þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
TEXAS
|
74-1563240
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
P.O.
Box 36611, Dallas, Texas
|
75235-1611
|
(Address
of principal executive offices)
|
(Zip
Code)
|
March
31, 2007
|
December
31, 2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
1,618
|
$
|
1,390
|
|||
Short-term
investments
|
315
|
369
|
|||||
Accounts
and other receivables
|
278
|
241
|
|||||
Inventories
of parts and supplies, at cost
|
174
|
181
|
|||||
Fuel
derivative contracts
|
558
|
369
|
|||||
Prepaid
expenses and other current assets
|
56
|
51
|
|||||
Total
current assets
|
2,999
|
2,601
|
|||||
Property
and equipment, at cost:
|
|||||||
Flight
equipment
|
12,041
|
11,769
|
|||||
Ground
property and equipment
|
1,384
|
1,356
|
|||||
Deposits
on flight equipment purchase contracts
|
757
|
734
|
|||||
14,182
|
13,859
|
||||||
Less
allowance for depreciation and amortization
|
3,897
|
3,765
|
|||||
10,285
|
10,094
|
||||||
Other
assets
|
954
|
765
|
|||||
$
|
14,238
|
$
|
13,460
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
643
|
$
|
643
|
|||
Accrued
liabilities
|
1,748
|
1,323
|
|||||
Air
traffic liability
|
1,010
|
799
|
|||||
Current
maturities of long-term debt
|
123
|
122
|
|||||
Total
current liabilities
|
3,524
|
2,887
|
|||||
Long-term
debt less current maturities
|
1,556
|
1,567
|
|||||
Deferred
income taxes
|
2,183
|
2,104
|
|||||
Deferred
gains from sale and leaseback of aircraft
|
117
|
120
|
|||||
Other
deferred liabilities
|
304
|
333
|
|||||
Stockholders'
equity:
|
|||||||
Common
stock
|
808
|
808
|
|||||
Capital
in excess of par value
|
1,155
|
1,142
|
|||||
Retained
earnings
|
4,264
|
4,307
|
|||||
Accumulated
other comprehensive income
|
716
|
582
|
|||||
Treasury
stock, at cost
|
(389
|
)
|
(390
|
)
|
|||
Total
stockholders' equity
|
6,554
|
6,449
|
|||||
$
|
14,238
|
$
|
13,460
|
||||
See
accompanying notes.
|
Three
months ended March 31,
|
|||||||
2007
|
2006
|
||||||
OPERATING
REVENUES:
|
|||||||
Passenger
|
$
|
2,112
|
$
|
1,938
|
|||
Freight
|
30
|
35
|
|||||
Other
|
56
|
46
|
|||||
Total
operating revenues
|
2,198
|
2,019
|
|||||
OPERATING
EXPENSES:
|
|||||||
Salaries,
wages, and benefits
|
767
|
716
|
|||||
Fuel
and oil
|
564
|
501
|
|||||
Maintenance
materials and repairs
|
136
|
104
|
|||||
Aircraft
rentals
|
39
|
40
|
|||||
Landing
fees and other rentals
|
136
|
120
|
|||||
Depreciation
and amortization
|
135
|
124
|
|||||
Other
operating expenses
|
337
|
316
|
|||||
Total
operating expenses
|
2,114
|
1,921
|
|||||
OPERATING
INCOME
|
84
|
98
|
|||||
OTHER
EXPENSES (INCOME):
|
|||||||
Interest
expense
|
29
|
34
|
|||||
Capitalized
interest
|
(13
|
)
|
(12
|
)
|
|||
Interest
income
|
(13
|
)
|
(18
|
)
|
|||
Other
(gains) losses, net
|
(68
|
)
|
(2
|
)
|
|||
Total
other expenses (income)
|
(65
|
)
|
2
|
||||
INCOME
BEFORE INCOME TAXES
|
149
|
96
|
|||||
PROVISION
FOR INCOME TAXES
|
56
|
35
|
|||||
NET
INCOME
|
$
|
93
|
$
|
61
|
|||
NET
INCOME PER SHARE, BASIC
|
$
|
.12
|
$
|
.08
|
|||
NET
INCOME PER SHARE, DILUTED
|
$
|
.12
|
$
|
.07
|
|||
WEIGHTED
AVERAGE SHARES
|
|||||||
OUTSTANDING:
|
|||||||
Basic
|
786
|
803
|
|||||
Diluted
|
800
|
836
|
|||||
See
accompanying notes.
