E190 aircraft and three leased E190 aircraft that are expected to be removed from fixed-fee charter service in August of 2015. We expect to return the three leased aircraft to the lessor in 2015 and the remaining two aircraft are under a firm sales agreement.

Business Strategy

• Develop culture that attracts and retains qualified airline professionals - Working together, we will provide the safest, most reliable and most convenient travel experience for our passengers and a positive work environment for our associates. We strive to make our Company the employer of choice for regional airline professionals, enabling us to develop mutually beneficial working relationships with our business partners.

• Continue to operate a high-quality fleet of aircraft across an efficient network - We intend to maintain a modern, high-quality fleet of regional aircraft that meets or exceeds stringent industry operating standards and complies with the terms of our fixed-fee regional aircraft code-share agreements. Our operations are concentrated in the Northeast and Midwest and we staff our crew and maintenance bases to leverage our resources across our network. See route map on page 6.

• Continue to provide efficient and effective solutions to our Partners - We have strong, long-term relationships with each of our Partners and have historically worked together with them to meet their operational and network needs. Historically, we have provided safe, reliable, and cost-efficient solutions for our Partners. We remain focused on anticipating and continuing to assist our Partners with their business strategies.

• Continue to simplify our operating fleet by operating only larger regional jets - Network carrier consolidation, along with historically high fuel prices, has limited the economic use of smaller regional jets. The Company is actively seeking opportunities to transition out of its 50-seat operational fleet with the ultimate objective to operate a single fleet type.

Recent Developments

During the fourth quarter of 2014, Republic extended the service terms under its fixed-fee capacity purchase agreements with respect to 28 E170/175 aircraft for US Airways, Inc. and 30 E170/175 aircraft for Delta Air Lines, Inc. In addition, we agreed to operate an additional nine aircraft for Delta Air Lines, Inc.  The extended terms on these aircraft align more closely with the maturity schedule of the underlying debt obligations.  The extension of these agreements significantly reduces the Company’s exposure to uncovered financing costs of the aircraft and therefore reduces our long-term liquidity risk related to these assets.

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Revenue

Fixed-Fee Service - Under our code-share arrangements with our Partners, we receive fixed fees, as well as reimbursement of specified costs on a gross basis with additional possible incentives from our Partners for superior performance. For the years ended December 31, 2014, 2013 and 2012, substantially all of our fixed-fee revenue was earned under our fixed-fee arrangements. The number of aircraft we operate and aircraft utilization are the most significant drivers of our revenue, as opposed to the number of passengers we carry or the fare the passengers pay.

Other Revenue - Other revenue primarily consists of revenue related to lease revenue for aircraft leased under operating leases.

Operating Expenses

A brief description of the items included in our operating expenses line items follows.

Wages and Benefits

This expense includes not only wages and salaries, but also expenses associated with various employee benefit plans, employee incentives, stock compensation, and payroll taxes. These expenses will fluctuate based primarily on our level of operations, changes in wage rates for contract, and non-contract employees and changes in costs of our benefit plans.

Aircraft Fuel

As of December 31, 2014, all of our aircraft fuel for operations is supplied directly by our code-share partners, and thus, we do not record expense or the related revenue for those gallons of fuel.  Beginning in July 2012, we did not record fuel expense and the related revenue for the United operations.  We also did not pay for or record fuel expense and the related revenue for US Airways/American or Delta operations.   All fuel costs including into-plane fees and taxes are expensed as incurred for our pro-rate and fixed-fee charter operations. 

Landing Fees and Airport Rents

This expense consists primarily of aircraft landing fees and airport rental fees. Under our fixed-fee agreements, we are generally reimbursed for the actual costs of landing fees.  Airport rents consist primarily of cost related to our scheduled charter operation, which are reimbursed as pass through costs.

Aircraft and Engine Rent

This expense consists of the costs of leasing aircraft and spare engines. The leased aircraft and spare engines are operated under long-term operating leases with third parties. Aircraft rent is reduced by the amortization of deferred credits received from the aircraft manufacturer for parts and training. The credits are deferred and amortized on a straight-line basis over the term of the respective lease of the aircraft.

Maintenance and Repair

Maintenance and repair expenses include all parts, materials, tooling and spares required to maintain our aircraft. We have entered into long-term maintenance "power-by-the-hour" service contracts with third-party maintenance providers under which we are charged fixed rates for each flight hour or departure accumulated by the majority of our engines and some of the major airframe components. The effect of such contracts is to reduce the volatility of aircraft maintenance expense over the term of the contract.  All other maintenance is expensed as incurred under the direct expense method of accounting.

Insurance and Taxes

This expense includes the costs of passenger liability insurance, aircraft hull insurance, war risk insurance and all other insurance policies, other than employee welfare insurance. Additionally, this expense includes personal and real property taxes, including aircraft property taxes. Under our current fixed-fee agreements, we are reimbursed for the actual costs of passenger liability insurance, war risk insurance, aircraft hull insurance and property taxes, subject to certain restrictions. Under our US Airways and United fixed-fee agreements, we are reimbursed for the actual costs of such items other than aircraft hull insurance, which is reimbursed at agreed upon rates.

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Depreciation and Amortization

This expense includes the depreciation of all fixed assets, including aircraft.

Impairment Charges and Other

This expense includes impairment of aircraft and other equipment, maintenance deposits and other assets and the loss on sale of aircraft.

Other

This expense includes the costs of crew training, crew travel, airport, passenger and ground handling related expenses, all hangar and administrative lease expenses, professional fees, and all other administrative and operational overhead expenses not included in other line items above. Additionally, if incurred, this expense will include aircraft return costs, gains and losses on disposal of other assets, reorganization costs, severance costs and bad debt expenses.

Results of Operations

The following tables sets forth information regarding the Company’s statistical performance for the years ended December 31, 2014 and 2013.

Operating Highlights	Years Ended December 31,
	2014			2013			Change
Fixed-fee service	$	1,348.5		$	1,276.1		5.7	%
Passenger service	—			46.3			(100.0	)%
Other	26.9			24.1			11.6	%
Total revenues (millions)	$	1,375.4		$	1,346.5		2.1	%
Total fuel expense (millions)	$	22.4		$	44.9		(50.1	)%
Operating aircraft at period end:
44-50 seats7	41			72			(43.1	)%
69-99 seats8	203			186			9.1	%
Block hours5	763,011			749,931			1.7	%
Departures	425,596			440,255			(3.3	)%
Passengers carried	22,576,914			21,498,826			5.0	%
Revenue passenger miles ("RPM") (millions) 1	11,494			10,290			11.7	%
Available seat miles ("ASM") (millions) 2	14,651			13,486			8.6	%
Passenger load factor 3	78.5		%	76.3		%	2.2 pts
Cost per ASM, including interest expense (cents) 4	8.57			9.22			(7.0	)%
Cost per ASM, including interest expense and excluding fuel expense (cents)4	8.42			8.89			(5.3	)%
Gallons consumed	6,108,054			12,481,012			(51.1	)%
Average cost per gallon	$	3.67		$	3.60		1.9	%
Average daily utilization of each aircraft (hours) 6	9.5			9.7			(2.1	)%
Average length of aircraft flight (miles)	498			472			5.5	%
Average seat density	69			65			6.2	%

1. Revenue passenger miles are the number of scheduled miles flown by revenue passengers.

2. Available seat miles are the number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.

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3. Passenger load factor is revenue passenger miles divided by available seat miles.

4. Costs (in all periods) exclude impairments, fair value gain and other non-operating income. Total operating and interest expenses excluding other impairment charges is not a calculation based on accounting principles generally accepted in the United States of America and should not be considered as an alternative to total operating expenses. Cost per available seat mile utilizing this measurement is included as it is a measurement recognized by the investing public relative to the airline industry.

5. Hours from takeoff to landing, including taxi time. 

6. Average number of hours per day that an aircraft flown in revenue service is operated (from gate departure to gate arrival).

7. Excludes 11 owned and four leased E140 aircraft that were permanently parked, four owned and nine leased E145 aircraft that were temporarily parked, and one owned E135 aircraft and 11 owned E145 aircraft that are leased to other operators, as of December 31, 2014.

8. Excludes three owned E190 aircraft and three owned E170 aircraft that are leased to other operators, as of December 31, 2014.

The following table sets forth information regarding the Company’s revenues and expenses from continuing operations for the years ended December 31, 2014 and 2013.

Years Ended December 31	2014			2013			$ Variance			% Variance
Fixed-fee service	$	1,348.5		$	1,276.1		72.4			5.7	%
Passenger service	—			46.3			(46.3		)	(100.0	)%
Other	26.9			24.1			2.8			11.6	%
TOTAL OPERATING REVENUES	$	1,375.4		$	1,346.5		$	28.9		2.1	%
OPERATING EXPENSES:
Wages and benefits	368.0			342.1			25.9			7.6	%
Aircraft fuel	22.4			44.9			(22.5		)	(50.1	)%
Landing fees and airport rents	26.9			46.4			(19.5		)	(42.0	)%
Aircraft and engine rent	126.0			122.6			3.4			2.8	%
Maintenance and repair	251.1			251.6			(0.5		)	(0.2	)%
Insurance and taxes	19.9			25.1			(5.2		)	(20.7	)%
Depreciation and amortization	173.0			150.7			22.3			14.8	%
Promotion and sales	—			2.3			(2.3		)	(100.0	)%
Impairment and other charges	53.4			21.2			32.2			151.9	%
Other	149.2			148.6			0.6			0.4	%
Total operating expenses	1,189.9			1,155.5			34.4			3.0	%
OPERATING INCOME	185.5			191.0
Total non-operating expense, net	(100.3		)	(109.7		)	9.4			(8.6	)%
INCOME BEFORE INCOME TAXES	$	85.2		$	81.3		3.9			4.8	%

2014 compared to 2013

Operating Revenues

Operating revenues increased by 2.1% to $1,375.4 million in 2014 compared to 2013. Fixed fee service revenue increased $72.4 million or 5.7%, to $1,348.5 million due to increased E175 flying with American Airlines, offset by the removal of a combined 27 small jets from United and American fixed-fee service. Passenger service revenue decreased $46.3 million, due to the removal of E190 aircraft operating under the pro-rate agreement with Frontier.

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Factors relating to changes in operating expenses are discussed below:

The increase in wages and benefits of 7.6%, or $25.9 million, was primarily due to an increase in E175 operations, an increase in the cost of benefits we provide to our employees and new pilot flight and duty rest regulations (Federal Aviation Regulation 117).

The decrease in aircraft fuel expenses of 50.1%, or $22.5 million, was primarily due to a 51.1% decrease in gallons consumed because of the elimination of pro-rate operations for Frontier.

Landing fee and airport rent expenses decreased 42.0%, or $19.5 million, primarily due to United beginning to pay all landing fees in June 2013, representing $11.3 million of the total decrease, coupled with a $6.0 million decrease related to the decrease in small jet and pro-rate operations with Frontier.

Insurance and taxes decreased 20.7%, or $5.2 million, primarily due to a decrease in property tax expense, which is a pass through cost under our fixed-fee agreements, coupled with the removal of small jet aircraft from operations.

.

The increase in depreciation and amortization of 14.8%, or $22.3 million, was primarily due to the increase in the number of E175 aircraft in operation partially offset by lower depreciation costs on small jet operations.

The other impairment charges in 2014 were due to impairment and other charges on owned E140 aircraft, which were abandoned of $19.9 million, owned E190 aircraft, which are in the process of being sold, of $14.4 million, owned Q400 aircraft, which are scheduled to come out of service in the third quarter of 2016, of $13.3 million, and a loss on sale of E190 aircraft of $5.8 million. The 2013 impairment charges of $21.2 million related to owned E190 aircraft and the write-off of maintenance deposits on leased E190 aircraft.

The decrease in non-operating expenses was primarily due to the fair value gain the Company recorded for the Chautauqua restructuring asset of $18.4 million, partially offset by an increase in interest expense on new E175 aircraft.

We recorded an income tax expense of $20.9 million or 24.5% effective tax rate during 2014, compared with an income tax expense of $33.0 million or a 40.6% effective tax rate during 2013. The effective tax rate is lower than the statutory rate primarily due to the release of valuation allowances and a decrease of the effective state tax rate in 2014. The 2013 effective rate was higher than the statutory rate primarily due to miscellaneous permanent tax adjustments and an increase in valuation allowance.

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The following tables set forth information regarding the Company’s statistical performance for the years ended December 31, 2013 and 2012.

Operating Highlights	Twelve Months Ended December 31,
	2013			2012			Change
Fixed-fee service	$	1,276.1		$	1,102.1		15.8	%
Passenger service	46.3			247.9			(81.3	)%
Other	24.1			27.4			(12.0	)%
Total revenues (millions)	$	1,346.5		$	1,377.4		(2.2	)%
Total fuel expense (millions) 1	$	44.9		$	161.4		(72.2	)%
Operating aircraft at period end:
44-50 seats	72			71			1.4	%
69-99 seats	186			155			20.0	%
Block hours 7	749,931			701,040			7.0	%
Departures	440,255			409,058			7.6	%
Passengers carried	21,498,826			20,112,289			6.9	%
Revenue passenger miles ("RPM") (millions) 2	10,290			10,120			1.7	%
Available seat miles ("ASM") (millions) 3	13,486			13,437			0.4	%
Passenger load factor 4	76.3		%	75.3		%	1.0 pts
Cost per ASM, including interest expense (cents) 5 6	9.22			9.87			(6.6	)%
Cost per ASM, including interest expense and excluding fuel expense (cents) 6	8.89			8.67			2.5	%
Gallons consumed	12,481,012			48,842,044			(74.4	)%
Average cost per gallon	$	3.60		$	3.30		9.1	%
Average daily utilization of each aircraft (hours) 8	9.7			9.8			(1.0	)%
Average length of aircraft flight (miles)	472			490			(3.7	)%
Average seat density	65			67			(3.0	)%

1. Includes $48.2 million of fuel expense reimbursement for the year ended December 31, 2012. Effective July 1, 2012, United agreed to supply fuel directly to our flights under its code-share agreements, and the Company will no longer recognize the cost of fuel and related revenue for fuel used under the United code-share agreement. Only fuel for pro-rate and fixed-fee charter flying is included in the fuel amount for the year ended December 31, 2013.

2. Revenue passenger miles are the number of scheduled miles flown by revenue passengers.

3. Available seat miles are the number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.

4. Passenger load factor is revenue passenger miles divided by available seat miles.

5. Total operating costs, including interest expense, divided by available seat miles.

6. Costs (in all periods) exclude impairments and other expenses. Total operating and interest expenses excluding other impairment charges is not a calculation based on accounting principles generally accepted in the United States of America and should not be considered as an alternative to total operating expenses. Cost per available seat mile utilizing this measurement is included as it is a measurement recognized by the investing public relative to the airline industry.

7. Hours from takeoff to landing, including taxi time. 

8. Average number of hours per day that an aircraft flown in revenue service is operated (from gate departure to gate arrival).

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The following table sets forth information regarding the Company’s revenues and expenses from continuing operations for the years ended December 31, 2013 and 2012.

Years Ended December 31	2013			2012			Variance			% Variance
Fixed-fee service	$	1,276.1		$	1,102.1		$	174.0		15.8	%
Passenger service	46.3			247.9			(201.6		)	(81.3	)%
Other	24.1			27.4			(3.3		)	(12.0	)%
TOTAL OPERATING REVENUES	$	1,346.5		$	1,377.4		$	(30.9	)	(2.2	)%
OPERATING EXPENSES:
Wages and benefits	342.1			308.4			33.7			10.9	%
Aircraft fuel	44.9			161.4			(116.5		)	(72.2	)%
Landing fees and airport rents	46.4			61.5			(15.1		)	(24.6	)%
Aircraft and engine rent	122.6			110.7			11.9			10.7	%
Maintenance and repair	251.6			235.3			16.3			6.9	%
Insurance and taxes	25.1			24.7			0.4			1.6	%
Depreciation and amortization	150.7			160.0			(9.3		)	(5.8	)%
Promotion and sales	2.3			12.8			(10.5		)	(82.0	)%
Other impairment charges	21.2			—			21.2			100.0	%
Other	148.6			134.1			14.5			10.8	%
Total operating expenses	1,155.5			1,208.9			(53.4		)	(4.4	)%
OPERATING INCOME (LOSS)	191.0			168.5
Total non-operating expense, net	(109.7		)	(117.4		)	7.7			(6.6	)%
INCOME (LOSS) BEFORE INCOME TAXES	$	81.3		$	51.1		$	30.2		59.1	%

2013 Compared to 2012

Operating revenues decreased by 2.2% due to a decrease in pro-rate flying for Frontier (which terminated in the first quarter of 2014), representing approximately $193 million, offset by an increase in Q400 flying with United Airlines, new fixed-fee E190 scheduled charter flying and new E175 flying with American representing approximately $190 million. Additionally, fixed-fee revenues for our small jet aircraft increased approximately $20 million, offset by a decrease in pass through revenues for fuel and landing fees of approximately $60 million, due to United paying fuel directly as of July 1, 2012 and United beginning to pay all landing fees in June 2013.

Factors relating to changes in operating expenses are discussed below:

The increase in wages and benefits of 10.9%, or $33.7 million, was directly related to an increase in block hours of 7% coupled with an increase in flight crew salaries and benefits costs for our additional E175 aircraft, Q400 aircraft, and scheduled charter flying.

The decrease in aircraft fuel expenses of 72.2%, or $116.5 million, was primarily due to a 74.4% decrease in gallons consumed because of a reduction in pro-rate flying for Frontier and United paying fuel directly as of July 1, 2012, representing a decrease of approximately $80 million and $48 million, respectively. The average price per gallon increased to $3.60, contributing $3.7 million to the overall increase in fuel costs. The decrease was offset by an increase of approximately $21 million for fuel costs related to increased charter flying in our scheduled charter programs.

Landing fee and airport rent expenses decreased 24.6%, or $15.1 million, primarily due to United beginning to pay all landing fees in June 2013, representing $9.8 million of the total decrease, coupled with the decrease in pro-rate flying for Frontier, which contributed $6.9 million to the total decrease.

Aircraft and engine rent expenses increased 10.7%, or $11.9 million, due primarily to an increase in the number of leased Q400 aircraft.

Maintenance and repair expenses increased 6.9%, or $16.3 million, primarily due to the increase in block hours of 7.0%.

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The decrease in depreciation and amortization of 5.8%, or $9.3 million, was directly related to the restructuring of Chautauqua.

The other impairment charges in 2013 were due to an impairment charge on owned E190 aircraft and the write-off of maintenance deposits on leased E190 aircraft. The impairment charge is primarily related to the anticipated termination of pro-rate flying completed by the E190 fleet during the first quarter of 2014.

We recorded an income tax expense of $33.0 million or 40.6% effective tax rate during 2013, compared with an income tax expense of $19.8 million or 38.7% effective tax rate during 2012. The effective tax rate is higher than the statutory rate primarily due to miscellaneous permanent tax adjustments and an increase in valuation allowances in 2013. The 2012 effective tax rate was only slightly higher than the statutory rate, primarily due to miscellaneous permanent tax adjustments being offset with favorable adjustments to deferred tax assets.

Liquidity and Capital Resources

2014 compared to 2013

As of December 31, 2014, we had total cash of $245.6 million of which $223.9 million was unrestricted. At December 31, 2014, we had a working capital deficit of $112.0 million.  The Company currently anticipates that its unrestricted cash on hand and the cash generated from operations are sufficient to cover our capital expenditures and debt repayments. The Company has firm financing commitments to debt finance the remaining six E175 aircraft scheduled to enter service through the second quarter of 2015.

Net cash provided by operating activities of continuing operations was $320.5 million in 2014 compared to $240.6 million in 2013.  The $79.9 million increase in operating cash flows is primarily attributable to the increase in our E175 operations and timing differences in working capital in 2014 as compared to 2013.

Net cash used in investing activities of continuing operations was $553.1 million in 2014 compared to cash used in investing activities of $464.1 million in 2013, a change of $89.0 million. In 2014, the Company spent $569.2 million for 22 E175 aircraft and other equipment for the American E175 fixed-fee agreement compared to $476.0 million for 19 E175 aircraft and other equipment in 2013. In addition the Company paid $27.5 million in pre-delivery deposits in 2014 compared to $30.0 million in 2013. This was partially offset by the proceeds from the sale of two E190 aircraft and other assets of $41.3 million. In 2013, the Company had proceeds from the sale of three E190 aircraft and other assets of $46.2 million.

Net cash provided by financing activities of continuing operations was $179.8 million in 2014 compared to net cash provided by financing activities of $205.7 million in 2013. The Company made scheduled principal repayments of $271.1 million and extinguished $37.0 million of aircraft debt in 2014 compared to repayments of $205.6 million and extinguishments of $58.7 million in 2013. The Company also paid $48.7 million of cash to redeem convertible notes in 2014. The Company received proceeds from debt issuances and refinancing of $539.2 million in 2014, compared to $470.0 million of other proceeds in 2013.

Other Liquidity

The Company expects to take delivery of 55 E175 aircraft that will enter service for the United operations. During 2015, the Company expects to take delivery of the first 18 E175 aircraft for which it will make an initial cash investment of $75.0 million to $100.0 million.

Included in the current portion of long term debt are approximately $28.7 million of aircraft related debt obligations that the company expects to refinance during the year. A substantial portion of the Company's assets are encumbered, and the Company has a limited quantity of assets that could be used as collateral in future financings. There can be no assurance that the Company will be successful in obtaining financings at sufficient levels or on acceptable terms.

Letters of Credit

As we enter new markets, increase the amount of space we lease, or add leased aircraft, we are often required to provide the airport authorities and lessors with a letter of credit.  We also provide letters of credit for our workers’ compensation insurance.  As of December 31, 2014 and 2013, we had outstanding letters of credit totaling $14.1 million and $17.0 million, respectively, all of which are bond and cash collateralized. The cash collateralized against the letters of credit is recorded in restricted cash on the consolidated balance sheet.

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Aircraft and Other Leases

We have significant obligations for aircraft and engines that are classified as operating leases and, therefore, are not reflected as liabilities on our balance sheet. Aircraft leases expire between 2015 and 2023. As of December 31, 2014, our total mandatory payments under operating leases for aircraft aggregated approximately $550.8 million and total minimum annual aircraft rental payments for the next 12 months under all non-cancelable operating leases is approximately $106.5 million. Other non-cancelable operating leases consist of engines, terminal space, operating facilities, office space and office equipment. The leases expire through 2033. As of December 31, 2014, our total mandatory payments under other non-cancelable operating leases aggregated approximately $110.8 million. Total minimum annual other rental payments for the next 12 months are approximately $16.2 million.

Commitments and Obligations

As of December 31, 2014, the Company has firm orders to purchase 40 CS300 aircraft that have scheduled delivery dates beginning in early 2015 and continuing through 2017. In January 2014, Bombardier announced that the aircraft would not be expected into service until early 2016. The Company has stopped making pre-delivery deposit payments on these aircraft.

The Company also has a commitment for 47 Embraer E175 aircraft (of which 41 have been delivered as of December 31, 2014) under the American Eagle brand that have scheduled delivery dates currently and through the second quarter of 2015. In addition, the Company has a commitment for 55 Embraer E175 aircraft under the United brand that have scheduled delivery dates between the third quarter of 2015 and the third quarter of 2017. The Company also has a commitment to acquire 11 spare aircraft engines (of which three have been delivered as of December 31, 2014) and expects to take four engines in 2015, three engines in 2016, and one engine in 2017. 

We expect to fund future capital and funding commitments through internally generated funds, third-party aircraft financings, and debt and other financings.

Our contractual obligations and commercial commitments at December 31, 2014 include the following (in millions):

	Payments Due By Period
							Beyond
	2015		2016-2017		2018-2019		2020		Total
Long-term debt (including interest)	$	422.1	$	817.1	$	725.9	$	862.8	$	2,827.9
Operating leases	122.7		217.6		172.9		148.4		661.6
Tax liability for uncertain tax positions	—		—		—		7.1		7.1
Debt or lease financed aircraft purchase obligations(1)	554.2		3,832.5		—		—		4,386.7
Engines under firm orders	24.6		28.0		—		—		52.6
Total contractual cash obligations	$	1,123.6	$	4,895.2	$	898.8	$	1,018.3	$	7,935.9

⁽¹⁾ Represents delivery of CS300s based on estimated service date of early 2016.

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The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E145, E170/175 and Q400 aircraft:

	Expiration Date of Agreement:
Maintenance Agreements	E145	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	July 2021
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. As of

December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs.

⁽³⁾ Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027.

⁽⁴⁾  Q400 maintenance agreements do not include wheels.

Under these agreements, we are charged for covered services based on a fixed rate for each flight hour or flight cycle accumulated by the engines or airframes in our service during each month. The rates are subject to annual revisions, generally based on certain Bureau of Labor Statistics' labor and material indices.  We believe these agreements, coupled with our ongoing maintenance program, reduce the likelihood of unexpected levels of engine, APU, avionics, wheels and brakes, emergency slides, and select rotable parts maintenance expense during their term. Certain of these agreements contain minimum guarantee amounts, penalty provisions for either the early removal of aircraft or agreement termination for activity levels below the minimums.

Total payments under these long-term maintenance agreements were $173.0 million, $163.8 million, and $119.4 million, for the years ended December 31, 2014, 2013 and 2012, respectively. 

Cash payments for interest were approximately $110.1 million in 2014. Tax payments in 2014 were not significant and we are not expecting significant tax payments in 2014.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions and conditions.

Some of those estimates and judgments can be subjective and complex. Consequently, actual results could differ from those estimates.  We consider an accounting estimate to be critical if:

• The accounting estimate requires us to make assumptions about matters that are highly uncertain at the time the accounting estimate is made; and

• We reasonably could have used different estimates in the current period, or changes in these estimates are reasonably likely to occur from period to period as new information becomes available, and a change in these estimates would have a material impact on our financial condition or results from operations.

We continually evaluate the estimates and judgments used to prepare the consolidated financial statements.  Our estimates are based on historical experience, information from third-party professionals and various other assumptions that we believe are reasonable.  There are other items within our financial statements that require estimation, but are not deemed critical based on the criteria above.  Changes in estimates used in these and other items could have a material impact on our financial statements in any one period.

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Impairments to Long-Lived Assets. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those items. Our cash flow estimates are based on historical results adjusted to reflect our best estimate of future market and operating conditions. Our estimates of fair value represent our best estimate based on industry trends and reference to market rates and transactions. We review, at least annually, the estimated useful lives and residual values for our definite lived assets.  As a result of the Company’s impairment test for the indefinite-lived other intangible assets and aircraft and other equipment, the Company recorded impairments for aircraft and other equipment during 2014 and 2013. There were no impairment charges in 2012. See Note 3 in Item 8.  

Chautauqua restructuring asset. We record changes in fair value on this asset when events and circumstances indicate that the underlying assumptions have changed. The recurring fair value measurement of this restructuring has been calculated using an income approach, which requires the use of subjective assumptions. Fair values have been estimated by discounting the cash flows expected to be received over the term of the applicable agreement, using a discount rate based on observable yields on instruments bearing comparable risks and credit worthiness of the counterparty. Critical assumptions used in the fair value measurement primarily include the amount and timing of cash inflows, the discount rate and the probability of whether the call option on the restructured aircraft will be exercised by the counterparty. A change in these assumptions could result in a significantly higher or lower fair value measurement, which would result in a gain or loss during the period in which the assumption changes.

Income Taxes. The Company has generated significant net operating losses (“NOLs”) for federal income tax purposes primarily from accelerated depreciation on owned aircraft.  Certain of our NOLs generated prior to July 2005 and acquired from business acquisitions are subject to an annual limitation under Internal Revenue Code Section 382 (“IRC 382”). The annual limitation is based upon the enterprise value of the Company on the IRC 382 ownership change date multiplied by the applicable long-term tax exempt rate. If the utilization of deferred tax asset, and other carry forwards becomes uncertain in future years, we will be required to record a valuation allowance for the deferred tax assets not expected to be utilized.

At December 31, 2014, we had estimated NOLs, of $1.3 billion for federal income tax purposes that begin to expire in 2015. We have recorded a valuation allowance for $398.0 million of those NOLs. IRC 382, imposes limitations on a corporation's ability to utilize NOLs if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. In the event of an ownership change, utilization of our NOLs would be subject to an annual limitation under Section 382. Any unused NOLs in excess of the annual limitation may be carried over to later years. Management has performed an analysis and concluded that, through December 31, 2014, there was not an ownership change.

We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is not likely we will realize our deferred income tax assets. In evaluating the likelihood of utilizing our net deferred income tax assets, the significant factors that we consider include our recent history of profitability, forecasts of our revenue trends and future impact of taxable temporary differences.

During 2014, after considering all positive and negative evidence, we concluded that certain of our deferred income tax assets are more likely than not to be realized. Accordingly, we recognized a $4.8 million benefit in our provision for income taxes, primarily related to the valuation allowance release. At the end of 2014 our net deferred tax asset balance was $548.4 million, against which we maintained a $182.9 million valuation allowance, primarily related to state net operating losses with limited expiration periods.

42

Quarterly Information (unaudited)

The following table sets forth summary quarterly financial information for the years ended December 31, 2014 and 2013.

	Quarters Ended
	March 31 (1)			June 30		September 30			December 31
Continuing Operations - 2014	(in millions, except for per share amounts)
Operating revenues	$	337.5		$	343.0	$	349.7		$	345.2
Operating income (2)	34.2			63.0		60.8			27.5
Net income(3) (5)	14.0			20.1		18.5			11.7
Income (loss) per share - basic:
Income from continuing operations	$	0.28		$	0.40	$	0.37		$	0.23
Income (loss) per share - diluted:
Income from continuing operations	$	0.26		$	0.38	$	0.35		$	0.23
Weighted average number of shares outstanding:
Basic	49.6			49.8		49.9			49.9
Diluted	54.9			52.9		53.0			51.2
Continuing Operations - 2013
Operating revenues	$	324.7		$	336.7	$	338.6		$	346.5
Operating income (4)	47.3			54.6		32.8			56.3
Net income	11.4			16.1		4.3			16.5
Net income (loss) from Discontinued Operations	$	(11.1	)	$	8.5	$	(18.1	)	$	(0.9	)
Income (loss) per share - basic:
Income from continuing operations	$	0.23		$	0.33	$	0.09		$	0.33
Income (loss) from discontinued operations, net of tax	$	(0.22	)	$	0.17	$	(0.37	)	$	(0.02	)
Income (loss) per share - diluted:
Income from continuing operations	$	0.22		$	0.30	$	0.09		$	0.30
Income (loss) from discontinued operations, net of tax	$	(0.21	)	$	0.16	$	(0.35	)	$	(0.01	)
Weighted average number of shares outstanding:
Basic	48.7			49.2		49.4			49.5
Diluted	54.0			54.4		52.5			54.9

⁽¹⁾ Besides the information noted in other footnotes below, our results of operations for any interim period are not necessarily indicative of those for an entire year, since the airline industry is subject to seasonal fluctuations and general economic conditions. 

⁽²⁾ The first quarter of 2014 includes a $19.9 million charge related to the impairment of owned E140 aircraft. The fourth quarter of 2014 includes a $27.7 million charge related to the impairment and other charges of owned E190 and Q400 aircraft and $5.8 million loss on sale of E190 aircraft.

⁽³⁾ The first quarter of 2014 includes a fair value gain of $18.4 million related to the Chautauqua restructuring asset.

⁽⁴⁾ The third quarter of 2013 includes a $21.2 million charge related to the impairment of owned E190 aircraft and the write-off of maintenance deposits on leased E190 aircraft.

⁽⁵⁾ The decrease in tax expense in 2014 was primarily attributable to the Company releasing valuation allowances for state NOL's resulting in a $4.8 million in tax benefit. In addition, the Company's effective state tax rate decreased, which resulted in $4.2 million in tax benefit.

For detailed information regarding recently issued accounting pronouncements and the expected impact on our financial statements, see Note 2, “Summary of Significant Accounting Policies” in the accompanying Notes to Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have been and are subject to market risks, including commodity price risk (such as, to a limited extent, aircraft fuel prices) and interest rate risk.

Interest Rates

Our earnings can be affected by changes in interest rates due to the amount of cash and securities held and variable rate debt. At December 31, 2014 and 2013, approximately $45.0 million and $84.3 million, respectively, of our outstanding debt was at variable interest rates.  A one hundred basis point change in the LIBOR rate would have increased or decreased interest expense by $0.5 million and $0.8 million for 2014 and 2013, respectively.

We currently intend to finance the acquisition of aircraft through the manufacturer, third-party leases or long-term borrowings. Changes in interest rates may impact the actual cost to us to acquire these aircraft. To the extent that we place these aircraft in service under our code-share agreements, our reimbursement rates may not be adjusted higher or lower to reflect any changes in our aircraft rental rates.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	46
Consolidated Balance Sheets as of December 31, 2014 and 2013	47
Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012	48
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2014, 2013 and 2012	49
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2014, 2013 and 2012	50
Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012	51
Notes to Consolidated Financial Statements	52

45

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Republic Airways Holdings Inc.

Indianapolis, Indiana

We have audited the accompanying consolidated balance sheets of Republic Airways Holdings Inc. and subsidiaries (the “Company”) as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2014. We also have audited the Company’s internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting included in Item 9A. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Republic Airways Holdings Inc. and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

As discussed in Note 1 to the consolidated financial statements, substantially all revenues are derived from code-share agreements with American Airlines Group Inc., United Continental Holdings, Inc., and Delta Air Lines, Inc.

/s/ DELOITTE & TOUCHE LLP

Indianapolis, Indiana

February 27, 2015

46

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2014 AND 2013

(In millions, except share and per share amounts)

	2014			2013
ASSETS
Current Assets:
Cash and cash equivalents	$	223.9		$	276.7
Restricted cash	21.7			24.0
Receivables - net of allowance for doubtful accounts of $2.6 and $1.5, respectively	20.7			48.3
Inventories	60.9			71.9
Prepaid expenses and other current assets	15.6			17.7
Deferred income taxes	16.4			15.7
Total current assets	359.2			454.3
Aircraft and other equipment, net	2,860.9			2,563.6
Maintenance deposits	53.2			36.6
Intangible and other assets, net	220.7			216.8
Total assets	$	3,494.0		$	3,271.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt	$	309.0		$	276.2
Accounts payable	19.3			28.9
Accrued liabilities	142.9			163.8
Total current liabilities	471.2			468.9
Long-term debt - less current portion	2,030.2			1,890.6
Deferred credits and other non-current liabilities	88.1			100.7
Deferred income taxes	284.0			260.4
Total liabilities	2,873.5			2,720.6
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.001 par value; 5,000,000 shares authorized; no shares issued or outstanding	—			—
Common stock, $.001 par value; one vote per share; 150,000,000 shares authorized; 59,821,243 and 59,704,943 shares issued and 50,024,780 and 49,525,594 shares outstanding, respectively	—			—
Additional paid-in capital	427.4			420.2
Treasury stock, 9,546,147 and 9,333,266 shares at cost, respectively	(183.9		)	(181.8		)
Accumulated other comprehensive loss	(2.2		)	(2.6		)
Accumulated earnings	379.2			314.9
Total stockholders' equity	620.5			550.7
Total liabilities and stockholders' equity	$	3,494.0		$	3,271.3

See accompanying notes to consolidated financial statements.

47

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012

(In millions, except per share amounts)

	2014			2013			2012
OPERATING REVENUES:
Fixed-fee service	$	1,348.5		$	1,276.1		$	1,102.1
Passenger service	—			46.3			247.9
Other	26.9			24.1			27.4
Total operating revenues	1,375.4			1,346.5			1,377.4
OPERATING EXPENSES:
Wages and benefits	368.0			342.1			308.4
Aircraft fuel	22.4			44.9			161.4
Landing fees and airport rents	26.9			46.4			61.5
Aircraft and engine rent	126.0			122.6			110.7
Maintenance and repair	251.1			251.6			235.3
Insurance and taxes	19.9			25.1			24.7
Depreciation and amortization	173.0			150.7			160.0
Promotion and sales	—			2.3			12.8
Impairment and other charges	53.4			21.2			—
Other	149.2			148.6			134.1
Total operating expenses	1,189.9			1,155.5			1,208.9
OPERATING INCOME	185.5			191.0			168.5
OTHER INCOME (EXPENSE):
Interest expense	(119.7		)	(112.2		)	(117.6		)
Fair value gain - restructuring asset	18.4			—			—
Other, net	1.0			2.5			0.2
Total other expense	(100.3		)	(109.7		)	(117.4		)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	85.2			81.3			51.1
INCOME TAX EXPENSE	20.9			33.0			19.8
INCOME FROM CONTINUING OPERATIONS	64.3			48.3			31.3
Income (loss) from discontinued operations, net of tax	—			(21.6		)	20.0
NET INCOME	$	64.3		$	26.7		$	51.3
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE - BASIC	$	1.29		$	0.98		$	0.65
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE - DILUTED	$	1.24		$	0.92		$	0.63
NET INCOME PER COMMON SHARE - BASIC	$	1.29		$	0.54		$	1.06
NET INCOME PER COMMON SHARE - DILUTED	$	1.24		$	0.52		$	1.02

See accompanying notes to consolidated financial statements.

48

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012

(In Millions)

	2014		2013		2012
NET INCOME	$	64.3	$	26.7	$	51.3
Other comprehensive income (loss), net:
Pension and other post-retirement plans, net of tax	0.1		2.1		(1.4		)
Reclassification adjustment for loss realized on derivatives, net of tax	0.3		0.3		0.4
TOTAL COMPREHENSIVE INCOME, NET	$	64.7	$	29.1	$	50.3

See accompanying notes to consolidated financial statements.

