Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

8. Commitments and Contingencies

Legal Proceedings

The Company is subject to certain legal proceedings, which it considers routine to its business activities. As of June 30, 2021, the Company believes, after consultation with legal counsel, that the ultimate outcome of such legal proceedings, whether individually or in the aggregate, is not likely to have a material adverse effect on the Company’s financial position, results of operations or liquidity.

Treasury Payroll Support Program Audit

In September 2020, the Treasury’s Office of Inspector General (OIG) commenced a routine audit in connection with Air Wisconsin’s receipt of funds under the Payroll Support Program. The audit focused, among other things, on certain calculations used to determine the amount of Treasury Payroll Support Air Wisconsin was entitled to receive under the program. Air Wisconsin has disputed in good faith the Treasury’s interpretation of certain provisions of the application for Treasury Payroll Support and the

PSP-1

Agreement, as well as the Treasury’s guidance regarding the Payroll Support Program. As of the date of this filing, Air Wisconsin has not received written confirmation from the OIG regarding the status or results of the audit. Nevertheless, the Treasury subsequently entered into the

PSP-2

Agreement and the

PSP-3

Agreement with Air Wisconsin, has paid to Air Wisconsin the amounts to be paid under the

PSP-2

Agreement and the

PSP-3

Agreement, and has not required Air Wisconsin to refund any amounts it received under the

PSP-1

Agreement.

Standby Letters of Credit

As of June 30, 2021, Air Wisconsin had six outstanding letters of credit in the aggregate amount of $372 to guarantee the performance of its obligations under certain lease agreements, airport agreements and insurance policies. Air Wisconsin maintains a credit facility with a borrowing capacity of $810 for the issuance of such letters of credit as needed to support its operations. A significant portion of Air Wisconsin’s restricted cash balance secures the credit facility.

Cash Obligations

The following table sets forth the Company’s cash obligations for the periods presented:


	Total		July through December 2021		2022		2023		2024		2025		Thereafter
Aircraft Notes Principal	$	59,500	$	—	$	3,500	$	7,000	$	7,000	$	42,000	$	—
Aircraft Notes Interest		9,240		1,190		2,380		2,170		1,890		1,610		—
Other Loans Principal		19,997		894		12,697		2,727		2,754		925		—
Other Loans Interest		823		282		328		51		24		138		—
Operating Lease Obligations		20,898		2,949		5,897		5,712		3,236		2,525		579

Total	$	110,458	$	5,315	$	24,802	$	17,660	$	14,904	$	47,198	$	579

The principal amount of the Aircraft Notes is payable in semi-annual installments of $3,500

and certain additional amounts may be payable based on excess cash flow. The amounts set forth in the table do not reflect any such additional excess cash flow payments. As a result of certain prepayments made under the Aircraft Notes in June 2021, no semi-annual installments are due prior to December 31, 2022. As of June 30, 2021, all of the Company’s long-term debt was subject to fixed interest rates. For additional information regarding the Aircraft Notes and Other Loans, refer to the section entitled

“

Management’s Discussion and Analysis of Financial Condition and Results of Operations”

within the 2020 Annual Report and Note 6,

Debt