Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Note F — Commitments and Contingencies

As of June 30, 2015, the Company leased 510 aircraft, as well as airport facilities, office space, and various other property and equipment under non-cancelable operating leases which are generally on a long-term net rent basis where the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases. The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2015 (in thousands):

July through December 2015	$	131,544
2016	268,307
2017	201,693
2018	157,203
2019	120,257
Thereafter	453,812

	$	1,332,816

During the three months ended June 30, 2015, the Company took delivery of nine Embraer E175 dual-class jet aircraft (“E175s”) and financed the aircraft through the issuance of $204.5 million of long-term debt. During the six months ended June 30, 2015, the Company took delivery of 18 E175s and financed the aircraft through the issuance of $407.6 million of long-term debt. The debt associated with the E175 aircraft delivered during the six months ended June 30, 2015 has a twelve-year term with a fixed annual interest rate ranging from 3.4% to 3.9% and is secured by the 18 E175 aircraft.

As of June 30, 2015 and December 31, 2014, the Company had accrued future lease obligations of $2.9 million and $3.8 million, respectively, associated with Embraer Brasilia EMB120 aircraft (“EMB120s”) removed from service. The lease payments for the EMB120s are scheduled to continue through June 2016.

As of June 30, 2015, the Company had a firm purchase commitment for 17 Embraer E175 aircraft with scheduled delivery dates from July 2015 to October 2016.

During the three months ended June 30, 2015, the Company borrowed $25 million in debt from a bank. The debt has a four year term with a fixed annual interest rate of 3.3% with monthly payments and is secured by spare engines.