49

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012

(In millions)

							Accumulated
	Additional						Other
	Paid-In			Treasury			Comprehensive			Accumulated
	Capital			Stock			Loss			Earnings		Total
Balance at January 1, 2012	$	409.4		$	(181.8	)	$	(4.0	)	$	236.9	$	460.5
Stock compensation expense	3.0											3.0
Other	(0.3		)									(0.3		)
Net income										51.3		51.3
Pension, net of tax of $0.9 million							(1.4		)			(1.4		)
Reclassification adjustment for loss realized on derivatives, net of tax of $0.3 million							0.4					0.4
Balance at December 31, 2012	412.1			(181.8		)	(5.0		)	288.2		513.5
Stock compensation expense	4.0											4.0
Exercise of employee stock options	4.1											4.1
Net income										26.7		26.7
Pension, net of tax of $1.4 million							2.1					2.1
Reclassification adjustment for loss realized on derivatives, net of tax of $0.2 million							0.3					0.3
Balance at December 31, 2013	420.2			(181.8		)	(2.6		)	314.9		550.7
Stock compensation expense	4.6											4.6
Exercise of employee stock options	2.6											2.6
Net income										64.3		64.3
Treasury stock repurchases				(2.1		)						(2.1		)
Pension, net of tax of $0.1 million							0.1					0.1
Reclassification adjustment for loss realized on derivatives, net of tax of $0.1 million							0.3					0.3
Balance at December 31, 2014	$	427.4		$	(183.9	)	$	(2.2	)	$	379.2	$	620.5

See accompanying notes to consolidated financial statements. 

50

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012

(In millions)

	2014			2013			2012
OPERATING ACTIVITIES:
Net income from continuing operations	$	64.3		$	48.3		$	31.3
Adjustments to reconcile net income from continuing operations to net cash from operating activities of continuing operations:
Impairment and other charges	53.4			21.2			—
Fair value gain on restructuring asset	(18.4		)	—			—
Depreciation and amortization	173.0			150.7			160.0
Debt issue costs and other amortization	13.5			5.7			3.9
Stock compensation expense	4.6			4.0			3.0
Deferred income taxes	22.6			19.2			14.4
Other, net	(8.2		)	(6.2		)	6.0
Changes in certain assets and liabilities of continuing operations:
Receivables	26.0			(18.3		)	1.7
Inventories	6.9			(3.5		)	15.1
Prepaid expenses and other assets	(8.0		)	(4.6		)	1.3
Accounts payable and accrued liabilities	(13.0		)	21.2			(6.5		)
Other, net	3.8			2.9			(9.4		)
NET CASH FROM OPERATING ACTIVITIES OF CONTINUING OPERATIONS	$	320.5		$	240.6		$	220.8
INVESTING ACTIVITIES:
Purchase of aircraft and other equipment	(569.2		)	(476.0		)	(24.4		)
Proceeds from sale of aircraft and other assets	41.3			46.2			84.2
Aircraft deposits	(27.5		)	(30.0		)	—
Change in restricted cash	2.3			(4.3		)	(0.4		)
NET CASH FROM (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS	$	(553.1	)	$	(464.1	)	$	59.4
FINANCING ACTIVITIES:
Payments on debt	(271.1		)	(205.6		)	(197.6		)
Proceeds from debt issuance and refinancing	539.2			470.0			6.2
To redeem convertible notes	(48.7		)	—			—
Payments on early extinguishment of debt and refinancing	(37.0		)	(58.7		)	(52.0		)
Proceeds from exercise of stock options	2.6			4.1			—
Purchase of treasury stock	(2.1		)	—			—
Other, net	(3.1		)	(4.1		)	(0.5		)
NET CASH FROM (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS	$	179.8		$	205.7		$	(243.9	)
DISCONTINUED OPERATIONS
Cash from operating activities	—			90.3			29.7
Cash from investing activities	—			70.0			(20.3		)
Cash used in financing activities	—			(40.1		)	(17.8		)
LESS: NET CASH FROM DISCONTINUED OPERATIONS, excluding proceeds from sale of Frontier of $83.7 million included in cash from investing activities from discontinued operations in 2013.	—			36.5			(8.4		)
	$	—		$	83.7		$	—
NET CHANGES IN CASH AND CASH EQUIVALENTS	(52.8		)	65.9			36.3
CASH AND CASH EQUIVALENTS—Beginning of period	276.7			210.8			174.5
CASH AND CASH EQUIVALENTS—End of period	$	223.9		$	276.7		$	210.8

See accompanying notes to consolidated financial statements.

51

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012

1. ORGANIZATION & BUSINESS

We are a Delaware holding company organized in 1996 that offers scheduled passenger services through our wholly-owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. (“Chautauqua”) through December 31, 2014, Shuttle America Corporation (“Shuttle”) and Republic Airline Inc. (“Republic Airline”). Unless the context indicates otherwise, the terms the “Company,” “we,” “us,” or “our,” refer to Republic Airways Holdings Inc. and our subsidiaries.

As of December 31, 2014, our operating subsidiaries offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada under scheduled passenger service through our fixed-fee code-share agreements with United Continental Holdings, Inc. ("United"), Delta Air Lines, Inc. ("Delta"), and US Airways/American Airlines Group, Inc. ("American") (collectively referred to as our "Partners"). Currently, we provide our Partners with fixed-fee regional airline services, operating as United Express, Delta Connection, US Airways Express/American Eagle, including service out of their hubs and focus cities. The Company operated aircraft under a pro-rate agreement with Frontier Airlines, Inc. ("Frontier") which terminated during the first quarter of 2014.

The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014:

Operating Subsidiaries	Aircraft Size (Seats)	United	Delta	US Airways/American	Charters/Spares	Number of Aircraft
Chautauqua	44 to 50	—	41	—	—	41
Shuttle America	70 to 76	38	30	—	—	68
Republic Airline	69 to 99	28	—	99	8	135
Total number of operating aircraft		66	71	99	8	244

During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft.

We have fixed-fee regional jet code-share agreements with each of our Partners that require us to maintain specified performance levels. Pursuant to these fixed-fee agreements, which provide for minimum aircraft utilization at fixed rates, we are authorized to use our Partners' two-character flight designation codes to identify our flights and fares in our Partners' computer reservation systems, to paint our aircraft in the style of our Partners, to use their service marks and to market ourselves as a carrier for our Partners. Our fixed-fee agreements have historically limited our exposure to fluctuations in fuel prices, fare competition and passenger volumes. Our development of relationships with multiple major airlines has enabled us to reduce our dependence on any single airline, allocate our overhead more efficiently among our Partners and reduce the cost of our services to our Partners.

Sale of Frontier

In October 2013, the Company entered into a stock purchase agreement for the sale of Frontier to an affiliate of Indigo Partners LLC. The sale was consummated on December 3, 2013. As a result, the Company reported Frontier as discontinued operations on the consolidated statements of operations and consolidated statements of cash flows for all periods presented.

Certificate Consolidation

On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America's operation. Republic

52

hopes to sell the remaining Chautauqua Airlines' entity and related assets during the first half of 2015. The consolidation is consistent with the Company's strategy to simplify its business by operating fewer fleet types on fewer certificates.

Code-Share Agreements

Through our subsidiaries, we have entered into code-share agreements with US Airways, American, Delta, and United (the "Partners") that authorize us to use their two-character flight designator codes ("US," "AA," "DL," and "UA") to identify our flights and fares in their computer reservation systems, to paint our aircraft with their colors and/or logos, to use their service marks and to market and advertise our status as US Airways Express, American Eagle, Delta Connection, or United Express, respectively. Under the code-share agreements between our subsidiaries and each of US Airways, American, Delta, and United, we are compensated on a fixed-fee basis on all of our flights. In addition, under our code-share agreements, our passengers participate in frequent flyer programs of the Partners, and the Partners provide additional services such as reservations, ticket issuance, ground support services, commuter slot rights and airport facilities.

The following table is a summary representation of existing Capacity Purchase Agreements ("CPAs") with our Partners as of December 31, 2014:

Partner	Aircraft Type	Seats on Aircraft	Number of Aircraft under CPAs	Current Expiration Date(s)
US Airways	E170	69	20	March 2019 to March 2023
US Airways	E175	80	38	March 2019 to March 2023 and February 2019 to July 2020
American	E175	76	41	July 2025 to February 2027
Delta	E145	50	41	August 2015 to May 2016
Delta	E170	70	14	May 2021 to October 2021
Delta	E175	76	16	August 2023 to February 2024
United	E170	70	38	September 2019 to December 2022
United	Q400	71	28	January 2015 to September 2016

US Airways/American Code-Share Agreements

On December 9, 2013, US Airways Group, Inc. became a wholly owned subsidiary of American Airlines Group, Inc. (formerly known as AMR Corporation). The Company continues to operate the capacity purchase agreements with both entities independently as the agreements have not been assigned to the merged organization.

Under our fixed-fee Jet Services Agreements with US Airways, we operated, as of December 31, 2014, 20 E170 aircraft and 38 E175 aircraft. As of December 31, 2014, we were providing 355 flights per day as US Airways Express.

In exchange for providing the designated number of flights and performing our other obligations under the code-share agreements, we receive compensation from US Airways three times each month. We receive an additional amount per available seat mile flown and may also receive incentives or pay penalties based upon our performance, including fleet launch performance, on-time departure performance and completion percentage rates. In addition, certain operating costs are considered pass through costs whereby US Airways has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, passenger catering, passenger liability insurance and aircraft property tax costs are pass through costs and are included in our fixed-fee services revenue. US Airways provides fuel directly for all of our US Airways operations.

On November 6, 2014, the Company entered into an Amendment to the Amended and Restated Jet Service Agreement with US Airways, Inc., dated as of September 2, 2005. Under the amendment, the code-share agreement for the E170/175 aircraft was extended and now terminates between March 2019 and March 2023 with respect to the 20 E170 aircraft and eight of the E175 aircraft.   The service terms for the remaining 30 E175 aircraft were not extended and are scheduled to terminate 12 years from each aircraft’s in-service date and therefore would terminate from February 2019 to July 2020. US Airways may terminate the code-share agreements at any time for cause upon not less than 90 days notice and subject to our right to cure under certain conditions.

As of December 31, 2014, we operated 41 E175 aircraft for American under a fixed-fee code-share agreement and provided 224 flights per day as American Eagle.

53

Under the code-share agreement, American retains all passenger, certain cargo and other revenues associated with each flight and is responsible for all revenue-related expenses. We share revenue with American for certain cargo shipments. Additionally, certain operating costs are considered pass through costs and American has agreed to reimburse us the actual amount of costs we incur for these items.  Landing fees, hull and liability insurance and aircraft property tax costs are pass through costs and included in our fixed-fee services revenue. We do not record fuel expense and the related revenue for the American operations.

As of December 31, 2013, 41 of the 47 aircraft are in service; the remaining six aircraft begin service between January 2015 and May 2015. Unless otherwise extended or amended, the E175 code-share agreement terminates on the 12th anniversary of the implementation date of each aircraft with terms expiring between July 2025 and February 2027. American has the option of extending the E175 agreement with respect to each aircraft, for up to two additional two year terms. The agreement is subject to early termination under various circumstances.

On February 28, 2014, the Company announced that it had entered into an Amendment to the Amended and Restated Air Services Agreement with American Airlines Group, Inc. dated as of June 12, 2002. In the Amendment, the parties agreed to remove 15 E140 aircraft from service under the Air Services Agreement between March 2014 and August 2014. Upon removal of the last of the American Removed Aircraft, the Air Services Agreement terminated.

The Delta Code-Share Agreements

As of December 31, 2014, we operated 41 E145 aircraft, 14 E170 aircraft, and 16 E175 aircraft for Delta under fixed-fee code-share agreements.  As of December 31, 2014, we provided 367 flights per day as Delta Connection.

Unless otherwise extended or amended, the code-share agreement for the E145 aircraft terminates in May 2016. Delta may terminate the code-share agreements at any time, with or without cause, if it provides us 180 days written notice, for the E145 regional jet code-share agreement, or after July 2015 for the E175 regional jet code-share agreement. With respect to the E145 agreement, if Delta chooses to terminate any aircraft early, it may not reduce the number of aircraft in service to less than 12 during the 12-month period following the 180 days initial notice period unless it completely terminates the code-share agreement. We refer to this as Delta's partial termination right.

If Delta exercises this right under the E145 agreement or the E175 agreement or if we terminate either agreement for cause, we have the right to require Delta either to purchase, sublease or assume the lease of aircraft leased by us with respect to any of the aircraft that we previously operated for Delta under that agreement.  If we choose not to exercise our put right, or if Delta terminates either agreement for cause, they may require us to sell or sublease to them or Delta may assume the lease of aircraft leased by us with respect to any of the aircraft we previously operated for it under that agreement. There is no early termination provision under the E170 agreement.

On December 11, 2014, the Company entered into Amendment Number Seven to the Delta Connection Agreement with Delta Airlines, Inc. dated as of January 20, 2005. Under the Agreement, the Company operates 14 E170 and 16 E175 aircraft as Delta Connection. The amendment provides for, among other things, an agreement for Shuttle to operate nine additional E170 aircraft to be placed into service between the third quarter of 2015 and the second quarter of 2016 for a term of six years per aircraft. The amendment also provides for an extension of the air transportation services provided by the Company with respect to the 14 E170 for another four years, for terms ending from May 2021 to October 2021, and extend the 16 E175 aircraft by approximately five years, for terms ending from August 2023 to February 2024. Delta may further extend the service terms for any or all of the 14 E170 and 16 E175 aircraft for an additional five years. The amendment also provides that Delta may purchase any or all of the E175 aircraft for an amount equal to the net book value of such aircraft at the end of the current terms for such aircraft or at any time during the extended terms, in which case Delta would lease the purchased aircraft to the Company for the Company's operation during the remainder of the terms.

Certain of our operating costs are considered pass through costs, whereby Delta has agreed to reimburse us the actual amount of costs we incur for these items. Aircraft rent/ownership expenses are also considered a pass through cost, but the reimbursement is limited to specified amounts for certain aircraft. Engine maintenance expenses, landing fees, passenger liability insurance, hull insurance, war risk insurance, de-icing costs, and aircraft property taxes are some of the pass through costs included in our fixed-fee services revenue. All fuel is purchased directly by Delta and is not charged back to the Company.

The agreements may be subject to immediate or early termination under various circumstances.

54

The United Code-Share Agreement

As of December 31, 2014, we operated 38 E170 aircraft and 28 Q400 aircraft for United under fixed-fee code-share agreements.  As of December 31, 2014, we provided 353 flights per day as United Express.

The fixed rates that we receive from United under the code-share agreements are annually adjusted in accordance with an agreed escalation formula. All fuel is purchased directly by United and is not charged back to the Company. Additionally, certain of our operating costs are considered pass through costs whereby United has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, war risk insurance, liability insurance and aircraft property taxes are pass through costs and included in our fixed-fee services revenue.  

On February 28, 2014, the Company announced that it had entered into the Fifth Amendment to the Capacity Purchase Agreement with United Airlines dated as of July 21, 2006. In the Amendment, the parties agreed to remove 12 E145 aircraft from service under the CPA Agreement on April 1, 2014. Upon removal of the last of the United Removed Aircraft, the CPA Agreement terminated.

On September 16, 2014, the Company announced that it had entered into an Amendment to Capacity Purchase Agreement amending the Capacity Purchase Agreement dated as of May 1, 2012. The amendment provides for the removal from service of the Q400 aircraft operating under the agreement beginning in January 2015 and ending in September 2016, subject to adjustment of the schedule to accommodate the parties operational schedules.

Also, on September 16, 2014, the Company announced that it had entered into a Seventh Amendment to the United Express Agreement, originally entered into on December 28, 2006. Pursuant to the amendment, the Company agreed to operate 50 E175 aircraft under the United Express brand with service to start in mid-2015. The new aircraft, which will seat 76 passengers in a two-class cabin, are expected to be phased into operation at approximately two to three aircraft per month beginning in mid-2015 through the third quarter of 2017. In addition, United has the option to add up to 50 additional E175 aircraft to the United Express Agreement by providing notice to the Company on or before December 31, 2016. Each new aircraft will be subject to the United Express Agreement for 12 years after the date it is placed in service thereunder, subject to United's right to extend the term for any group of 10 aircraft for four years. In January 2015, the Company finalized amendments to its agreements with United and Embraer to increase the number of E175 aircraft deliveries by five, to 55.

In addition to the foregoing provisions, the amendment extends the term of the UA Express Agreement with respect to the 38 existing E170 aircraft the Company is flying for United by approximately three years, with aircraft terms expiring between September 2019 and December 2022.

United has a call option to assume our ownership or leasehold interest in certain aircraft if we wrongfully terminate the code-share agreements or if United terminates the agreements for our breach for certain reasons.

Concentrations

As of December 31, 2014, substantially all fixed-fee service revenues are derived from code-share agreements with Delta, US Airways/American, and United.  Termination of any of these code-share agreements could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The following sets forth our Partners' regional airline services revenue and accounts receivable as a percentage of total regional airline services revenue and net receivables:

Revenues for the years ended:	Delta	United	US Airways/American
December 31, 2014	24%	29%	43%
December 31, 2013	24%	31%	35%
December 31, 2012	19%	27%	34%
Receivables as of:
December 31, 2014	4%	3%	26%
December 31, 2013	7%	23%	19%

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis ofConsolidation—The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries, Chautauqua Airlines, Shuttle America, and Republic Airline. Frontier Airlines is also included in the consolidated financial statements as discontinued operations until the sale on December 3, 2013.  Intercompany transactions and balances are eliminated in consolidation.

Risk Management—The Company has recorded settlements of treasury lock agreements from prior periods within accumulated other comprehensive loss.  Such amounts are reclassified to interest expense over the term of the respective aircraft debt.  During 2014, 2013 and 2012, the amount reclassified to interest expense was not material to the financial statements.

Cash and Cash Equivalents—Cash equivalents consist of money market funds and short-term, highly liquid investments with maturities of three months or less when purchased and approximates fair value. Substantially all of our cash is on hand with two banks.

Supplemental Statement of  Cash Flow Information:

	Years ended December 31,
(amounts in millions)	2014		2013		2012
CASH PAID FOR INTEREST AND INCOME TAXES:
Interest paid-net of amount capitalized	$	110.1	$	108.2	$	116.1
Income taxes paid-net of refunds	0.8		2.1		0.1
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1)	—		42.8		—
Other equipment acquired through manufacturer credits	23.1		11.6		—
Manufacturer credits applied to the purchase of aircraft	17.1		8.7		—
Engines received and not yet paid	—		5.8		—
Issuance of convertible debt	—		—		22.9
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive	—		12.0		86.4

⁽¹⁾ During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement.

Restricted Cash primarily consists of balances in escrow for our long-term charter agreement, restricted amounts for satisfying debt and lease payments due within the next year and certificates of deposit that secure certain letters of credit issued for workers' compensation claim reserves and certain airport authorities. Restricted cash is carried at cost, which management believes approximates fair value.

Receivables primarily consist of amounts due from our partners, OEMs and insurance providers. We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical write-offs and other specific analysis. Bad debt expense and write-offs were not material for the years ended December 31, 2014, 2013 and 2012.

Inventories consist of spare parts and supplies, which are charged to expense as they are used in operations. Inventories are valued at the lower of cost or net realizable value using an average cost methodology.  An allowance for obsolescence is provided to reduce inventory to estimated net realizable value. As of December 31, 2014 and 2013, this reserve was $27.0 million and $22.6 million, respectively.

Prepaid Expenses and Other Current Assets consist of prepaid expenses, primarily deposits, facility and engine rent, and other current assets.

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Aircraft and Other Equipment is carried at cost. Incentives received from the aircraft manufacturer are recorded as reductions to the cost of the aircraft.  Depreciation for aircraft is computed on a straight-line basis, to an estimated residual value, over the estimated useful life of 16.5 to 20 years. Depreciation for other equipment, including rotable parts, is computed on a straight-line basis, to an estimated residual value, over the estimated useful lives of three to ten years. Leasehold improvements are amortized over the expected life or lease term, whichever is shorter. Interest related to deposits on aircraft on firm order from the manufacturer is capitalized and was not material for the years ended December 31, 2014, 2013 and 2012, respectively. See Note 5.

Intangible and Other Assets that have indefinite useful lives are not amortized but are tested if a triggering event occurred, or at least annually, for impairment.  Other assets consists primarily of aircraft leases and long-term deposits, Chautauqua restructuring asset, prepaid aircraft rents, and debt issue costs and other non-current assets. Debt issue costsare capitalized and are amortized using the effective interest method to interest expense over the term of the related debt. Refer to Note 6 for more detail.

Long-Lived Assets—Management reviews long-lived assets for possible impairment, if there is a triggering event that detrimentally affects operations. The primary financial indicator used by the Company to assess the recoverability of its long-lived assets held and used is undiscounted future cash flows from operations. The amount of impairment, if any, is measured based on carrying value over the estimated fair value.

Deferred Credits and Other Non Current Liabilities consist primarily of credits for parts and training from the aircraft and engine manufacturers, deferred gains from the sale and leaseback of aircraft and spare jet engines and deferred revenue. Deferred credits are amortized on a straight-line basis as a reduction of aircraft or engine rent expense over the term of the respective leases.  The deferred revenue is amortized as an adjustment to fixed-fee services revenue based on the weighted average aircraft in service over the life of the respective agreements.

Accumulated Other Comprehensive Loss—The Company had accumulated other comprehensive loss relating to treasury lock agreements of $0.5 million and $0.8 million (net of tax), as of December 31, 2014 and 2013, respectively; and $1.7 million and $1.8 million (net of tax), relating to the pension plan as of December 31, 2014 and 2013, respectively.

Income Taxes—The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is adjusted by a valuation allowance, if necessary, to recognize the future tax benefits to the extent, based on available evidence; it is more likely than not they will be realized.

Aircraft Maintenance and Repair charges are expensed as incurred under the direct expense method. Engines and certain airframe component overhaul and repair costs are subject to power-by-the-hour contracts with external vendors and are expensed as the aircraft are flown.  The Company also has refundable deposits related to leased aircraft.  Deposits are reimbursed based on the specific event for each specified deposit, as determined by the lease. As of December 31, 2014, the Company has evaluated the carrying amount of maintenance deposits and believes the deposits are recoverable when the future maintenance event occurs and the Company is reimbursed. The Company has determined that it is probable that substantially all maintenance deposits will be refunded through qualifying maintenance activities.  This analysis was performed by lease and by deposit type. The Company will continue to evaluate whether it is probable the deposits will be returned to reimburse the costs of the maintenance activities incurred.  Deposits will be recognized as additional expense when they are less than probable of being returned.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such management estimates include, but are not limited to, recognition of revenue, estimated useful lives and residual values of aircraft and other equipment, provision for accrued aircraft return costs, recoverability of maintenance deposits, fair value of financial instruments and valuation of deferred tax assets. Under the code-share agreements, the Company estimates operating costs for certain pass through costs and records revenue based on these estimates. Actual results could differ from these estimates.

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Fixed-fee Service Revenues—Under our fixed-fee arrangements with our Partners, the Company receives fixed-fees for our capacity purchase agreements, as well as reimbursement of specified pass through costs on a gross basis with additional possible incentives from our Partners for superior service. These revenues are recognized in the period the service is provided, and we record an estimate of the profit component based upon the information available at the end of the accounting period.

The reimbursement of specified costs, known as pass through costs, may include aircraft ownership cost, passenger liability and hull insurance, aircraft property taxes, fuel, landing fees and catering. All revenue recognized under these contracts is presented at the gross amount billed for reimbursement.

Under the Company’s code-share agreements, the Company is reimbursed an amount per aircraft designed to compensate the Company for certain aircraft ownership costs.  The Company has concluded that a component of its fixed-fee service revenues under the agreements discussed above is rental income, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The amount deemed to be rental income during 2014, 2013 and 2012 was $433.7 million, $386.8 million, and $338.5 million, respectively, and has been included in fixed-fee service revenues in the Company’s consolidated statements of operations.

Other Revenue—Other revenue primarily consists of revenue related to lease revenue for aircraft leased under operating leases.

Lease Return Conditions—The Company must meet specified return conditions upon lease expiration for both the airframes and engines.  The Company estimates lease return conditions specified in leases and accrues these amounts as contingent rent ratably over the lease term while the aircraft are operating once such costs are probable and reasonably estimable.  These expenses are included in accrued liabilities in the consolidated balance sheets.

Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period.  The following is a reconciliation of the diluted net income (loss) per common share computations:

	For the Years Ended December 31,
(in millions)	2014		2013			2012
Income from continuing operations	$	64.3	$	48.3		$	31.3
Income (loss) from discontinued operations, net of tax	—		(21.6		)	20.0
Net income	$	64.3	$	26.7		$	51.3
Reduction in interest expense from convertible notes (net of tax)	0.8		2.0			1.3
Net income after assumed conversion	$	65.1	$	28.7		$	52.6
Weighted-average common shares outstanding for basic net income per common share	49.8		49.2			48.5
Effect of dilutive employee stock options	0.4		0.7			0.2
Effect of dilutive convertible notes	2.2		4.7			2.7
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share	52.4		54.6			51.4
Income (loss) per share - basic:
Income from continuing operations	$	1.29	$	0.98		$	0.65
Income (loss) from discontinued operations, net of tax	—		(0.44		)	0.41
Net income per share - basic	$	1.29	$	0.54		$	1.06
Income (loss) per share - diluted:
Income from continuing operations	$	1.24	$	0.92		$	0.63
Income (loss) from discontinued operations, net of tax	—		(0.40		)	0.39
Net income per share - diluted	$	1.24	$	0.52		$	1.02

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The Company excluded 2.5 million, 3.3 million, and 4.1 million of employee stock options from the calculation of diluted net income (loss) per share due to their anti-dilutive impact for the years ended December 31, 2014, 2013, and 2012, respectively.  

The Company had two convertible notes with face values of $22.3 million and $25.0 million that were convertible in whole or in part, at the option of the holder, for up to 2.2 million and 2.5 million shares, respectively, of the Company’s common stock, which were both redeemed during 2014. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the twelve months ended December 31, 2014 and December 31, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for the twelve months ended December 31, 2014, and dilutive for the twelve months ended December 31, 2013 and 2012, respectively.

On April 7, 2014, the board authorized management to utilize up to $75 million to buy back shares and/or early retire convertible debt during the twelve months thereafter. The authorization approved Company repurchases of up to $50 million of common shares and retirements of up to $50 million of convertible notes, or combination thereof. Also, on April 7, 2014, the Company redeemed the convertible note with a face value of $22.3 million, by paying $22.3 million of cash.

On October 28, 2014, the Company redeemed the convertible note with a face value of $25.0 million, by paying $26.5 million in cash. At the time of redemption the convertible note had a nominal value of $28.0 million, which included accrued interest.

Segment Information—As a result of the sale of Frontier there is only one reportable segment for the scheduled transportation of passengers under code-share agreements.

Fair Value of Financial Instruments—The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, receivables, and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments.

Accounting Pronouncements—In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The objective of this update is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and the Company is still evaluating the impact to the consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after Requisite Service Period . The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to rewards with performance conditions that affect vesting to account for such awards. The Performance Target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. It is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and the impact to the consolidated financial statements is not expected to be material.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and the Company is still evaluating the impact to the consolidated financial statements.

In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The objective of the standard is to update the requirements for reporting discontinued operations in Subtopic 205-20.

In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force . The objective of the update is to specify that an operating entity should not account for a service concession arrangement within the scope of this update as a lease in accordance with Topic 840, Leases. It is effective for fiscal years beginning after December 15, 2014, and the impact to the consolidated financial statements was not material.

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In July 2013, the FASB issued ASU 2013-11–Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard provides updated guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. It became effective for fiscal years beginning after December 15, 2013, and the impact to the consolidated financial statements was not material.

3. FAIR VALUE MEASUREMENTS

Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures” requires disclosures about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established.  The Topic establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1	quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2	quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3	unobservable inputs for the asset or liability.

The following table sets forth information regarding the Company's assets (liabilities) measured at fair value on a recurring basis (in millions):

Fair Value of Assets on a Recurring Basis	December 31, 2014		Level 1		Level 2		Level 3
Chautauqua restructuring asset	$	81.2	$	—	$	—	$	81.2
Fair Value of Assets on a Recurring Basis	December 31, 2013		Level 1		Level 2		Level 3
Chautauqua restructuring asset	$	79.6	$	—	$	—	$	79.6

Chautauqua restructuring asset - In October 2012, the Company restructured aircraft ownership obligations related to its 50-seat regional jet platform, Chautauqua. In connection with the restructuring, the Company issued a convertible note payable with a face value of $25.0 million, provided call rights on 28 of its owned aircraft and agreed to parent company guarantees related to future minimum lease payments, among other commitments.

The Company elected the fair value option under ASC 825-10, "Financial Instruments" for the agreement related to its 28 owned aircraft because management believes the fair value option provides the most accurate representation of the economic benefit of this agreement to Chautauqua in the Company's financial statements. Under the fair value option, the Company recorded an $86.4 million asset representing the combined fair value of expected future cash inflows under the agreement, net of the value of the Company's obligations attributable to the call rights on the 28 aircraft. The recurring fair value measurement of this agreement has been calculated using an income approach, which requires the use of subjective assumptions that are considered level 3 inputs. Fair values have been estimated by discounting the cash flows expected to be received over the term of the agreement, using a discount rate based on observable yields on instruments bearing comparable risks and credit worthiness of the counterparty. Critical assumptions used in the fair value measurement primarily include the amount and timing of cash inflows, the discount rate and the probability of whether the call option on the restructured aircraft will be exercised by the counterparty. A change in these assumptions could result in a significantly higher or lower fair value measurement, which would result in a gain or loss during the period in which the assumption changes. A 100 basis point change in the discount rate used would have changed the fair value of the restructuring asset by approximately $2.0 million as of December 31, 2014. Similarly, a change in the assumed probability of whether the call option on the restructured aircraft will be exercised could result in either a gain or loss of up to $3.2 million per aircraft during the period in which that assumption changed.

In March 2013, the agreement was amended, which resulted in a $12.0 million increase in the restructuring asset under the fair value option. The $12.0 million increase represents the fair value of expected future cash inflows under the amendment. In addition, this amendment resulted in a $12.0 million deferred credit that will amortize as a reduction to the basis of future aircraft deliveries through second quarter of 2015.

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On February 11, 2014, the Company announced the early termination of its 44 to 50 seat fixed-fee agreements with United Airlines and American Airlines, which were scheduled to terminate in 2014. These agreements began to wind down in March 2014 and resulted in the grounding of 27 small jet aircraft. The Company notified the counterparty that 15 of the 27 aircraft to be grounded are subject to this agreement and callable by the counterparty. The Company was notified by the counterparty during the first quarter of 2014 that it did not intend to exercise its call option on these aircraft. The Company recorded a fair value gain of $18.4 million for the twelve months ended December 31, 2014, which represents the fair value of the increase in cash flows expected to be received over the remaining term of the agreement, due to the counterparty's obligation to increase its payment to the Company for aircraft that cease to have applicable capacity purchase agreement reimbursement rates.

As of December 31, 2014, the Company would owe approximately $36.7 million under certain circumstances of non-performance or voluntary repayment, however, the Company estimated the probability of repayment as remote.

The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions):

Chautauqua Restructuring Asset	Year Ended December 31, 2014			Year Ended December 31, 2013
Beginning Balance	$	79.6		$	86.4
Amendment to agreement	—			12.0
Fair value gain	18.4			—
Cash received or other	(16.8		)	(18.8		)
Ending Balance	$	81.2		$	79.6

Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt primarily relates to the potential change in fair value and impact to future earnings, respectively, from a change in interest rates. In the table below, the aggregate fair value of debt was based primarily on recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as level 3 within the fair value hierarchy.

	December 31
	2014		2013
Net carrying amount	$	2,339.2	$	2,166.8
Estimated fair value	2,215.0		2,099.8

Aircraft and Other Assets Impairment - Nonrecurring - In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of Q400 and E190 aircraft over the next few years. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition, maintenance record and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy.

In March 2014, we recorded a 19.9 million impairment charge related to our decision to permanently park our owned E140 fleet in March 2014, impairing these aircraft to zero.

In September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy.

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There were no aircraft and other asset impairment charges recorded for the year ended December 31, 2012.

($ in millions)
			Fair Value Measurements Using
Description	Year ended December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Long-lived assets abandoned - E140	$	—			$	—	$	(19.9	)
Long-lived assets held and used - Q400	49.7				49.7		(13.3		)
Long-lived assets held and used - E190	101.6				101.6		(14.4		)
							$	(47.6	)
			Fair Value Measurements Using
Description	Year ended December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Long-lived assets held and used	$	152.5			$	152.5	$	(12.0	)

4. DISCONTINUED OPERATIONS

In October, 2013, the Company entered into a stock purchase agreement for the sale of Frontier Airlines Holdings, Inc. (“Frontier”) to an affiliate of Indigo Partners LLC and the sale was completed on December 3, 2013. As a result the Company reported Frontier as discontinued operations on the consolidated statement of operations and consolidated statement of cash flows for all periods presented.

Summarized financial information for discontinued operations is shown below:         

($ in millions)	Years Ended
		2013			2012
Total operating revenue		$	1,217.5		$	1,433.5
Income from discontinued operations before tax(2)		$	50.9		$	35.0
Income tax expense		18.7			15.0
Income from discontinued operations		32.2			20.0
Loss on disposal from discontinued operations (1)		(53.8		)	—
Total discontinued operations, net of tax		$	(21.6	)	$	20.0

⁽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.

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Pursuant to the terms of the stock purchase agreement between the Company and Falcon Acquisition Group, Inc. ("Buyer"), the Company and Buyer finalized the share purchase price in the fourth quarter of 2014.  The final share purchase price did not result in an adjustment to the share purchase price. In addition, the stock purchase agreement contains an obligation for the Company to indemnify the Buyer under certain circumstances and subject to certain conditions and limitations.  With certain exceptions that are not subject to any limitation, the Company's indemnity obligation is capped under the stock purchase agreement at a maximum of $25.0 million.  However, the Company believes that the likelihood that it will be required to make any payment of significant indemnification claims under the stock purchase agreement is remote and therefore the Company has not recorded any contingent liabilities for Buyer’s indemnification claims as of December 31, 2014.

Republic has retained all liabilities for all United States federal and foreign income tax on income prior to separation, as well as certain non-income taxes attributable to Frontier's business. Frontier generally will be liable for all other taxes attributable to its business. In connection with the separation, Republic separated its defined contribution plan from Frontier's business.     

Republic and Frontier entered into a transition services agreement pursuant to which Republic provided Frontier, on an interim transitional basis, various services. Transition services were provided for nine months from the closing with an option for extension by the recipient. The transition services agreement was extended for certain information technology and operation support through December 31, 2014. Services provided by Republic under the original agreement included certain information technology, operations and back office support. Billings by Republic under these transitional services agreements of $2.8 million for the year ended December 31, 2014, are recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statements of Operations. This transitional support enabled Frontier to establish its stand-alone processes for various activities that were previously provided by Republic and did not constitute significant continuing involvement in Frontier’s operations.

5. AIRCRAFT AND OTHER EQUIPMENT

Aircraft and other equipment, excluding other equipment held for sale, consist of the following as of December 31 (in millions): 

	2014			2013
Aircraft	$	3,644.8		$	3,221.8
Flight equipment	171.7			173.8
Office equipment and leasehold improvements	44.4			44.8
Total aircraft and other equipment	3,860.9			3,440.4
Less accumulated depreciation and amortization	(1,000.0		)	(876.8		)
Aircraft and other equipment—net	$	2,860.9		$	2,563.6

Aircraft and other equipment depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $173.0 million, $150.7 million, and $160.0 million, respectively. In December 2014, March 2014 and September 2013, we recorded $27.7 million, $19.9 million and $12.0 million in impairment charges, respectively, as discussed in Note 3. The Company also recorded a $5.8 million loss on the sale of two E190 aircraft that was recorded in impairment charges and other.

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6. INTANGIBLE AND OTHER ASSETS

Intangible and other assets as of December 31, 2014 and 2013 consist of the following (in millions):

	2014		2013
Indefinite-lived intangible assets:
Airport slots	$	9.0	$	9.0
Other assets:
Aircraft pre-delivery deposits	57.5		30.0
Aircraft lease and long-term deposits	26.0		38.4
Chautauqua restructuring asset - See Note 3	81.2		79.6
Prepaid aircraft rents	27.8		34.5
Debt issue costs and other non-current assets	19.2		25.3
Total Other assets	211.7		207.8
Intangible and other assets	$	220.7	$	216.8

7. ACCRUED LIABILITIES

Accrued liabilities consist of the following as of December 31 (in millions):

	2014		2013
Accrued wages, benefits and related taxes	$	29.0	$	29.2
Accrued maintenance	37.6		50.2
Accrued interest payable	18.0		18.1
Deferred revenue	19.9		23.8
Other	38.4		42.5
Total accrued liabilities	$	142.9	$	163.8

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8. DEBT

The weighted average rate of debt for aircraft financings for December 31, 2014 and 2013, was 5.38% and 5.76%, respectively.

Debt consists of the following as of December 31 (in millions):

Secured debt:	2014		2013
Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 3.63% to 8.49% at December 31, 2014 and outstanding through 2025, net of unamortized debt discount of $73.4 million. (3)	$	2,238.1	$	1,995.0
Promissory notes payable, collateralized by aircraft, bearing interest at variable rates based on LIBOR plus a margin, ranging from 1.80% to 1.82% at December 31, 2014 and outstanding through 2020.	41.6		80.0
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.25% to 8.38% as of December 31, 2014 and outstanding through 2020.	53.7		37.0
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.61% to 5.34% as of December 31, 2014 and outstanding through 2018.	3.4		4.3
Other	2.4		3.7
Total debt secured by aircraft and parts	2,339.2		2,120.0
Unsecured debt:
Convertible note payable, bearing interest at a fixed rate of 8%, due in full in July 2014. (1)	—		22.3
Convertible note payable, bearing interest at a fixed rate of 6%, face value of $25.0 million, net of discount $0.5 million, due in full in 2019. (2)	—		24.5
Total unsecured debt	—		46.8
Total debt	2,339.2		2,166.8
Current portion	309.0		276.2
Long term debt, less current portion	$	2,030.2	$	1,890.6

⁽¹⁾ The Company redeemed the convertible note by paying $22.3 million of cash on April 7, 2014 as discussed in Note 2.

⁽²⁾ The Company redeemed the convertible note by paying $26.5 million in cash on October 28, 2014, which included accrued interest as discussed in Note 2.

