Long-Term Debt and Other Borrowings (Tables)

12 Months Ended

Sep. 30, 2020

Long-term debt as of September 30, 2020 and 2019, consisted of the following (in thousands):

	September 30,			September 30,
	2020			2019
Notes payable to financial institution, collateralized by the underlying aircraft, due 2022⁽¹⁾⁽²⁾	$	41,472		$	49,795
Notes payable to financial institution, collateralized by the underlying aircraft, due 2024⁽³⁾		55,674			60,761
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027⁽⁴⁾		105,887			110,912
Notes payable to secured parties, collateralized by the underlying aircraft, due 2028⁽⁵⁾		172,137			191,168
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028⁽⁶⁾		138,114			152,945
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022⁽⁷⁾		47,319			71,998
Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022⁽⁸⁾		29,682			47,309
Notes payable to financial institution, collateralized by the underlying equipment, due 2020⁽⁹⁾		—			1,659
Notes payable to financial institution due 2020⁽¹⁰⁾		1,523			2,329
Notes payable to financial institution, collateralized by the underlying equipment, due 2020⁽¹¹⁾		4,182			6,962
Other obligations due to financial institution, collateralized by the underlying equipment, due 2023⁽¹²⁾		6,864			8,530
Notes payable to financial institution, collateralized by the underlying equipment, due 2024⁽¹³⁾		63,341			80,153
Notes payable to financial institution, collateralized by the underlying aircraft, due 2023⁽¹⁴⁾		48,125			65,625
Notes payable to financial institution, collateralized by the underlying due 2023 ⁽¹⁵⁾		6,000			8,000
Working capital draw loan, used to cover operational needs ⁽¹⁶⁾		22,930			—
Gross long-term debt, including current maturities		743,250			858,145
Less unamortized debt issuance costs		(11,526	)		(14,822	)
Net long-term debt, including current maturities		731,724			843,323
Less current portion		(189,268	)		(165,900	)
Net long-term debt	$	542,456		$	677,423

⁽¹⁾	In fiscal 2007, the Company financed three CRJ-900 and three CRJ-700 aircraft for $120.3 million. The debt bears interest at the monthly LIBOR plus 2.25% (2.40% at September 30, 2020) and requires monthly principal and interest payments.

⁽²⁾	In fiscal 2014, the Company financed ten CRJ-900 aircraft for $88.4 million. The debt bears interest at the monthly LIBOR plus 1.95% (2.10% at September 30, 2020) and requires monthly principal and interest payments. In fiscal 2018, the Company repaid $40.0 million related to four CRJ-900 aircraft.

⁽³⁾	In fiscal 2014, the Company financed eight CRJ-900 aircraft with $114.5 million in debt. The debt bears interest at 5.00% and requires monthly principal and interest payments.

⁽⁴⁾

In fiscal 2015, the Company financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $151.0 million bear interest at monthly LIBOR plus 2.71% (2.86% at September 30, 2020) and require monthly principal and interest payments. The subordinated notes payable is noninterest-bearing and become payable in full on the last day of the term of the notes. The Company has imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes.

⁽⁵⁾	In fiscal 2016, the Company financed ten E-175 aircraft with $246.0 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments.

⁽⁶⁾

In fiscal 2016, the Company financed eight E-175 aircraft with $195.3 million in debt. The senior notes payable of $172.0 million bear interest at the three-month LIBOR plus a spread ranging from 2.20% to 2.32% (2.43% to 2.55% at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50% and require quarterly principal and interest payments.

⁽⁷⁾

In June 2018, the Company refinanced six CRJ-900 aircraft with $27.5 million in debt and financed nine CRJ-900 aircraft, which were previously leased, with $69.6 million in debt. The senior notes payable of $65.8 million bear interest at the three-month LIBOR plus 3.50% (3.73% at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable of $29.8 million bear interest at three month LIBOR plus 7.50% (7.73% at September 30, 2020) and require quarterly principal and interest payments.

⁽⁸⁾

InDecember 2017, the Company refinanced nine CRJ-900 aircraft with $74.9 million in debt. The senior notes payable of $46.9 million bear interest at the three-month LIBOR plus 3.50% (3.73% at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable bear interest at the three-month LIBOR plus 4.50% (4.73% at September 30, 2020) and require quarterly principal and interest payments.

⁽⁹⁾	In fiscal 2015, the Company financed certain flight equipment with $8.3 million in debt. The debt bears interest at 5.163% and was paid off in August 2020.

⁽¹⁰⁾	In fiscal 2015 and 2016, the Company financed certain flight equipment maintenance costs with $10.2 million in debt. The debt bears interest at the three-month LIBOR plus 3.07% (3.30% at September 30, 2020) and requires quarterly principal and interest payments.

⁽¹¹⁾

In fiscal 2016-2019, the Company financed certain flight equipment. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% to 3.21% (3.16% to 3.44% at September 30, 2020) and requires quarterly principal and interest payments. The debt is subject to a fixed charge ratio covenant. As of September 30, 2020, the Company was in compliance with this covenant.

⁽¹²⁾	In February 2018, the Company leased two spare engines. The leases were determined to be capital as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.128% and the leases requires monthly payments.

⁽¹³⁾	In January 2019, the Company financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% (3.25% at September 30, 2020) and requires monthly principal and interest payments.

⁽¹⁴⁾

In June 2019, the Company financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% (5.15% at September 30, 2020) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1^st quarter, 2020 due to United Airlines extension of CRJ-700.

⁽¹⁵⁾

On September 27,2019, the Company financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% (5.15% at September 30, 2020) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1^st quarter, 2020 due to United Airlines extension of CRJ-700.

⁽¹⁶⁾

On September 25, 2019, the company extended the term on their $35.0 million working capital draw loan by three years, which now terminates in September 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. As of September 30, 2020, $23.0 million was drawn to cover operational needs.

Schedule of Principal Maturities of Long-term Debt

Principal maturities of long-term debt as of September 30, 2020, and for each of the next five years are as follows (in thousands):

	Total Principal
Periods Ending September 30,	Amount
2021	$	189,268
2022		152,517
2023		126,095
2024		71,033
2025		56,526
Thereafter		147,811
	$	743,250