Aircraft Financing and Capital Expenditures
The total purchase commitment for the 15 Q400 and 16 CRJ-900 aircraft that the Company has on order is approximately $660 million. The Company expects that it will purchase all 31 aircraft using a combination of internal capital resources and debt financing. The Company has obtained financing commitments from a third party and from the aircraft manufacturer. Based upon these commitments, the Company currently anticipates it can finance approximately 85% of the net purchase price of each aircraft at interest rates between 7.0% and 8.5% and for terms ranging from 12 to 15 years. The Company is also pursuing other third party financing options, including operating leases, and may use such additional financing options to the extent that they provide better economics