⁽³⁾  The Company entered into financing agreements to borrow $569.2 million for 22 E175 aircraft and other equipment primarily for the American E175 fixed-fee agreement and other equipment.

Included in the current portion of long term debt as of December 31, 2014, are approximately $28.7 million of aircraft related debt obligations that the Company expects to refinance.

The Company has outstanding letters of credit as of December 31, 2014 and 2013 totaling $14.1 million and $17.0 million, respectively, that are collateralized by restricted cash.

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Future maturities of debt are payable, as follows for the years ending December 31 (in millions):

	Total Secured Debt		Amortization of Debt Discount, net
2015	$	321.2	(12.2		)
2016	303.0		(11.2		)
2017	352.8		(10.1		)
2018	295.0		(9.0		)
2019	339.5		(7.9		)
Thereafter	801.1		(23.0		)
Total	$	2,412.6	$	(73.4	)	$	2,339.2

9. COMMITMENTS

As of December 31, 2014, the Company leased 76 aircraft and 29 spare engines with varying terms extending through 2024 and terminal space, operating facilities and office equipment with terms extending through 2033 under operating leases. The components of rent expense for the years ended December 31 are as follows (in millions):

	2014		2013		2012
Aircraft and engine rent	$	126.0	$	122.6	$	110.7
Other	10.3		11.7		9.2
Total rent expense	$	136.3	$	134.3	$	119.9

The Company has long-term maintenance agreements with an avionics equipment manufacturer and maintenance provider that has a guaranteed minimum annual flight hour requirement. The minimum guaranteed amount based on the Company's current operations is $2.6 million per year through December 2016 for the E145 family of aircraft and $10.3 million per year through December 2014 for the E170 family of aircraft.

The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E140/145, E170/175 and Q400 aircraft:

	Expiration Date of Agreement:
Maintenance Agreements	E140/145	E170/175	Q400
Engines	December 2017(2)	March 2027(3)	June 2021(2)
APU	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	July 2021
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. As of

December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs.

⁽³⁾ Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027.

⁽⁴⁾  Q400 maintenance agreements do not include wheels.

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Under these agreements, we are charged for covered services based on a fixed rate for each flight hour or flight cycle accumulated by the engines or airframes in our service during each month. The rates are subject to annual revisions, generally based on certain Bureau of Labor Statistics' labor and material indices.  We believe these agreements, coupled with our ongoing maintenance program, reduce the likelihood of unexpected levels of engine, APU, avionics, wheels and brakes, emergency slides, and select rotable parts maintenance expense during their term. Certain of these agreements contain minimum guarantee amounts, penalty provisions for either the early removal of aircraft or agreement termination for activity levels below the minimums.

Total payments under these long-term maintenance agreements were $173.0 million, $163.8 million, and $119.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

As part of the Company's lease agreements, the Company typically indemnifies the lessor of the respective aircraft against liabilities that may arise due to changes in benefits from tax ownership or tax laws of the respective leased aircraft. The Company has not recorded a liability for these indemnifications because they are not estimable. The Company is responsible for all other maintenance costs of its aircraft and must meet specified return conditions upon lease expiration for both the air frames and engines. The Company recorded a liability for the return conditions of $2.3 million as of December 31, 2014 for maintenance commitments on three E190 aircraft that will be returned to the lessor in 2015.

Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in millions):

	Aircraft		Other		Total
2015	$	106.5	$	16.2	$	122.7
2016	101.6		15.1		116.7
2017	87.8		13.1		100.9
2018	77.1		12.0		89.1
2019	73.9		9.9		83.8
Thereafter	103.9		44.5		148.4
Total	$	550.8	$	110.8	$	661.6

As of December 31, 2014, the Company has leased eight E145 aircraft, three E170 aircraft, and three E190 aircraft to a foreign airline, and it has leased one E135 aircraft and three E145 aircraft to domestic airlines. As of December 31, 2014, the total amount of minimum rentals to be received in the future under non-cancelable leases is $104.0 million.  During the years ended December 31, 2014, 2013, and 2012, the Company recognized $20.1 million, $18.7 million and $15.9 million, respectively, of lease income that is included in other revenue in the consolidated statements of operations.

As of December 31, 2014, the Company has firm orders to purchase 40 CS300 aircraft that have scheduled delivery dates beginning in early 2015 and continuing through 2017. In January 2014, Bombardier announced that the aircraft would not be expected into service until early 2016. The Company has stopped making pre-delivery deposit payments on these aircraft.

The Company also has a commitment for 47 Embraer E175 aircraft (of which 41 have been delivered as of December 31, 2014) under the American Eagle brand that have scheduled delivery dates currently and through the second quarter of 2015. In addition, the Company has a commitment for 55 Embraer E175 aircraft under the United brand that have scheduled delivery dates between the third quarter of 2015 and the third quarter of 2017. The Company also has a commitment to acquire 11 spare aircraft engines (of which three have been delivered as of December 31, 2014) and expects to take delivery of four engines in 2015, three engines in 2016, and one engine in 2017. 

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The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions):

	Payments Due By Period
2015		2016		2017		2018		2019		Total
Debt or lease financed aircraft under purchase obligations (1)	$	554.2	$	2,447.0	$	1,385.5	$	—	$	—	$	4,386.7
Engines under firm orders	24.6		21.0		7.0		—		—		52.6
Total contractual obligations for aircraft and engines	$	578.8	$	2,468.0	$	1,392.5	$	—	$	—	$	4,439.3

⁽¹⁾ Represents delivery of CS300s based on estimated service date of early 2016.

The information in the table above reflects a purchase price of the aircraft at projected delivery dates.

10. CONTINGENCIES

We are subject to certain legal and administrative actions, which we consider routine to our business activities. Management believes that the ultimate outcome of any pending legal matters will not have a material adverse effect on our financial position, liquidity or results of operations. 

During the third quarter of 2014, the suit filed by the International Brotherhood of Teamsters ("IBT") against the Company and Frontier seeking to have the restructuring agreement declared null and void, or alternatively, seeking that the IBT manage the equity investment of the Frontier pilots due to accusations that the Company interfered with the election process was dismissed. The dismissal arose after the Frontier Airlines Pilots Association ("FAPA") was certified to replace the IBT as the collective bargaining representative of the Frontier pilots. After that occurred, the Company and Frontier sought to have the case dismissed on the ground that the IBT no longer had standing to represent the interests of the Frontier pilots. The IBT then moved to have FAPA substituted as the party in interest. The court granted that motion, after which FAPA indicated that it did not intend to continue to prosecute the case, leading to the dismissal.

As of December 31, 2014, approximately 71% of the Company's workforce is employed under union contracts. The union contracts for our pilots is currently amendable. Although we have never had a work interruption or stoppage, we are subject to risks of work interruption or stoppage and/or may incur additional administrative expenses associated with union representation of our employees. If we are unable to reach agreement with any of our unionized work groups on the amended terms of their collective bargaining agreements, we may be subject to work interruptions and/or stoppages. Any sustained work stoppages could adversely affect our ability to fulfill our obligations under our fixed-fee and pro-rate agreements and could have a material adverse effect on our financial condition and results of operations.

The Company is currently in a labor dispute with the International Brotherhood of Teamsters ("IBT") Local 357, which represents all of our pilots.  On April 4, 2014, the Company announced that members of the IBT Local 357 failed to ratify a proposed four-year pilot labor agreement, which would have increased pay, improved work rules and allotted a significant signing bonus to our pilots.  Our inability to pay our pilots, especially our new hire first officers, market level wages is negatively impacting our ability to hire qualified pilots and operate the number of aircraft our Partners desire for us to fly under fixed-fee agreements.  In 2014, we did not renew agreements to operate 27 ERJ aircraft and permanently parked 15 E140 aircraft, temporarily parked 12 E145 aircraft and temporarily parked an operational spare. The Company may need to park additional ERJ aircraft in 2015 and 2016 as a result of the current labor dispute, which could cause us to fail to meet the required performance levels under our CPAs.

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11. CAPITAL STOCK AND STOCK OPTIONS

The following table summarizes common stock activity for the years ended December 31, 2014, 2013, and 2012:

(in millions)	Common Stock
	2014	2013	2012
Beginning balance	49.5	48.6	48.4
Shares issued for stock options exercised	0.4	0.7	—
Vesting of restricted stock and other	0.1	0.2	0.2
Ending balance	50.0	49.5	48.6

Employee Stock Options

The 2002 Equity Incentive Plan expired on April 19, 2012 with 22,434 shares available to be issued. These shares were canceled in April of 2012 and as of December 31, 2014, there are no shares available for future issuance under the 2002 plan.

On December 23, 2013, the Company filed a registration statement for 3.5 million additional shares, increasing the total shares available for granting under the 2007 Equity Incentive Plan to 8.5 million, of which 2,596,474 shares, remain available for issuance under the plan as of December 31, 2014. Stock options granted typically vest ratably between 36 and 48 months and are granted with exercise prices equal to market prices on the date of grant. The options normally expire 10 years from the date of grant.  Options are typically granted to officers and key employees selected by the Compensation Committee of the Board of Directors, and outstanding options have exercise prices ranging from $4.10 to $20.27.

Non-employee Director Stock Options

For 2012, the non-employee directors received 2,500 stock options on the first trading day after the annual meeting of stockholders at which they were re-elected as non-employee directors. These options vest ratable over 12 months of continuous service. The non-employee director options are exercisable until 10 years from the date of grant. Beginning in 2013, the equity portion of the non-employee directors' compensation is payable in restricted stock.

The following table summarizes option activity under the stock option plans as of December 31, 2014:

	Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Contractual Term (in years)
Outstanding at January 1, 2014	4,176,666		$	13.50
Granted	135,750		10.53
Exercised	(900,801	)	10.48
Forfeited	(276,110	)	13.43
Outstanding at December 31, 2014	3,135,505		$	14.25	$	6.9	6.18
Vested or expected to vest at December 31, 2014	3,095,611		$	14.31	$	6.7	6.11
Exercisable at December 31, 2014	2,671,717		$	14.90	$	5.0	5.39

The intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was not material.

There were 3,513,999 and 3,790,942 options exercisable at December 31, 2013 and 2012, respectively. The weighted average exercise price for the options exercisable at December 31, 2013 and 2012 was $14.26 and $13.59, respectively. The remaining contractual life for the options outstanding at December 31, 2013 and 2012 was 4.63 years and 4.91 years, respectively.

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During the years ended December 31, 2014, 2013 and 2012, $0.9 million ($0.5 million net of tax), $1.2 million ($0.7 million net of tax) and $1.2 million ($0.7 million net of tax), respectively, was charged to expense relating to the stock option plans. The Company has a policy of issuing new common shares to satisfy the exercise of stock options.  At December 31, 2014 there was $1.8 million of unrecognized stock-based employee compensation expense for unvested stock options, and the expected remaining expense period is 4 years. The Company did not recognize excess tax benefits related to stock option exercises for the last 3 years due to net operating losses.

The weighted average grant date fair value of options granted in 2014, 2013 and 2012 was $4.80, $5.28, and $2.02, respectively. The Company estimates the fair value of stock options issued using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. Dividends were based on an estimated dividend yield. The risk-free rates for the periods within the contractual life of the option are based on the U.S. Treasury rates in effect at the time of the grant. The forfeiture rate is based on historical information and management’s best estimate of future forfeitures. The expected term of options granted is derived from historical exercise experience and represents the period of time the Company expects options granted to be outstanding. Option valuation models require the input of subjective assumptions including the expected volatility and lives.

The following assumptions were used to value stock option grants during the following periods:

	December 31,
	2014				2013				2012
Dividend yield	—%				—%				—%
Expected volatility	56	%	-	58%	59	%	-	62%	59	%	-	62%
Risk-free interest rate	1.7	%	-	1.8%	0.9	%	-	1.4%	0.6	%	-	1.0%
Expected life (in years)	4		-	5	4		-	5	4		-	5

Restricted Stock Grants

Restricted stock awards have been granted to certain of our officers, directors, and key employees.  Restricted stock awards are grants of shares of our common stock which typically vest over time (generally three or four years).

Non-employee director restricted stock grants

For service in 2013 and 2014 the non-employee directors received restricted stock valued at $50,000, which became vested on the earliest of (a) one year from the date of grant, (b) the date the director ceases to be a board member after at least five years of service and (c) the occurrence of a change in control. 

Compensation expense for our restricted stock grants was $3.7 million, $2.8 million, and $1.8 million during the years ended December 31, 2014, 2013 and 2012, respectively.  As of December 31, 2014, we have $6.6 million in total unrecognized future compensation expense that will be recognized over the next three or four years relating to awards for 763,232 restricted shares which were issued but which had not yet vested.

A summary of restricted stock activity under the aforementioned plan is as follows:

	Restricted Stock  Awards
Unvested at January 1, 2014	846,083
Vested	(317,500	)
Issued	293,318
Surrendered	(58,669	)
Unvested at December 31, 2014	763,232

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The grant date weighted-average fair value per share of restricted stock awards granted during the years ended December 31, 2014, 2013, and 2012, was $10.50, $11.23 and $4.98, respectively.  The total fair value of shares vested during the years ended December 31, 2014, 2013, and 2012, was $3.1 million, $2.8 million, and $0.7 million, respectively.

12. INCOME TAXES

The components of the provision for income tax expense for the years ended December 31 are as follows (in millions):

	2014			2013			2012
Federal:
Current	$	—		$	—		$	—
Deferred	29.6			30.9			13.6
Total Federal	29.6			30.9			13.6
State:
Current	(1.4		)	4.1			—
Deferred	(2.5		)	(9.8		)	6.1
Total State	(3.9		)	(5.7		)	6.1
Valuation allowance	(4.8		)	8.8			0.1
Expense for uncertain tax positions	—			(1.0		)	—
Income tax expense	$	20.9		$	33.0		$	19.8

A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for the years ended December 31 are as follows (in millions):

	2014			2013			2012
Federal income tax expense at statutory rate	$	29.8		$	28.4		$	17.9
State income tax expense, net of federal benefit	2.6			2.7			1.6
Valuation allowance	(4.8		)	8.8			0.1
Adjustment to deferred tax liabilities	(3.1		)	(8.8		)	(5.5		)
Change in State tax rate	(4.2		)	—			4.3
Permanent tax adjustments	2.0			1.7			1.2
Other	(1.4		)	0.2			0.2
Income tax expense	$	20.9		$	33.0		$	19.8

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The components of deferred tax assets and liabilities as of December 31 are as follows (in millions):

	2014			2013
DEFERRED TAX ASSETS:
Current:
Nondeductible accruals and deferred revenue	24.6			24.2
Total	24.6			24.2
Valuation allowance	(8.2		)	(8.5		)
Total current deferred tax assets	$	16.4		$	15.7
Noncurrent:
Nondeductible accruals and deferred revenue	$	27.5		$	21.1
Federal and state net operating loss carryforwards, net of liability for uncertain tax positions	453.2			443.4
AMT credits	6.1			6.1
Prepaid rent	8.5			8.6
Deferred credits and other non-current liabilities	5.7			17.4
Other	22.8			23.2
Total	523.8			519.8
Valuation allowance	(174.7		)	(182.8		)
Total noncurrent deferred tax assets	349.1			337.0
DEFERRED TAX LIABILITIES:
Noncurrent:
Other intangible assets	(3.4		)	(3.4		)
Maintenance deposits	(20.2		)	(14.0		)
Accelerated depreciation and fixed asset basis differences for tax purposes	(609.5		)	(580.0		)
Total noncurrent deferred tax liabilities	(633.1		)	(597.4		)
Total net noncurrent deferred tax liabilities	$	(284.0	)	$	(260.4	)

The Company monitors ongoing tax cases related to its unrecognized tax benefits. The unrecognized tax benefits, which if recognized, would impact the effective tax rate. The Company does not anticipate that total unrecognized tax benefits would significantly change within the next 12 months. The following table reconciles the Company’s tax liability for uncertain tax positions for the year ended December 31 (in millions): 

	2014		2013			2012
Balance at January 1,	$	7.1	$	8.1		$	8.1
Additions for tax positions taken in prior years	—		—			—
Reductions for tax positions of prior years	—		(1.0		)	—
Balance at December 31,	$	7.1	$	7.1		$	8.1

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The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions):

	2014			2013		2012
Balance at January 1,	$	191.3		$	182.5	$	182.5
Reduction for net operating losses previously reserved that were utilized or expired	(3.6		)	—		(0.1		)
Additions (deductions) for current year change in estimate	(4.8		)	8.8		0.1
Balance at December 31,	$	182.9		$	191.3	$	182.5

The future use of the net operating losses (“NOLs”) acquired from previous acquisitions are limited based on Internal Revenue Code Section 382 due to the change in control that occurred from the acquisitions. Management evaluated the deferred tax assets and determined that more likely than not, certain deferred tax assets would not be utilized and therefore a valuation allowance was required. The net operating losses generated by the Company after the change in control date, generally do not have a related valuation allowance. As of December 31, 2014, the Company has federal NOL carryforwards totaling $1.3 billion, which begin expiring in 2015, and of which approximately $398.0 million are not expected to be realized prior to expiration mostly due to the limitations under Internal Revenue Code Section 382. Therefore, a valuation allowance has been recorded for these net operating loss carryforwards. In 2014, the Company reduced its state effective tax rate, which decreased its net deferred tax asset by approximately $4.2 million. In addition, the Company decreased its valuation allowance related to net operating losses by approximately $8.4 million, of which $3.6 million was attributable to losses that were utilized or expired.

Deferred tax assets include benefits expected to be realized from the utilization of alternative minimum tax (“AMT”) credit carryforwards of $6.1 million, which do not expire. A valuation allowance of $5.2 million has been recorded against AMT credit carryforwards that were acquired from previous acquisitions as these credits are not expected to be realized.

The Company's federal income tax returns for tax years after 1998 remain subject to examination by the Internal Revenue Service (“IRS”) and state taxing jurisdictions. The Company concluded its audit by the IRS for the 2009 tax year in 2012. The Company's NOL's from prior tax years would remain subject to examination by major tax jurisdictions due to our net operating loss carryforwards.

13. RETIREMENT AND BENEFIT PLANS

Defined Contributions Plans — The Company has defined contribution retirement plans covering all employees meeting the eligibility requirements.  The Company matches up to 6% of employees' eligible compensation as defined by the Plan document. Employees are generally vested in matching contributions after three years of service with the Company. Employees are also permitted to make pre-tax deferrals and after-tax Roth contributions of up to 90% (up to the annual Internal Revenue Code limit) of their eligible compensation. The Company's expense under this plan was $6.3 million, $5.9 million, and $5.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Qualified Defined Benefit Plan — The Company has a qualified defined benefit plan. The accrued benefit liability (recorded in deferred credits and other noncurrent liabilities) was $3.4 million and $3.3 million as of December 31, 2014 and 2013, respectively.  The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2014 were $9.9 million, $13.3 million and $9.9 million, respectively. The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2013 were $16.7 million, $16.7 million, and $13.4 million, respectively.

The net periodic benefit cost, employer contributions, and future benefit payments are not material to the Company’s consolidated statements of operations or consolidated financial position.

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14. 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:
12/31/2014	$	1.5	$	1.4	$	(0.3	)	(1)	$	2.6
12/31/2013	1.3		0.4		(0.2		)	(1)	1.5
12/31/2012	$	0.5	$	0.9	$	(0.1	)	(1)	$	1.3

⁽¹⁾   Uncollectible accounts written off net of recoveries, if any.  

15. SUBSEQUENT EVENTS

On February 26, 2015, the Company received written notice from Delta exercising their right to extend 24 aircraft under the E145 code-share agreement from May 2016 to May 2021.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.

We maintain "disclosure controls and procedures", as such term is defined under Securities Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. We have carried out an evaluation, as of the end of the period covered by this report, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon their evaluation and subject to the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.

Changes in Internal Control

During the quarter ended December 31, 2014, we did not make any changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies may deteriorate.

Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, the Company’s management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2014 using the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013). Based on that evaluation, the Company’s management concluded that our internal control over financial reporting was effective as of December 31, 2014.

The Company's effectiveness of our internal control over financial reporting as of December 31, 2014 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included herein.

ITEM 9B. OTHER INFORMATION

On February 25, 2015, the Board of Directors designated Ryan A. Willman as its Principal Accounting Officer, effective immediately. Mr. Willman, age 37, joined the Company in October 2012, as Vice President and Corporate Controller. Prior to joining Republic, Mr. Willman held a variety finance roles at BrightPoint, Inc. from 2005 to 2012, most recently serving as the Vice President and Controller of BrightPoint Americas. From 2004 to 2005, Mr. Willman worked in a financial reporting role at Guidant Corporation; and from 1999 to 2004, he was an auditor at Ernst and Young LLP in Indianapolis, Indiana.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Directors

The information set forth under the caption "Proposal No. 1 - Election of Directors" in the Company's definitive Proxy Statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference.

Executive Officers

The information set forth under the caption "Executive Compensation" in the Company's definitive Proxy Statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference.

Code of Ethics

We have adopted a Code of Ethics within the meaning of Item 406(b) of SEC Regulation S-K. This Code of Ethics applies to all of our employees, officers and directors, including our principal executive officer, principal financial officer and principal accounting officer. This Code of Ethics is publicly available on our website athttp://www.rjet.com/Investor_Relations/Governance.aspx. If we make substantive amendments to this Code of Ethics or grant any waiver, including any implicit waiver, we will disclose the nature of such amendment or waiver on our website or in a report on Form 8-K within four days of such amendment or waiver.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 as amended, requires that the Company's executive officers and directors, and any person who beneficially owns more than ten percent of the Company's common stock, file initial reports of ownership and reports of changes in ownership with the SEC. Executive officers, directors, and greater than ten percent beneficial owners are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms they file. Based upon a review of the copies of such forms furnished to the Company and written representations from the Company's executive officers, directors and owners of more than ten percent of the Company's common stock, we believe that during fiscal 2014 our executive officers, directors and greater than ten percent beneficial owners complied with Section 16(a) except for five late filings with respect to two transactions by Timothy P. Dooley and one transaction each for Lars-Erik Arnell, Daniel Garton and Robert Colin.

Corporate Governance

The information set forth under the caption "Corporate Governance" in the Company's definitive Proxy Statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference.

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ITEM 11. EXECUTIVE COMPENSATION

The information set forth under the captions "Executive Compensation" and "Non-Employee Director Compensation for 2014" in the Company's definitive Proxy Statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information set forth under the caption "Beneficial Ownership of Common Stock by Certain Stockholders and Management" in the Company's definitive Proxy Statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference. 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information set forth under the captions "Compensation Committee Interlocks and Insider Participation" and "Certain Relationships and Related Transactions" in the Company's definitive Proxy Statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information set forth under "Audit Matters" in the Company's definitive proxy statement to be used in connection with the 2015 Annual Meeting of Stockholders is incorporated herein by reference.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENTS SCHEDULES

(a)  (1) Financial Statements:

The consolidated financial statements of Republic Airways Holdings Inc. are filed as part of this report under Item 8.

(a)  (2) Financial Statement Schedules:

See footnote 14 filed as part of this report under Item 8 for the Valuation and Qualifying Accounts.

All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

(b)  Exhibits

Exhibit No.	Description
2.1†	Stock Purchase Agreement between Falcon Acquisition Group, Inc. and Republic Airways Holdings Inc., dated as of September 30, 2013. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed December 9, 2013)
2.1(a)†	Assignment and Assumption Agreement dated as of November 6, 2013 between Republic Airways Holdings Inc. and Frontier Airlines, Inc. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed December 9, 2013)
3.1	Amended and Restated Certificate of Incorporation.(i)
3.2	Second Amended and Restated Bylaws.
4.1	Specimen Stock Certificate.(i)
4.2	Form of Warrant to Purchase Shares of Common Stock of Republic Airways Holdings Inc. issued to Delta Air Lines, Inc., dated as of December 22, 2004.(Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on December 29, 2004)
4.3	Form of warrant to purchase shares of common stock of Republic Airways Holdings Inc. issued to Delta Air Lines, Inc.(i)
4.4	Form of warrant to purchase shares of common stock of Republic Airways Holdings Inc. issued to Delta Air Lines, Inc.(i)
10.1	2002 Equity Incentive Plan.(i)
10.1(a)	Amended and Restated 2007 Equity Incentive Plan. (Incorporated by reference to the Registrant's Form S-1 (File No. 333-193065) filed on December 23, 2013)
10.2	Form of Option Agreement for Non-Employee Directors.(i)
10.3	Form of Option Agreement for Officers.(i)
10.4†	Amended and Restated Air Services Agreement, dated as of June 12, 2002, by and between AMR Corporation and Chautauqua Airlines, Inc.(i)
10.4(a)	Letter Agreement between AMR Corporation and Chautauqua Airlines, Inc. dated July 30, 2002.(i)
10.4(b)†	Side Letter Agreement, dated as of March 26, 2003, by and between AMR Corporation and Chautauqua Airlines, Inc.(Incorporated by reference to the Registrant's Current Report on Form 10-Q filed on November 4, 2008)
10.4(c)†	Amendment to Amended and Restated Air Services Agreement, by and between AMR Corporation and Chautauqua Airlines, Inc., dated as of October 28, 2003.(i)
10.4(d)†	Amendment to the Amended and Restated Air Services Agreement, by and between AMR Corporation and Chautauqua Airlines, Inc., dated as of October 23, 2008. (Incorporated by reference to the Registrant's Quarterly Report on Form 8-K filed on October 29, 2007)
10.4(e)†	Amendment to the Amended and Restated Air Services Agreement between Chautauqua Airlines, Inc. and American Airlines Group Inc. dated as of March 1, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 1, 2014)
10.5†	EMB-145LR Amended and Restated Purchase Agreement Number GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of April 19, 2002.(i)
10.5(a)†	Partial Assignment and Assumption of Purchase Agreement GCT-025/98, by and between Republic Airways Holdings Inc. and Solitair Corp., and consented to by Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of April 7, 2002.(i)
10.5(b)†	Amendment Number 1 to Amended and Restated Purchase Agreement GCT-025/98 between Republic Airways Holdings Inc and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of June 7, 2002.(i)
10.5(c)†	Amendment Number 2 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of July 25, 2002.(i)
10.5(d)†	Amendment Number 3 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of December 18, 2002.(i)
10.5(e)†	Amendment Number 4 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of May 30, 2003.(i)
10.5(f)†	Amendment Number 5 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of September 30, 2003.(i)
10.5(g)†	Amendment Number 6 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of October 31, 2003.(i)
10.5(h)†	Amendment Number 7 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of December 31, 2003.(i)

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10.5(i)†	Amendment Number 8 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of February 16, 2004.(i)
10.5(j)†	Amendment Number 9 to Amended and Restated Purchase Agreement GCT-025/98, by and between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of May 24, 2004.(Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-122033, which was declared effective on February 1, 2005)
10.5(l)†	Amendment Number 10 to Amended and Restated Purchase Agreement GCT-025/98, by and between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of January 17, 2005.(Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on January 21, 2005)
10.5(m)†	Amendment No. 11 to Amended and Restated Purchase Agreement GCT-025/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated May 31, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005)
10.6†	Amended and Restated Letter Agreement GCT-026/98, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airways Holdings Inc., dated as of April 19, 2002.(i)
10.6(a)†	Amendment Number 1 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of June 7, 2002.(i)
10.6(b)†	Amendment Number 2 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of July 25, 2002.(i)
10.6(c)†	Amendment Number 3 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of August 29, 2002.(i)
10.6(d)†	Amendment Number 4 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of December 10, 2002.(i)
10.6(e)†	Amendment Number 5 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of April 30, 2003.(i)
10.6(f)†	Amendment Number 6 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of May 30, 2003.(i)
10.6(g)†	Amendment Number 7 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of December 31, 2003.(i)
10.6(h)†	Amendment Number 8 to Amended and Restated Letter Agreement GCT-026/98 between Republic Airways Holdings Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of March 22, 2004.(i)
10.7†	Loan Agreement between Chautauqua Airlines, Inc. and Agência Especial de Financiamento Industrial (FINAME), dated as of December 27, 2001. There are fourteen additional Loan Agreements which are substantially identical in all material respects except as indicated on the exhibit.(i)
10.8	Aircraft Security Agreement between Chautauqua Airlines, Inc. as Borrower and JPMorgan Chase Bank as Security Trustee, dated as of December 27, 2001. There are fourteen additional Aircraft Security Agreements which are substantially identical in all material respects except as indicated on the exhibit.(i)
10.9	Security Agreement Supplement No. 1 between Chautauqua Airlines, Inc. as Borrower and JPMorgan Chase Bank as Security Trustee, dated as of January 17, 2002. There are fourteen additional Security Agreement Supplements No. 1 which are substantially identical in all material respects except as indicated on the exhibit.(i)
10.10†	Securities Account Control Agreement among Chautauqua Airlines, Inc. as Debtor, Agência Especial de Financiamento Industrial (FINAME) as Lender, and JPMorgan Chase Bank as Securities Intermediary and Security Deposit Trustee, dated as of December 27, 2001. There are fourteen additional Securities Account Control Agreements which are substantially identical in all material respects except as indicated on the exhibit.(i)
10.11†	Security Deposit Agreement, among Chautauqua Airlines, Inc. as Debtor, Agência Especial de Financiamento Industrial (FINAME) as Lender, and JPMorgan Chase Bank as Securities Intermediary and Security Deposit Trustee, dated as of December 27, 2001. There are fourteen additional Security Deposit Agreements which are substantially identical in all material respects except as indicated on the exhibit.(i)
10.12†	Funding Agreement between Chautauqua Airlines, Inc. and Agência Especial de Financiamento Industrial (FINAME), dated as of December 27, 2001. There are eleven additional Funding Agreements which are substantially identical in all material respects except as indicated on the exhibit.(i)
10.12(a)†	First Amendment to the Funding Agreement, dated as of June 11, 2002, by and between Chautauqua Airlines, Inc. and Agência Especial de Financiamento Industrial.(i)
10.13	Agreement, dated as of June 7, 2002, by and between Republic Airways Holdings Inc. and Delta Air Lines, Inc.(i)
10.14	Amendment No. 1 to Agreement between Republic Airways Holdings Inc. and Delta Air Lines, Inc., dated October 1, 2003.(i)
10.15†	Delta Connection Agreement, dated as of June 7, 2002, by and among Delta Air Lines, Inc., Chautauqua Airlines, Inc., and Republic Airways Holdings Inc.(i)
10.15(a)†	Amendment No. 1 to Delta Connection Agreement, dated as of February 7, 2003, by and among Delta Air Lines, Inc., Chautauqua Airlines, Inc., and Republic Airways Holdings Inc.(i)

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10.15(b)†	Amendment Number Two to Delta Connection Agreement, dated September 30, 2003, by and among Delta Air Lines, Inc., Chautauqua Airlines, Inc. and Republic Airways Holdings Inc.(i)
10.15(c)†	Amendment Number Three to Delta Connection Agreement, dated March, 2004, by and among Delta Air Lines, Inc., Chautauqua Airlines, Inc. and Republic Airways Holdings Inc.(i)
10.15(d)†	Amendment No. 4 to Delta Connection Agreement by and among Delta Air Lines, Inc., Chautauqua Airlines, Inc. and Republic Airways Holdings Inc., dated as of August 12, 2004.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004)
10.15(e)†	Amendment Number Five to Delta Connection Agreement, as amended, among Delta Air Lines, Inc., Chautauqua Airlines, Inc. and Republic Airways Holdings Inc., dated as of December 22, 2004.(Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on December 29, 2004)
10.15(f)†	Amendment Number Six to Delta Connection Agreement, by and among Delta Air Lines, Inc., Chautauqua Airlines, Inc. and Republic Airways Holdings Inc., dated as of March 12, 2007.(Incorporated by reference to the Registrant's Current Report on Form 8-K filed on March 30, 2007)
10.15(g)†	Letter Agreement, by and among Delta Airlines, Inc., Republic Airways Holdings Inc., Chautauqua Airlines, Inc. and Shuttle America Corp., dated as of July 28, 2008.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 11, 2008)
10.16	Third Amended and Restated Employment Agreement, dated as of November 2, 2010, by and between the Comapny and Bryan K. Bedford. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed August 18, 2009)
10.16(a)	Amendment to the Employment Agreement between Republic Airways Holdings Inc. and Bryan K. Bedford, dated as of September 24, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.16(b)	Amendment to Third Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Bryan K. Bedford, dated as of February 28, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 1, 2014)
10.16(c)	Fourth Amended and Restated Employment Agreement, between Republic Airways Holdings Inc. and Bryan K. Bedford, dated as of May 31, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 7, 2014)
10.17	Third Amended and Restated Employment Agreement, dated as of November 2, 2010, by and between the Comapny and Wayne C. Heller. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed August 18, 2009)
10.17(a)	Amendment to Employment Agreement between Republic Airways Holdings Inc. and Wayne C. Heller, dated as of September 24, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.17(b)	Amendment to Third Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Wayne C. Heller, dated as of February 28, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 1, 2014)
10.17(c)	Fourth Amended and Restated Employment Agreement, dated as of May 31, 2014, by and between the Company and Wayne C. Heller.
10.18	Employment Agreement, dated April 12, 2011, by and between the Company and Timothy P. Dooley. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed April 18, 2011)
10.18(a)	Amendment to Employment Agreement between Republic Airways Holdings Inc. and Timothy P. Dooley, dated as of September 24, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.18(b)	Amendment to Employment Agreement between Republic Airways Holdings Inc. and Timothy P. Dooley, dated as of February 28, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 1, 2014)
10.19	Employment Agreement, dated April 12, 2011, by and between the Company and Lars-Erik Arnell. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed April 18, 2011)
10.19(a)	Amendment to Employment Agreement between Republic Airways Holdings Inc. and Lars-Erik Arnell, dated as of September 24, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.20(b)	Amendment to Employment Agreement between Republic Airways Holdings Inc. and Lars-Erik Arnell, dated as of February 28, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 1, 2014)
10.19(c)	Second Amended and Restated Employment Agreement, dated as of May 31, 2014, by and between the Company and Lars-Erik Arnell. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 7, 2014)
10.20†	Purchase Agreement DCT-014/2004, by and between Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of March 19, 2004.(i)

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10.20(a)†	Amendment No. 1 to Purchase Agreement DCT-014/2004, by and between Embraer — Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of April 28, 2004.(ii)
10.20(b)†	Amendment No. 2 to Purchase Agreement DCT-014/2004 between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of dated July 8, 2004.(iii)
10.20(c)†	Amendment No. 3 to Purchase Agreement DCT-014/2004 between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of July 30, 2004.(iii)
10.20(d)†	Amendment No. 4 to Purchase Agreement DCT-014/2004 between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of August 11, 2004.(iii)
10.20(e)†	Amendment No. 5 to Purchase Agreement DCT-014/2004 between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of September 29, 2004.(iii)
10.20(f)†	Amendment No. 6 to Purchase Agreement DCT-014/2004 between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of November 9, 2004.(Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-122033, which was declared effective on February 1, 2005)
10.20(g)†	Amendment No. 7 to Purchase Agreement DCT-014/2004 between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of December 23, 2004.(Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-122033, which was declared effective on February 1, 2005)
10.20(h)†	Amendment No. 8 to Purchase Agreement DCT-014/2004, by and between Embraer—Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of February 28, 2005. (Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005)
10.20(i)†	Amendment No. 9 to Purchase Agreement DCT-014/2004, by and between Embraer—Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of March 31, 2005. (Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005)
10.20(j)†	Amendment No. 10 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasilicica de Aeronáutica S.A. and Republic Airline Inc., dated as of April 30, 2005. (Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005)
10.20(k)†	Amendment No. 11 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of August 30, 2005. (Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005)
10.20(l)†	Amendment No. 12 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of October 7, 2005.(Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005)
10.20(m)†	Amendment No. 13 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of October 18, 2005.(Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005)
10.20(n)†	Amendment No. 14 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of November 9, 2005.(Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005)
10.20(o)†	Amendment No. 15 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of April 24, 2006.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006)
10.20(p)†	Amendment No. 16 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of July 21, 2006.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006)
10.20(q)†	Amendment No. 17 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of November 14, 2006.(Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006)
10.20(r)†	Amendment No. 18 to Purchase Agreement DCT-014/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of January 12, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007)
10.20(s)†	Amendment No. 19 to Purchase Agreement DCT-014/2004 by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of June 22, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
10.20(t)†	Amendment No. 20 to Purchase Agreement DCT-014/2004 by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of October 18, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007)
10.20(u)†	Amendment No. 21 to Purchase Agreement DCT-014/2004 by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of June 5, 2008.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 11, 2008)
10.20(v)†	Amendment No. 22 to Purchase Agreement DCT-014/2004 by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of September 5, 2008.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 4, 2008)

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10.20(w)†	Amendment No. 23 to Purchase Agreement DCT-014/2004 by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of November 10, 2008. (Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008)
10.21†	Letter Agreement DCT-015/2004, by and between Republic Airline Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of March 19, 2004.(i)
10.21(a)†	Amendment No. 1 to Letter Agreement DCT-015/2004, by and between Republic Airline Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of July 8, 2004.(Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-122033, which was declared effective on February 1, 2005)
10.21(b)†	Amendment No. 2 to Letter Agreement DCT-015/2004, by and between Republic Airline Inc. and Embraer-Empresa Brasileira de Aeronáutica S.A., dated as of December 23, 2004.(Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-122033, which was declared effective on February 1, 2005)
10.21(c)†	Amendment No. 3 to Letter Agreement DCT-015/2004, by and between Embraer—Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of February 28, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005)
10.21(d)†	Amendment No. 4 to Letter Agreement DCT-015/2004, by and between Embraer—Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of April 13, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005)
10.21(e)†	Amendment No. 5 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasilicica de Aeronáutica S.A. and Republic Airline Inc., dated as of April 30, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005)
10.21(f)†	Amendment No. 6 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline, Inc., dated as of October 18, 2005.(Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005)
10.21(g)†	Amendment No. 7 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline, Inc., dated as of November 9, 2005.(Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005)
10.21(h)†	Amendment No. 8 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of July 21, 2006.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006)
10.21(i)†	Amendment No. 9 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of September 19, 2006.(Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006)
10.21(j)†	Amendment No. 10 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of November 14, 2006.(Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006)
10.21(k)†	Amendment No. 11 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline inc., dated as of May 29, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 3, 2007)
10.21(l)†	Amendment No. 12 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline inc., dated as of June 22, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
10.21(m)†	Amendment No. 13 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline inc., dated as of October 18, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007)
10.21(n)†	Amendment No. 14 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline inc., dated as of June 5, 2008.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 11, 2008)
10.21(o)†	Amendment No. 15 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline inc., dated as of September 5, 2008.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 4, 2008)
10.21(p)†	Amendment No. 16 to Letter Agreement DCT-015/2004, by and between Embraer-Empresa Brasileira de Aeronáutica S.A. and Republic Airline inc., dated as of November 10, 2008.(Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008)
10.22†	United Express Agreement, by and between United Air Lines, Inc. and Shuttle America Corp., dated as of December 28, 2006.(Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006)
10.22(a)†	First Amendment to United Express Agreement, by and between United Air Lines, Inc. and Shuttle America Corp., dated as of August 21, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007)
10.22(b)†	Amendment No. 7 to the United Express Agreement between Shuttle America Corporation and United Airlines, Inc. dated as of September 16, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on October 29, 2014)