|
Three
months ended March 31,
|
|||||||
2007
|
2006
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
income
|
$
|
93
|
$
|
61
|
|||
Adjustments
to reconcile net income to
|
|||||||
cash
provided by operating activities:
|
|||||||
Depreciation
and amortization
|
135
|
124
|
|||||
Deferred
income taxes
|
42
|
35
|
|||||
Amortization
of deferred gains on sale and
|
|||||||
leaseback
of aircraft
|
(4
|
)
|
(4
|
)
|
|||
Share-based
compensation expense
|
13
|
22
|
|||||
Excess
tax benefits from share-based compensation arrangements
|
(29
|
)
|
(28
|
)
|
|||
Changes
in certain assets and liabilities:
|
|||||||
Accounts
and other receivables
|
(37
|
)
|
(13
|
)
|
|||
Other
current assets
|
(56
|
)
|
14
|
||||
Accounts
payable and accrued liabilities
|
383
|
317
|
|||||
Air
traffic liability
|
210
|
280
|
|||||
Other
|
(133
|
)
|
(57
|
)
|
|||
Net
cash provided by (used in) operating activities
|
617
|
751
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchases
of property and equipment, net
|
(325
|
)
|
(262
|
)
|
|||
Purchases
of short-term investments
|
(914
|
)
|
(850
|
)
|
|||
Proceeds
from sales of short-term investments
|
968
|
782
|
|||||
Proceeds
from ATA Airlines, Inc. debtor in possession loan
|
-
|
20
|
|||||
Other
|
-
|
1
|
|||||
Net
cash used in investing activities
|
(271
|
)
|
(309
|
)
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from Employee stock plans
|
78
|
107
|
|||||
Payments
of long-term debt and capital lease obligations
|
(9
|
)
|
(37
|
)
|
|||
Payments
of cash dividends
|
(7
|
)
|
(7
|
)
|
|||
Repurchase
of common stock
|
(209
|
)
|
(214
|
)
|
|||
Excess
tax benefits from share-based compensation arrangements
|
29
|
28
|
|||||
Other
|
-
|
1
|
|||||
Net
cash provided by (used in) financing activities
|
(118
|
)
|
(122
|
)
|
|||
NET
INCREASE (DECREASE) IN CASH
|
|||||||
AND
CASH EQUIVALENTS
|
228
|
320
|
|||||
CASH
AND CASH EQUIVALENTS AT
|
|||||||
BEGINNING
OF PERIOD
|
1,390
|
2,280
|
|||||
CASH
AND CASH EQUIVALENTS
|
|||||||
AT
END OF PERIOD
|
$
|
1,618
|
$
|
2,600
|
|||
CASH
PAYMENTS FOR:
|
|||||||
Interest,
net of amount capitalized
|
$
|
19
|
$
|
20
|
|||
Income
taxes
|
$
|
1
|
$
|
-
|
|||
See
accompanying notes.
|
Three
months ended March 31,
|
|||||||
2007
|
2006
|
||||||
NUMERATOR:
|
|||||||
Net
income available to
|
|||||||
common
shareholders
|
$
|
93
|
$
|
61
|
|||
DENOMINATOR:
|
|||||||
Weighted-average
shares
|
|||||||
outstanding,
basic
|
786
|
803
|
|||||
Dilutive
effect of Employee stock
|
|||||||
options
|
14
|
33
|
|||||
Adjusted
weighted-average shares
|
|||||||
outstanding,
diluted
|
800
|
836
|
|||||
NET
INCOME PER SHARE:
|
|||||||
Basic
|
$
|
.12
|
$
|
.08
|
|||
Diluted
|
$
|
.12
|
$
|
.07
|
|||
|
Three
months ended March 31,
|
||||||||
2007
|
2006
|
|||||||
Net
income
|
$
|
93
|
$
|
61
|
||||
Unrealized
gain (loss) on derivative instruments,
|
||||||||
net
of deferred taxes of $84 and $72
|
135
|
116
|
||||||
Other,
net of deferred taxes of $0 and $1
|
(1
|
)
|
1
|
|||||
Total
other comprehensive income
|
134
|
117
|
||||||
Comprehensive
income
|
$
|
227
|
$
|
178
|
Accumulated
|
|||||||||
Fuel
|
other
|
||||||||
hedge
|
comprehensive
|
||||||||
derivatives
|
Other
|
income
(loss)
|
|||||||
Balance
at December 31, 2006
|
$
|
584
|
$
|
(2
|
)
|
$
|
582
|
||
2007
changes in value
|
174
|
(1
|
)
|
173
|
|||||
Reclassification
to earnings
|
(39
|
)
|
-
|
(39
|
|||||
Balance
at March 31, 2007
|
$
|
719
|
$
|
(3
|
)
|
$
|
