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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 7 &amp;#8211; 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. In August&amp;#160;2010, we cancelled the orders for two EMBRAER
   190 aircraft previously scheduled for delivery in 2012. In October&amp;#160;2010, we further amended our
   Airbus A320 purchase agreement, deferring delivery of 10 aircraft previously scheduled for delivery
   in 2012 and 2013 to 2016 for a rescheduling fee of $5&amp;#160;million, which was paid and expensed upon
   execution of the amendment in the fourth quarter of 2010.
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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 September&amp;#160;30, 2010, our firm aircraft orders consisted of 55 Airbus A320 aircraft, 55
   EMBRAER 190 aircraft and 14 spare engines scheduled for delivery through 2018. Included the
   effects of the October&amp;#160;2010 Airbus amendment, committed expenditures for these aircraft, including
   the related flight equipment and estimated amounts for contractual price escalations and
   predelivery deposits, are approximately $45&amp;#160;million for the remainder of 2010, $380&amp;#160;million in
   2011, $470&amp;#160;million in 2012, $585&amp;#160;million in 2013, $805&amp;#160;million in 2014 and $2.12&amp;#160;billion
   thereafter.
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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 addition to our purchase commitments above, in April&amp;#160;2010, we signed a letter of intent and
   planned to lease seven used Airbus A320 aircraft from a third party. We subsequently agreed to
   lease only six aircraft, two of which are now in operation, one more of which has been delivered
   and is being prepared for operation, and the remaining three of which are scheduled to be delivered
   during the fourth quarter of 2010. Operating leases were executed for six year terms upon delivery
   of the first three aircraft, and we expect to execute similar operating leases for the remaining
   three aircraft upon their delivery.
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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 September&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. In September&amp;#160;2010,
   we executed a lease, subject to certain contingencies as of September&amp;#160;30, 2010, for our new
   corporate headquarters in Long Island City. Other than this lease commitment, we do not have any
   material obligations as of September&amp;#160;30, 2010 related to this corporate move, which is currently
   scheduled to commence in 2012.
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