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10.23	United Express Agreement, by and between United Air Lines, Inc. and Chautauqua Airlines, Inc., dated as of February 13, 2004. (i)
10.23(a)	Amendment No. 1 to United Express Agreement, by and between United Air Lines, Inc. and Chautauqua Airlines, Inc., dated as of July 6, 2004.(ii)
10.24	Lease Agreement, by and between Chautauqua Airlines, Inc. and the Indianapolis Airport Authority, dated as of December 17, 2004.(Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-122033, which was declared effective on February 1, 2005)
10.25†	Delta Connection Agreement, dated as of January 13, 2005, by and among Delta Air Lines, Inc., Republic Airline Inc. and Republic Airways Holdings Inc.(Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on January 20, 2005)
10.25(a)†	Amendment Number One to Delta Connection Agreement, by and among Delta Air Lines, Inc., Shuttle America Corp. (as assignee of Republic Airline Inc.) and Republic Airways Holdings Inc., dated as of March 12, 2007. (Incorporated by reference to the Registrant's Current Report on Form 8-k filed on March 30, 2007)
10.25(b)†	Amendment Number Two to Delta Connection Agreement, by and among Delta Airlines, Inc., Shuttle America Corp. (as assignee of Republic Airline Inc.) and Republic Airways Holdings Inc., dated as of August 21, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007)
10.25(c)†	Letter Agreement, by and among Delta Airlines, Inc., Republic Airways Holdings Inc., Chautauqua Airlines, Inc. and Shuttle America Corp., dated as of March 12, 2007. (Incorporated by reference to the Registrant's Current Report on Form 8-k filed on March 30, 2007)
10.25(d)†	Amendment Number Three to Delta Connection Agreement, by and among Delta Airlines, Inc., Shuttle America Corp. (as assignee of Republic Airline, Inc.) and Republic Airways Holdings, Inc., dated as of January 31, 2011. (Incorporated by reference to the Registrant's Annual Report on Form 10-K filed on March 15, 2011)
10.25(e)†	Amendment Number Four to Delta Connection Agreement, by and among Delta Airlines, Inc., Shuttle America Corp. (as assignee of Republic Airline, Inc.) and Republic Airways Holdings Inc., dated as of April 26, 2011. (Incorporated by reference to the Registrant's Annual Report on Form 10-K filed on March 15, 2012, amended on January 14, 2015)
10.25(f)††	Amendment Number Seven to Delta Connection Agreement, by and among Delta Airlines, Inc., Shuttle America Corp. (as assignee of Republic Airline, Inc.) and Republic Airways Holdings Inc., dated as of December 11, 2014.
10.26	Stock Purchase Agreement, dated May 6, 2005, by and among Republic Airways Holdings, inc., Shuttle America Corporation and Shuttle Acquisition LLC.(Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on May 9, 2005)
10.27†	United Express Agreement, by and between United Air Lines, Inc. and Republic Airline, Inc., dated as of February 9, 2004. (i)
10.27(a)†	Amendment No. 3 to United Express Agreement between United Airlines, Inc. and Republic Airline Inc. and Amendment No. 2 to United Express Agreement between United Airlines, Inc. and Chautauqua Airlines, Inc. dated as of June 22, 2005.(Incorporated by reference to the Registrant’s Registration Statement on Form S-3, file No. 333-126357, which was declared effective on July 18, 2005)
10.28†	Republic Jet Service Agreement, by and between US Airways, Inc. and Republic Airline Inc., dated as of September 2, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005)
10.28(a)†	Amendment Number One to Republic Jet Service Agreement, by and between US Airways, Inc. and Republic Airline Inc., dated as of September 21, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005)
10.28(b)†	Second Amendment to Republic Jet Service Agreement, by and between US Airways, Inc. and Republic Airline Inc., dated as of July 21, 2006.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006)
10.28(c)†	Third Amendment to Republic Jet Service Agreement, by and between US Airways, Inc. and Republic Airline Inc., dated as of December 19, 2006.(Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006)
10.28(d)††	Fifth Amendment to Republic Jet Service Agreement, by and between US Airways, Inc. and Republic Airline Inc., dated as of November 6, 2014.
10.29†	Global Aircraft Transaction Agreement, by and between Republic Airways Holdings Inc. and US Airways, Inc., dated as of September 21, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005)
10.30†	Commuter Slot Option Agreement, by and between Republic Airways Holdings Inc. and US Airways, Inc., dated as of September 22, 2005.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005)
10.31†	Capacity Purchase Agreement, by and between Continental Airlines, Inc., Republic Airways Holdings Inc. and Chautauqua Airlines, Inc., dated as of July 21, 2006.(Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006)

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10.31(a)†	First Amendment to the Capacity Purchase Agreement, by and among Continental Airlines, Inc., Republic Airways Holdings Inc. and Chautauqua Airlines, Inc., dated as of January 8, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007)
10.31(b)†	Amendment Number Three to Continental Capacity Purchase Agreement by and among Continental Airlines, Inc., Chautauqua Airlines, Inc., and Republic Airways Holdings Inc., dated as of June 30, 2012. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 9, 2012)
10.31(c)†	Amendment No. 5 to the Capacity Purchase Agreement between Chautauqua Airlines, Inc. and United Airlines, Inc. dated as of March 4, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 1, 2014)
10.32	Evidence of Transfer of Claim by Republic Airways Holdings Inc. in favor of JPMorgan Chase Bank, N.A., dated as of April 11, 2007.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007)
10.33†	Purchase Agreement No. PA-C006, by and between Bombardier Inc. and Republic Airways Holdings Inc., dated as of February 24, 2010.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 10, 2010)
10.34†	Amended and Restated Purchase Agreement COM0190-10 by and between Embraer S.A. and Republic Airline Inc., dated as of January 23, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on April 30, 2013)
10.34(a)†	Amendment No. 1 to Amended and Restated Purchase Agreement COMO190-10 by and between Embraer S.A. and Republic Airline Inc., dated as of January 23, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on April 30, 2013)
10.34(b)†	Amendment No. 2 to Amended and Restated Purchase Agreement COMO190-10 by and between Embraer S.A. and Republic Airline Inc., dated as of January 23, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on April 30, 2013)
10.34(c)†	Amendment No. 3 to Amended and Restated Purchase Agreement COMO190-10 by and between Embraer S.A. and Republic Airline Inc., dated as of January 23, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on April 30, 2013)
10.34(d)†	Amendment No. 7 to the Amended and Restated Purchase Agreement COM0190-10 by and between Embraer S.A. and Republic Airline Inc. dated as of September 16, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on October 29, 2014)
10.35†	Letter Agreement COM 0191-10, by and between Embraer - Empresa Brasileira de Aeronáutica S.A. and Republic Airline Inc., dated as of November 3, 2010.(Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on May 13, 2011)
10.35(a)†	Amendment Number One to Letter Agreement between Embraer S.A. (formerly known as Embraer - Empresa Brasileira de Aeronautica S.A.) and Republic Airline Inc., dated as of March 11, 2011. (Incorporated by reference to the Registrant's Annual Report on Form 10-K filed on March 15, 2012)
10.35(b)†	Amendment Number Two to Letter Agreement between Embraer S.A. (fromerly known as Embraer - Empresa Brasileira de Aeronautica S.A.) and Republic Airline Inc., dated as of November 16, 2011. (Incorporated by reference to the Registrant's Annual Report on Form 10-K filed on March 15, 2012)
10.36	Phantom Equity Investment Agreement by and among Frontier Airlines, Inc., Republic Airways Holdings Inc. and FAPAInvest, LLC, dated as of June 1, 2012. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on August 9, 2012)
10.37	The Capacity Purchase Agreement by and among Continental Airlines, Inc., Republic Airlines, Inc., and Republic Airways Holdings Inc., dated as of May 1, 2012. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 9, 2012, as amended February 25, 2013)
10.37(a)†	Amendment to Capacity Purchase Agreement between Republic Airline Inc. and United Airlines, Inc. dated as of September 16, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on October 29, 2014)
10.38†	Funding Agreement between Republic Airlines, Inc. and Agencia Especial De Financiamento Industrial-FINAME dated as of July 2, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.39†	Loan Agreement between Republic Airlines, Inc. and Agencia Especial De Financiamento Industrial-FINAME dated as of July 2, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.40	Security Agreement between Republic Airlines, Inc. and Wells Fargo Bank Northwest, National Association, dated as of July 2, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.41	Guaranty Agreement between Republic Airlines, Inc. and Agencia Especial De Financiamento Industrial-FINAME dated as of July 2, 2013. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2013)
10.42†	Master Sublease Agreement between Republic Airline Inc. and FLYBE Limited dated as of September 16, 2014. (Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q filed on October 29, 2014)

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21.1	Subsidiaries of Republic Airways Holdings Inc.(i)
23.1	Consent of Deloitte & Touche LLP.
31.1	Certification by Bryan K. Bedford pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by Timothy P. Dooley pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by Bryan K. Bedford pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by Timothy P. Dooley pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive data file (furnished electronically herewith pursuant to Rule 406T of Regulation S-T.)
†	Portions of the indicated document have been afforded confidential treatment and have been filed separately with the Commission as required by Rule 406.
††	A request for confidential treatment was filed for certain portions of the indicated document. Confidential portions have been omitted and filed separately with the Commission as required by Rule 24b-2.
(i)	Incorporated by reference to the Registrant’s Registration Statement on Form S-1, File No. 333-84092, which was declared effective on May 26, 2004.
(ii)	Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2004.
(iii)	Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		REPUBLIC AIRWAYS HOLDINGS INC.
		(Registrant)
Dated:	February 27, 2015	By:	/s/ Bryan K. Bedford
			Bryan K. Bedford
			Chairman of the Board, Chief Executive Officer and President
			(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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Signature	Title	Date
/s/ Bryan K. Bedford
Bryan K. Bedford	Chairman of the Board, Chief Executive Officer and President (Principal Executive Officer)	February 27, 2015
/s/ Timothy P. Dooley
Timothy P. Dooley	Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 27, 2015
/s/ Ryan A. Willman
Ryan A. Willman	Vice President and Corporate Controller (Principal Accounting Officer)	February 27, 2015
/s/ Lawrence J. Cohen
Lawrence J. Cohen	Director	February 27, 2015
/s/ Neal S. Cohen
Neal S. Cohen	Director	February 27, 2015
/s/ Douglas J. Lambert
Douglas J. Lambert	Director	February 27, 2015
/s/ Mark L. Plaumann
Mark L. Plaumann	Director	February 27, 2015
/s/ Daniel P. Garton
Daniel P. Garton	Director	February 27, 2015
/s/ Robert L. Colin
Robert L. Colin	Director	February 27, 2015

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EX-10.17(C)

FOURTH AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

THIS FOURTH AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of May 31, 2014, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the “Company”), and WAYNE C. HELLER (the “Executive”).

R E C I T A L S

WHEREAS, the Executive and the Company are parties to the Third Amended and Restated Employment Agreement dated as of November 2, 2010, as amended (the “Prior Agreement”); and

WHEREAS, the Company and the Executive desire to amend certain provisions of the Prior Agreement and to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Employment. The Company agrees to continue to employ the Executive, and the Executive agrees to render his services to the Company, as its Executive Vice President and Chief Operating Officer, during the Term (as defined below). In connection with his employment as Executive Vice President and Chief Operating Officer, the Executive shall serve without additional payment or compensation of any kind as the President and Chief Operating Officer of any other direct or indirect subsidiary or affiliate of the Company designated by the Company’s Chief Executive Officer (collectively, the “Subsidiaries”). The Executive shall render his services at the direction of the Company's Chief Executive Officer at the Company’s offices in Indianapolis, Indiana. The Executive agrees to use his best efforts to promote and further the business, reputation and good name of the Company and the Subsidiaries (collectively, the “Company Group”) and the Executive shall promptly and faithfully comply with all instructions, directions, requests, rules and regulations made or issued from time to time by the Company.

2.Term.

(a)Unless earlier terminated by the Executive's death or Disability (as defined below), the term of the Executive's employment pursuant to this Agreement (the “Term”) shall continue until May 31, 2017 and shall be automatically renewed for successive one-year periods thereafter unless either party shall have given notice to terminate the Executive's employment no later than ninety (90) days prior to the end of the then current Term.

(b)Notwithstanding the foregoing, the Executive's employment may be terminated by the Company or by the Executive as provided in Section 4.

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3.Compensation and Benefits. As full and complete compensation for all the Executive’s services hereunder, during the Term the Company shall pay the Executive the compensation and provide the Executive with the benefits described below.

(a)Base Salary. During the Term, the Company shall pay the Executive an annual base salary of $350,000 (“Base Salary”). The Board shall review the Executive’s Base Salary each year and shall have the right in its discretion to increase such Base Salary. With the Executive's prior consent, the Executive's Base Salary may be reduced by an amount and for a period mutually agreed between the Executive and the Company so long as such reduction is made in conjunction with similar reductions in base salary for other executives or employees of the Company.

(b)Annual Incentive Plan. In addition to the Base Salary, during the Term, the Executive will have an annual incentive opportunity target equal to 90% of the Executive’s Base Salary for the year. The amount of the annual incentive (“Bonus”) for any year may be more or less than the target amount, but not more than 180% of the Executive’s Base Salary for the year, and will be determined, in its sole discretion, by the Compensation Committee based upon certain performance measures which shall be approved by the Compensation Committee in its discretion and communicated to the Executive by the end of each February during the Term. The Bonus for a year will be determined and payable by March 15 of the following year.

(c)Discretionary Bonus. The Executive may also be awarded one or more discretionary bonuses based on his individual performance or other factors as may be determined by the Compensation Committee in its sole discretion from time to time.

(d)Long-Term Incentive Awards. The Executive shall be entitled to receive long-term incentive awards under the Company's 2007 Equity Incentive Plan as amended from time to time (the "Plan") including, without limitation, options, restricted stock, restricted stock units, stock appreciation rights, performance shares and other awards, at such times, in such forms and in such amounts as may be determined by the Committee (as defined in the Plan) from time to time. The terms of any such awards shall be governed by the Plan and any applicable award agreement related thereto entered into between the Company and the Executive, except as otherwise provided herein.

(e)Medical & 401K Benefits. The Executive shall be entitled to participate in any retirement, 401K, disability, medical, pension, profit sharing, group insurance, or any other plan or arrangement, or in any other benefits now or hereafter generally available to executives of the Company, in each case to the extent that the Executive shall be eligible under the general provisions thereof.

(f)Annual Physical. The Company will arrange and pay for an annual physical of the Executive to be performed at the Mayo Clinic, or other facility chosen by the Executive once per year during the Term. The Executive acknowledges that this is a taxable benefit, and he authorizes the Company to take any required tax withholding (as reasonably determined by the Company) on account of such benefit from his other wages.

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(g)Vacation. The Executive shall be entitled to vacation in accordance with Company policy, which vacation shall be taken on dates to be selected by mutual agreement of the Company and the Executive.

(h)Reimbursement for Expenses. The Executive shall be entitled to reimbursement for ordinary and necessary business expenses incurred by the Executive in the course of his employment in accordance with the Company's policies from time to time.

4.Termination of Employment. The Executive's employment hereunder may be terminated during the Term in accordance with this Section 4.

(a)Death. In the event the Executive dies during the Term, the Executive's employment shall automatically terminate on the date of death. In such event, the Executive's estate shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, plus severance compensation provided for in Section 5(a).

(b)Disability. The Company, by written notice to the Executive, may immediately terminate the Executive’s employment in the event of the Executive's Disability. As used herein, "Disability" shall mean the Executive’s inability, with reasonable accommodation, to perform the essential functions of his position, by reason of physical or mental incapacity, for a consecutive period of 90 days or for a total period of 180 days in any 360-day period. In the event the Executive's employment is terminated due to the Executive's Disability, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, plus the severance compensation provided for in Section 5(a).

(c)Termination for Cause by the Company. The Company, by written notice to the Executive, may immediately terminate the Executive’s employment for Cause. As used herein, a termination by the Company “for Cause” shall mean that the Executive has (i) willfully or materially refused to perform a material part of his duties hereunder, (ii) willfully or materially failed to follow the direction of the Board, (iii) materially breached the provisions of Sections7, 8 or 9 hereof, (iv) acted fraudulently or dishonestly in his relations with the Company, (v) committed larceny, embezzlement, conversion or any other act involving the misappropriation of Company funds or assets in the course of his employment, or (vi) been indicted or convicted of any felony or other crime involving an act of moral turpitude. In the event the Executive's employment is terminated for Cause, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment, and shall not be entitled to receive any severance compensation.

(d)Termination other than for Cause by the Company. The Company, by written notice to the Executive, may terminate the Executive's employment other than for Cause, effective as of the date specified by the Company in the notice, which date shall not be earlier than the date of the notice. In such event, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination

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occurs, in each case through the effective date of the termination of his employment, plus the severance compensation provided for in Section 5(b).

(e)Termination for Good Reason by the Executive. The Executive, by providing at least 30 days prior written notice to the Company, may terminate his employment hereunder for Good Reason, provided that the Company shall have the right to cure such Good Reason within such 30-day period. In order to constitute a valid notice of a termination for Good Reason, the notice must be received by the Board of Directors or Chief Executive Officer of the Company no later than 60 days following the initial occurrence of any event asserted to constitute Good Reason. As used herein, a termination by the Executive “for Good Reason” shall mean that (i) the Company has materially diminished the duties and responsibilities of the Executive with respect to the Company, (ii) the Company has changed the principal location at which the Executive must perform his services to a location more than 25 miles from the current location of the Company's headquarters in Indianapolis, Indiana without the consent of the Executive, or (iii) the Company has materially breached the terms of this Agreement. In the event the Executive's employment is terminated for Good Reason, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, plus the severance compensation provided for in Section 5(b).

(f)Termination other than for Good Reason by the Executive. The Executive, by providing at least 60 days prior written notice to the Company, may terminate his employment other than for Good Reason. In such event, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment and shall not be entitled to receive any severance compensation.

(g)Impact of Termination for Cause or without Good Reason on Equity Awards. If the Executive's employment is terminated (i) by the Company for Cause, or (ii) by the Executive other than for Good Reason, all options to purchase shares of the Company's common stock and other equity awards held by the Executive on the effective date of termination that have not vested as of such date shall terminate immediately following the termination of the Executive's employment.

(h)Timing of Payments. The payment of any amounts due to the Executive pursuant to this Section 4 (other than severance compensation, if any, which shall be paid as provided in Section 5) shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment.

5.Severance Compensation.

(a)Termination Upon Death or Disability. In the event of the Executive’s death or in the event the Company terminates the Executive's employment as a result of the Executive’s Disability, the Company shall pay to the Executive or his estate, as the case may be, as severance compensation an amount equal to two times the Executive’s Base Salary as then in effect, plus two times the Executive’s Bonus for the last calendar year preceding

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the year in which his death or termination on account of Disability occurs. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least thirty days following the effective date of the termination of employment, provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as Exhibit A, and that such release is no longer revocable on the payment date. In addition, any options to purchase shares of the Company's common stock, and any awards of restricted stock, restricted stock units or performance shares, in each case that are held by the Executive on the effective date of termination and have not vested shall be treated in the same manner as provided therefor in Section 5(b). The Executive agrees that the Company may satisfy its obligations to provide cash severance compensation pursuant to this Section 5(a) by purchasing and maintaining one or more insurance policies payable to either the Executive or his designees or to the Company (with or without further payment to the Executive or such designees) upon the Executive’s death or as a result of the Executive’s Disability; provided that the proceeds of such insurance shall be payable to the Executive on the date set forth herein. The Executive agrees to cooperate with the Company in obtaining such insurance, including by participating in such physical examinations and providing such personal information as may be requested by the Company’s insurers.

(b)Termination by the Company Without Cause or by the Executive for Good Reason. If the Executive’s employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case prior to a Change of Control (as defined herein),

(i)the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive’s Base Salary as then in effect plus two times the Executive’s Bonus paid for the Company’s last calendar year. This severance compensation shall be paid in 12 equal monthly installments following a qualifying event, with the first payment payable on the first regular payroll date occurring in the calendar month following the date of the Executive's termination of employment, provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as Exhibit A, and that such release is no longer revocable on the first payment date;

(ii)all outstanding unvested options to purchase shares of the Company's common stock held by the Executive on the effective date of termination that would have vested in accordance with their terms prior to the first anniversary of the effective date of the termination of the Executive's employment shall vest immediately following the termination of the Executive's employment on such effective date and remain exercisable for a period of 30 days following such effective date;

(iii)all outstanding unvested awards of restricted stock and all unvested restricted stock units held by the Executive on the effective date of termination that

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would have vested in accordance with their terms prior to the first anniversary of the effective date of the termination of the Executive's employment shall vest immediately following the termination of the Executive's employment on such effective date; and

(iv)the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

(c)Termination following a Change of Control. If the Executive’s employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case within 18 months after a Change of Control:

(i)the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive’s Base Salary as then in effect plus two times the Executive’s Bonus paid for the Company’s last calendar year. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least 30 days following the effective date of the termination of employment;

(ii)all outstanding options to purchase shares of the Company's common stock held by the Executive on the effective date of termination that have not vested as of such date shall vest immediately prior to the termination of the Executive's employment and remain exercisable for a period of 30 days following the effective date of such termination;

(iii)all outstanding unvested awards of restricted stock and all unvested restricted stock units held by the Executive on the effective date of termination shall vest immediately prior to the termination of the Executive's employment; and

(iv)the Executive shall be entitled to receive, at the time when the severance compensation provided for in clause (i) of this Section 5(c) is paid, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive if the performance conditions related thereto were satisfied at the target level for such awards and the Executive had been employed on the date required to earn such shares.

As used herein, “Change of Control” shall mean the occurrence, after the date hereof, of any of the following: (1) the acquisition by any person or group of affiliated or associated

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persons of a majority or more of the voting power of the Company; (2) the consummation of a sale of all or substantially all of the assets of the Company; (3) the dissolution of the Company or (4) the consummation of any merger, consolidation, or reorganization involving the Company in which, immediately after giving effect to such merger, consolidation or reorganization, less than majority of the total voting power of outstanding stock of the surviving or resulting entity is then “beneficially owned” (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company immediately prior to such merger, consolidation or reorganization. Notwithstanding the preceding provisions, an event or series of events shall not constitute a "Change of Control" unless it is a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of Code Section 409A(a)(2)(A)(v) and the regulations thereunder.

(d)Termination by the Executive at End of Term.

(i)If the Executive gives notice to terminate his employment at the end of the then-current Term pursuant to Section 2(a) and the Executive and the Company do not reach agreement regarding the terms of the Executive's continued employment following the end of the Term, unless otherwise agreed by the Company in writing, the Executive shall continue to be employed and to provide services to the Company in the same manner as prior to the giving of such notice for an additional period of 90 days following the last day of the Term (the "Transition Period"). Unless terminated earlier as provided in this Agreement, the Executive's employment shall terminate at the end of the Transition Period. The Executive's duties during this period shall also include those things that are reasonably necessary to assure a smooth transition of the Executive's duties to his successor or to such other persons as the Company may determine and any diminution of the Executive's duties during this period shall not constitute Good Reason under this Agreement.

(ii)During the Transition Period, the Executive shall (A) be entitled to continue to receive his Base Salary and shall continue to accrue a pro-rata portion of his target Bonus, in each case as in effect at the end of the Term and for the period of his continued employment, (B) shall continue to participate in the Company's benefit programs described in Section 3(d), and (C) shall continue to be reimbursed for business expenses as provided in Section 3(g). Except as provided in Section 5(d)(iii), the Executive shall not be entitled to any severance compensation as a result of the termination of his employment during or at the end of the Transition Period. Outstanding equity awards held by the Executive shall continue to be outstanding, shall continue to vest and may be exercised in accordance with their terms, and shall otherwise be unaffected while the Executive is employed during the Transition Period.

(iii)Upon the earlier of (A) the termination of the Executive's employment upon completion of the Transition Period, or (B) the termination of the Executive's employment by the Company during the Transition Period other than for Cause,

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(1)the Executive shall be entitled to receive from the Company an amount equal to his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, together with any Bonus related to a prior year that has been fully earned by the Executive but not paid to him as of the date of termination, which amount shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment;

(2)the Executive shall be entitled to receive severance compensation in an amount equal to one times the Executive’s Base Salary as in effect at the end of the Term, which amount shall be paid in 12 equal monthly installments following the effective date of termination, with the first payment payable on the first regular payroll date occurring in the calendar month following the effective date of termination of the Executive's employment, provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as Exhibit A, and that such release is no longer revocable on the first payment date; and

(3)subject to delivery of such release, (X) any unvested restricted shares, unvested restricted stock units, and unvested stock options held by the Executive on the date of termination that would have vested in accordance with their terms prior to the first anniversary of the effective date of the termination of the Executive's employment shall vest immediately following the termination of the Executive's employment on such effective date, and (Y) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

(e)Continuation of Benefits.

(i)Medical Benefits. Upon termination of the Executive’s employment for any reason, voluntary or involuntary, with or without Cause, the Company shall pay the Executive $2,500.00 each month for the lifetime of the Executive, subject to an annual upward inflation adjustment, to be effective as of June 1 of each year, based on the increase, if any, in the Overall Medical Care Component of the Consumer Price Index for All Urban Consumers from the level of such component on June 1, 2014, for the cost of health insurance from a source other than the Company

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for himself, his spouse and his eligible dependents, provided that the Executive presents evidence of such insurance to the Company. The Company will begin the monthly payments to the Executive 30 days after the termination of the Executive’s employment and thereafter on the 15th day of each subsequent month during the Executive’s lifetime.

(ii)Travel Privileges. Upon termination of the Executive’s employment for any reason, voluntary or involuntary, with or without Cause, the Company shall provide the Executive during his lifetime with a Universal Air Travel Plan, Inc. (UATP) card in the amount of $15,000 annually that the Executive, his spouse and his dependents can use for travel. The Executive shall be responsible for any applicable tax withholding associated with such benefit. The Company will provide the UATP card to the Executive within 30 days of the termination of the Executive’s employment and thereafter each year on the anniversary of such date during the lifetime of the Executive.

6.No Other Compensation; Withholding. Except as otherwise expressly provided herein, or in any other written document executed by the Company and the Executive, no other compensation or other consideration shall become due or payable to the Executive on account of the services rendered to the Company Group. The Company shall have the right to deduct and withhold from the compensation payable to the Executive hereunder any amounts required to be deducted and withheld under the provisions of any statute, regulation, ordinance, order or any other amendment thereto, heretofore or hereafter enacted, requiring the withholding or deduction of compensation.

7.Confidential Information. The Executive recognizes and acknowledges that he shall receive in the course of his employment hereunder certain confidential information and trade secrets concerning the Company Group’s business and affairs which may be of great value to the Company Group. The Executive therefore agrees that he will not disclose any such information relating to the Company Group, the Company Group’s personnel or their operations other than in the ordinary course of business or in any way use such information in any manner which could adversely affect the Company Group’s business. For purposes of this Agreement, the terms “trade secrets” and “confidential information” shall include any and all information concerning the business and affairs of the Company Group and any division or other affiliate of the Company Group that is not generally available to the public. The Company may, formally or informally, establish, adopt, implement or utilize procedures or actions that are designed to monitor or protect Company Group's confidential information. Executive hereby irrevocably consents, without the right to receive further notice, to any or all of these procedures or actions that may be established, adopted, implemented, utilized or enforced by the Company Group. The Company Group shall have the right to establish, adopt, implement, utilize or enforce these procedures at any time during Executive's employment with Company Group and during any period in which any restrictive covenants contained in this Agreement are facially or legally applicable. Executive expressly WAIVES the right to challenge the enforceability of any of these procedures in any legal action seeking to enforce this Agreement or to recover for Executive's breach or alleged breach of this Agreement.

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8.Non-Competition.

(a)The Executive agrees that without the prior written consent of the Board during the Term and for a period of 12 months following the termination of the Executive's employment, he will not participate as an advisor, partner, joint venturer, investor, lender, consultant or in any other capacity in any business transaction or proposed business transaction (i) with respect to which the Executive had a material personal involvement on behalf of the Company Group during the last 12 months of his employment with the Company, or (ii) that could reasonably be expected to compete with the Company Group’s business or operations or proposed or contemplated business or transactions of the Company Group that are (A) known by the Executive as of the date of such termination or expiration, and (B) contemplated by the Company Group to proceed during the 12-month period following such termination or expiration. For these purposes, the mere ownership by the Executive of securities of a public company not in excess of 2% of any class of such securities shall not be considered to be competition with the Company Group.

(b)During any period when the Company is providing severance compensation to the Executive (other than any pro-rata payout of performance shares pursuant to Section 5(b)(iv) or Section 5(d)(iii)), Executive agrees to refrain from any competition with Company Group.

(c)To the fullest extent permitted by applicable law, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, in any capacity, may not, directly or indirectly, in a competing capacity, solicit or obtain any business from any present customer of the Company Group with whom Executive had contact or received information from the Company Group. It is understood and agreed that "present customer" is defined to mean any entity with whom the Company Group had an "ongoing business relationship" at the time of the termination of Executive's employment with the Company. An "ongoing business relationship" (specifically excluding non-competing vendor relationships) is generally understood and agreed to mean: (i) services or goods were provided by the Company Group to the entity during the employment of Executive by Company; (ii) services or goods had been contracted for or ordered by the entity during the employment of Executive by the Company Group; or (iii) negotiations were in progress between the entity and the Company Group for the providing of goods or services by the Company Group to the entity at the time of the termination of the employment of Executive. It is understood and agreed that past customers and prospective customers are not "present customers" protected under the terms of this provision.

(d)To the fullest extent permitted by applicable law, in recognition of the global nature of the Company Group's business, and Executive's access to the Company Group's confidential information, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, may not, directly or indirectly, compete with the Company Group: (i) anywhere in the world; (ii) in North America; (iii) in the United States;

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(iv) in Indiana; (v) within a 25-mile radius of any location of the Company Group with which Executive had operational involvement.

9.Non-Solicitation. The Executive agrees that during the Term, and for a period of 12 months following the termination of the Executive's employment, he shall not, without the prior written consent of the Company, directly or indirectly, employ or retain, or have or cause any other person or entity to employ or retain, any person who was employed by the Company Group or any of its divisions or affiliates while the Executive was employed by the Company, or directly or indirectly solicit or encourage any such person for employment or to leave the employ of the Company Group.

10.Breach of this Agreement. If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of Sections 7, 8 or 9 of this Agreement, then the Company shall have the right and remedy to have those provisions specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed by the Executive that the rights and privileges of the Company granted in Sections 7, 8 and 9 are of a special, unique and extraordinary character and any such breach or threatened breach will cause great and irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.

11.Notices. All notices and other communications required or permitted hereunder shall be in writing (including facsimile, telegraphic, telex or cable communication) and shall be deemed to have been duly given when delivered by hand, or mailed, certified or registered mail, return receipt requested and postage prepaid:

If to the Company:    Republic Airways Holdings Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attn: Chief Executive Officer

With a copy to each member of the Board

If to the Executive:    Wayne C. Heller

2115 Burning Tree Drive

Carmel, IN 46032

12.Applicable Law. This Agreement was negotiated and entered into within the State of Indiana. All matters pertaining to this Agreement shall be governed by the laws of the State of Indiana applicable to contracts made and to be performed wholly therein. Nothing in this Agreement shall be construed to require the commission of any act contrary to law, and wherever there is any conflict between any provision of this Agreement and any material present or future statute, law, governmental regulation or ordinance as a result of which the parties have no legal right to contract or perform, the latter shall prevail, but in such event the provision(s) of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it or them within the legal requirements.

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13.Entire Agreement; Modification; Consents and Waivers. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties with respect to the subject matter hereof. No interpretation, change, termination or waiver of or extension of time for performance under any provision of this Agreement shall be binding upon any party unless in writing and signed by the party intended to be bound thereby. Except as otherwise provided in this Agreement, no waiver of or other failure to exercise any right under or default or extension of time for performance under any provision or this Agreement shall affect the right of any party to exercise any subsequent right under or otherwise enforce said provision or any other provision hereof or to exercise any right or remedy in the event of any other default, whether or not similar.

14.Severability. The parties acknowledge that, in their view, the terms of this Agreement are fair and reasonable as of the date signed by them, including as to the scope and duration of post-termination activities. Accordingly, if any one or more of the provisions contained in this Agreement shall for any reason, whether by application of existing law or law which may develop after the date of this Agreement, be determined by a court of competent jurisdiction to be excessively broad as to scope of activity, duration or territory, or otherwise unenforceable, the parties hereby jointly request such court to construe any such provision by limiting or reducing it so as to be enforceable to the maximum extent in favor of the Company compatible with then-applicable law. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall nonetheless be determined by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

15.Assignment. The Company may, at its election, assign this Agreement or any of its rights hereunder. This Agreement may not be assigned by the Executive.

16.Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

17.Jurisdiction and Venue. Executive agrees to and hereby does submit to jurisdiction before any state or federal court of record in Marion County, or Hamilton County, Indiana, and Executive hereby waives any right to raise the questions of jurisdiction and venue in any action that the Company may bring to any such court against Executive. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

18.Survival. The provisions of Sections 7 through 20 of this Agreement shall survive any expiration or termination of this Agreement.

19.Impact on Equity Awards. In the case of a termination of the Executive's employment under the circumstances provided for in this Agreement, the vesting and other terms of any equity awards (including options to purchase stock of the Company, restricted stock, restricted stock units and performance shares) held by the Executive on the date of such termination shall be governed by the applicable provisions of this Agreement notwithstanding any contrary or conflicting provision of any plan under which any such award may have been made, the Prior Agreement or any award agreement or other agreement related to any such equity award, whether now existing or hereafter

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executed between the Company and the Executive. Any and all such contrary or conflicting provisions in the Prior Agreement or any such award agreement or other agreement shall be amended by the execution of this Agreement to provide for vesting and other treatment in such circumstances as set forth in this Agreement, but the remaining terms of such agreements shall be unaffected hereby. For the avoidance of doubt, the parties agree that no such outstanding equity award shall vest solely due to the occurrence of a Change of Control, and any such provision in the Prior Agreement or any such award agreement or other agreement shall be deemed to be deleted from such agreement as amended by this Agreement.

20.Indemnification. The Company shall, to the fullest extent allowed by law, defend, indemnify and hold harmless the Executive from and against any and all demands, claims, suits, liabilities, actions asserted or brought against the Executive or in which the Executive is made a party, including, without limitation, all litigation costs and attorneys’ fees incurred by the Executive or judgments rendered against the Executive, in connection with any matter arising within the course and scope of Executive’s employment with the Company or service as an officer, director or manager of the Company or any of the Subsidiaries. The right of the Executive to indemnification hereunder shall vest at the time of occurrence or performance of any event, act or omission giving rise to any demand, claim, suit, liability, action or legal proceeding of the nature referred to in this Section 20 and, once vested, shall survive the termination of Executive’s employment with the Company for any reason.

21.Section 409A Compliance.

(a)Any payments conditioned upon a termination of the Executive’s employment will be deemed to be conditioned upon the Executive’s separation from service within the meaning of Treasury Regulation Section 1.409A-1(h) and will be construed and interpreted accordingly. If the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive’s separation from service, then the Executive shall not be entitled to any severance payments or other benefits pursuant to this Agreement until the earlier of (a) the date which is six months after the date of the Executive’s separation from service, or (b) the date of the Executive’s death. This paragraph shall only apply if, and to the extent required in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation Section 1.409A-3(i)(2). Any amounts otherwise payable to the Executive upon or in the six-month period following the Executive’s separation from service that are not so paid by reason of this paragraph shall be paid to the Executive (or the Executive’s estate, as the case may be) as soon as practicable (and in all events within twenty days) after the expiration of such six-month period or (if applicable, the date of the Executive’s death).

(b)Any taxable reimbursement of expenses payable to the Executive shall be paid to the Executive on or before the last day of the Executive’s taxable year following the taxable year in which the related expense was incurred. Expense reimbursements and in-kind benefits provided to the Executive shall not be subject to liquidation or exchange for another benefit and the amount of such reimbursements or in-kind benefits that the Executive

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receives in one taxable year shall not affect the amount of such reimbursements or benefits that the Executive may receive in any other taxable year.

(c)It is intended that any amounts payable under this Agreement and the Company’s and the Executive’s exercise of any authority or discretion hereunder shall comply with, and avoid the imputation of any tax, penalty or interest under Section 409A of the Code. This Agreement shall be construed and interpreted consistent with that intent. Should the Company pay the Executive contrary to clause (a) or (b) of Section 21(a) above, the Company shall indemnify the Executive for any taxes due thereon as a result.

22.Adjustments to Payments.

(a)Notwithstanding any other provision of this Agreement, if any payment or benefit Executive would receive pursuant to this Agreement or otherwise, including accelerated vesting of any equity compensation (all such payments and/or benefits hereinafter, “Payment”), would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be either (x) provided to the Executive in full, or (y) provided to the Executive to such lesser extent which would result in no portion of such Payment being subject to the excise tax, further reduced by $5,000 (including such further reduction, the “Cutback Amount”), whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, such excise tax and other applicable taxes, (all computed at the highest applicable marginal rates), results in the receipt by the Executive, on an after-tax basis, of the greatest amount of the Payment, notwithstanding that all or a portion of such Payment may be subject to the excise tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Cutback Amount, reduction shall occur in the following order: (A) cash payments shall be reduced first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; (B) accelerated vesting of performance-based equity awards shall be cancelled or reduced next and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any performance-based stock option or stock appreciation rights are reduced; (C) health and welfare benefits shall be reduced and in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced; and (D) accelerated vesting of time-based equity awards shall be cancelled or reduced last and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any time-based stock option or stock appreciation rights are reduced.

