Investment in Other Companies

12 Months Ended

Dec. 31, 2011

Investment in Other Companies

Investment in Other Companies

(9) Investment in Other Companies

        In September 2008, the Company entered into an agreement to acquire a 20% interest in Trip. As of December 31, 2011, the Company's investment balance in Trip was $28.5 million, which represented a 20% voting ownership interest in Trip common stock and a 6% non-voting ownership interest in Trip preferred stock. In connection with the investment in Trip, the Company entered into a put option agreement with the Majority Shareholder of Trip that allows the Company to put their investment to the Majority Shareholder at an established price based on a 5% annual rate of return over the investment period. The put is only exercisable on June 30, 2016. On September 29, 2010, the Company invested $7 million for a 30% ownership interest in Mekong Aviation Joint Stock Company, an airline operating in Vietnam ("Air Mekong"). During 2011, the Company invested an additional $3 million in Air Mekong. As of December 31, 2011, the Company's investment balance in Air Mekong was $2.9 million. These investments were recorded as an "Other asset" on the Company's consolidated balance sheet. The Company accounts for its interest in Trip and Air Mekong using the equity method of accounting. The Company records its equity in Trip's and Air Mekong's earnings on a one-quarter lag. The Company's portion of the losses incurred by Trip and Air Mekong for the year ended December 31, 2011 was $13.3 million.