921929--5/31/2006--FRONTIER_AIRLINES_INC

related topics

{operation, natural, condition}

{cost, operation, labor}

{capital, credit, financial}

{debt, indebtedness, cash}

{product, market, service}

{cost, contract, operation}

{system, service, information}

{acquisition, growth, future}

{competitive, industry, competition}

{cost, regulation, environmental}

{personnel, key, retain}

{condition, economic, financial}

{product, candidate, development}

We may not be able to obtain or secure financing for our new aircraft. We have a significant amount of fixed obligations and we will incur significantly more fixed obligations, which could increase the risk of failing to meet payment obligations. Many of our financial obligations contain cross-default provisions. Our failure to successfully implement our growth strategy could harm our business. We depend heavily on the Denver market to be successful. We face intense competition and market dominance by United Airlines and other airlines at DIA, and Southwest Airlines recently announced service to and from Denver, which will increase competition on certain of our routes. Competition on our Mexican routes may increase due to recent regulatory changes, which may adversely impact some of our most important markets. We may not have access to adequate gates or airport slots, which could decrease our competitiveness. We experience high costs at DIA, which may impact our results of operations. Our all-Airbus fleet creates risks. We rely on one vendor to provide our LiveTV service. Our maintenance expenses may be higher than we anticipate and will increase as our fleet ages. We may need to make other arrangements for our maintenance facility. Our landing fees may increase because of local noise abatement procedures. Unionization affects our costs and may affect our operations. The lack of marketing alliances could harm our business. Our lack of higher borrowing capacity under our current lines of credit and our lack of other borrowing facilities makes us highly dependent upon our existing cash and operating cash flows. If we are unable to attract and retain qualified personnel at reasonable costs, our business will be harmed. We rely heavily on automated systems and technology to operate our business and any failure of these systems could harm our business. Risks Associated with the Airline Industry The airline industry has incurred significant losses resulting in airline restructuring and bankruptcies, which could result in changes in our industry. We may be subject to terrorist attacks or other acts of war and increased costs or reductions in demand for air travel due to hostilities in the Middle East or other parts of the world. Increases in fuel costs affect our operating costs and competitiveness. The airline industry is seasonal and cyclical, resulting in unpredictable liquidity and earnings. Our current insurance costs could increase if the U.S. government does not provide war risk coverage to airlines. Our financial results and reputation could be harmed in the event of an accident or incident involving our aircraft. We are in a high fixed cost business, and any unexpected decrease in revenues would harm us. Delays or cancellations due to adverse weather conditions or other factors beyond our control could adversely affect us. We are subject to strict federal regulations, and compliance with federal regulations increases our costs and decreases our revenues.

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921929--5/31/2006--FRONTIER_AIRLINES_INC_/CO/