(b)The Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder and perform the foregoing calculations.  The Company shall bear all expenses with respect to the determinations by such accounting firm

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required to be made hereunder.  The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within 15 calendar days after the date on which right to a Payment is triggered (if requested at that time by the Company or Executive).  Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

REPUBLIC AIRWAYS HOLDINGS INC.

By: /s/ Mark Plaumann

Name: Mark Plaumann

Title: Chairman of the Compensation Committee of the Board of Directors

WAYNE C. HELLER

/s/ Wayne C. Heller

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EXHIBIT A

FORM OF RELEASE

GENERAL RELEASE

In exchange for the payments and benefits set forth in the Fourth Amended and Restated Employment Agreement between Republic Airways Holdings Inc. (the “Company”) and me dated as of May 31, 2014 (the “Agreement”), and to be provided following the Effective Date (as defined below) of this General Release and subject to the terms of the Agreement, and my execution (without revocation) and delivery of this General Release:

1.    (a)    On behalf of myself, my agents, assignees, attorneys, heirs, executors and administrators, I hereby release the Company and its predecessors, successors and assigns, their current and former parents, affiliates, subsidiaries, divisions and joint ventures (collectively, the “Company Group”) and all of their current and former officers, directors, employees, and agents, in their capacity as Company Group representatives (individually and collectively, “Releasees”) from any and all controversies, claims, demands, promises, actions, suits, grievances, proceedings, complaints, charges, liabilities, damages, debts, taxes, allowances, and remedies of any type, including but not limited to those arising out of my employment with the Company Group (individually and collectively, “Claims”) that I may have by reason of any matter, cause, act or omission. This release applies to Claims that I know about and those I may not know about occurring at any time on or before the date of execution of this General Release.

(b)    This General Release includes a release of all rights and Claims under, as amended, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Equal Pay Act of 1963, the Family and Medical Leave Act of 1993, the Older Workers Benefit Protection Act of 1990, the Occupational Safety and Health Act of 1970, the Worker Adjustment and Retraining Notification Act of 1989 and the Sarbanes-Oxley Act of 2002, as well as any other federal, state, or local statute, regulation, or common law regarding employment, employment discrimination, termination, retaliation, equal opportunity, or wage and hour. I specifically understand that I am releasing Claims based on age, race, color, sex, sexual orientation or preference, marital status, religion, national origin, citizenship, veteran status, disability, genetic information and other legally protected categories.

(c)    This General Release also includes a release of any Claims for breach of contract, any tortious act or other civil wrong, attorneys’ fees, and all compensation and benefit claims including without limitation Claims concerning salary, bonus, and any award(s), grant(s), or purchase(s) under any equity and incentive compensation plan or program.

(d)    In addition, I am waiving my right to pursue any Claims against the Company Group and Releasees under any applicable dispute resolution procedure, including any arbitration policy.

I acknowledge that this General Release is intended to include, without limitation, all Claims known or unknown that I have or may have against the Company Group and Releasees through the Effective Date of this General Release. Notwithstanding anything herein, I expressly reserve and do not release pursuant to this General Release (and the definition of “Claims” will not include) (i) my rights with respect to the enforcement of the Agreement, including but not limited to the right to receive severance compensation (as provided in Section 5 of the Agreement), if any, and other payments, benefits and indemnifications specified in the Agreement, (ii) any rights or interest under any Benefit Plans (as defined in the Agreement), (iii) any

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right to indemnification pursuant to the Company’s Certificate of Incorporation or By-laws as in effect on the date hereof, (iv) the protections of the Company Group’s directors and officers liability insurance, if any, in each case, to the same extent provided to other senior executives of the Company, (v) any claims and rights that cannot be waived by law, including but not limited to my right to file an EEOC charge but hereby waive my right to financial recovery as to any such charge, (vi) the vesting and exercise of any equity grant pursuant to the terms of the applicable equity award agreement or the applicable equity incentive plan, (vii) any rights as a stockholder of the Company, and (viii) any rights under Sections 10 and 11of the Agreement following termination of employment.

2.    I acknowledge that I have had at least 21 calendar days from the date of my termination of employment with the Company (the “Termination Date”) to consider the terms of this General Release, that I have been advised to consult with an attorney regarding the terms of this General Release prior to executing it, that I have consulted with my attorney, that I fully understand all of the terms and conditions of this General Release, that I understand that nothing contained herein contains a waiver of claims arising after the date of execution of this General Release, and I am entering into this General Release knowingly, voluntarily and of my own free will. I further understand that my failure to sign this General Release and return such signed General Release to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 by 5:00 pm on the 22^nd day after the Termination Date will render me ineligible for the payments and benefits described herein and in the Agreement.

3.    I understand that once I sign and return this General Release to the Company, I have 7 calendar days to revoke it. I may do so by delivering to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 written notice of my revocation within the 7-day revocation period (the “Revocation Period”). This General Release will become effective on the 8^th day after I sign and return it to the Company (“Effective Date”); provided that I have not revoked it during the Revocation Period.

YOU ARE HEREBY ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS GENERAL RELEASE.

I HAVE READ THIS GENERAL RELEASE AND UNDERSTAND ALL OF ITS TERMS. I SIGN AND ENTER THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY, WITH FULL KNOWLEDGE OF WHAT IT MEANS.

WAYNE C. HELLER

__________________________________________

Date: _____________________________________

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EX-10.25(F)

Portions of this agreement have been omitted based upon a request for confidential treatment. This agreement, including the non-public information, has been filed separately with the Securities and Exchange Commission. “[*]” designates portions of this document that have been redacted pursuant to the request for confidential treatment filed with the Securities and Exchange Commission.

EXECUTION COPY

AMENDMENT NUMBER SEVEN to

DELTA CONNECTION

AGREEMENT

This Amendment Number Seven (this "Amendment"), dated as of December 11, 2014 (“Amendment Number Seven Effective Date”), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the “Agreement”), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corporation (as assignee of Republic Airline Inc.) (“Shuttle America” or “Operator”), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. (“Republic”), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, the parties desire to add additional aircraft within the scope of the Agreement and amend certain provisions of the Agreement, each pursuant to the terms of this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1. Defined Terms. All terms capitalized used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement.

2.Option to Purchase Existing Sixteen (16) ERJ 175 Aircraft.

Delta shall have the option, which it may exercise in its sole discretion by providing Operator no less than [*] prior written notice and subject to reasonable and customary due diligence by or on behalf of Delta, to purchase from Operator any, or all, of the sixteen (16) ERJ 175 Aircraft set forth in Exhibit A attached hereto and incorporated herein together with two (2) of the thirty-two (32) engines set forth on Exhibit A attached hereto for each such ERJ 175 Aircraft (collectively, the “ERJ 175 Baseline Aircraft”) upon the expiration of the respective term of the Agreement with respect to each such ERJ 175 Baseline Aircraft for an amount equal to the net book value (in accordance with GAAP) of each such ERJ 175 Baseline Aircraft at the time of such expiration (the “ERJ 175 Baseline Aircraft Purchase Option”). At any time after Delta

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exercises any such ERJ 175 Baseline Aircraft Purchase Option for any ERJ 175 Baseline Aircraft, Delta shall be solely responsible for the cost of any life limited parts (“LLP”) replacement with respect to such ERJ 175 Baseline Aircraft.

A. Delta shall have the option, which it may exercise in its sole discretion by providing Operator no less than [*] prior written notice and subject to reasonable and customary due diligence by or on behalf of Delta, to purchase from Operator any, or all, of such ERJ 175 Baseline Aircraft at any time during either of the respective ERJ 175 Baseline Aircraft Extension Term (as defined below) or the ERJ 175 Baseline Aircraft Subsequent Extension Term (as defined below) for an amount equal to the net book value (in accordance with GAAP) of each such ERJ 175 Baseline Aircraft at the time of purchase (the “ERJ 175 Extension Purchase Option”). If Delta exercises any such ERJ 175 Extension Purchase Option, Delta shall lease back to Operator each such purchased ERJ 175 Baseline Aircraft pursuant to a mutually agreed upon aircraft lease agreement (such agreement not to be unreasonably withheld or delayed), and Operator shall operate each such ERJ 175 Baseline Aircraft under the scope of the Agreement for the remainder of the ERJ 175 Baseline Aircraft Extension Term and/or ERJ 175 Baseline Aircraft Subsequent Extension Term, as applicable. With respect to each such aircraft lease agreement, the parties agree that unless Operator is in breach or default of such lease, Operator shall pay Delta a lease rate equal to [*] during the term of each such lease. At any time after Delta exercises any such ERJ 175 Extension Purchase Option for any ERJ 175 Baseline Aircraft, Delta shall be solely responsible for the cost of any LLP replacement with respect to such ERJ 175 Baseline Aircraft.

3. Extension of Term of the ERJ 175 Baseline Aircraft.

A. The term of the ERJ 175 Baseline Aircraft shall be extended until the respective fifteenth (15^th) anniversary dates of the initial in-service dates of such ERJ 175 Baseline Aircraft to Delta Connection service as set forth in Exhibit A attached hereto (the “ERJ 175 Baseline Aircraft Extension Term”).

B. Additionally, with respect to any or all of the ERJ 175 Baseline Aircraft, Delta shall have the option, in its sole discretion, to further extend the term of such ERJ 175 Baseline Aircraft for a period of five (5) years beyond the applicable ERJ 175 Baseline Aircraft Extension Term (the “ERJ 175 Baseline Aircraft Subsequent Extension Term”). Delta may exercise this option by providing Operator no less than [*] prior written notice of such election. If Delta exercises its option of the ERJ 175 Baseline Aircraft Subsequent Extension Term for any ERJ 175 Baseline Aircraft, Delta and Operator acknowledge and agree that the monthly Aircraft Rent/Ownership Cost during the ERJ 175 Baseline Aircraft Subsequent Extension Term with respect to each such ERJ 175 Baseline Aircraft shall be equal to [*] (subject to potential Mark-Up in accordance with Article 3 of the Agreement).

C. The following Sections of the Agreement shall be of no force and effect with respect to the ERJ 175 Baseline Aircraft effective upon the first day of the ERJ 175 Baseline

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Aircraft Extension Term: Sections 11.G., 11.I. and 11.M.

4.Extension of ERJ 170 Additional Aircraft and ERJ 170 Subsequent Additional Aircraft.

A. (i) Notwithstanding Section 3(D) of Amendment Number Three to the Agreement dated January 31, 2011 (“Amendment Three”), the parties agree to extend the terms of the eight (8) ERJ-170 Additional Aircraft (as that term is defined in Amendment Three) and (ii), notwithstanding Section 3(D) of Amendment Number Four to the Agreement dated April 26, 2011 (“Amendment Four”), the parties agree to extend the terms of the six (6) ERJ 170 Subsequent Additional Aircraft (as that term is defined in Amendment Four and together with the ERJ-170 Additional Aircraft, the “ERJ 170 Baseline Aircraft”) through the respective “Amended Expiration Dates” set forth in Exhibit Battached hereto and incorporated herein to this Amendment.

B. Section 3(K) of Amendment Three and Section 3(K) of Amendment Four are each deleted in their entireties and of no further force and effect.

C. (i)    The parties acknowledge and agree that one or more of the ERJ-170 Baseline Aircraft may require “C-checks” on their respective airframes prior to the end of their respective terms under the Agreement. [*].

(ii)    In addition, at the end of each ERJ-170 Baseline Aircraft’s respective term under the Agreement, Delta shall pay to Operator in the month following the last flight under the Agreement by the applicable ERJ-170 Baseline Aircraft an amount equal to the product of (y) [*] multiplied by (z) [*].

D. Prior to each of the “Amended Expiration Dates” set forth in Exhibit B attached hereto, Delta shall have the option, in its sole discretion, to extend the term of any, or all, of the ERJ 170 Baseline Aircraft for a period of five (5) years beyond each respective Amended Expiration Date (the “ERJ-170 Baseline Aircraft Extension Term”) by providing Operator no less than [*] prior written notice. If Delta exercises such option for one or more ERJ-170 Baseline Aircraft, then the monthly Aircraft Rent/Ownership Cost with respect to each such ERJ-170 Baseline Aircraft shall be [*] (subject to potential Mark-Up in accordance with Article 3 of the Agreement). If Delta does not exercise such option with respect to an ERJ-170 Baseline Aircraft, such ERJ 170 Baseline Aircraft shall be removed from Delta Connection service and the scope of the Agreement as of its Amended Expiration Date.

5.Addition of Nine (9) ERJ 170 Aircraft.

A. Pursuant to Article 1(A) of the Agreement, effective as of the respective “In-Service Date” (as defined below), the nine (9) ERJ 170 Aircraft set forth in Exhibit B attached hereto and incorporated herein (the “Placement Aircraft”) shall be included as Aircraft under the terms of the Agreement, except as otherwise set forth in this Amendment. The

3

Base Rate Costs with respect to the Placement Aircraft shall be the same as the Base Rate Costs applied to the other ERJ-170 Baseline Aircraft.

B. Each Placement Aircraft shall be made available by Operator to be placed into Delta Connection service on the In-Service Date set forth opposite such Placement Aircraft in Exhibit B (each such date, an “In-Service Date”). If Operator is unable to have available for Delta Connection service any Placement Aircraft on its respective In-Service Date, Operator shall pay Delta the sum of [*] per day that each such Placement Aircraft is not available for Delta Connection service beyond such aircraft’s respective In-Service Date due to circumstances within the control of Operator, up to a maximum of [*] per each Placement Aircraft.

C. Operator and Republic, jointly and severally, represent and warrant to Delta that each of the Placement Aircraft will be maintained in accordance with Operator's FAA approved maintenance program and, excluding the Placement Aircraft Configuration (as defined in Section 5(F) below) conversion, Placement Aircraft Interior Modifications (as defined in Section 5(G) below), scheduled C-checks of each type, and ordinary and routine maintenance requirements, each of the Placement Aircraft is fully operable, able to operate under the terms of the Agreement, and is not subject to any unusual or extraordinary repair or maintenance requirements.

D. Notwithstanding anything in the Agreement to the contrary, each Placement Aircraft shall be included as an Aircraft under the Agreement for a period of six (6) years commencing on the respective In-Service Date of each such Placement Aircraft (the “Placement Aircraft Term”).

E. Each of the Placement Aircraft shall be repainted in the Delta-approved Delta Connection livery prior to its respective In-Service Date. [*]

F. Prior to its respective In-Service Date, each Placement Aircraft shall be configured in a dual-class configuration consisting of [*] first class seats, [*] economy comfort seats, and [*] coach class seats, unless otherwise designated by Delta, in its sole discretion (“Placement Aircraft Configuration”). Delta shall select, in its sole discretion, all suppliers to be used to configure each Placement Aircraft in the Placement Aircraft Configuration. [*]

G. Prior to its respective In-Service Date, each of the Placement Aircraft shall be in compliance with the then-current Delta Connection standards including, but not limited to, with respect to WiFi, cabin carpets, seat belts, seat covers,curtains, class dividers, seat track covers, bin strips (if applicable) and laminates (the “Standards”). If any of the Placement Aircraft are not in compliance with the Standards, each such noncompliant Placement Aircraft shall undergo additional modifications to conform to such Standards (the “Placement Aircraft Interior Modifications”). Delta shall select, in its sole discretion, all suppliers to be used to perform the Placement Aircraft Interior Modifications. [*]

4

H. [*] Operator shall be solely responsible for any and all start-up costs and transition fees associated with including the Placement Aircraft as Aircraft under the Agreement including, without limitation, all costs and fees related to induction, positioning, maintenance bridging and “sunshine” maintenance of each Placement Aircraft, and Operator shall not be entitled to any reimbursement thereof by Delta under the Agreement or otherwise.

I. Notwithstanding anything in the Agreement to the contrary, the parties agree that the monthly Aircraft Rent/Ownership Cost with respect to each of the Placement Aircraft shall be equal to [*] (subject to potential Mark-Up in accordance with Article 3 of the Agreement). Such Aircraft Rent/Ownership Costs shall commence on the actual In-Service Date of each such Placement Aircraft.

J. (i)    The parties acknowledge and agree that one or more of the Placement Aircraft may require “C-checks” on their respective airframes prior to the end of their respective terms under the Agreement. [*].

(ii)    In addition, at the end of each Placement Aircraft’s respective term under the Agreement, Delta shall pay to Operator in the month following the last flight under the Agreement by the applicable Placement Aircraft an amount equal to the product of (y) [*] (z) [*]

6. [*]

[*]

7. [*]

[*]

8. [*]

[*]

D. Section 3(L) of Amendment Three and Section 3(L) of Amendment Four are hereby deleted in their entirety and of no further force and effect.

9. Engine Maintenance Agreements.

At no time after the Amendment Number Seven Effective Date shall Operator enter into any LLP or engine maintenance agreement or amendment with respect to any of the engines associated with the ERJ 175 Baseline Aircraft, ERJ 170 Baseline Aircraft or Placement Aircraft without the prior written consent of Delta, such consent not to be unreasonably withheld, delayed or conditioned.

5

10. Miscellaneous.

A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument.

C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

{Signatures appear on following page}

6

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

Republic Airways Holdings Inc.        Delta Air Lines, Inc.

By: /s/ Bryan K. Bedford            By: /s/ Don Bornhorst

Name: Bryan K. Bedford            Name: Don Bornhorst

Title: Chairman, President & CEO        Title: SVP Delta Connection

Shuttle America Corporation

By: /s/ Bryan K. Bedford

Name: Bryan K. Bedford    

Title: Chairman, President & CEO

7

EXHIBIT A

ERJ 175 Baseline Aircraft and

ERJ 175 Baseline Aircraft Engines

								Engines
	Fleet		Tail Number	Serial Number	In-Service Date	Baseline Extension Term	Subsequent Extension Term	ESN 1	ESN 2
1	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
2	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
3	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
4	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
5	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
6	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
7	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
8	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
9	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
10	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
11	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
12	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
13	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
14	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
15	E175 Baseline		[*]	[*]	[*]	[*]	[*]	[*]	[*]
16	E175 Baseline					02/24/24	02/24/29	[*]	[*]
Spare engines		Engines
E175 Baseline		[*]
E175 Baseline		[*]
E175 Baseline		[*]

8

EXHIBIT B

ERJ 170 Baseline Aircraft and

ERJ 170 Baseline Aircraft Engines

							Engines
	Fleet	Tail Number	Serial Number	In-Service Date	Amended Expiration Date	Baseline Aircraft Extension Term	ESN 1	ESN 2
1	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
2	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
3	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
4	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
5	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
6	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
7	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
8	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
9	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
10	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
11	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
12	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
13	E170 Baseline	[*]	[*]	[*]	[*]	[*]	[*]	[*]
14	E170 Baseline	[*]	[*]	[*]	10/01/21	10/01/26	[*]	[*]

9

Placement Aircraft and

Placement Aircraft Engines

						Engines
	Fleet	Tail Number	Serial Number	In-Service Date	Placement Aircraft Term	ESN 1	ESN 2
1	E170 Placement	[*]	[*]	09/09/15	09/09/21	[*]	[*]
2	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
3	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
4	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
5	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
6	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
7	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
8	E170 Placement	[*]	[*]	[*]	[*]	[*]	[*]
9	E170 Placement	[*]	[*]	04/15/16	04/15/22	[*]	[*]

I\4814320.1

10

EX-10.28(D)

Portions of this agreement have been omitted based upon a request for confidential treatment. This agreement, including the non-public information, has been filed separately with the Securities and Exchange Commission. “[*]” designates portions of this document that have been redacted pursuant to the request for confidential treatment filed with the Securities and Exchange Commission.

Execution Copy

FIFTH AMENDMENT TO THE

REPUBLIC JET SERVICE AGREEMENT

BETWEEN US AIRWAYS, INC

AND

REPUBLIC AIRLINE INC.

This Fifth Amendment (the “Fifth Amendment”) to the Republic Jet Service Agreement between US Airways, Inc. (“US Airways”) and Republic Airline Inc. (“Republic”) made and entered into as of September 2, 2005 (as amended, modified and supplemented from time to time, the “Agreement”) is entered into on November 6, 2014.

RECITALS:

A.US Airways and Republic are parties to the Agreement.

B.The Agreement has previously been amended, including by the Second Amendment to the Republic Jet Service Agreement, dated July 21, 2006 (the “Second Amendment”), which had erroneously been named “First Amendment”, the Third Amendment to the Republic Jet Service Agreement, dated December 19, 2006 (the “Third Amendment”), and the Fourth Amendment to the Republic Jet Service Agreement, dated March 14, 2013 and effective as of January 1, 2013 (the “Fourth Amendment”).

C.All capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Agreement.

D.Republic and US Airways desire to amend the Agreement to, among other things, extend the Term thereof with regard to 20 EMB-170 aircraft and 8 EMB-175 aircraft operated by Republic pursuant to the Agreement beyond the current expiration date of September 4, 2015.

AGREEMENT

NOW, THEREFORE, in consideration of the promises and covenants set forth herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, US Airways and Republic agree as follows:

A. AMENDMENTS

1

1.    Article 7 of the Agreement is hereby amended by deleting Section 7.1(b) thereof in its entirety and replacing it to read as follows:

“The term of this Agreement (the “Term”) (i) with respect to the EMB Aircraft shall commence on September 4, 2005, and continue until the return date for each such EMB Aircraft listed in Annex A to the Agreement (each an “EMB Aircraft Return Date”), and

(ii) with respect to each New Aircraft shall commence on the in Service date for such New Aircraft and continue until the return date for each such New Aircraft listed in Annex B to the Agreement (each a “New Aircraft Return Date”), in all cases subject to the prior termination of this Agreement pursuant to Article 7 hereof.”

2.    The Agreement is hereby amended by adding a new Annex A to read as Annex A attached to this Fifth Amendment.

3.    The Agreement is hereby amended by adding a new Annex B to read as Annex B attached to this Fifth Amendment.

4.    The Agreement is hereby amended by deleting Annex A to the Third Amendment in its entirety.

5.    Effective as of September 1, 2015, the Agreement shall be amended by deleting the Section named [*] in “Exhibit 5.1 – Pricing Model for EMB 175s [*] in its entirety and replacing it to read as follows:

[*]

B. SUPPLEMENTS

1.     Effective as of September 1, 2015, the nominal sum of [*] shall be added to each of the amounts reflecting the then prevailing rate of the cost component labeled [*]in the [*] table in Exhibit 5.1.

3.     Effective as of September 1, 2015, to reflect [*], on the [*]the nominal sum of [*] shall be added to each of the amounts reflecting the then prevailing rate of the cost component labeled [*] in the [*]table in Exhibit 5.1.

C. MISCELLANEOUS

2

1.    Except as expressly provided otherwise herein, this Fifth Amendment shall be effective as of September 4, 2015 (the “Effective Date”).

2.    Except as set forth in this Fifth Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect.

3.    This Fifth Amendment may be executed in counterparts, all of which when taken together shall be one and the same document.

4.    The Agreement, as further amended by this Fifth Amendment, including the Annexes and Exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto.

[Signatures Follow]

3

IN WITNESS WHEREOF, the parties have duly executed this Fifth Amendment as of the date first above written.

US AIRWAYS, INC.

By: /s/ Kenji Hashimoto

Name: Kenji Hashimoto

Title: SVP Regional

REPUBLIC AIRLINE INC.

By: /s/ Timothy P. Dooley

Name: Timothy P. Dooley

Title: EVP/CFO

1

ANNEX A

TO REPUBLIC JET SERVICE AGREEMENT

(Term of EMB Aircraft)

Aircraft	Return Date
1	[*]
2	[*]
3	[*]
4	[*]
5	[*]
6	[*]
7	[*]
8	[*]
9	[*]
10	[*]
11	[*]
12	[*]
13	[*]
14	[*]
15	[*]
16	[*]
17	[*]
18	[*]
19	[*]
20	[*]

2

ANNEX B

TO REPUBLIC JET SERVICE AGREEMENT

(Term for the New Aircraft)

3

FAA Registration No.	Return Date
[*]	Mar-2019
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	[*]
[*]	March 27, 2023

I\4813125.1

4

EX-23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-145918, 333-116978 and 333-193065 on Form S-8 of our report dated February 27, 2015, relating to the consolidated financial statements of Republic Airways Holdings Inc. and subsidiaries and the effectiveness of Republic Airways Holdings Inc.’s and subsidiaries internal control over financial reporting (which report expresses an unqualified opinion and includes an explanatory paragraph relating to substantially all revenues being derived from code-share agreements with American Airlines Group Inc., United Continental Holdings, Inc., and Delta Air Lines, Inc.) appearing in this Annual Report on Form 10-K of Republic Airways Holdings Inc. and subsidiaries for the year ended December 31, 2014.

/s/ DELOITTE & TOUCHE LLP

Indianapolis, Indiana

February 27, 2015

EX-31.1

Exhibit 31.1

CERTIFICATION-Chief Executive Officer

I, Bryan K. Bedford, Chief Executive Officer of Republic Airways Holdings Inc., certify that:

1. I have reviewed this report on Form 10-K of Republic Airways Holdings Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 27, 2015	By:	/s/ Bryan K. Bedford
			Bryan K. Bedford
			President, Chief Executive Officer and Chairman of the Board

EX-31.2

Exhibit 31.2

CERTIFICATION-Chief Financial Officer

I, Timothy P. Dooley, Executive Vice President and Chief Financial Officer of Republic Airways Holdings Inc., certify that:

1. I have reviewed this report on Form 10-K of Republic Airways Holdings Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's the board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 27, 2015	By:	/s/ Timothy P. Dooley
			Timothy P. Dooley
			Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Republic Airways Holdings Inc. (the “Company”) on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Bryan K. Bedford, President, Chief Executive Officer and Chairman of the Board of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the end of, and for the period covered by, the Report.

By:	/s/ Bryan K. Bedford
	President, Chief Executive Officer and Chairman of the Board
	February 27, 2015

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Republic Airways Holdings Inc. (the "Company") on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Timothy P. Dooley, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the end of, and for the period covered by the Report.

By:	/s/ Timothy P. Dooley
	Executive Vice President and Chief Financial Officer
	February 27, 2015

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Note 1 - Organization and Business Schedule of Aircraft (Details)	12 Months Ended
	Dec. 31, 2014 Aircraft flights States cities	Dec. 31, 2013 Aircraft
Scheduled Passenger Service Stats [Abstract]
number of daily flights	1,229
scheduled passenger service to cities	101
number of states served	38
Schedule of Offered Passenger Service [Line Items]
total aircraft in operating subsidiaries	244	258
number of AA 175 aircraft delivered	22
number of E140 aircraft permanently parked	15
number of E145 aircraft temporarily parked	13
number of E190 aircraft sold during the year	2
number of E145 aircraft leased during the year	3
Number of E190 Aircraft that were leased during the year	3
fixed fee code share agreement, United [Member]
Schedule of Offered Passenger Service [Line Items]
operating subsiduary, chautauqua	0
operating subsiduary, shuttle	38
operating subsiduary, Republic	28
total aircraft in operating subsidiaries	66
fixed fee code share agreement, Delta [Member]
Schedule of Offered Passenger Service [Line Items]
operating subsiduary, chautauqua	41
operating subsiduary, shuttle	30
operating subsiduary, Republic	0
total aircraft in operating subsidiaries	71
fixed fee code share agreement, US airways/American [Member]
Schedule of Offered Passenger Service [Line Items]
operating subsiduary, chautauqua	0
operating subsiduary, shuttle	0
operating subsiduary, Republic	99
total aircraft in operating subsidiaries	99
fixed fee code share agreement, spares [Member]
Schedule of Offered Passenger Service [Line Items]
operating subsiduary, chautauqua	0
operating subsiduary, shuttle	0
operating subsiduary, Republic	8
total aircraft in operating subsidiaries	8
total aircraft in operating subsidiaries [Domain]
Schedule of Offered Passenger Service [Line Items]
operating subsiduary, chautauqua	41
operating subsiduary, shuttle	68
operating subsiduary, Republic	135
total aircraft in operating subsidiaries	244

XML

Note 8 - Debt Future maturities (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 321.2
debt discount amortization in the next 12 months	(12.2)
Long-term Debt, Maturities, Repayments of Principal in Year Two	303.0
debt discount amortization in Year Two	(11.2)
Long-term Debt, Maturities, Repayments of Principal in Year Three	352.8
debt discount amortization in Year Three	(10.1)
Long-term Debt, Maturities, Repayments of Principal in Year Four	295.0
debt discount amortization in Year Four	(9.0)
Long-term Debt, Maturities, Repayments of Principal in Year Five	339.5
debt discount amortization in Year Five	(7.9)
Long-term Debt, Maturities, Repayments of Principal after Year Five	801.1
debt discount amortization After Year Five	(23.0)
Long-term Debt, Gross	2,412.6
total debt discount amortization	(73.4)
Long-term Debt	$ 2,339.2	$ 2,166.8

XML

Note 3 - Fair Value Measurement Fair Value by Balance sheet grouping Table (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Long-term Debt	$ 2,339.2	$ 2,166.8
Long-term Debt, Fair Value	$ 2,215.0	$ 2,099.8

XML

Note 13 - Retirement and Benefit Plans Defined contribution Plan Statement (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]
Defined Contribution Plan, Employer Matching Contribution, Percent	6.00%
Deferred Compensation Arrangement with Individual, Requisite Service Period	3 years
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent	90.00%
Defined Contribution Plan, Cost Recognized	$ 6.3	$ 5.9	$ 5.2

XML

Note 9 - Commitments Statement (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Engines Aircraft	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
number of leased aircraft under operating leases	76
Number of Spare Engines under Operating Leases	29
minimum guaranteed maintenance payments for E145s	$ 2.6
minimum guaranteed maintenance payments for E170 aircraft	10.3
Maintenance deposits	53.2	36.6
Cost of Services, Licenses and Maintenance Agreements	173.0	163.8	119.4
liability for return conditions of aircraft	2.3
E190 aircraft with maintenance commitments	3
E145 Aircraft subelased to Aeroliteral	8
E170 Aircraft that were subleased to Aeroliteral	3
Number of E190 Aircraft that were subleased to Aeroliteral	3
number of E135 aircraft subleased	1
number of E145 aircraft subleased	3
Capital Leases, Future Minimum Sublease Rentals	104.0
Operating Leases, Income Statement, Sublease Revenue	$ 20.1	$ 18.7	$ 15.9
Firm Purchase Orders for CS300 Aircraft	40
Amended number of E175 aircraft agreed upon to operate under American Eagle brand	47
number of E175 aircraft under CPA for American	41
Number of E175 aircraft to operate under United brand	55
Number of Spare Aircraft Engines under commitment	11
Number of spare engines received during the current year, under the commitment	3
Number of engines to be delivered in year 1	4
Number of Engines to be Delivered in Year Two	3
Number of Engines to be Delivered in Year Three	1

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Note 3 - Fair Value Measurement Fair Value of Assets measured Recurring and Nonrecurring basis (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 81.2	$ 79.6
asset impairment charge for aicraft and related inventory - Q400 and E190	27.7
assets, fair value disclosure - E140	0
asset impairment charge for aircraft and related inventory - E140	19.9
assets, fair value disclosure - Q400	49.7
asset impairment charge for aircraft and related inventory - Q400	13.3
assets, fair value disclosure - E190	101.6
asset impairment charge for aircraft and related inventory - E190	14.4
asset impairment charge for aircraft and related inventory	47.6	12.0
Assets, Fair Value Disclosure		152.5
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset	81.2	79.6
Assets, Fair Value Disclosure		$ 152.5

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Note 8 - Debt Debt (Tables)

12 Months Ended

Dec. 31, 2014

Debt [Abstract]

Schedule of Debt [Table Text Block]

Debt consists of the following as of December 31 (in millions):

Secured debt:	2014		2013
Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 3.63% to 8.49% at December 31, 2014 and outstanding through 2025, net of unamortized debt discount of $73.4 million. (3)	$	2,238.1	$	1,995.0
Promissory notes payable, collateralized by aircraft, bearing interest at variable rates based on LIBOR plus a margin, ranging from 1.80% to 1.82% at December 31, 2014 and outstanding through 2020.	41.6		80.0
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.25% to 8.38% as of December 31, 2014 and outstanding through 2020.	53.7		37.0
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.61% to 5.34% as of December 31, 2014 and outstanding through 2018.	3.4		4.3
Other	2.4		3.7
Total debt secured by aircraft and parts	2,339.2		2,120.0
Unsecured debt:
Convertible note payable, bearing interest at a fixed rate of 8%, due in full in July 2014. (1)	—		22.3
Convertible note payable, bearing interest at a fixed rate of 6%, face value of $25.0 million, net of discount $0.5 million, due in full in 2019. (2)	—		24.5
Total unsecured debt	—		46.8
Total debt	2,339.2		2,166.8
Current portion	309.0		276.2
Long term debt, less current portion	$	2,030.2	$	1,890.6

⁽¹⁾ The Company redeemed the convertible note by paying $22.3 million of cash on April 7, 2014 as discussed in Note 2.

⁽²⁾ The Company redeemed the convertible note by paying $26.5 million in cash on October 28, 2014, which included accrued interest as discussed in Note 2.

⁽³⁾  The Company entered into financing agreements to borrow $569.2 million for 22 E175 aircraft and other equipment primarily for the American E175 fixed-fee agreement and other equipment.

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Note 15 - Subsequent Events Statement (Details)	Dec. 31, 2014 Aircraft
Number of Aircraft extended under the E145 code-share agreement with Delta [Abstract]
number of E145 aircraft extended from May 2015 to May 2021 under CPA with Delta	24

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Note 9 - Commitments Operating Lease Payments (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Aircraft Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 106.5
Aircrfat Operating Leases, Future Minimum Payments, Due in Two Years	101.6
Aircraft Operating Leases, Future Minimum Payments, Due in Three Years	87.8
Aircraft Operating Leases, Future Minimum Payments, Due in Four Years	77.1
Aircraft Operating Leases, Future Minimum Payments, Due in Five Years	73.9
Aircraft Operating Leases, Future Minimum Payments, Due Thereafter	103.9
Aircraft Operating Leases, Future Minimum Payments Due, Total	550.8
Engine and Facilities Operating Leases, Future Minimum Payments Due, Next Twelve Months	16.2
Engines and Facilities Operating Leases, Future Minimum Payments, Due in Two Years	15.1
Engine and Facilities Operating Leases, Future Minimum Payments, Due in Three Years	13.1
Engine and Facility Operating Leases, Future Minimum Payments, Due in Four Years	12.0
Engines and Facilities Operating Leases, Future Minimum Payments, Due in Five Years	9.9
Engines and Facilities Operating Leases, Future Minimum Payments, Due Thereafter	44.5
Engines and Facilities Operating Leases, Future Minimum Payments Due, Total	110.8
Operating Leases, Future Minimum Payments Due, Next Twelve Months	122.7
Operating Leases, Future Minimum Payments, Due in Two Years	116.7
Operating Leases, Future Minimum Payments, Due in Three Years	100.9
Operating Leases, Future Minimum Payments, Due in Four Years	89.1
Operating Leases, Future Minimum Payments, Due in Five Years	83.8
Operating Leases, Future Minimum Payments, Due Thereafter	148.4
Operating Leases, Future Minimum Payments Due	$ 661.6

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Note 13 - Retirement and Benefit Plans Qualified Defined Benefit Plan (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Plan, Funded Status of Plan	$ 3.4	$ 3.3
Defined Benefit Plan, Accumulated Benefit Obligation	9.9	16.7
Defined Benefit Plan, Benefit Obligation	13.3	16.7
Defined Benefit Plan, Fair Value of Plan Assets	$ 9.9	$ 13.4

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Note 2 - Summary of Significant Accounting Policies Level 2 (Policies)

12 Months Ended

Dec. 31, 2014

Summary Of Significant Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis ofConsolidation—The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries, Chautauqua Airlines, Shuttle America, and Republic Airline. Frontier Airlines is also included in the consolidated financial statements as discontinued operations until the sale on December 3, 2013.  Intercompany transactions and balances are eliminated in consolidation.

Derivatives, Policy [Policy Text Block]

Risk Management—The Company has recorded settlements of treasury lock agreements from prior periods within accumulated other comprehensive loss.  Such amounts are reclassified to interest expense over the term of the respective aircraft debt.  During 2014, 2013 and 2012, the amount reclassified to interest expense was not material to the financial statements.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents—Cash equivalents consist of money market funds and short-term, highly liquid investments with maturities of three months or less when purchased and approximates fair value. Substantially all of our cash is on hand with two banks.

Supplemental Statement of  Cash Flow Information:

	Years ended December 31,
(amounts in millions)	2014		2013		2012
CASH PAID FOR INTEREST AND INCOME TAXES:
Interest paid-net of amount capitalized	$	110.1	$	108.2	$	116.1
Income taxes paid-net of refunds	0.8		2.1		0.1
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1)	—		42.8		—
Other equipment acquired through manufacturer credits	23.1		11.6		—
Manufacturer credits applied to the purchase of aircraft	17.1		8.7		—
Engines received and not yet paid	—		5.8		—
Issuance of convertible debt	—		—		22.9
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive	—		12.0		86.4

⁽¹⁾ During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement.

Restricted Cash primarily consists of balances in escrow for our long-term charter agreement, restricted amounts for satisfying debt and lease payments due within the next year and certificates of deposit that secure certain letters of credit issued for workers' compensation claim reserves and certain airport authorities. Restricted cash is carried at cost, which management believes approximates fair value.

Receivables, Policy [Policy Text Block]

Receivables primarily consist of amounts due from our partners, OEMs and insurance providers. We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical write-offs and other specific analysis. Bad debt expense and write-offs were not material for the years ended December 31, 2014, 2013 and 2012.