716
|
March
31,
|
December
31,
|
|||||
2007
|
2006
|
|||||
|
|
|||||
Noncurrent
fuel derivatives contracts, at fair value
|
$
|
819
|
$
|
630
|
||
Other
|
135
|
135
|
||||
Other
assets
|
$
|
954
|
$
|
765
|
||
March
31,
|
December
31,
|
|||||
2007
|
2006
|
|||||
Retirement
Plans
|
$
|
174
|
$
|
165
|
||
Aircraft
Rentals
|
109
|
128
|
||||
Vacation
Pay
|
156
|
151
|
||||
Advances
and deposits
|
885
|
546
|
||||
Deferred
income taxes
|
125
|
78
|
||||
Other
|
299
|
255
|
||||
Accrued
liabilities
|
$
|
1,748
|
$
|
1,323
|
Three
months ended March 31,
|
|||||||
(In
millions)
|
2007
|
|
2006
|
||||
|
|
|
|||||
Service
cost
|
$
|
4
|
$
|
4
|
|||
Interest
cost
|
1
|
1
|
|||||
Amortization
of prior service cost
|
-
|
-
|
|||||
Recognized
actuarial loss
|
-
|
-
|
|||||
Net
periodic postretirement benefit cost
|
$
|
5
|
$
|
5
|
Three
months ended March 31,
|
||||||||||
|
||||||||||
2007
|
2006
|
Change
|
||||||||
Revenue
passengers carried
|
19,960,933
|
19,199,488
|
4.0
|
%
|
||||||
Enplaned
passengers
|
22,903,073
|
22,015,484
|
4.0
|
%
|
||||||
Revenue
passenger miles (RPMs) (000s)
|
16,109,071
|
15,280,497
|
5.4
|
%
|
||||||
Available
seat miles (ASMs) (000s)
|
23,678,376
|
22,079,458
|
7.2
|
%
|
||||||
Load
factor
|
68.0
|
%
|
69.2
|
%
|
(1.2)
|
pts | ||||
Average
length of passenger haul (miles)
|
807
|
796
|
1.4
|
%
|
||||||
Average
aircraft stage length (miles)
|
627
|
617
|
1.6
|
%
|
||||||
Trips
flown
|
276,900
|
262,449
|
5.5
|
%
|
||||||
Average
passenger fare
|
|
$105.79
|
|
$100.94
|
4.8
|
%
|
||||
Passenger
revenue yield per RPM (cents)
|
13.11
|
12.68
|
3.4
|
%
|
||||||
Operating
revenue yield per ASM (cents)
|
9.28
|
9.15
|
1.4
|
%
|
||||||
Operating
expenses per ASM (cents)
|
8.93
|
8.70
|
2.6
|
%
|
||||||
Operating
expenses per ASM, excluding fuel (cents)
|
6.54
|
6.43
|
1.7
|
%
|
||||||
Fuel
costs per gallon, excluding fuel tax
|
|
$1.59
|
|
$1.51
|
5.3
|
%
|
||||
Fuel
consumed, in gallons (millions)
|
354
|
329
|
7.6
|
%
|
||||||
Fulltime
equivalent Employees at period-end
|
32,961
|
31,396
|
5.0
|
%
|
||||||
Size
of fleet at period-end
|
489
|
451
|
8.4
|
%
|
Three
months ended March 31,
|
Per
ASM
|
Percent
|
||||||||||||
2007
|
2006
|
Change
|
Change
|
|||||||||||
Salaries,
wages, and benefits
|
3.24
|
3.24
|
-
|
-
|
||||||||||
Fuel
and oil
|
2.38
|
2.27
|
.11
|
4.8
|
||||||||||
Maintenance
materials
|
||||||||||||||
and
repairs
|
.58
|
.47
|
.11
|
23.4
|
||||||||||
Aircraft
rentals
|
.16
|
.18
|
(.02
|
)
|
(11.1
|
)
|
||||||||
Landing
fees and other rentals
|
.58
|
.55
|
.03
|
5.5
|
||||||||||
Depreciation
|
.57
|
.56
|
.01
|
1.8
|
||||||||||
Other
operating expenses
|
1.42
|
1.43
|
(.01
|
)
|
(0.7
|
)
|
||||||||
Total
|
8.93
|
8.70
|
.23
|
2.6
|
Average
|
Number
|
Number
|
Number
|
|||||||||||||
737
Type
|
Seats
|
Age
(Yrs)
|
of
Aircraft
|
Owned
|
Leased
|
|||||||||||
-300
|
137
|
15.9
|
194
|
112
|
82
|
|||||||||||
-500
|
122
|
15.9
|
25
|
16
|
9
|
|||||||||||
-700
|
137
|
4.1
|
270
|
268
|
2
|
|||||||||||
TOTALS
|
9.4
|
489
|
396
|
93
|
(i) |
the
price and availability of aircraft
fuel;
|
(ii) |
the
impact of governmental regulations on our operating costs, as well
as our
operations generally;
|
(iii) |
competitor
capacity and load factors; and
|
(iv) |
other
factors as set forth in our filings with the Securities and Exchange
Commission, including the detailed factors discussed under the heading
“Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2006.
