Common use of Aircraft Services Clause in Contracts

Aircraft Services. Aircraft Services includes the costs of services the airline has contracted out to other companies as well as some terminal access charges at certain airports. Charges include ground handling, customer service, baggage handling, maintenance inspection, grooming, lavatory, security, ▇▇▇▇▇▇ fees, and lounge usage charges. These charges vary significantly for each airport. Projected Aircraft Services for the year ending June 30th, 2014 is $7,207K. Projected Meal and Beverage expense for the year ending June 30, 2014 is $1,150K. Elimination of most meals on flights less than 2 hours (except for business class) has resulted in savings. Commissions and Credit Card expense includes commissions paid to travel agents, fees for processing credit card charges, and booking fees. Actual Commission and Credit Card expense for the year ending June 30th, 2013 is $3,157K. The 2013/14 budget calls for the expense to remain fairly steady at $2,974K. Navigation and Overfly are the fees incurred for flying through certain airspace (for example Cuba and Jamaica). Navigation and Overfly expense for the year ending June 30th, 2014 is budgeted at $744K. Note 17 - Other Maintenance Other Maintenance expense includes the cost of repairing rotable (reusable) parts for the aircraft, the cost of purchasing expendable (single use only) parts, and the cost of leasing parts. Budgeted Other Maintenance expense for the year ending June 30th, 2014 is $1,817K. Note 18 – Aircraft Rental Aircraft Rental expense is the cost of renting an aircraft and major components (engines etc.). Budgeted expectations are for 2013/14 to have an expense of $4,357K. Actual Facilities Rental for the year ending June 30, 2013 is $563K. Budgeted expenses for 2013/14 call for an insignificant increase to $633K. Communication costs include local and long distance telephone charges, line charges for the reservation system, and messaging costs. Actual Communication costs for the year ending June 30, 2013 are $617K. A slight decrease is expected in 2013/14 to $538K. The primary component of depreciation during the budget year will be the amortization of engine overhauls, to the extent not reimbursed by the lessor. These costs are amortized over the remaining lease term so the impact can be quite material. Actual Depreciation Expense for the year ending June 30, 2013 is $1,706K. The 2013/14 budget calls for depreciation in the amount of $1,947K. General and Administrative expenses include postage, stationary, facility maintenance, utilities, equipment rental, bank fees and other similar expenses. The 2013/14 budget calls for $1,691K in this cost.