Inventory, Policy [Policy Text Block]

Inventories consist of spare parts and supplies, which are charged to expense as they are used in operations. Inventories are valued at the lower of cost or net realizable value using an average cost methodology.  An allowance for obsolescence is provided to reduce inventory to estimated net realizable value. As of December 31, 2014 and 2013, this reserve was $27.0 million and $22.6 million, respectively.

Prepaid expenses and Other Current Assets [Policy Text Block]

Prepaid Expenses and Other Current Assets consist of prepaid expenses, primarily deposits, facility and engine rent, and other current assets.

Property, Plant and Equipment, Policy [Policy Text Block]

Aircraft and Other Equipment is carried at cost. Incentives received from the aircraft manufacturer are recorded as reductions to the cost of the aircraft.  Depreciation for aircraft is computed on a straight-line basis, to an estimated residual value, over the estimated useful life of 16.5 to 20 years. Depreciation for other equipment, including rotable parts, is computed on a straight-line basis, to an estimated residual value, over the estimated useful lives of three to ten years. Leasehold improvements are amortized over the expected life or lease term, whichever is shorter. Interest related to deposits on aircraft on firm order from the manufacturer is capitalized and was not material for the years ended December 31, 2014, 2013 and 2012, respectively. See Note 5.

Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block]

Intangible and Other Assets that have indefinite useful lives are not amortized but are tested if a triggering event occurred, or at least annually, for impairment.  

other assets [Policy Text Block]

Other assets consists primarily of aircraft leases and long-term deposits, Chautauqua restructuring asset, prepaid aircraft rents, and debt issue costs and other non-current assets. Debt issue costsare capitalized and are amortized using the effective interest method to interest expense over the term of the related debt. Refer to Note 6 for more detail.

Property, Plant and Equipment, Impairment [Policy Text Block]

Long-Lived Assets—Management reviews long-lived assets for possible impairment, if there is a triggering event that detrimentally affects operations. The primary financial indicator used by the Company to assess the recoverability of its long-lived assets held and used is undiscounted future cash flows from operations. The amount of impairment, if any, is measured based on carrying value over the estimated fair value.

deferred credits and other non current liabilities [Policy Text Block]

Deferred Credits and Other Non Current Liabilities consist primarily of credits for parts and training from the aircraft and engine manufacturers, deferred gains from the sale and leaseback of aircraft and spare jet engines and deferred revenue. Deferred credits are amortized on a straight-line basis as a reduction of aircraft or engine rent expense over the term of the respective leases.  The deferred revenue is amortized as an adjustment to fixed-fee services revenue based on the weighted average aircraft in service over the life of the respective agreements.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss—The Company had accumulated other comprehensive loss relating to treasury lock agreements of $0.5 million and $0.8 million (net of tax), as of December 31, 2014 and 2013, respectively; and $1.7 million and $1.8 million (net of tax), relating to the pension plan as of December 31, 2014 and 2013, respectively.

Income Tax, Policy [Policy Text Block]

Income Taxes—The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is adjusted by a valuation allowance, if necessary, to recognize the future tax benefits to the extent, based on available evidence; it is more likely than not they will be realized.

Maintenance Cost, Policy [Policy Text Block]

Aircraft Maintenance and Repair charges are expensed as incurred under the direct expense method. Engines and certain airframe component overhaul and repair costs are subject to power-by-the-hour contracts with external vendors and are expensed as the aircraft are flown.  The Company also has refundable deposits related to leased aircraft.  Deposits are reimbursed based on the specific event for each specified deposit, as determined by the lease. As of December 31, 2014, the Company has evaluated the carrying amount of maintenance deposits and believes the deposits are recoverable when the future maintenance event occurs and the Company is reimbursed. The Company has determined that it is probable that substantially all maintenance deposits will be refunded through qualifying maintenance activities.  This analysis was performed by lease and by deposit type. The Company will continue to evaluate whether it is probable the deposits will be returned to reimburse the costs of the maintenance activities incurred.  Deposits will be recognized as additional expense when they are less than probable of being returned.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such management estimates include, but are not limited to, recognition of revenue, estimated useful lives and residual values of aircraft and other equipment, provision for accrued aircraft return costs, recoverability of maintenance deposits, fair value of financial instruments and valuation of deferred tax assets. Under the code-share agreements, the Company estimates operating costs for certain pass through costs and records revenue based on these estimates. Actual results could differ from these estimates.

fixed fee service revenues [Policy Text Block]

Fixed-fee Service Revenues—Under our fixed-fee arrangements with our Partners, the Company receives fixed-fees for our capacity purchase agreements, as well as reimbursement of specified pass through costs on a gross basis with additional possible incentives from our Partners for superior service. These revenues are recognized in the period the service is provided, and we record an estimate of the profit component based upon the information available at the end of the accounting period.

The reimbursement of specified costs, known as pass through costs, may include aircraft ownership cost, passenger liability and hull insurance, aircraft property taxes, fuel, landing fees and catering. All revenue recognized under these contracts is presented at the gross amount billed for reimbursement.

Under the Company’s code-share agreements, the Company is reimbursed an amount per aircraft designed to compensate the Company for certain aircraft ownership costs.  The Company has concluded that a component of its fixed-fee service revenues under the agreements discussed above is rental income, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The amount deemed to be rental income during 2014, 2013 and 2012 was $433.7 million, $386.8 million, and $338.5 million, respectively, and has been included in fixed-fee service revenues in the Company’s consolidated statements of operations.

other revenue [Policy Text Block]

Other Revenue—Other revenue primarily consists of revenue related to lease revenue for aircraft leased under operating leases.

Lease, Policy [Policy Text Block]

Lease Return Conditions—The Company must meet specified return conditions upon lease expiration for both the airframes and engines.  The Company estimates lease return conditions specified in leases and accrues these amounts as contingent rent ratably over the lease term while the aircraft are operating once such costs are probable and reasonably estimable.  These expenses are included in accrued liabilities in the consolidated balance sheets.

Earnings Per Share, Policy [Policy Text Block]

Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period.  The following is a reconciliation of the diluted net income (loss) per common share computations:

	For the Years Ended December 31,
(in millions)	2014		2013			2012
Income from continuing operations	$	64.3	$	48.3		$	31.3
Income (loss) from discontinued operations, net of tax	—		(21.6		)	20.0
Net income	$	64.3	$	26.7		$	51.3
Reduction in interest expense from convertible notes (net of tax)	0.8		2.0			1.3
Net income after assumed conversion	$	65.1	$	28.7		$	52.6
Weighted-average common shares outstanding for basic net income per common share	49.8		49.2			48.5
Effect of dilutive employee stock options	0.4		0.7			0.2
Effect of dilutive convertible notes	2.2		4.7			2.7
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share	52.4		54.6			51.4
Income (loss) per share - basic:
Income from continuing operations	$	1.29	$	0.98		$	0.65
Income (loss) from discontinued operations, net of tax	—		(0.44		)	0.41
Net income per share - basic	$	1.29	$	0.54		$	1.06
Income (loss) per share - diluted:
Income from continuing operations	$	1.24	$	0.92		$	0.63
Income (loss) from discontinued operations, net of tax	—		(0.40		)	0.39
Net income per share - diluted	$	1.24	$	0.52		$	1.02

The Company excluded 2.5 million, 3.3 million, and 4.1 million of employee stock options from the calculation of diluted net income (loss) per share due to their anti-dilutive impact for the years ended December 31, 2014, 2013, and 2012, respectively.  

The Company had two convertible notes with face values of $22.3 million and $25.0 million that were convertible in whole or in part, at the option of the holder, for up to 2.2 million and 2.5 million shares, respectively, of the Company’s common stock, which were both redeemed during 2014. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the twelve months ended December 31, 2014 and December 31, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for the twelve months ended December 31, 2014, and dilutive for the twelve months ended December 31, 2013 and 2012, respectively.

On April 7, 2014, the board authorized management to utilize up to $75 million to buy back shares and/or early retire convertible debt during the twelve months thereafter. The authorization approved Company repurchases of up to $50 million of common shares and retirements of up to $50 million of convertible notes, or combination thereof. Also, on April 7, 2014, the Company redeemed the convertible note with a face value of $22.3 million, by paying $22.3 million of cash.

On October 28, 2014, the Company redeemed the convertible note with a face value of $25.0 million, by paying $26.5 million in cash. At the time of redemption the convertible note had a nominal value of $28.0 million, which included accrued interest.

Segment Reporting, Policy [Policy Text Block]

Segment Information—As a result of the sale of Frontier there is only one reportable segment for the scheduled transportation of passengers under code-share agreements.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments—The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, receivables, and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments.

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Pronouncements—In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The objective of this update is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and the Company is still evaluating the impact to the consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after Requisite Service Period . The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to rewards with performance conditions that affect vesting to account for such awards. The Performance Target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. It is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and the impact to the consolidated financial statements is not expected to be material.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and the Company is still evaluating the impact to the consolidated financial statements.

In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The objective of the standard is to update the requirements for reporting discontinued operations in Subtopic 205-20.

In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force . The objective of the update is to specify that an operating entity should not account for a service concession arrangement within the scope of this update as a lease in accordance with Topic 840, Leases. It is effective for fiscal years beginning after December 15, 2014, and the impact to the consolidated financial statements was not material.

In July 2013, the FASB issued ASU 2013-11–Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard provides updated guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. It became effective for fiscal years beginning after December 15, 2013, and the impact to the consolidated financial statements was not material.

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Note 5 - Aircraft and Other Equipment Level 4 (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Aircraft	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Aircraft included in Other PPE	$ 3,644.8	$ 3,221.8
Flight Equipment Owned, Gross	171.7	173.8
office equipment and leasehold improvements, gross	44.4	44.8
Aircraft and other equipment—net	3,860.9	3,440.4
accumulated depreciation and amortization for aircraft and other equipment	(1,000.0)	(876.8)
Property, Plant and Equipment, Other, Net	2,860.9	2,563.6
Depreciation and amortization	173.0	150.7	160.0
asset impairment charge for aicraft and related inventory - Q400 and E190	27.7
asset impairment charge for aircraft and related inventory - E140	19.9
asset impairment charge for aircraft and related inventory	(47.6)	(12.0)
loss on sale of two E190 aircraft that is included in impairment charges and other	$ 5.8
number of e190 aircraft sold	2

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Note 1 - Organization and Business Partner Concentrations (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Concentrations [Abstract]
Percentage of Operating Revenues for Delta	24.00%	24.00%	19.00%
Percentage of Operating Revenues for United	29.00%	31.00%	27.00%
Percentage of Opearting Revenues for US Airways	43.00%	35.00%	34.00%
Percent of Receivables related to Delta	4.00%	7.00%
Percentage of Receivables related to United	3.00%	23.00%
Percentage of Receivables related to US Airways American	26.00%	19.00%

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Note 12 - Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

INCOME TAXES [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of the provision for income tax expense for the years ended December 31 are as follows (in millions):

	2014			2013			2012
Federal:
Current	$	—		$	—		$	—
Deferred	29.6			30.9			13.6
Total Federal	29.6			30.9			13.6
State:
Current	(1.4		)	4.1			—
Deferred	(2.5		)	(9.8		)	6.1
Total State	(3.9		)	(5.7		)	6.1
Valuation allowance	(4.8		)	8.8			0.1
Expense for uncertain tax positions	—			(1.0		)	—
Income tax expense	$	20.9		$	33.0		$	19.8

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for the years ended December 31 are as follows (in millions):

	2014			2013			2012
Federal income tax expense at statutory rate	$	29.8		$	28.4		$	17.9
State income tax expense, net of federal benefit	2.6			2.7			1.6
Valuation allowance	(4.8		)	8.8			0.1
Adjustment to deferred tax liabilities	(3.1		)	(8.8		)	(5.5		)
Change in State tax rate	(4.2		)	—			4.3
Permanent tax adjustments	2.0			1.7			1.2
Other	(1.4		)	0.2			0.2
Income tax expense	$	20.9		$	33.0		$	19.8

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred tax assets and liabilities as of December 31 are as follows (in millions):

	2014			2013
DEFERRED TAX ASSETS:
Current:
Nondeductible accruals and deferred revenue	24.6			24.2
Total	24.6			24.2
Valuation allowance	(8.2		)	(8.5		)
Total current deferred tax assets	$	16.4		$	15.7
Noncurrent:
Nondeductible accruals and deferred revenue	$	27.5		$	21.1
Federal and state net operating loss carryforwards, net of liability for uncertain tax positions	453.2			443.4
AMT credits	6.1			6.1
Prepaid rent	8.5			8.6
Deferred credits and other non-current liabilities	5.7			17.4
Other	22.8			23.2
Total	523.8			519.8
Valuation allowance	(174.7		)	(182.8		)
Total noncurrent deferred tax assets	349.1			337.0
DEFERRED TAX LIABILITIES:
Noncurrent:
Other intangible assets	(3.4		)	(3.4		)
Maintenance deposits	(20.2		)	(14.0		)
Accelerated depreciation and fixed asset basis differences for tax purposes	(609.5		)	(580.0		)
Total noncurrent deferred tax liabilities	(633.1		)	(597.4		)
Total net noncurrent deferred tax liabilities	$	(284.0	)	$	(260.4	)

Summary of Income Tax Contingencies [Table Text Block]

The Company monitors ongoing tax cases related to its unrecognized tax benefits. The unrecognized tax benefits, which if recognized, would impact the effective tax rate. The Company does not anticipate that total unrecognized tax benefits would significantly change within the next 12 months. The following table reconciles the Company’s tax liability for uncertain tax positions for the year ended December 31 (in millions): 

	2014		2013			2012
Balance at January 1,	$	7.1	$	8.1		$	8.1
Additions for tax positions taken in prior years	—		—			—
Reductions for tax positions of prior years	—		(1.0		)	—
Balance at December 31,	$	7.1	$	7.1		$	8.1

Summary of Valuation Allowance [Table Text Block]

The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions):

	2014			2013		2012
Balance at January 1,	$	191.3		$	182.5	$	182.5
Reduction for net operating losses previously reserved that were utilized or expired	(3.6		)	—		(0.1		)
Additions (deductions) for current year change in estimate	(4.8		)	8.8		0.1
Balance at December 31,	$	182.9		$	191.3	$	182.5

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Note 7 - Accrued Liabilities Level 4 (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
accruals table [Abstract]
Accrued Salaries, Current	$ 29.0	$ 29.2
accrued maintenance, current	37.6	50.2
Interest Payable, Current	18.0	18.1
Deferred Revenue, Current	19.9	23.8
Other Accrued Liabilities, Current	38.4	42.5
Accrued Liabilities, Current	$ 142.9	$ 163.8

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Note 12 - Income Taxes Unrecognized Tax Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefits, period of recognition	12 months
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized Tax Benefits - Begin	$ 7.1	$ 8.1	$ 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	(1.0)	0
Unrecognized Tax Benefits - End	$ 7.1	$ 7.1	$ 8.1

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Note 11 - Capital Stock and Stock Options Share-based compensation (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
number of stock options non-employee directors received on first day of trading after annual meeting of stockholders	2,500
number of months non-employee directors stock options will vest	12 months
number of years non-employee director options are exercisable from the date of the grant	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number - Begin	4,176,666
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	135,750
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(900,801)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(276,110)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number - End	3,135,505	4,176,666
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	3,095,611
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	2,671,717	3,513,999	3,790,942
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price - Begin	$ 13.50
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 10.53
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 10.48
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ 13.43
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price- End	$ 14.25	$ 13.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 14.31
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 14.90	$ 14.26	$ 13.59
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 6.9
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	6.7
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	5.0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Contractual Term	6 years 2 months 5 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Contractual Term	6 years 1 month 10 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Contractual Term	5 years 4 months 20 days	4 years 7 months 17 days	4 years 10 months 27 days
Stock or Unit Option Plan Expense	0.9	1.2	1.2
Allocated Share-based Compensation Expense, Net of Tax	0.5	0.7	0.7
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 years
Excess tax benefits related to stock option exercises, period for recognition	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 4.80	$ 5.28	$ 2.02
Employee Stock Option [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	3,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Up to Number	8,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Lower Limit to Award Vesting Period	36 months
Share-based Compensation Arrangement by Share-based Payment Award, Upper Limit to Award Vesting Period	48 months
Share-based compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 4.10
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 20.27
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 1.8
2002 Equity Incentive Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	22,434
2007 Equity Incentive Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,596,474

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Note 3 - Fair Value Measurement Fair Value Measurements Recurring with Unobservable Inputs (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Seats Aircraft	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - Begin	$ 79.6	$ 86.4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0	12.0
Fair value gain on restructuring asset	18.4	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	(16.8)	(18.8)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - End	81.2	79.6	86.4
Chautauqua Seats on Aircraft	50
Convertible Notes Payable - EMB Fair Value		25.0
CHQ restructuring call rights provided on owned aircraft	28
Debt Instrument, Interest Rate, Stated Percentage	1.00%
change in fair value of the restructuring asset per a 100 basis point change in discount rate	2.0
possible gain or loss if there is a change in assumed probability of call option on restructured aircrat	3.2
number of seats on E140 aircraft flying for American Airlines	44
Seats on E145 aircraft under CPA with United	50
Number of E140 and E145 aircraft which were grounded during the year	27
Number of aircraft that were grounded and subject to the agreement and callable by the counterparty	15
CHQ Restrucuring - possible voluntary repayment under circumstances of non-performance	$ 36.7

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Condensed Consolidated Statements of Cash Flows Parenthetical for cash flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Supplemental Cash Flow Elements [Abstract]
Proceeds from Divestiture of Businesses	$ 0	$ 83.7	$ 0

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Note 11 - Capital Stock and Stock Options Share-based payment award, stock options, valuation assumptions (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	56.00%	59.00%	59.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.70%	0.90%	0.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years	4 years	4 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	58.00%	62.00%	62.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.80%	1.40%	1.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years	5 years	5 years

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Note 2 - Summary of Significant Accounting Policies Level 4 Text (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 segment banks	Dec. 31, 2013	Dec. 31, 2012	Oct. 28, 2014	Apr. 07, 2014
maturityofcashandcashequiv	3 months
number of banks that contain most of our cash	2
Inventory Valuation Reserves	$ 27.0	$ 22.6
Minimum Aircraft Estimated Useful Life	16 years 6 months
Maximum Aircraft Estimated Useful Life	20 years
Minimum Estimated Useful Life of Other Equipment	3 years
Maximum Estimated Useful Life of Other Equipment	10 years
accumulated other comprehensive loss related to treasury lock	0.5	0.8
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax	1.7	1.8
Fixed-Fee Rental Income	433.7	386.8	338.5
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2.5	3.3	4.1
Convertible Notes Payable - TPG	0	22.3
Convertible Notes Payable - EMB Fair Value		25.0
TPG - Stock Issued During Period, Shares, Conversion of Convertible Securities	2.2
EMB - Stock Issued During Period, Shares, Conversion of Convertible Securities	2.5
Stock Repurchase Program, Authorized Amount					75
Authorized amount available to repurchase common shares					50
Authorized amount to retire convertible notes					50
Repayment of TPG Convertible note					22.3
Convertible note payable - EMB redeemed				26.5
Convertible Notes Payable - EMB	$ 0	$ 24.5		$ 28.0
Number of Reportable Segments	1

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Note 4 - Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

Summarized financial information for discontinued operations is shown below:         

($ in millions)	Years Ended
		2013			2012
Total operating revenue		$	1,217.5		$	1,433.5
Income from discontinued operations before tax(2)		$	50.9		$	35.0
Income tax expense		18.7			15.0
Income from discontinued operations		32.2			20.0
Loss on disposal from discontinued operations (1)		(53.8		)	—
Total discontinued operations, net of tax		$	(21.6	)	$	20.0

⁽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.

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Note 3 - Fair Value Measurement Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

FAIR VALUE MEASUREMENTS [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following table sets forth information regarding the Company's assets (liabilities) measured at fair value on a recurring basis (in millions):

Fair Value of Assets on a Recurring Basis	December 31, 2014		Level 1		Level 2		Level 3
Chautauqua restructuring asset	$	81.2	$	—	$	—	$	81.2
Fair Value of Assets on a Recurring Basis	December 31, 2013		Level 1		Level 2		Level 3
Chautauqua restructuring asset	$	79.6	$	—	$	—	$	79.6

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions):

Chautauqua Restructuring Asset	Year Ended December 31, 2014			Year Ended December 31, 2013
Beginning Balance	$	79.6		$	86.4
Amendment to agreement	—			12.0
Fair value gain	18.4			—
Cash received or other	(16.8		)	(18.8		)
Ending Balance	$	81.2		$	79.6

Fair Value, by Balance Sheet Grouping [Table Text Block]

Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt primarily relates to the potential change in fair value and impact to future earnings, respectively, from a change in interest rates. In the table below, the aggregate fair value of debt was based primarily on recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as level 3 within the fair value hierarchy.

	December 31
	2014		2013
Net carrying amount	$	2,339.2	$	2,166.8
Estimated fair value	2,215.0		2,099.8

Fair Value Measurements, Nonrecurring [Table Text Block]

Aircraft and Other Assets Impairment - Nonrecurring - In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of Q400 and E190 aircraft over the next few years. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition, maintenance record and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy.

In March 2014, we recorded a 19.9 million impairment charge related to our decision to permanently park our owned E140 fleet in March 2014, impairing these aircraft to zero.

In September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy.

There were no aircraft and other asset impairment charges recorded for the year ended December 31, 2012.

($ in millions)
			Fair Value Measurements Using
Description	Year ended December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Long-lived assets abandoned - E140	$	—			$	—	$	(19.9	)
Long-lived assets held and used - Q400	49.7				49.7		(13.3		)
Long-lived assets held and used - E190	101.6				101.6		(14.4		)
							$	(47.6	)
			Fair Value Measurements Using
Description	Year ended December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Long-lived assets held and used	$	152.5			$	152.5	$	(12.0	)

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Note 9 - Commitments Schedule of Rent Expense (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Aircraft and engine rent	$ 126.0	$ 122.6	$ 110.7
other rent expenses	10.3	11.7	9.2
Operating Leases, Rent Expense	$ 136.3	$ 134.3	$ 119.9

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Note 2 - Summary of Significant Accounting Policies Supplemental Statement of Cash Flows (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Interest Paid, Net	$ 110.1	$ 108.2	$ 116.1
Income Taxes Paid, Net	0.8	2.1	0.1
Aircraft, inventories and other equipment sold through financing arrangements from manufacturer	0	42.8	0
deferred gain on the parts sale		4.0
other equipment acquired utilizing manufacturer credits	23.1	11.6	0
aircraft acquired through manufacturing credits	17.1	8.7	0
engines received and not yet paid	0	5.8	0
Proceeds from Convertible Debt	0	0	22.9
Chautauqua restructuring asset - Aircraft manufacturers incentive	$ 0	$ 12.0	$ 86.4

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Note 5 - Aircraft and Other Equipment Aircraft and other equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Aircraft and other equipment, excluding other equipment held for sale, consist of the following as of December 31 (in millions): 

	2014			2013
Aircraft	$	3,644.8		$	3,221.8
Flight equipment	171.7			173.8
Office equipment and leasehold improvements	44.4			44.8
Total aircraft and other equipment	3,860.9			3,440.4
Less accumulated depreciation and amortization	(1,000.0		)	(876.8		)
Aircraft and other equipment—net	$	2,860.9		$	2,563.6

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Note 6 - Intangible and Other Assets (Tables)

12 Months Ended

Dec. 31, 2014

schedule of intangible and other assets [Line Items]

schedule of intangible and other assets [Table Text Block]

Intangible and other assets as of December 31, 2014 and 2013 consist of the following (in millions):

	2014		2013
Indefinite-lived intangible assets:
Airport slots	$	9.0	$	9.0
Other assets:
Aircraft pre-delivery deposits	57.5		30.0
Aircraft lease and long-term deposits	26.0		38.4
Chautauqua restructuring asset - See Note 3	81.2		79.6
Prepaid aircraft rents	27.8		34.5
Debt issue costs and other non-current assets	19.2		25.3
Total Other assets	211.7		207.8
Intangible and other assets	$	220.7	$	216.8

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Condensed Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net Income from Continuing Operations	$ 64.3	$ 48.3	$ 31.3
Adjustments to reconcile net income (loss) to net cash from operating activities:
Impairment and other charges	53.4	21.2	0
Fair value gain on restructuring asset	(18.4)	0	0
Depreciation and amortization	173.0	150.7	160.0
Debt issue costs and other amortization	13.5	5.7	3.9
Stock compensation expense	4.6	4.0	3.0
Deferred income taxes	22.6	19.2	14.4
Other, net	(8.2)	(6.2)	6.0
Changes in certain assets and liabilities:
Receivables	26.0	(18.3)	1.7
Inventories	6.9	(3.5)	15.1
Prepaid expenses and other current assets	(8.0)	(4.6)	1.3
Accounts payable and accrued liabilities	(13.0)	21.2	(6.5)
Other, net	3.8	2.9	(9.4)
Net Cash from operating activities of continuing operations	320.5	240.6	220.8
INVESTING ACTIVITIES:
Purchase of aircraft and other equipment	(569.2)	(476.0)	(24.4)
Proceeds from sale of other assets	41.3	46.2	84.2
Aircraft deposits	(27.5)	(30.0)	0
Change in restricted cash	2.3	(4.3)	(0.4)
Net Cash from (used in) investing activities of continuing operations	(553.1)	(464.1)	59.4
FINANCING ACTIVITIES:
Payments on Debt	(271.1)	(205.6)	(197.6)
Proceeds from debt issuance and refinancing	539.2	470.0	6.2
Repayments of Convertible Debt	(48.7)	0	0
Payments on early extinguishment of debt and refinancing	(37.0)	(58.7)	(52.0)
Proceeds from exercise of stock options	2.6	4.1	0
Treasury stock repurchases	(2.1)	0	0
Other, net	(3.1)	(4.1)	(0.5)
Net Cash from (used in) financing activities of continuing operations	179.8	205.7	(243.9)
DISCONTINUED OPERATIONS
Cash from operating activities - discontinued operations	0	90.3	29.7
Cash from investing activities - discontinued operations	0	70.0	(20.3)
Cash from financing activities - discontinued operations	0	(40.1)	(17.8)
NET CASH FROM DISCONTIUED OPERATIONS, excluding proceeds from sale of Frontier of $83.7 million included in cash from investing activities from discontinued operations in 2013	0	36.5	(8.4)
Proceeds from Divestiture of Businesses	0	83.7	0
Net changes in cash and cash equivalents	(52.8)	65.9	36.3
CASH AND CASH EQUIVALENTS—Beginning of period	276.7	210.8	174.5
CASH AND CASH EQUIVALENTS—End of period	$ 223.9	$ 276.7	$ 210.8

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Note 7 - Accrued Liabilities Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2014

Accrued Liabilities [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accrued liabilities consist of the following as of December 31 (in millions):

	2014		2013
Accrued wages, benefits and related taxes	$	29.0	$	29.2
Accrued maintenance	37.6		50.2
Accrued interest payable	18.0		18.1
Deferred revenue	19.9		23.8
Other	38.4		42.5
Total accrued liabilities	$	142.9	$	163.8

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Note 1 - Organization and Business CPA Agreement Details (Details)	12 Months Ended
	Dec. 31, 2014 Aircraft
CPA Agreement Details [Line Items]
number of E140 aircraft permanently parked	15
E170 aircraft operating under US Airways	20
seats on aircraft [Member]
CPA Agreement Details [Line Items]
number of seats on E170 aircraft flying with US Airways	69
Seats on E175s under code-share agreement with US Airways	80
Seats on E175 aircraft under CPA with America	76
Seats on E145 aircraft under CPA with Delta	50
Seats on E170 aircraft under CPA with Delta	70
Seats on E175 aircraft under CPA with Delta	76
Seats on E170 aircraft under CPA with United	70
Seats on Q400 aircraft under CPA with United	71
number of aircraft under related CPA agreement [Member]
CPA Agreement Details [Line Items]
E170 aircraft operating under US Airways	20
E175 aircraft flying under fixed-fee agreements with US Airways	38
E175 aircraft operating under American Eagle brand	41
E145 aircraft under code-share agreements with Delta	41
E170 aircraft operating under code-share agreements with Delta	14
E175 aircraft under code-share agreements with Delta	16
E170 aircraft under code-share agreements with United	38
Q400 Aircraft under code-share agreements with United Continental	28

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Note 8 - Debt Level 4 (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Aircraft	Dec. 31, 2013	Dec. 31, 2012	Oct. 28, 2014	Apr. 07, 2014
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Weighted average rate of debt for aircraft financings for current year	5.38%	5.76%
Aircraft Secured Debt (Fixed Rate)	$ 2,238.1	$ 1,995.0
Aircraft Secured Debt (Variable Rate)	41.6	80.0
Equipment Secured Debt (Fixed Rates)	53.7	37.0
Q400 Equipment Secured Debt at Variable Rates	3.4	4.3
Other Long-term Debt	2.4	3.7
Secured Debt	2,339.2	2,120.0
Convertible Notes Payable - TPG	0	22.3
Convertible Notes Payable - EMB	0	24.5		28.0
Unsecured Debt	0	46.8
Long-term Debt	2,339.2	2,166.8
Current portion of long-term debt	(309.0)	(276.2)
Long-term debt - less current portion	2,030.2	1,890.6
Repayment of TPG Convertible note					22.3
Convertible note payable - EMB redeemed				26.5
Payments to Acquire Property, Plant, and Equipment	569.2	476.0	24.4
number of AA 175 aircraft delivered	22
Aircraft related debt obligations that the company expects to refinance	28.7
Funds held for cash supported letters of credit and deposits on charter flights	14.1	17.0
Convertible Notes Payable - EMB Fair Value		25.0
Aircraft Secured Debt (at fixed rates) - Lower percentage range [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.63%
Aircraft Secured Debt (at fixed rates) - Upper percentage range [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.49%
Aircraft Secured Debt (at variable rates) - Lower percentage range [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.80%
Aircraft Secured Debt (at variable rates) - Upper percentage range [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.82%
Equipment Secured Debt (at fixed rates) - Lower percentage range [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.25%
Equipment Secured Debt (at fixed rates) - Upper percentage range [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.38%
Q400 Equipment Secured Debt Lower range (variable rates) [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.61%
Q400 Equipment Secured Debt (variable rates) - Upper range [Member] [Domain]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.34%
Convertible Note Payable - TPG, Due 2014 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Convertible Note Payable - EMB, Due 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		6.00%
Debt Instrument, Unamortized Discount		$ 0.5

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Note 14 - Valuation and Qualifying Accounts Valuation Allowance for doubtful accounts and notes receivable (Details) (Allowance for Doubtful Accounts [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Valuation Allowances and Reserves, Balance - Begin	$ 1.5	$ 1.3	$ 0.5
Valuation Allowances and Reserves, Charged to Cost and Expense	1.4	0.4	0.9
Valuation Allowances and Reserves, Deductions	(0.3)	(0.2)	(0.1)
Valuation Allowances and Reserves, Balance - End	$ 2.6	$ 1.5	$ 1.3

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Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 223.9	$ 276.7
Restricted cash	21.7	24.0
Receivables - net of allowance for doubtful accounts of $2.6 and $1.5, respectively	20.7	48.3
Inventories	60.9	71.9
Prepaid expenses and other current assets	15.6	17.7
Deferred income taxes	16.4	15.7
Total current assets	359.2	454.3
Aircraft and other equipment, net	2,860.9	2,563.6
Maintenance deposits	53.2	36.6
Intangible and other assets, net	220.7	216.8
Total assets	3,494.0	3,271.3
Current Liabilities:
Current portion of long-term debt	309.0	276.2
Accounts payable	19.3	28.9
Accrued Liabilities, Current	142.9	163.8
Total current liabilities	471.2	468.9
Long-term debt - less current portion	2,030.2	1,890.6
Deferred credits and other non-current liabilities	88.1	100.7
Deferred income taxes	284.0	260.4
Total liabilities	2,873.5	2,720.6
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.001 par value; 5,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $.001 par value; one vote per share; 150,000,000 shares authorized; 59,821,243 and 59,704,943 shares issued and 50,024,780 and 49,525,594 shares outstanding, respectively	0	0
Additional paid-in capital	427.4	420.2
Treasury stock, 9,546,147 and 9,333,266 shares at cost, respectively	(183.9)	(181.8)
Accumulated other comprehensive loss	(2.2)	(2.6)
Retained Earnings (Accumulated Deficit)	379.2	314.9
Stockholders' Equity Attributable to Parent	620.5	550.7
Total liabilities and stockholders' equity	$ 3,494.0	$ 3,271.3

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Note 2 - Summary of Significant Accounting Policies Net Income per Common Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net Income from Continuing Operations	$ 64.3	$ 48.3	$ 31.3
Income (loss) from discontinued operations, net of tax	0	(21.6)	20.0
Net Income	64.3	26.7	51.3
Interest on Convertible Debt, Net of Tax	0.8	2.0	1.3
Net Income (Loss) Available to Common Stockholders, Diluted	$ 65.1	$ 28.7	$ 52.6
Weighted Average Number of Shares Outstanding, Basic	49.8	49.2	48.5
Incremental Common Shares Attributable to Share-based Payment Arrangements	0.4	0.7	0.2
Stock Issued During Period, Shares, Conversion of Convertible Securities	2.2	4.7	2.7
Weighted Average Number of Shares Outstanding, Diluted	52.4	54.6	51.4
Income from Continuing Operations, Per Common Share - Basic	$ 1.29	$ 0.98	$ 0.65
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	$ 0.00	$ (0.44)	$ 0.41
Earnings Per Share, Basic	$ 1.29	$ 0.54	$ 1.06
Income from Continuing Operations, Per Common Share - Diluted	$ 1.24	$ 0.92	$ 0.63
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	$ 0.00	$ (0.40)	$ 0.39
Earnings Per Share, Diluted	$ 1.24	$ 0.52	$ 1.02

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Consolidated Statement of Stockholders' Equity (USD $) In Millions, unless otherwise specified	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, 2011	$ 460.5	$ 409.4	$ (181.8)	$ (4.0)	$ 236.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	3.0	3.0
Adjustments to Additional Paid in Capital, Other	(0.3)	(0.3)
Net Income	51.3				51.3
Treasury stock repurchases	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax	(1.4)			(1.4)
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax	(0.4)			0.4
Stockholders' Equity Attributable to Parent - Period End at Dec. 31, 2012	513.5	412.1	(181.8)	(5.0)	288.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	4.0	4.0
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

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Note 10 - Contingencies Statement (Details)	12 Months Ended
	Dec. 31, 2014 Aircraft
Commitments and Contingencies Disclosure [Abstract]
Union Employees	71.00%
Number of E140 and E145 aircraft which were grounded during the year	27
number of E140 aircraft permanently parked	15
Number of E145s to be removed from service under CPA agreement with United	12

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Note 9 - Commitments Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

COMMITMENTS [Abstract]

Schedule of Rent Expense [Table Text Block]

As of December 31, 2014, the Company leased 76 aircraft and 29 spare engines with varying terms extending through 2024 and terminal space, operating facilities and office equipment with terms extending through 2033 under operating leases. The components of rent expense for the years ended December 31 are as follows (in millions):

	2014		2013		2012
Aircraft and engine rent	$	126.0	$	122.6	$	110.7
Other	10.3		11.7		9.2
Total rent expense	$	136.3	$	134.3	$	119.9

summary of maintenance agreement expiration dates [Table Text Block]

The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E140/145, E170/175 and Q400 aircraft:

	Expiration Date of Agreement:
Maintenance Agreements	E140/145	E170/175	Q400
Engines	December 2017(2)	March 2027(3)	June 2021(2)
APU	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	July 2021
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. As of

December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs.

⁽³⁾ Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027.

⁽⁴⁾  Q400 maintenance agreements do not include wheels.

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in millions):

	Aircraft		Other		Total
2015	$	106.5	$	16.2	$	122.7
2016	101.6		15.1		116.7
2017	87.8		13.1		100.9
2018	77.1		12.0		89.1
2019	73.9		9.9		83.8
Thereafter	103.9		44.5		148.4
Total	$	550.8	$	110.8	$	661.6

Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block]

The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions):

	Payments Due By Period
2015		2016		2017		2018		2019		Total
Debt or lease financed aircraft under purchase obligations (1)	$	554.2	$	2,447.0	$	1,385.5	$	—	$	—	$	4,386.7
Engines under firm orders	24.6		21.0		7.0		—		—		52.6
Total contractual obligations for aircraft and engines	$	578.8	$	2,468.0	$	1,392.5	$	—	$	—	$	4,439.3

⁽¹⁾ Represents delivery of CS300s based on estimated service date of early 2016.

The information in the table above reflects a purchase price of the aircraft at projected delivery dates.

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Note 12 - Income Taxes Income Tax Reconciliation (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate	$ 29.8	$ 28.4	$ 17.9
Income Tax Reconciliation, State and Local Income Taxes	2.6	2.7	1.6
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	(4.8)	8.8	0.1
income tax reconciliation, adjustments to DTA and DTL	(3.1)	(8.8)	(5.5)
change in state effective tax rate	(4.2)	0	4.3
income tax reconciliation, permanent tax adjustments	2.0	1.7	1.2
Income Tax Reconciliation, Other Reconciling Items	(1.4)	0.2	0.2
INCOME TAX EXPENSE	$ 20.9	$ 33.0	$ 19.8

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Retirement and Benefit Plans

12 Months Ended

Dec. 31, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension and Other Postretirement Benefits Disclosure [Text Block]

RETIREMENT AND BENEFIT PLANS

Defined Contributions Plans — The Company has defined contribution retirement plans covering all employees meeting the eligibility requirements.  The Company matches up to 6% of employees' eligible compensation as defined by the Plan document. Employees are generally vested in matching contributions after three years of service with the Company. Employees are also permitted to make pre-tax deferrals and after-tax Roth contributions of up to 90% (up to the annual Internal Revenue Code limit) of their eligible compensation. The Company's expense under this plan was $6.3 million, $5.9 million, and $5.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Qualified Defined Benefit Plan — The Company has a qualified defined benefit plan. The accrued benefit liability (recorded in deferred credits and other noncurrent liabilities) was $3.4 million and $3.3 million as of December 31, 2014 and 2013, respectively.  The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2014 were $9.9 million, $13.3 million and $9.9 million, respectively. The accumulated benefit obligation, projected benefit obligation and fair value of plan assets at December 31, 2013 were $16.7 million, $16.7 million, and $13.4 million, respectively.

