Debt And Other Obligations

12 Months Ended

Dec. 31, 2011

Debt and Other Obligations

As of December 31, 2011 and 2010, the following notes were due to unrelated parties (in thousands):



	As of December 31,
	2011		2010

Notes payable bearing interest at 8.75% per annum due April 30, 2012. Unsecured. Accrued interest at December 31, 2011 and 2010 of $0 and $38, respectively.	$	—	$	5,056
Notes payable bearing interest at 8.70% to 19.00% per annum due April 30, 2012, except for $1.8 million of notes due and payable upon the termination of the Company’s letter of credit facility on April 30, 2011. Secured*. Accrued interest at December 31, 2011 and 2010 of $0 and $55, respectively.	—		5,492
Notes payable bearing interest at Prime plus 0.95% to 1.75% (4.20% to 5.00% at December 31, 2010) due April 30, 2012, except for $1.4 million of notes due and payable upon the termination of the Company’s letter of credit facility on April 30, 2011. Secured*. Accrued interest at December 31, 2011 and 2010 of $0 and $19, respectively.	—		4,658
Total due to unrelated parties	$	—	$	15,206



*	Secured by accounts receivable, inventory, property, and equipment, not including airframes or engines.

In connection with the closing of the IPO, the Company consummated the transaction contemplated by the Recapitalization Agreement on June 1, 2011, which resulted in the repayment or exchange for common stock of all of the Company’s notes and preferred stock (see Note 20). As of December 31, 2011, there was no outstanding long term debt or long term obligation.

As described in Note 5, an investment banking firm provided an LC in favor of one of the Company’s credit card processors, which served to reduce the amount of cash collateral that would otherwise be required to be maintained. In 2009, the LC was renewed for a year, and in 2010 the LC was extended until April 30, 2011. As of December 31, 2010, the amount of the LC was $15.0 million. On April 29, 2011, the Company extended its letter of credit facility until April 30, 2014 and increased the amount to $30.0 million. On June 1, 2011, the Company terminated the LC.

The Company has a line of credit for $8.6 million and $3.6 million related to corporate credit cards, of which the Company had drawn $2.4 million and $2.5 million as of December 31, 2011 and December 31, 2010, respectively.

In addition, the Company has undrawn lines of credit with two counterparties to its jet fuel derivatives in the amount of $8.0 million and $1.0 million as of December 31, 2011 and 2010 respectively. The Company is required to post collateral for any excess above the line of credit if the derivatives are in a net liability position.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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