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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 7 &amp;#8212; Commitments and Contingencies&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In February&amp;#160;2010, we amended our Airbus A320 purchase agreement, deferring six aircraft
   previously scheduled for delivery in 2011 and 2012 to 2015. This amendment had the effect of
   reducing our 2010 capital expenditures by $40&amp;#160;million in related predelivery deposits, which will
   be required to be made in future periods.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As of June&amp;#160;30, 2010, our firm aircraft orders consisted of 55 Airbus A320 aircraft, 58 EMBRAER
   190 aircraft and 17 spare engines scheduled for delivery through 2018. Committed expenditures for
   these aircraft, including the related flight equipment and estimated amounts for contractual price
   escalations and predelivery deposits, are approximately $115&amp;#160;million for the remainder of 2010,
   $425&amp;#160;million in 2011, $715&amp;#160;million in 2012, $815&amp;#160;million in 2013, $765&amp;#160;million in 2014 and $1.65
   billion thereafter.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In addition to our purchase commitments above, in April&amp;#160;2010, we signed a letter of intent and plan  to
   lease seven used Airbus A320 aircraft from a third party. We subsequently agreed to lease only six
   aircraft, which are scheduled to be delivered later in 2010. The terms of these operating leases
   are still being negotiated.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As of June&amp;#160;30, 2010, we had approximately $30&amp;#160;million of restricted assets pledged under
   standby letters of credit related to certain of our leases which will expire at the end of the
   related lease terms.
   Additionally, we had $19&amp;#160;million pledged related to our workers compensation insurance
   policies and other business partner agreements, which will expire according to the terms of the
   related policies or agreements.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In March&amp;#160;2010, we announced we will be combining our Darien, CT and Forest Hills, NY corporate
   offices and relocating to a new corporate headquarters in Long Island City, NY. As of June&amp;#160;30,
   2010, we do not have any material commitments related to this corporate move, which is currently
   scheduled to commence in 2011.
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