The net periodic benefit cost, employer contributions, and future benefit payments are not material to the Company’s consolidated statements of operations or consolidated financial position.

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Note 11 - Capital Stock and Stock Options Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

CAPITAL STOCK AND STOCK OPTIONS [Abstract]

Schedule of Common Stock Outstanding Roll Forward [Table Text Block]

The following table summarizes common stock activity for the years ended December 31, 2014, 2013, and 2012:

(in millions)	Common Stock
	2014	2013	2012
Beginning balance	49.5	48.6	48.4
Shares issued for stock options exercised	0.4	0.7	—
Vesting of restricted stock and other	0.1	0.2	0.2
Ending balance	50.0	49.5	48.6

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes option activity under the stock option plans as of December 31, 2014:

	Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Contractual Term (in years)
Outstanding at January 1, 2014	4,176,666		$	13.50
Granted	135,750		10.53
Exercised	(900,801	)	10.48
Forfeited	(276,110	)	13.43
Outstanding at December 31, 2014	3,135,505		$	14.25	$	6.9	6.18
Vested or expected to vest at December 31, 2014	3,095,611		$	14.31	$	6.7	6.11
Exercisable at December 31, 2014	2,671,717		$	14.90	$	5.0	5.39

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following assumptions were used to value stock option grants during the following periods:

	December 31,
	2014				2013				2012
Dividend yield	—%				—%				—%
Expected volatility	56	%	-	58%	59	%	-	62%	59	%	-	62%
Risk-free interest rate	1.7	%	-	1.8%	0.9	%	-	1.4%	0.6	%	-	1.0%
Expected life (in years)	4		-	5	4		-	5	4		-	5

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

A summary of restricted stock activity under the aforementioned plan is as follows:

	Restricted Stock  Awards
Unvested at January 1, 2014	846,083
Vested	(317,500	)
Issued	293,318
Surrendered	(58,669	)
Unvested at December 31, 2014	763,232

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Subsequent Events

12 Months Ended

Dec. 31, 2014

Subsequent Event [Line Items]

Subsequent Events [Text Block]

SUBSEQUENT EVENTS

On February 26, 2015, the Company received written notice from Delta exercising their right to extend 24 aircraft under the E145 code-share agreement from May 2016 to May 2021.

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Note 12 - Income Taxes Valuation Allowance (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Valuation Allowance, Amount - Begin	$ 191.3	$ 182.5	$ 182.5
reductions in valuation allowance for net operating losses previously forgone	3.6	0	0.1
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	(4.8)	8.8	0.1
Valuation Allowance, Amount - End	182.9	191.3	182.5
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 8.4

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Consolidated Statement of Stockholders' Equity Stockholders Equity Parenthetical (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized (Gain) Loss Arising During Period, Tax	$ 0.1	$ 1.4	$ 0.9
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax	$ 0.1	$ 0.2	$ 0.3

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Condensed Consolidated Balance Sheets Parenthetical (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Allowance for Doubtful Accounts Receivable, Current	$ 2.6	$ 1.5
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	59,821,243	59,704,943
Common Stock, Shares, Outstanding	50,024,780	49,525,594
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 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	9,333,266

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Debt

12 Months Ended

Dec. 31, 2014

Debt Instrument [Line Items]

Debt Disclosure [Text Block]

DEBT

The weighted average rate of debt for aircraft financings for December 31, 2014 and 2013, was 5.38% and 5.76%, respectively.

Debt consists of the following as of December 31 (in millions):

Secured debt:	2014		2013
Promissory notes payable, collateralized by aircraft, bearing interest at fixed rates ranging from 3.63% to 8.49% at December 31, 2014 and outstanding through 2025, net of unamortized debt discount of $73.4 million. (3)	$	2,238.1	$	1,995.0
Promissory notes payable, collateralized by aircraft, bearing interest at variable rates based on LIBOR plus a margin, ranging from 1.80% to 1.82% at December 31, 2014 and outstanding through 2020.	41.6		80.0
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at fixed rates ranging from 5.25% to 8.38% as of December 31, 2014 and outstanding through 2020.	53.7		37.0
Promissory notes payable, collateralized by eligible spare parts and equipment, bearing interest at a variable rate of LIBOR plus a margin, ranging from 3.61% to 5.34% as of December 31, 2014 and outstanding through 2018.	3.4		4.3
Other	2.4		3.7
Total debt secured by aircraft and parts	2,339.2		2,120.0
Unsecured debt:
Convertible note payable, bearing interest at a fixed rate of 8%, due in full in July 2014. (1)	—		22.3
Convertible note payable, bearing interest at a fixed rate of 6%, face value of $25.0 million, net of discount $0.5 million, due in full in 2019. (2)	—		24.5
Total unsecured debt	—		46.8
Total debt	2,339.2		2,166.8
Current portion	309.0		276.2
Long term debt, less current portion	$	2,030.2	$	1,890.6

⁽¹⁾ The Company redeemed the convertible note by paying $22.3 million of cash on April 7, 2014 as discussed in Note 2.

⁽²⁾ The Company redeemed the convertible note by paying $26.5 million in cash on October 28, 2014, which included accrued interest as discussed in Note 2.

⁽³⁾  The Company entered into financing agreements to borrow $569.2 million for 22 E175 aircraft and other equipment primarily for the American E175 fixed-fee agreement and other equipment.

Included in the current portion of long term debt as of December 31, 2014, are approximately $28.7 million of aircraft related debt obligations that the Company expects to refinance.

The Company has outstanding letters of credit as of December 31, 2014 and 2013 totaling $14.1 million and $17.0 million, respectively, that are collateralized by restricted cash.

Future maturities of debt are payable, as follows for the years ending December 31 (in millions):

	Total Secured Debt		Amortization of Debt Discount, net
2015	$	321.2	(12.2		)
2016	303.0		(11.2		)
2017	352.8		(10.1		)
2018	295.0		(9.0		)
2019	339.5		(7.9		)
Thereafter	801.1		(23.0		)
Total	$	2,412.6	$	(73.4	)	$	2,339.2

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Feb. 27, 2015	Jun. 30, 2014
Entity Registrant Name	REPUBLIC AIRWAYS HOLDINGS INC
Entity Central Index Key	0001159154
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		50,137,187
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 541,327,920

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Commitments

12 Months Ended

Dec. 31, 2014

COMMITMENTS [Abstract]

Commitments Disclosure [Text Block]

COMMITMENTS

As of December 31, 2014, the Company leased 76 aircraft and 29 spare engines with varying terms extending through 2024 and terminal space, operating facilities and office equipment with terms extending through 2033 under operating leases. The components of rent expense for the years ended December 31 are as follows (in millions):

	2014		2013		2012
Aircraft and engine rent	$	126.0	$	122.6	$	110.7
Other	10.3		11.7		9.2
Total rent expense	$	136.3	$	134.3	$	119.9

The Company has long-term maintenance agreements with an avionics equipment manufacturer and maintenance provider that has a guaranteed minimum annual flight hour requirement. The minimum guaranteed amount based on the Company's current operations is $2.6 million per year through December 2016 for the E145 family of aircraft and $10.3 million per year through December 2014 for the E170 family of aircraft.

The following table represents our maintenance agreements for engines, auxiliary power units ("APU") and other airframe components for our E140/145, E170/175 and Q400 aircraft:

	Expiration Date of Agreement:
Maintenance Agreements	E140/145	E170/175	Q400
Engines	December 2017(2)	March 2027(3)	June 2021(2)
APU	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	July 2021
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. As of

December 31, 2014 and 2013, we had maintenance deposits of $53.2 million and $36.6 million, respectively, for the future replacement of LLPs.

⁽³⁾ Maintenance agreements for engines on United and Delta E175 aircraft expire December 2018, US Airways E175 aircraft expire December 2022, and American E175 aircraft expire March 2027.

⁽⁴⁾  Q400 maintenance agreements do not include wheels.

Under these agreements, we are charged for covered services based on a fixed rate for each flight hour or flight cycle accumulated by the engines or airframes in our service during each month. The rates are subject to annual revisions, generally based on certain Bureau of Labor Statistics' labor and material indices.  We believe these agreements, coupled with our ongoing maintenance program, reduce the likelihood of unexpected levels of engine, APU, avionics, wheels and brakes, emergency slides, and select rotable parts maintenance expense during their term. Certain of these agreements contain minimum guarantee amounts, penalty provisions for either the early removal of aircraft or agreement termination for activity levels below the minimums.

Total payments under these long-term maintenance agreements were $173.0 million, $163.8 million, and $119.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

As part of the Company's lease agreements, the Company typically indemnifies the lessor of the respective aircraft against liabilities that may arise due to changes in benefits from tax ownership or tax laws of the respective leased aircraft. The Company has not recorded a liability for these indemnifications because they are not estimable. The Company is responsible for all other maintenance costs of its aircraft and must meet specified return conditions upon lease expiration for both the air frames and engines. The Company recorded a liability for the return conditions of $2.3 million as of December 31, 2014 for maintenance commitments on three E190 aircraft that will be returned to the lessor in 2015.

Future minimum payments under non-cancelable operating leases are as follows for the years ending December 31 (in millions):

	Aircraft		Other		Total
2015	$	106.5	$	16.2	$	122.7
2016	101.6		15.1		116.7
2017	87.8		13.1		100.9
2018	77.1		12.0		89.1
2019	73.9		9.9		83.8
Thereafter	103.9		44.5		148.4
Total	$	550.8	$	110.8	$	661.6

As of December 31, 2014, the Company has leased eight E145 aircraft, three E170 aircraft, and three E190 aircraft to a foreign airline, and it has leased one E135 aircraft and three E145 aircraft to domestic airlines. As of December 31, 2014, the total amount of minimum rentals to be received in the future under non-cancelable leases is $104.0 million.  During the years ended December 31, 2014, 2013, and 2012, the Company recognized $20.1 million, $18.7 million and $15.9 million, respectively, of lease income that is included in other revenue in the consolidated statements of operations.

As of December 31, 2014, the Company has firm orders to purchase 40 CS300 aircraft that have scheduled delivery dates beginning in early 2015 and continuing through 2017. In January 2014, Bombardier announced that the aircraft would not be expected into service until early 2016. The Company has stopped making pre-delivery deposit payments on these aircraft.

The Company also has a commitment for 47 Embraer E175 aircraft (of which 41 have been delivered as of December 31, 2014) under the American Eagle brand that have scheduled delivery dates currently and through the second quarter of 2015. In addition, the Company has a commitment for 55 Embraer E175 aircraft under the United brand that have scheduled delivery dates between the third quarter of 2015 and the third quarter of 2017. The Company also has a commitment to acquire 11 spare aircraft engines (of which three have been delivered as of December 31, 2014) and expects to take delivery of four engines in 2015, three engines in 2016, and one engine in 2017. 

The following table displays the Company's future contractual obligations for aircraft and other equipment under firm order (in millions):

	Payments Due By Period
2015		2016		2017		2018		2019		Total
Debt or lease financed aircraft under purchase obligations (1)	$	554.2	$	2,447.0	$	1,385.5	$	—	$	—	$	4,386.7
Engines under firm orders	24.6		21.0		7.0		—		—		52.6
Total contractual obligations for aircraft and engines	$	578.8	$	2,468.0	$	1,392.5	$	—	$	—	$	4,439.3

⁽¹⁾ Represents delivery of CS300s based on estimated service date of early 2016.

The information in the table above reflects a purchase price of the aircraft at projected delivery dates.

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Condensed Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
OPERATING REVENUES:
Fixed-fee service	$ 1,348.5	$ 1,276.1	$ 1,102.1
Passenger service	0	46.3	247.9
Other Revenue	26.9	24.1	27.4
Total operating revenues	1,375.4	1,346.5	1,377.4
OPERATING EXPENSES:
Wages and benefits	368.0	342.1	308.4
Aircraft fuel	22.4	44.9	161.4
Landing fees and airport rents	26.9	46.4	61.5
Aircraft and engine rent	126.0	122.6	110.7
Maintenance and repair	251.1	251.6	235.3
Insurance and taxes	19.9	25.1	24.7
Depreciation and amortization	173.0	150.7	160.0
Promotion and sales	0	2.3	12.8
Impairment and other charges	53.4	21.2	0
Other	149.2	148.6	134.1
Total operating expenses	1,189.9	1,155.5	1,208.9
OPERATING INCOME	185.5	191.0	168.5
OTHER INCOME (EXPENSE):
Interest expense	(119.7)	(112.2)	(117.6)
Fair value gain on restructuring asset	18.4	0	0
Other, net	1.0	2.5	0.2
Total other expense	(100.3)	(109.7)	(117.4)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	85.2	81.3	51.1
INCOME TAX EXPENSE	20.9	33.0	19.8
Income from Continuing Operations	64.3	48.3	31.3
Income (loss) from discontinued operations, net of tax	0	(21.6)	20.0
Net Income	$ 64.3	$ 26.7	$ 51.3
Income from Continuing Operations, Per Common Share - Basic	$ 1.29	$ 0.98	$ 0.65
Income from Continuing Operations, Per Common Share - Diluted	$ 1.24	$ 0.92	$ 0.63
NET INCOME PER COMMON SHARE - BASIC	$ 1.29	$ 0.54	$ 1.06
NET INCOME PER COMMON SHARE - DILUTED	$ 1.24	$ 0.52	$ 1.02

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Fair Value Measurement

12 Months Ended

Dec. 31, 2014

FAIR VALUE MEASUREMENTS [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures” requires disclosures about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established.  The Topic establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1	quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2	quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3	unobservable inputs for the asset or liability.

The following table sets forth information regarding the Company's assets (liabilities) measured at fair value on a recurring basis (in millions):

Fair Value of Assets on a Recurring Basis	December 31, 2014		Level 1		Level 2		Level 3
Chautauqua restructuring asset	$	81.2	$	—	$	—	$	81.2
Fair Value of Assets on a Recurring Basis	December 31, 2013		Level 1		Level 2		Level 3
Chautauqua restructuring asset	$	79.6	$	—	$	—	$	79.6

Chautauqua restructuring asset - In October 2012, the Company restructured aircraft ownership obligations related to its 50-seat regional jet platform, Chautauqua. In connection with the restructuring, the Company issued a convertible note payable with a face value of $25.0 million, provided call rights on 28 of its owned aircraft and agreed to parent company guarantees related to future minimum lease payments, among other commitments.

The Company elected the fair value option under ASC 825-10, "Financial Instruments" for the agreement related to its 28 owned aircraft because management believes the fair value option provides the most accurate representation of the economic benefit of this agreement to Chautauqua in the Company's financial statements. Under the fair value option, the Company recorded an $86.4 million asset representing the combined fair value of expected future cash inflows under the agreement, net of the value of the Company's obligations attributable to the call rights on the 28 aircraft. The recurring fair value measurement of this agreement has been calculated using an income approach, which requires the use of subjective assumptions that are considered level 3 inputs. Fair values have been estimated by discounting the cash flows expected to be received over the term of the agreement, using a discount rate based on observable yields on instruments bearing comparable risks and credit worthiness of the counterparty. Critical assumptions used in the fair value measurement primarily include the amount and timing of cash inflows, the discount rate and the probability of whether the call option on the restructured aircraft will be exercised by the counterparty. A change in these assumptions could result in a significantly higher or lower fair value measurement, which would result in a gain or loss during the period in which the assumption changes. A 100 basis point change in the discount rate used would have changed the fair value of the restructuring asset by approximately $2.0 million as of December 31, 2014. Similarly, a change in the assumed probability of whether the call option on the restructured aircraft will be exercised could result in either a gain or loss of up to $3.2 million per aircraft during the period in which that assumption changed.

In March 2013, the agreement was amended, which resulted in a $12.0 million increase in the restructuring asset under the fair value option. The $12.0 million increase represents the fair value of expected future cash inflows under the amendment. In addition, this amendment resulted in a $12.0 million deferred credit that will amortize as a reduction to the basis of future aircraft deliveries through second quarter of 2015.

On February 11, 2014, the Company announced the early termination of its 44 to 50 seat fixed-fee agreements with United Airlines and American Airlines, which were scheduled to terminate in 2014. These agreements began to wind down in March 2014 and resulted in the grounding of 27 small jet aircraft. The Company notified the counterparty that 15 of the 27 aircraft to be grounded are subject to this agreement and callable by the counterparty. The Company was notified by the counterparty during the first quarter of 2014 that it did not intend to exercise its call option on these aircraft. The Company recorded a fair value gain of $18.4 million for the twelve months ended December 31, 2014, which represents the fair value of the increase in cash flows expected to be received over the remaining term of the agreement, due to the counterparty's obligation to increase its payment to the Company for aircraft that cease to have applicable capacity purchase agreement reimbursement rates.

As of December 31, 2014, the Company would owe approximately $36.7 million under certain circumstances of non-performance or voluntary repayment, however, the Company estimated the probability of repayment as remote.

The following is a reconciliation of the beginning and ending balances for the periods indicated of recurring fair value measurements using Level 3 inputs (in millions):

Chautauqua Restructuring Asset	Year Ended December 31, 2014			Year Ended December 31, 2013
Beginning Balance	$	79.6		$	86.4
Amendment to agreement	—			12.0
Fair value gain	18.4			—
Cash received or other	(16.8		)	(18.8		)
Ending Balance	$	81.2		$	79.6

Fair Value of Debt - Market risk associated with our fixed and variable rate long-term debt primarily relates to the potential change in fair value and impact to future earnings, respectively, from a change in interest rates. In the table below, the aggregate fair value of debt was based primarily on recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as level 3 within the fair value hierarchy.

	December 31
	2014		2013
Net carrying amount	$	2,339.2	$	2,166.8
Estimated fair value	2,215.0		2,099.8

Aircraft and Other Assets Impairment - Nonrecurring - In December 2014, we recorded a $27.7 million impairment charge primarily related to our decision to substantially reduce the operations of Q400 and E190 aircraft over the next few years. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition, maintenance record and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy.

In March 2014, we recorded a 19.9 million impairment charge related to our decision to permanently park our owned E140 fleet in March 2014, impairing these aircraft to zero.

In September 2013, we recorded a $12.0 million impairment charge primarily related to our decision to substantially reduce the pro-rate flying completed by the E190 fleet over the next year by temporarily parking these aircraft. In evaluating these aircraft and other equipment for impairment, we estimated their fair value by utilizing a market approach considering (1) published market data generally accepted in the airline industry, (2) recent market transactions, where available, and (3) the overall condition and age of the aircraft and other equipment. These aircraft are classified in level 3 of the three-tier fair value hierarchy.

There were no aircraft and other asset impairment charges recorded for the year ended December 31, 2012.

($ in millions)
			Fair Value Measurements Using
Description	Year ended December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Long-lived assets abandoned - E140	$	—			$	—	$	(19.9	)
Long-lived assets held and used - Q400	49.7				49.7		(13.3		)
Long-lived assets held and used - E190	101.6				101.6		(14.4		)
							$	(47.6	)
			Fair Value Measurements Using
Description	Year ended December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Long-lived assets held and used	$	152.5			$	152.5	$	(12.0	)

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Summary Of Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis ofConsolidation—The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries, Chautauqua Airlines, Shuttle America, and Republic Airline. Frontier Airlines is also included in the consolidated financial statements as discontinued operations until the sale on December 3, 2013.  Intercompany transactions and balances are eliminated in consolidation.

Risk Management—The Company has recorded settlements of treasury lock agreements from prior periods within accumulated other comprehensive loss.  Such amounts are reclassified to interest expense over the term of the respective aircraft debt.  During 2014, 2013 and 2012, the amount reclassified to interest expense was not material to the financial statements.

Cash and Cash Equivalents—Cash equivalents consist of money market funds and short-term, highly liquid investments with maturities of three months or less when purchased and approximates fair value. Substantially all of our cash is on hand with two banks.

Supplemental Statement of  Cash Flow Information:

	Years ended December 31,
(amounts in millions)	2014		2013		2012
CASH PAID FOR INTEREST AND INCOME TAXES:
Interest paid-net of amount capitalized	$	110.1	$	108.2	$	116.1
Income taxes paid-net of refunds	0.8		2.1		0.1
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1)	—		42.8		—
Other equipment acquired through manufacturer credits	23.1		11.6		—
Manufacturer credits applied to the purchase of aircraft	17.1		8.7		—
Engines received and not yet paid	—		5.8		—
Issuance of convertible debt	—		—		22.9
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive	—		12.0		86.4

⁽¹⁾ During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement.

Restricted Cash primarily consists of balances in escrow for our long-term charter agreement, restricted amounts for satisfying debt and lease payments due within the next year and certificates of deposit that secure certain letters of credit issued for workers' compensation claim reserves and certain airport authorities. Restricted cash is carried at cost, which management believes approximates fair value.

Receivables primarily consist of amounts due from our partners, OEMs and insurance providers. We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical write-offs and other specific analysis. Bad debt expense and write-offs were not material for the years ended December 31, 2014, 2013 and 2012.

Inventories consist of spare parts and supplies, which are charged to expense as they are used in operations. Inventories are valued at the lower of cost or net realizable value using an average cost methodology.  An allowance for obsolescence is provided to reduce inventory to estimated net realizable value. As of December 31, 2014 and 2013, this reserve was $27.0 million and $22.6 million, respectively.

Prepaid Expenses and Other Current Assets consist of prepaid expenses, primarily deposits, facility and engine rent, and other current assets.

Aircraft and Other Equipment is carried at cost. Incentives received from the aircraft manufacturer are recorded as reductions to the cost of the aircraft.  Depreciation for aircraft is computed on a straight-line basis, to an estimated residual value, over the estimated useful life of 16.5 to 20 years. Depreciation for other equipment, including rotable parts, is computed on a straight-line basis, to an estimated residual value, over the estimated useful lives of three to ten years. Leasehold improvements are amortized over the expected life or lease term, whichever is shorter. Interest related to deposits on aircraft on firm order from the manufacturer is capitalized and was not material for the years ended December 31, 2014, 2013 and 2012, respectively. See Note 5.

Intangible and Other Assets that have indefinite useful lives are not amortized but are tested if a triggering event occurred, or at least annually, for impairment.  Other assets consists primarily of aircraft leases and long-term deposits, Chautauqua restructuring asset, prepaid aircraft rents, and debt issue costs and other non-current assets. Debt issue costsare capitalized and are amortized using the effective interest method to interest expense over the term of the related debt. Refer to Note 6 for more detail.

Long-Lived Assets—Management reviews long-lived assets for possible impairment, if there is a triggering event that detrimentally affects operations. The primary financial indicator used by the Company to assess the recoverability of its long-lived assets held and used is undiscounted future cash flows from operations. The amount of impairment, if any, is measured based on carrying value over the estimated fair value.

Deferred Credits and Other Non Current Liabilities consist primarily of credits for parts and training from the aircraft and engine manufacturers, deferred gains from the sale and leaseback of aircraft and spare jet engines and deferred revenue. Deferred credits are amortized on a straight-line basis as a reduction of aircraft or engine rent expense over the term of the respective leases.  The deferred revenue is amortized as an adjustment to fixed-fee services revenue based on the weighted average aircraft in service over the life of the respective agreements.

Accumulated Other Comprehensive Loss—The Company had accumulated other comprehensive loss relating to treasury lock agreements of $0.5 million and $0.8 million (net of tax), as of December 31, 2014 and 2013, respectively; and $1.7 million and $1.8 million (net of tax), relating to the pension plan as of December 31, 2014 and 2013, respectively.

Income Taxes—The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is adjusted by a valuation allowance, if necessary, to recognize the future tax benefits to the extent, based on available evidence; it is more likely than not they will be realized.

Aircraft Maintenance and Repair charges are expensed as incurred under the direct expense method. Engines and certain airframe component overhaul and repair costs are subject to power-by-the-hour contracts with external vendors and are expensed as the aircraft are flown.  The Company also has refundable deposits related to leased aircraft.  Deposits are reimbursed based on the specific event for each specified deposit, as determined by the lease. As of December 31, 2014, the Company has evaluated the carrying amount of maintenance deposits and believes the deposits are recoverable when the future maintenance event occurs and the Company is reimbursed. The Company has determined that it is probable that substantially all maintenance deposits will be refunded through qualifying maintenance activities.  This analysis was performed by lease and by deposit type. The Company will continue to evaluate whether it is probable the deposits will be returned to reimburse the costs of the maintenance activities incurred.  Deposits will be recognized as additional expense when they are less than probable of being returned.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such management estimates include, but are not limited to, recognition of revenue, estimated useful lives and residual values of aircraft and other equipment, provision for accrued aircraft return costs, recoverability of maintenance deposits, fair value of financial instruments and valuation of deferred tax assets. Under the code-share agreements, the Company estimates operating costs for certain pass through costs and records revenue based on these estimates. Actual results could differ from these estimates.

Fixed-fee Service Revenues—Under our fixed-fee arrangements with our Partners, the Company receives fixed-fees for our capacity purchase agreements, as well as reimbursement of specified pass through costs on a gross basis with additional possible incentives from our Partners for superior service. These revenues are recognized in the period the service is provided, and we record an estimate of the profit component based upon the information available at the end of the accounting period.

The reimbursement of specified costs, known as pass through costs, may include aircraft ownership cost, passenger liability and hull insurance, aircraft property taxes, fuel, landing fees and catering. All revenue recognized under these contracts is presented at the gross amount billed for reimbursement.

Under the Company’s code-share agreements, the Company is reimbursed an amount per aircraft designed to compensate the Company for certain aircraft ownership costs.  The Company has concluded that a component of its fixed-fee service revenues under the agreements discussed above is rental income, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The amount deemed to be rental income during 2014, 2013 and 2012 was $433.7 million, $386.8 million, and $338.5 million, respectively, and has been included in fixed-fee service revenues in the Company’s consolidated statements of operations.

Other Revenue—Other revenue primarily consists of revenue related to lease revenue for aircraft leased under operating leases.

Lease Return Conditions—The Company must meet specified return conditions upon lease expiration for both the airframes and engines.  The Company estimates lease return conditions specified in leases and accrues these amounts as contingent rent ratably over the lease term while the aircraft are operating once such costs are probable and reasonably estimable.  These expenses are included in accrued liabilities in the consolidated balance sheets.

Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period.  The following is a reconciliation of the diluted net income (loss) per common share computations:

	For the Years Ended December 31,
(in millions)	2014		2013			2012
Income from continuing operations	$	64.3	$	48.3		$	31.3
Income (loss) from discontinued operations, net of tax	—		(21.6		)	20.0
Net income	$	64.3	$	26.7		$	51.3
Reduction in interest expense from convertible notes (net of tax)	0.8		2.0			1.3
Net income after assumed conversion	$	65.1	$	28.7		$	52.6
Weighted-average common shares outstanding for basic net income per common share	49.8		49.2			48.5
Effect of dilutive employee stock options	0.4		0.7			0.2
Effect of dilutive convertible notes	2.2		4.7			2.7
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share	52.4		54.6			51.4
Income (loss) per share - basic:
Income from continuing operations	$	1.29	$	0.98		$	0.65
Income (loss) from discontinued operations, net of tax	—		(0.44		)	0.41
Net income per share - basic	$	1.29	$	0.54		$	1.06
Income (loss) per share - diluted:
Income from continuing operations	$	1.24	$	0.92		$	0.63
Income (loss) from discontinued operations, net of tax	—		(0.40		)	0.39
Net income per share - diluted	$	1.24	$	0.52		$	1.02

The Company excluded 2.5 million, 3.3 million, and 4.1 million of employee stock options from the calculation of diluted net income (loss) per share due to their anti-dilutive impact for the years ended December 31, 2014, 2013, and 2012, respectively.  

The Company had two convertible notes with face values of $22.3 million and $25.0 million that were convertible in whole or in part, at the option of the holder, for up to 2.2 million and 2.5 million shares, respectively, of the Company’s common stock, which were both redeemed during 2014. The convertible note payable for 2.5 million shares was issued in November of 2012, and it was dilutive for the twelve months ended December 31, 2014 and December 31, 2013. The convertible note payable for 2.2 million shares was anti-dilutive for the twelve months ended December 31, 2014, and dilutive for the twelve months ended December 31, 2013 and 2012, respectively.

On April 7, 2014, the board authorized management to utilize up to $75 million to buy back shares and/or early retire convertible debt during the twelve months thereafter. The authorization approved Company repurchases of up to $50 million of common shares and retirements of up to $50 million of convertible notes, or combination thereof. Also, on April 7, 2014, the Company redeemed the convertible note with a face value of $22.3 million, by paying $22.3 million of cash.

On October 28, 2014, the Company redeemed the convertible note with a face value of $25.0 million, by paying $26.5 million in cash. At the time of redemption the convertible note had a nominal value of $28.0 million, which included accrued interest.

Segment Information—As a result of the sale of Frontier there is only one reportable segment for the scheduled transportation of passengers under code-share agreements.

Fair Value of Financial Instruments—The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, receivables, and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments.

Accounting Pronouncements—In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The objective of this update is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and the Company is still evaluating the impact to the consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after Requisite Service Period . The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to rewards with performance conditions that affect vesting to account for such awards. The Performance Target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. It is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and the impact to the consolidated financial statements is not expected to be material.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and the Company is still evaluating the impact to the consolidated financial statements.

In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The objective of the standard is to update the requirements for reporting discontinued operations in Subtopic 205-20.

In January 2014, the FASB issued ASU 2014-05, Service Concession Arrangements (Topic 853), a consensus of the FASB Emerging Issues Task Force . The objective of the update is to specify that an operating entity should not account for a service concession arrangement within the scope of this update as a lease in accordance with Topic 840, Leases. It is effective for fiscal years beginning after December 15, 2014, and the impact to the consolidated financial statements was not material.

In July 2013, the FASB issued ASU 2013-11–Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard provides updated guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. It became effective for fiscal years beginning after December 15, 2013, and the impact to the consolidated financial statements was not material.

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Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

VALUATION AND QUALIFYING ACCOUNTS

(amounts in millions) Description	Balance at Beginning of Year		Additions Charged to Expense		Deductions				Balance at End of Year
Allowance for doubtful accounts receivables:
12/31/2014	$	1.5	$	1.4	$	(0.3	)	(1)	$	2.6
12/31/2013	1.3		0.4		(0.2		)	(1)	1.5
12/31/2012	$	0.5	$	0.9	$	(0.1	)	(1)	$	1.3

⁽¹⁾   Uncollectible accounts written off net of recoveries, if any.

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Contingencies

12 Months Ended

Dec. 31, 2014

Loss Contingencies [Line Items]

Legal Matters and Contingencies [Text Block]

CONTINGENCIES

We are subject to certain legal and administrative actions, which we consider routine to our business activities. Management believes that the ultimate outcome of any pending legal matters will not have a material adverse effect on our financial position, liquidity or results of operations. 

During the third quarter of 2014, the suit filed by the International Brotherhood of Teamsters ("IBT") against the Company and Frontier seeking to have the restructuring agreement declared null and void, or alternatively, seeking that the IBT manage the equity investment of the Frontier pilots due to accusations that the Company interfered with the election process was dismissed. The dismissal arose after the Frontier Airlines Pilots Association ("FAPA") was certified to replace the IBT as the collective bargaining representative of the Frontier pilots. After that occurred, the Company and Frontier sought to have the case dismissed on the ground that the IBT no longer had standing to represent the interests of the Frontier pilots. The IBT then moved to have FAPA substituted as the party in interest. The court granted that motion, after which FAPA indicated that it did not intend to continue to prosecute the case, leading to the dismissal.

As of December 31, 2014, approximately 71% of the Company's workforce is employed under union contracts. The union contracts for our pilots is currently amendable. Although we have never had a work interruption or stoppage, we are subject to risks of work interruption or stoppage and/or may incur additional administrative expenses associated with union representation of our employees. If we are unable to reach agreement with any of our unionized work groups on the amended terms of their collective bargaining agreements, we may be subject to work interruptions and/or stoppages. Any sustained work stoppages could adversely affect our ability to fulfill our obligations under our fixed-fee and pro-rate agreements and could have a material adverse effect on our financial condition and results of operations.

The Company is currently in a labor dispute with the International Brotherhood of Teamsters ("IBT") Local 357, which represents all of our pilots.  On April 4, 2014, the Company announced that members of the IBT Local 357 failed to ratify a proposed four-year pilot labor agreement, which would have increased pay, improved work rules and allotted a significant signing bonus to our pilots.  Our inability to pay our pilots, especially our new hire first officers, market level wages is negatively impacting our ability to hire qualified pilots and operate the number of aircraft our Partners desire for us to fly under fixed-fee agreements.  In 2014, we did not renew agreements to operate 27 ERJ aircraft and permanently parked 15 E140 aircraft, temporarily parked 12 E145 aircraft and temporarily parked an operational spare. The Company may need to park additional ERJ aircraft in 2015 and 2016 as a result of the current labor dispute, which could cause us to fail to meet the required performance levels under our CPAs.

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Note 6 - Intangible and Other Assets (Notes)

12 Months Ended

Dec. 31, 2014

schedule of intangible and other assets [Line Items]

intangible and other assets [Text Block]

INTANGIBLE AND OTHER ASSETS

Intangible and other assets as of December 31, 2014 and 2013 consist of the following (in millions):

	2014		2013
Indefinite-lived intangible assets:
Airport slots	$	9.0	$	9.0
Other assets:
Aircraft pre-delivery deposits	57.5		30.0
Aircraft lease and long-term deposits	26.0		38.4
Chautauqua restructuring asset - See Note 3	81.2		79.6
Prepaid aircraft rents	27.8		34.5
Debt issue costs and other non-current assets	19.2		25.3
Total Other assets	211.7		207.8
Intangible and other assets	$	220.7	$	216.8

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Note 11 - Capital Stock and Stock Options Common Stock Activity Rollforward (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Outstanding - begin	49,525,594	48,600,000	48,400,000
Stock Issued During Period, Shares, New Issues	400,000	700,000	0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	100,000	200,000	200,000
Common Stock, Shares, Outstanding - end	50,024,780	49,525,594	48,600,000

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Note 4 - Discontinued Operations (Notes)

12 Months Ended

Dec. 31, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

DISCONTINUED OPERATIONS

In October, 2013, the Company entered into a stock purchase agreement for the sale of Frontier Airlines Holdings, Inc. (“Frontier”) to an affiliate of Indigo Partners LLC and the sale was completed on December 3, 2013. As a result the Company reported Frontier as discontinued operations on the consolidated statement of operations and consolidated statement of cash flows for all periods presented.

Summarized financial information for discontinued operations is shown below:         

($ in millions)	Years Ended
		2013			2012
Total operating revenue		$	1,217.5		$	1,433.5
Income from discontinued operations before tax(2)		$	50.9		$	35.0
Income tax expense		18.7			15.0
Income from discontinued operations		32.2			20.0
Loss on disposal from discontinued operations (1)		(53.8		)	—
Total discontinued operations, net of tax		$	(21.6	)	$	20.0

⁽¹⁾ In connection with the exit of our Frontier business, we recorded a pre-tax loss of $210.5 million, net of income tax benefit of $156.7 million for the year ended December 31, 2013. Included in the $156.7 million of income tax benefit is the release of $78.0 million of deferred tax liabilities associated with the Company's tax basis in the stock of Frontier as the transaction will be treated as an asset sale for tax purposes. The Company incurred $7.1 million of transaction costs that are included in the loss on disposal for the year ended December 31, 2013.

⁽²⁾ In addition to the Frontier operations, income from discontinued operations before taxes includes certain adjustments required by discontinued operation presentation.

Pursuant to the terms of the stock purchase agreement between the Company and Falcon Acquisition Group, Inc. ("Buyer"), the Company and Buyer finalized the share purchase price in the fourth quarter of 2014.  The final share purchase price did not result in an adjustment to the share purchase price. In addition, the stock purchase agreement contains an obligation for the Company to indemnify the Buyer under certain circumstances and subject to certain conditions and limitations.  With certain exceptions that are not subject to any limitation, the Company's indemnity obligation is capped under the stock purchase agreement at a maximum of $25.0 million.  However, the Company believes that the likelihood that it will be required to make any payment of significant indemnification claims under the stock purchase agreement is remote and therefore the Company has not recorded any contingent liabilities for Buyer’s indemnification claims as of December 31, 2014.

Republic has retained all liabilities for all United States federal and foreign income tax on income prior to separation, as well as certain non-income taxes attributable to Frontier's business. Frontier generally will be liable for all other taxes attributable to its business. In connection with the separation, Republic separated its defined contribution plan from Frontier's business.     

Republic and Frontier entered into a transition services agreement pursuant to which Republic provided Frontier, on an interim transitional basis, various services. Transition services were provided for nine months from the closing with an option for extension by the recipient. The transition services agreement was extended for certain information technology and operation support through December 31, 2014. Services provided by Republic under the original agreement included certain information technology, operations and back office support. Billings by Republic under these transitional services agreements of $2.8 million for the year ended December 31, 2014, are recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statements of Operations. This transitional support enabled Frontier to establish its stand-alone processes for various activities that were previously provided by Republic and did not constitute significant continuing involvement in Frontier’s operations.

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Aircraft and Other Equipment

12 Months Ended

Dec. 31, 2014

AIRCRAFT AND OTHER EQUIPMENT [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

AIRCRAFT AND OTHER EQUIPMENT

Aircraft and other equipment, excluding other equipment held for sale, consist of the following as of December 31 (in millions): 

	2014			2013
Aircraft	$	3,644.8		$	3,221.8
Flight equipment	171.7			173.8
Office equipment and leasehold improvements	44.4			44.8
Total aircraft and other equipment	3,860.9			3,440.4
Less accumulated depreciation and amortization	(1,000.0		)	(876.8		)
Aircraft and other equipment—net	$	2,860.9		$	2,563.6

Aircraft and other equipment depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $173.0 million, $150.7 million, and $160.0 million, respectively. In December 2014, March 2014 and September 2013, we recorded $27.7 million, $19.9 million and $12.0 million in impairment charges, respectively, as discussed in Note 3. The Company also recorded a $5.8 million loss on the sale of two E190 aircraft that was recorded in impairment charges and other.

