Question-and-Answer Session
Operator
(Operator instructions) And your first question comes from the line of Lily Ng with Merrill Lynch. Please proceed.
Lily Ng – Merrill Lynch
Hi, good afternoon Phil and Peter. My first question regards to revolving line of credit that you guys have for the institutional vendors. Can you give me an update on that, because I think as of your K, you said the termination date of that line of credit was extended to April 15. Did you do more extension or considering other forms of financing, so you have some dry powder on the side?
Peter Hunt
Yes, you are referring to an $8.5 million credit facility that Colgan Air had when we acquired the company. It's a facility with a local bank that Colgan has had strong ties with for a long time, and that facility has been extended for another year, so that is still outstanding and will be until spring of 2009.
Lily Ng – Merrill Lynch
Right. And Peter, have you done anything else or looking at just other lines of credit that you might be interested in?
Peter Hunt
We're really not. I mean, I think we're pretty comfortable, Lily, with your liquidity now. Even with the changes in fuel that we see with Colgan and the losses that we did not expect to see as we plan for 2008, we're still fairly comfortable that the cash flow that we have, the liquidity that we obtained related to our ARS portfolio is enough. So we're pretty comfortable with where we are on the liquidity front.
Lily Ng – Merrill Lynch
Great. And then, my second question is a hypothetical one, say you guys decide to just shut down the prorate (inaudible) at Colgan tomorrow, like again hypothetical, do you think you can give me a sense of the magnitude of how your revenue and your cost and your cash flow are going to be affected if you were to do that?
Peter Hunt
Well, first off, let me say that it's not likely we would ever shut the whole thing down, primarily because one component of it – the flying we're doing with Continental already has a mechanism for the prorate formulas to adjust as fuel prices change, so as fuel prices increase, the amount of revenue that we receive under our Continental agreement goes up. So I think that the Continental flying actually probably will continue to work and would be something we would continue to want to do. And that's about a third of the prorate flying. On the other two-thirds, if we were to simply stop it, if we were to shut it down, the total prorate business is about $200 million a year revenue business. And last year, it was about $205 million revenue – $205 million cost. And obviously, with fuel prices, that number is going up and up and up, so that gives you an idea of the size of the business that's there. Hopefully that answers the question for you.
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