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Accrued Liabilities

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

ACCRUED LIABILITIES

Accrued liabilities consist of the following as of December 31 (in millions):

	2014		2013
Accrued wages, benefits and related taxes	$	29.0	$	29.2
Accrued maintenance	37.6		50.2
Accrued interest payable	18.0		18.1
Deferred revenue	19.9		23.8
Other	38.4		42.5
Total accrued liabilities	$	142.9	$	163.8

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Note 12 - Income Taxes Income Tax Expense (Benefit) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current Federal Tax Expense (Benefit)	$ 0	$ 0	$ 0
Deferred Federal Income Tax Expense (Benefit)	29.6	30.9	13.6
Federal Income Tax Expense (Benefit), Continuing Operations	29.6	30.9	13.6
Current State and Local Tax Expense (Benefit)	(1.4)	4.1	0
Deferred State and Local Income Tax Expense (Benefit)	(2.5)	(9.8)	6.1
current and deferred state income tax expense	(3.9)	(5.7)	6.1
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	(4.8)	8.8	0.1
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions	0	1.0	0
INCOME TAX EXPENSE	$ 20.9	$ 33.0	$ 19.8

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Note 12 - Income Taxes Deferred Taxes (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals	$ 24.6	$ 24.2
Deferred Tax Assets, Gross, Current	24.6	24.2
Deferred Tax Assets, Valuation Allowance	(8.2)	(8.5)
Deferred income taxes	16.4	15.7
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Noncurrent	27.5	21.1
Deferred Tax Assets, Operating Loss Carryforwards	453.2	443.4
Deferred Tax Assets, Tax Credit Carryforwards	6.1	6.1
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent	8.5	8.6
deferred tax asset, deferred credits and sale leaseback gain	5.7	17.4
Deferred Tax Assets, Other	22.8	23.2
Deferred Tax Assets, Gross, Noncurrent	523.8	519.8
Deferred Tax Assets, Valuation Allowance, Noncurrent	(174.7)	(182.8)
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	349.1	337.0
Deferred Tax Liabilities, Intangible Assets	(3.4)	(3.4)
Deferred Tax Liabilities, Other	(20.2)	(14.0)
Deferred Tax Liabilities, Property, Plant and Equipment	(609.5)	(580.0)
Deferred Tax Liabilities, Gross, Noncurrent	(633.1)	(597.4)
Deferred Tax Liabilities, Net, Noncurrent	$ 284.0	$ 260.4

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Note 11 - Capital Stock and Stock Options Restricted Stock (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
restricted stock vesting low end years	3 years
restricted stock vesting high end years	4 years
Years of Service Required by board	5 years
Restricted Stock or Unit Expense	$ 3,700,000	$ 2,800,000	$ 1,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 10.50	$ 11.23	$ 4.98
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value	3,100,000	2,800,000	700,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares received by non-employee directors after annual meeting	50,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 6,600,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	846,083
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(317,500)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	293,318
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(58,669)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	763,232

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Note 8 - Debt Schedule of Maturities of Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Maturities of Long-term debt [Abstract]

Schedule of Maturities of Long-term Debt [Table Text Block]

Future maturities of debt are payable, as follows for the years ending December 31 (in millions):

	Total Secured Debt		Amortization of Debt Discount, net
2015	$	321.2	(12.2		)
2016	303.0		(11.2		)
2017	352.8		(10.1		)
2018	295.0		(9.0		)
2019	339.5		(7.9		)
Thereafter	801.1		(23.0		)
Total	$	2,412.6	$	(73.4	)	$	2,339.2

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Note 6 - Intangible and Other Assets (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
schedule of intangible and other assets [Line Items]
Indefinite-Lived Domestic Slots and Routes	$ 9.0	$ 9.0
aircraft predelivery deposits	57.5	30.0
aircraft lease and long term deposits (non-current assets)	26.0	38.4
financial instrument, other non-current assets	81.2	79.6
prepaid aircraft rent	27.8	34.5
debt issue costs and other non-current assets	19.2	25.3
Other Assets	211.7	207.8
Intangible and other assets, net	$ 220.7	$ 216.8

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Contingency [Line Items]

Income Tax Disclosure [Text Block]

INCOME TAXES

The components of the provision for income tax expense for the years ended December 31 are as follows (in millions):

	2014			2013			2012
Federal:
Current	$	—		$	—		$	—
Deferred	29.6			30.9			13.6
Total Federal	29.6			30.9			13.6
State:
Current	(1.4		)	4.1			—
Deferred	(2.5		)	(9.8		)	6.1
Total State	(3.9		)	(5.7		)	6.1
Valuation allowance	(4.8		)	8.8			0.1
Expense for uncertain tax positions	—			(1.0		)	—
Income tax expense	$	20.9		$	33.0		$	19.8

A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for the years ended December 31 are as follows (in millions):

	2014			2013			2012
Federal income tax expense at statutory rate	$	29.8		$	28.4		$	17.9
State income tax expense, net of federal benefit	2.6			2.7			1.6
Valuation allowance	(4.8		)	8.8			0.1
Adjustment to deferred tax liabilities	(3.1		)	(8.8		)	(5.5		)
Change in State tax rate	(4.2		)	—			4.3
Permanent tax adjustments	2.0			1.7			1.2
Other	(1.4		)	0.2			0.2
Income tax expense	$	20.9		$	33.0		$	19.8

The components of deferred tax assets and liabilities as of December 31 are as follows (in millions):

	2014			2013
DEFERRED TAX ASSETS:
Current:
Nondeductible accruals and deferred revenue	24.6			24.2
Total	24.6			24.2
Valuation allowance	(8.2		)	(8.5		)
Total current deferred tax assets	$	16.4		$	15.7
Noncurrent:
Nondeductible accruals and deferred revenue	$	27.5		$	21.1
Federal and state net operating loss carryforwards, net of liability for uncertain tax positions	453.2			443.4
AMT credits	6.1			6.1
Prepaid rent	8.5			8.6
Deferred credits and other non-current liabilities	5.7			17.4
Other	22.8			23.2
Total	523.8			519.8
Valuation allowance	(174.7		)	(182.8		)
Total noncurrent deferred tax assets	349.1			337.0
DEFERRED TAX LIABILITIES:
Noncurrent:
Other intangible assets	(3.4		)	(3.4		)
Maintenance deposits	(20.2		)	(14.0		)
Accelerated depreciation and fixed asset basis differences for tax purposes	(609.5		)	(580.0		)
Total noncurrent deferred tax liabilities	(633.1		)	(597.4		)
Total net noncurrent deferred tax liabilities	$	(284.0	)	$	(260.4	)

The Company monitors ongoing tax cases related to its unrecognized tax benefits. The unrecognized tax benefits, which if recognized, would impact the effective tax rate. The Company does not anticipate that total unrecognized tax benefits would significantly change within the next 12 months. The following table reconciles the Company’s tax liability for uncertain tax positions for the year ended December 31 (in millions): 

	2014		2013			2012
Balance at January 1,	$	7.1	$	8.1		$	8.1
Additions for tax positions taken in prior years	—		—			—
Reductions for tax positions of prior years	—		(1.0		)	—
Balance at December 31,	$	7.1	$	7.1		$	8.1

The following table reconciles the Company’s valuation allowance for the year ended December 31 (in millions):

	2014			2013		2012
Balance at January 1,	$	191.3		$	182.5	$	182.5
Reduction for net operating losses previously reserved that were utilized or expired	(3.6		)	—		(0.1		)
Additions (deductions) for current year change in estimate	(4.8		)	8.8		0.1
Balance at December 31,	$	182.9		$	191.3	$	182.5

The future use of the net operating losses (“NOLs”) acquired from previous acquisitions are limited based on Internal Revenue Code Section 382 due to the change in control that occurred from the acquisitions. Management evaluated the deferred tax assets and determined that more likely than not, certain deferred tax assets would not be utilized and therefore a valuation allowance was required. The net operating losses generated by the Company after the change in control date, generally do not have a related valuation allowance. As of December 31, 2014, the Company has federal NOL carryforwards totaling $1.3 billion, which begin expiring in 2015, and of which approximately $398.0 million are not expected to be realized prior to expiration mostly due to the limitations under Internal Revenue Code Section 382. Therefore, a valuation allowance has been recorded for these net operating loss carryforwards. In 2014, the Company reduced its state effective tax rate, which decreased its net deferred tax asset by approximately $4.2 million. In addition, the Company decreased its valuation allowance related to net operating losses by approximately $8.4 million, of which $3.6 million was attributable to losses that were utilized or expired.

Deferred tax assets include benefits expected to be realized from the utilization of alternative minimum tax (“AMT”) credit carryforwards of $6.1 million, which do not expire. A valuation allowance of $5.2 million has been recorded against AMT credit carryforwards that were acquired from previous acquisitions as these credits are not expected to be realized.

The Company's federal income tax returns for tax years after 1998 remain subject to examination by the Internal Revenue Service (“IRS”) and state taxing jurisdictions. The Company concluded its audit by the IRS for the 2009 tax year in 2012. The Company's NOL's from prior tax years would remain subject to examination by major tax jurisdictions due to our net operating loss carryforwards.

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Note 1 - Organization and Business Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

ORGANIZATION & BUSINESS [Abstract]

schedule of passenger service [Table Text Block]

The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014:

Operating Subsidiaries	Aircraft Size (Seats)	United	Delta	US Airways/American	Charters/Spares	Number of Aircraft
Chautauqua	44 to 50	—	41	—	—	41
Shuttle America	70 to 76	38	30	—	—	68
Republic Airline	69 to 99	28	—	99	8	135
Total number of operating aircraft		66	71	99	8	244

CPA Agreements Details [Table Text Block]

The following table is a summary representation of existing Capacity Purchase Agreements ("CPAs") with our Partners as of December 31, 2014:

Partner	Aircraft Type	Seats on Aircraft	Number of Aircraft under CPAs	Current Expiration Date(s)
US Airways	E170	69	20	March 2019 to March 2023
US Airways	E175	80	38	March 2019 to March 2023 and February 2019 to July 2020
American	E175	76	41	July 2025 to February 2027
Delta	E145	50	41	August 2015 to May 2016
Delta	E170	70	14	May 2021 to October 2021
Delta	E175	76	16	August 2023 to February 2024
United	E170	70	38	September 2019 to December 2022
United	Q400	71	28	January 2015 to September 2016

partner related revenues and receivables table text block [Table Text Block]

The following sets forth our Partners' regional airline services revenue and accounts receivable as a percentage of total regional airline services revenue and net receivables:

Revenues for the years ended:	Delta	United	US Airways/American
December 31, 2014	24%	29%	43%
December 31, 2013	24%	31%	35%
December 31, 2012	19%	27%	34%
Receivables as of:
December 31, 2014	4%	3%	26%
December 31, 2013	7%	23%	19%

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Note 4 - Discontinued Operations Income Statement of Discontinued Ops(Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue		$ 1,217.5	$ 1,433.5
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax		50.9	35.0
Discontinued Operation, Tax Effect of Discontinued Operation		18.7	15.0
Disposal Group, Including Discontinued Operation, Operating Income (Loss)		32.2	20.0
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax		(53.8)	0
Income (loss) from discontinued operations, net of tax	0	(21.6)	20.0
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	78.0
Disposal Group, Including Discontinued Operation, Other Expense	7.1
maximum indemnity obligation under stock purchase agreement	25.0
Amount billed under TSA	$ 2.8

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Note 1 - Organization and Business Code-Share Text Detail (Details)	12 Months Ended
	Dec. 31, 2014 aircraftcabins amendmentnumber Aircraft agrmntext flights Seats
US Airways Code-Share Agreement [Abstract]
Flights per day as US Airways Express	355
E175 aircraft under fixed-fee code-share agreements with US airways that terminate in 2019-2020	30
Number of E175 aircraft operating under Delta which come out of service between March 2019 and March 2023	8
Length of US Airways agreement for E175s	12 years
days until written termination notice	90 days
American Code-Share Agreement [Abstract]
Flights per day as AmericanConnection	224
Amended number of E175 aircraft agreed upon to operate under American Eagle brand	47
Remaining E175 aircraft under American to begin service through 2015	6
E175 code-share agreement will terminate on this anniversary	12 years
Number of additional agreement extensions for American	2
Number of years American can extend the E175 agreement	2 years
Delta Code-Share Agreements [Abstract]
Flights provided per day as Delta Connection	367
days notice required by Delta before termination of agreement	180 days
E145 minimum aircraft in service under Delta code-share agreement	12
Months following Delta's written termination notice	12 months
Amendment Number Seven to the Delta Agreement	7
Number of E170 aircraft to be added for Delta under Amendment Number Seven	9
Number of years the additional E170 aircraft will fly for Delta under Amendment Number Seven	6 years
Number of years the 14 E170 aircraft flying for Delta were extended under Amendment Number Seven	4 years
Number of years the 16 E175 aircraft flying for Delta were extended under Amendment Number Seven	5 years
Number of years the 14 E170 and 16 E175 aircraft flying for Delta may be extended under Amendment Number Seven	5 years
United Code-Share Agreements [Abstract]
Flights per day as United Express	353
Fifth Amendment with United Airlines	5
Number of E145s to be removed from service under CPA agreement with United	12
Seventh Amendment with United Express	7
Number of E175 aircraft under United agreement	50
Seats on E170 aircraft under CPA with United	76
Number of cabins on the E175 aircraft under United Express	2
Minimum number of E175 aircraft to be delivered per month	2
Maximum number of E175 aircraft per month under United Express Seventh Amendment	3
Number of additional E175 aircraft United has an option to add under United Express Seventh Amendment	50
Number of years each E175 aircraft will be subject to under UA Express Agreement	12 years
Number of E175 aircraft in a group, which may be extended up to four years	10
Number of years a group of 10 aircraft may be extended by United	4 years
number of E175 aircraft added to fly under the United brand	5
Total number of E175 aircraft that will fly under the United brand after amendment was signed in January 2015	55
Number of E170 aircraft flying for United that were extended	38
Number of years E170 aircraft were extended	3 years

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Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net Income	$ 64.3	$ 26.7	$ 51.3
Other comprehensive income (loss), net:
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax	0.1	2.1	(1.4)
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax	0.3	0.3	0.4
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 64.7	$ 29.1	$ 50.3

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Organization and Business

12 Months Ended

Dec. 31, 2014

ORGANIZATION & BUSINESS [Abstract]

Nature of Operations [Text Block]

ORGANIZATION & BUSINESS

We are a Delaware holding company organized in 1996 that offers scheduled passenger services through our wholly-owned operating air carrier subsidiaries: Chautauqua Airlines, Inc. (“Chautauqua”) through December 31, 2014, Shuttle America Corporation (“Shuttle”) and Republic Airline Inc. (“Republic Airline”). Unless the context indicates otherwise, the terms the “Company,” “we,” “us,” or “our,” refer to Republic Airways Holdings Inc. and our subsidiaries.

As of December 31, 2014, our operating subsidiaries offered scheduled passenger service on 1,229 flights daily to 101 cities in 38 states and Canada under scheduled passenger service through our fixed-fee code-share agreements with United Continental Holdings, Inc. ("United"), Delta Air Lines, Inc. ("Delta"), and US Airways/American Airlines Group, Inc. ("American") (collectively referred to as our "Partners"). Currently, we provide our Partners with fixed-fee regional airline services, operating as United Express, Delta Connection, US Airways Express/American Eagle, including service out of their hubs and focus cities. The Company operated aircraft under a pro-rate agreement with Frontier Airlines, Inc. ("Frontier") which terminated during the first quarter of 2014.

The following table outlines the type of aircraft our subsidiaries operate and their respective operations within our business units as of December 31, 2014:

Operating Subsidiaries	Aircraft Size (Seats)	United	Delta	US Airways/American	Charters/Spares	Number of Aircraft
Chautauqua	44 to 50	—	41	—	—	41
Shuttle America	70 to 76	38	30	—	—	68
Republic Airline	69 to 99	28	—	99	8	135
Total number of operating aircraft		66	71	99	8	244

During 2014, our operational fleet decreased from 258 to 244. The company took delivery of 22 E175 aircraft, permanently parked 15 E140 aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft and leased three E145 aircraft and three E190 aircraft.

We have fixed-fee regional jet code-share agreements with each of our Partners that require us to maintain specified performance levels. Pursuant to these fixed-fee agreements, which provide for minimum aircraft utilization at fixed rates, we are authorized to use our Partners' two-character flight designation codes to identify our flights and fares in our Partners' computer reservation systems, to paint our aircraft in the style of our Partners, to use their service marks and to market ourselves as a carrier for our Partners. Our fixed-fee agreements have historically limited our exposure to fluctuations in fuel prices, fare competition and passenger volumes. Our development of relationships with multiple major airlines has enabled us to reduce our dependence on any single airline, allocate our overhead more efficiently among our Partners and reduce the cost of our services to our Partners.

Sale of Frontier

In October 2013, the Company entered into a stock purchase agreement for the sale of Frontier to an affiliate of Indigo Partners LLC. The sale was consummated on December 3, 2013. As a result, the Company reported Frontier as discontinued operations on the consolidated statements of operations and consolidated statements of cash flows for all periods presented.

Certificate Consolidation

On January 1, 2015, Republic completed its consolidation of all Chautauqua Airlines operations onto the Shuttle America operating certificate. All operating aircraft and related employees are now transferred to Shuttle America's operation. Republic hopes to sell the remaining Chautauqua Airlines' entity and related assets during the first half of 2015. The consolidation is consistent with the Company's strategy to simplify its business by operating fewer fleet types on fewer certificates.

Code-Share Agreements

Through our subsidiaries, we have entered into code-share agreements with US Airways, American, Delta, and United (the "Partners") that authorize us to use their two-character flight designator codes ("US," "AA," "DL," and "UA") to identify our flights and fares in their computer reservation systems, to paint our aircraft with their colors and/or logos, to use their service marks and to market and advertise our status as US Airways Express, American Eagle, Delta Connection, or United Express, respectively. Under the code-share agreements between our subsidiaries and each of US Airways, American, Delta, and United, we are compensated on a fixed-fee basis on all of our flights. In addition, under our code-share agreements, our passengers participate in frequent flyer programs of the Partners, and the Partners provide additional services such as reservations, ticket issuance, ground support services, commuter slot rights and airport facilities.

The following table is a summary representation of existing Capacity Purchase Agreements ("CPAs") with our Partners as of December 31, 2014:

Partner	Aircraft Type	Seats on Aircraft	Number of Aircraft under CPAs	Current Expiration Date(s)
US Airways	E170	69	20	March 2019 to March 2023
US Airways	E175	80	38	March 2019 to March 2023 and February 2019 to July 2020
American	E175	76	41	July 2025 to February 2027
Delta	E145	50	41	August 2015 to May 2016
Delta	E170	70	14	May 2021 to October 2021
Delta	E175	76	16	August 2023 to February 2024
United	E170	70	38	September 2019 to December 2022
United	Q400	71	28	January 2015 to September 2016

US Airways/American Code-Share Agreements

On December 9, 2013, US Airways Group, Inc. became a wholly owned subsidiary of American Airlines Group, Inc. (formerly known as AMR Corporation). The Company continues to operate the capacity purchase agreements with both entities independently as the agreements have not been assigned to the merged organization.

Under our fixed-fee Jet Services Agreements with US Airways, we operated, as of December 31, 2014, 20 E170 aircraft and 38 E175 aircraft. As of December 31, 2014, we were providing 355 flights per day as US Airways Express.

In exchange for providing the designated number of flights and performing our other obligations under the code-share agreements, we receive compensation from US Airways three times each month. We receive an additional amount per available seat mile flown and may also receive incentives or pay penalties based upon our performance, including fleet launch performance, on-time departure performance and completion percentage rates. In addition, certain operating costs are considered pass through costs whereby US Airways has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, passenger catering, passenger liability insurance and aircraft property tax costs are pass through costs and are included in our fixed-fee services revenue. US Airways provides fuel directly for all of our US Airways operations.

On November 6, 2014, the Company entered into an Amendment to the Amended and Restated Jet Service Agreement with US Airways, Inc., dated as of September 2, 2005. Under the amendment, the code-share agreement for the E170/175 aircraft was extended and now terminates between March 2019 and March 2023 with respect to the 20 E170 aircraft and eight of the E175 aircraft.   The service terms for the remaining 30 E175 aircraft were not extended and are scheduled to terminate 12 years from each aircraft’s in-service date and therefore would terminate from February 2019 to July 2020. US Airways may terminate the code-share agreements at any time for cause upon not less than 90 days notice and subject to our right to cure under certain conditions.

As of December 31, 2014, we operated 41 E175 aircraft for American under a fixed-fee code-share agreement and provided 224 flights per day as American Eagle.

Under the code-share agreement, American retains all passenger, certain cargo and other revenues associated with each flight and is responsible for all revenue-related expenses. We share revenue with American for certain cargo shipments. Additionally, certain operating costs are considered pass through costs and American has agreed to reimburse us the actual amount of costs we incur for these items.  Landing fees, hull and liability insurance and aircraft property tax costs are pass through costs and included in our fixed-fee services revenue. We do not record fuel expense and the related revenue for the American operations.

As of December 31, 2013, 41 of the 47 aircraft are in service; the remaining six aircraft begin service between January 2015 and May 2015. Unless otherwise extended or amended, the E175 code-share agreement terminates on the 12th anniversary of the implementation date of each aircraft with terms expiring between July 2025 and February 2027. American has the option of extending the E175 agreement with respect to each aircraft, for up to two additional two year terms. The agreement is subject to early termination under various circumstances.

On February 28, 2014, the Company announced that it had entered into an Amendment to the Amended and Restated Air Services Agreement with American Airlines Group, Inc. dated as of June 12, 2002. In the Amendment, the parties agreed to remove 15 E140 aircraft from service under the Air Services Agreement between March 2014 and August 2014. Upon removal of the last of the American Removed Aircraft, the Air Services Agreement terminated.

The Delta Code-Share Agreements

As of December 31, 2014, we operated 41 E145 aircraft, 14 E170 aircraft, and 16 E175 aircraft for Delta under fixed-fee code-share agreements.  As of December 31, 2014, we provided 367 flights per day as Delta Connection.

Unless otherwise extended or amended, the code-share agreement for the E145 aircraft terminates in May 2016. Delta may terminate the code-share agreements at any time, with or without cause, if it provides us 180 days written notice, for the E145 regional jet code-share agreement, or after July 2015 for the E175 regional jet code-share agreement. With respect to the E145 agreement, if Delta chooses to terminate any aircraft early, it may not reduce the number of aircraft in service to less than 12 during the 12-month period following the 180 days initial notice period unless it completely terminates the code-share agreement. We refer to this as Delta's partial termination right.

If Delta exercises this right under the E145 agreement or the E175 agreement or if we terminate either agreement for cause, we have the right to require Delta either to purchase, sublease or assume the lease of aircraft leased by us with respect to any of the aircraft that we previously operated for Delta under that agreement.  If we choose not to exercise our put right, or if Delta terminates either agreement for cause, they may require us to sell or sublease to them or Delta may assume the lease of aircraft leased by us with respect to any of the aircraft we previously operated for it under that agreement. There is no early termination provision under the E170 agreement.

On December 11, 2014, the Company entered into Amendment Number Seven to the Delta Connection Agreement with Delta Airlines, Inc. dated as of January 20, 2005. Under the Agreement, the Company operates 14 E170 and 16 E175 aircraft as Delta Connection. The amendment provides for, among other things, an agreement for Shuttle to operate nine additional E170 aircraft to be placed into service between the third quarter of 2015 and the second quarter of 2016 for a term of six years per aircraft. The amendment also provides for an extension of the air transportation services provided by the Company with respect to the 14 E170 for another four years, for terms ending from May 2021 to October 2021, and extend the 16 E175 aircraft by approximately five years, for terms ending from August 2023 to February 2024. Delta may further extend the service terms for any or all of the 14 E170 and 16 E175 aircraft for an additional five years. The amendment also provides that Delta may purchase any or all of the E175 aircraft for an amount equal to the net book value of such aircraft at the end of the current terms for such aircraft or at any time during the extended terms, in which case Delta would lease the purchased aircraft to the Company for the Company's operation during the remainder of the terms.

Certain of our operating costs are considered pass through costs, whereby Delta has agreed to reimburse us the actual amount of costs we incur for these items. Aircraft rent/ownership expenses are also considered a pass through cost, but the reimbursement is limited to specified amounts for certain aircraft. Engine maintenance expenses, landing fees, passenger liability insurance, hull insurance, war risk insurance, de-icing costs, and aircraft property taxes are some of the pass through costs included in our fixed-fee services revenue. All fuel is purchased directly by Delta and is not charged back to the Company.

The agreements may be subject to immediate or early termination under various circumstances.

The United Code-Share Agreement

As of December 31, 2014, we operated 38 E170 aircraft and 28 Q400 aircraft for United under fixed-fee code-share agreements.  As of December 31, 2014, we provided 353 flights per day as United Express.

The fixed rates that we receive from United under the code-share agreements are annually adjusted in accordance with an agreed escalation formula. All fuel is purchased directly by United and is not charged back to the Company. Additionally, certain of our operating costs are considered pass through costs whereby United has agreed to reimburse us the actual amount of costs we incur for these items. Landing fees, war risk insurance, liability insurance and aircraft property taxes are pass through costs and included in our fixed-fee services revenue.  

On February 28, 2014, the Company announced that it had entered into the Fifth Amendment to the Capacity Purchase Agreement with United Airlines dated as of July 21, 2006. In the Amendment, the parties agreed to remove 12 E145 aircraft from service under the CPA Agreement on April 1, 2014. Upon removal of the last of the United Removed Aircraft, the CPA Agreement terminated.

On September 16, 2014, the Company announced that it had entered into an Amendment to Capacity Purchase Agreement amending the Capacity Purchase Agreement dated as of May 1, 2012. The amendment provides for the removal from service of the Q400 aircraft operating under the agreement beginning in January 2015 and ending in September 2016, subject to adjustment of the schedule to accommodate the parties operational schedules.

Also, on September 16, 2014, the Company announced that it had entered into a Seventh Amendment to the United Express Agreement, originally entered into on December 28, 2006. Pursuant to the amendment, the Company agreed to operate 50 E175 aircraft under the United Express brand with service to start in mid-2015. The new aircraft, which will seat 76 passengers in a two-class cabin, are expected to be phased into operation at approximately two to three aircraft per month beginning in mid-2015 through the third quarter of 2017. In addition, United has the option to add up to 50 additional E175 aircraft to the United Express Agreement by providing notice to the Company on or before December 31, 2016. Each new aircraft will be subject to the United Express Agreement for 12 years after the date it is placed in service thereunder, subject to United's right to extend the term for any group of 10 aircraft for four years. In January 2015, the Company finalized amendments to its agreements with United and Embraer to increase the number of E175 aircraft deliveries by five, to 55.

In addition to the foregoing provisions, the amendment extends the term of the UA Express Agreement with respect to the 38 existing E170 aircraft the Company is flying for United by approximately three years, with aircraft terms expiring between September 2019 and December 2022.

United has a call option to assume our ownership or leasehold interest in certain aircraft if we wrongfully terminate the code-share agreements or if United terminates the agreements for our breach for certain reasons.

Concentrations

As of December 31, 2014, substantially all fixed-fee service revenues are derived from code-share agreements with Delta, US Airways/American, and United.  Termination of any of these code-share agreements could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

The following sets forth our Partners' regional airline services revenue and accounts receivable as a percentage of total regional airline services revenue and net receivables:

Revenues for the years ended:	Delta	United	US Airways/American
December 31, 2014	24%	29%	43%
December 31, 2013	24%	31%	35%
December 31, 2012	19%	27%	34%
Receivables as of:
December 31, 2014	4%	3%	26%
December 31, 2013	7%	23%	19%

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Note 9 - Commitments Unrecorded Unconditional Purchase Committments (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation for Aircraft due within one year	$ 554.2
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years	2,447.0
Unrecorded Unconditional Purchase Obligation for Aircraft due within three years	1,385.5
Unrecorded Unconditional Purchase Obligation for Aircraft due within four years	0
Unrecorded Unconditional Purchase Obligation for Aircraft due within five years	0
Unrecorded Unconditional Purchase Obligation for Aircraft	4,386.7
Unrecorded Unconditional Purchase Obligations for Engines, due within one year	24.6
Unrecorded Unconditional Purchase Obligation for Engines, due within two years	21.0
Unrecorded Unconditional Purchase Obligation for Engines, due within three years	7.0
Unrecorded Unconditional Purchase Obligation for Engines, due within four years	0
Unrecorded Unconditional Purchase Obligation for Engines, due within five year	0
Unrecorded Unreconciled Purchase Obligation for Engines, Total	52.6
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months	578.8
Unrecorded Unconditional Purchase Obligation, Due within Two Years	2,468.0
Unrecorded Unconditional Purchase Obligation, Due within Three Years	1,392.5
Unrecorded Unconditional Purchase Obligation, Due within Four Years	0
Unrecorded Unconditional Purchase Obligation, Due within Five Years	0
Unrecorded Unconditional Purchase Obligation	$ 4,439.3

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Note 12 - Income Taxes Statements (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Operating Loss Carryforwards	$ 1,300,000,000
NOL carryforwards not expected to be realized prior to expiration	398,000,000
Deferred Tax Assets, Tax Credit Carryforwards	6,100,000	6,100,000
Tax Credit Carryforward, Valuation Allowance	$ 5,200,000

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Note 2 - Summary of Significant Accounting Policies Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

Summary Of Significant Accounting Policies [Abstract]

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

Supplemental Statement of  Cash Flow Information:

	Years ended December 31,
(amounts in millions)	2014		2013		2012
CASH PAID FOR INTEREST AND INCOME TAXES:
Interest paid-net of amount capitalized	$	110.1	$	108.2	$	116.1
Income taxes paid-net of refunds	0.8		2.1		0.1
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Inventory and other equipment sold for aircraft and other equipment manufacturer credits (1)	—		42.8		—
Other equipment acquired through manufacturer credits	23.1		11.6		—
Manufacturer credits applied to the purchase of aircraft	17.1		8.7		—
Engines received and not yet paid	—		5.8		—
Issuance of convertible debt	—		—		22.9
Chautauqua restructuring asset - Aircraft Manufacturer's Incentive	—		12.0		86.4

⁽¹⁾ During the first quarter of 2013, the Company entered into a flight hour pool program to minimize its upfront investment on high-value repairable inventories. Under the program, the Company sold certain parts for total non-cash proceeds of $42.8 million. The total proceeds were received in the form of credit notes that the Company intends to utilize on future aircraft purchases and were recorded as deposits within other assets on the consolidated balance sheet as of December 31, 2013. In addition, the Company recorded deferred credits of $4.0 million related to the sale that will be amortized over the term of the agreement.

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Net Income (Loss) per Common Share is based on the weighted average number of shares outstanding during the period.  The following is a reconciliation of the diluted net income (loss) per common share computations:

	For the Years Ended December 31,
(in millions)	2014		2013			2012
Income from continuing operations	$	64.3	$	48.3		$	31.3
Income (loss) from discontinued operations, net of tax	—		(21.6		)	20.0
Net income	$	64.3	$	26.7		$	51.3
Reduction in interest expense from convertible notes (net of tax)	0.8		2.0			1.3
Net income after assumed conversion	$	65.1	$	28.7		$	52.6
Weighted-average common shares outstanding for basic net income per common share	49.8		49.2			48.5
Effect of dilutive employee stock options	0.4		0.7			0.2
Effect of dilutive convertible notes	2.2		4.7			2.7
Adjusted weighted-average common shares outstanding and assumed conversions for diluted net income per common share	52.4		54.6			51.4
Income (loss) per share - basic:
Income from continuing operations	$	1.29	$	0.98		$	0.65
Income (loss) from discontinued operations, net of tax	—		(0.44		)	0.41
Net income per share - basic	$	1.29	$	0.54		$	1.06
Income (loss) per share - diluted:
Income from continuing operations	$	1.24	$	0.92		$	0.63
Income (loss) from discontinued operations, net of tax	—		(0.40		)	0.39
Net income per share - diluted	$	1.24	$	0.52		$	1.02

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Note 14 - Valuation and Qualifying Accounts Level 3 (Tables)

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

valuation and qualifying accounts [Table Text Block]

VALUATION AND QUALIFYING ACCOUNTS

(amounts in millions) Description	Balance at Beginning of Year		Additions Charged to Expense		Deductions				Balance at End of Year
Allowance for doubtful accounts receivables:
12/31/2014	$	1.5	$	1.4	$	(0.3	)	(1)	$	2.6
12/31/2013	1.3		0.4		(0.2		)	(1)	1.5
12/31/2012	$	0.5	$	0.9	$	(0.1	)	(1)	$	1.3

⁽¹⁾   Uncollectible accounts written off net of recoveries, if any.

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Capital Stock and Stock Options

12 Months Ended

Dec. 31, 2014

Class of Stock [Line Items]

Shareholders' Equity and Share-based Payments [Text Block]

CAPITAL STOCK AND STOCK OPTIONS

The following table summarizes common stock activity for the years ended December 31, 2014, 2013, and 2012:

(in millions)	Common Stock
	2014	2013	2012
Beginning balance	49.5	48.6	48.4
Shares issued for stock options exercised	0.4	0.7	—
Vesting of restricted stock and other	0.1	0.2	0.2
Ending balance	50.0	49.5	48.6

Employee Stock Options

The 2002 Equity Incentive Plan expired on April 19, 2012 with 22,434 shares available to be issued. These shares were canceled in April of 2012 and as of December 31, 2014, there are no shares available for future issuance under the 2002 plan.

On December 23, 2013, the Company filed a registration statement for 3.5 million additional shares, increasing the total shares available for granting under the 2007 Equity Incentive Plan to 8.5 million, of which 2,596,474 shares, remain available for issuance under the plan as of December 31, 2014. Stock options granted typically vest ratably between 36 and 48 months and are granted with exercise prices equal to market prices on the date of grant. The options normally expire 10 years from the date of grant.  Options are typically granted to officers and key employees selected by the Compensation Committee of the Board of Directors, and outstanding options have exercise prices ranging from $4.10 to $20.27.

Non-employee Director Stock Options

For 2012, the non-employee directors received 2,500 stock options on the first trading day after the annual meeting of stockholders at which they were re-elected as non-employee directors. These options vest ratable over 12 months of continuous service. The non-employee director options are exercisable until 10 years from the date of grant. Beginning in 2013, the equity portion of the non-employee directors' compensation is payable in restricted stock.

The following table summarizes option activity under the stock option plans as of December 31, 2014:

	Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Weighted Average Contractual Term (in years)
Outstanding at January 1, 2014	4,176,666		$	13.50
Granted	135,750		10.53
Exercised	(900,801	)	10.48
Forfeited	(276,110	)	13.43
Outstanding at December 31, 2014	3,135,505		$	14.25	$	6.9	6.18
Vested or expected to vest at December 31, 2014	3,095,611		$	14.31	$	6.7	6.11
Exercisable at December 31, 2014	2,671,717		$	14.90	$	5.0	5.39

The intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was not material.

There were 3,513,999 and 3,790,942 options exercisable at December 31, 2013 and 2012, respectively. The weighted average exercise price for the options exercisable at December 31, 2013 and 2012 was $14.26 and $13.59, respectively. The remaining contractual life for the options outstanding at December 31, 2013 and 2012 was 4.63 years and 4.91 years, respectively.

During the years ended December 31, 2014, 2013 and 2012, $0.9 million ($0.5 million net of tax), $1.2 million ($0.7 million net of tax) and $1.2 million ($0.7 million net of tax), respectively, was charged to expense relating to the stock option plans. The Company has a policy of issuing new common shares to satisfy the exercise of stock options.  At December 31, 2014 there was $1.8 million of unrecognized stock-based employee compensation expense for unvested stock options, and the expected remaining expense period is 4 years. The Company did not recognize excess tax benefits related to stock option exercises for the last 3 years due to net operating losses.

The weighted average grant date fair value of options granted in 2014, 2013 and 2012 was $4.80, $5.28, and $2.02, respectively. The Company estimates the fair value of stock options issued using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. Dividends were based on an estimated dividend yield. The risk-free rates for the periods within the contractual life of the option are based on the U.S. Treasury rates in effect at the time of the grant. The forfeiture rate is based on historical information and management’s best estimate of future forfeitures. The expected term of options granted is derived from historical exercise experience and represents the period of time the Company expects options granted to be outstanding. Option valuation models require the input of subjective assumptions including the expected volatility and lives.

The following assumptions were used to value stock option grants during the following periods:

	December 31,
	2014				2013				2012
Dividend yield	—%				—%				—%
Expected volatility	56	%	-	58%	59	%	-	62%	59	%	-	62%
Risk-free interest rate	1.7	%	-	1.8%	0.9	%	-	1.4%	0.6	%	-	1.0%
Expected life (in years)	4		-	5	4		-	5	4		-	5

Restricted Stock Grants

Restricted stock awards have been granted to certain of our officers, directors, and key employees.  Restricted stock awards are grants of shares of our common stock which typically vest over time (generally three or four years).

Non-employee director restricted stock grants

For service in 2013 and 2014 the non-employee directors received restricted stock valued at $50,000, which became vested on the earliest of (a) one year from the date of grant, (b) the date the director ceases to be a board member after at least five years of service and (c) the occurrence of a change in control. 

Compensation expense for our restricted stock grants was $3.7 million, $2.8 million, and $1.8 million during the years ended December 31, 2014, 2013 and 2012, respectively.  As of December 31, 2014, we have $6.6 million in total unrecognized future compensation expense that will be recognized over the next three or four years relating to awards for 763,232 restricted shares which were issued but which had not yet vested.

A summary of restricted stock activity under the aforementioned plan is as follows:

	Restricted Stock  Awards
Unvested at January 1, 2014	846,083
Vested	(317,500	)
Issued	293,318
Surrendered	(58,669	)
Unvested at December 31, 2014	763,232

The grant date weighted-average fair value per share of restricted stock awards granted during the years ended December 31, 2014, 2013, and 2012, was $10.50, $11.23 and $4.98, respectively.  The total fair value of shares vested during the years ended December 31, 2014, 2013, and 2012, was $3.1 million, $2.8 million, and $0.7 million, respectively.