|
(a)
|
(b)
|
(c)
|
(d)
|
||||||||||
Total
number of
|
Maximum
dollar
|
||||||||||||
shares
purchased
|
value
of shares that
|
||||||||||||
Total
number
|
Average
|
as
part of publicly
|
may
yet be purchased
|
||||||||||
of
shares
|
price
paid
|
announced
plans
|
under
the plans
|
||||||||||
Period
|
purchased
|
per
share
|
or
programs
|
or
programs
|
|||||||||
|
|
|
|
||||||||||
January
1, 2007 through
January
31, 2007
|
4,200,000
|
$
|
15.72
|
4,200,000
|
$
|
133,723,357
|
|||||||
February
1, 2007 through February 28, 2007
|
5,700,000
|
$
|
15.44
|
5,700,000
|
$
|
45,715,357
|
|||||||
March
1, 2007 through March 31, 2007
|
3,632,600
|
$
|
15.11
|
3,632,600
|
$
|
290,826,771
|
|||||||
Total
|
13,532,600
|
13,532,600
|
3.1
|
Restated
Articles of Incorporation of Southwest (incorporated by reference
to
|
|
Exhibit 4.1
to Southwest’s Registration Statement on Form S-3
(File
|
||
No. 33-52155));
Amendment to Restated Articles of Incorporation of
Southwest
|
||
(incorporated
by reference to Exhibit 3.1 to Southwest’s Quarterly Report on
|
||
Form 10-Q
for the quarter ended June 30, 1996 (File
No. 1-7259));
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 1998 (File No. 1-7259)); Amendment to Restated
Articles of
|
||
Incorporation
of Southwest (incorporated by reference to Exhibit 4.2 to
Southwest’s
|
||
Registration
Statement on Form S-8 (File No. 333-82735);
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2001 (File No. 1-7259)).
|
||
3.2
|
Bylaws
of Southwest, as amended through January 2007 (incorporated by reference
|
|
to
Exhibit 3.2 to Southwest’s Current Report on Form 8-K dated
January 18, 2007).
|
||
10.1
|
Supplemental
Agreement No. 52 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994 between The Boeing Company and
Southwest.
|
||
Pursuant
to 17 CFR 240.24b-2, confidential information has been
omitted
|
||
and
has been filed separately with the Securities and Exchange
Commission
|
||
pursuant
to a Confidential Treatment Application filed with the
|
||
Commission.
|
||
31.1
|
Rule
13a-14(a) Certification of Chief Executive Officer
|
|
31.2
|
Rule
13a-14(a) Certification of Chief Financial Officer
|
|
32.1
|
Section
1350 Certifications of Chief Executive Officer and Chief
Financial
|
|
Officer
|
|
SOUTHWEST
AIRLINES CO.
|
|
April
20, 2007
|
By
|
/s/
Laura H. Wright
|
Laura
H. Wright
|
||
Chief
Financial Officer
|
||
(On
behalf of the Registrant and in
|
||
her
capacity as Principal Financial
|
||
and
Accounting Officer)
|
||
3.1
|
Restated
Articles of Incorporation of Southwest (incorporated by reference
to
|
|
Exhibit 4.1
to Southwest’s Registration Statement on Form S-3
(File
|
||
No. 33-52155));
Amendment to Restated Articles of Incorporation of
Southwest
|
||
(incorporated
by reference to Exhibit 3.1 to Southwest’s Quarterly Report on
|
||
Form 10-Q
for the quarter ended June 30, 1996 (File
No. 1-7259));
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 1998 (File No. 1-7259)); Amendment to Restated
Articles of
|
||
Incorporation
of Southwest (incorporated by reference to Exhibit 4.2 to
Southwest’s
|
||
Registration
Statement on Form S-8 (File No. 333-82735);
|
||
Amendment
to Restated Articles of Incorporation of Southwest (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2001 (File No. 1-7259)).
|
||
3.2
|
Bylaws
of Southwest, as amended through January 2007 (incorporated by reference
|
|
to
Exhibit 3.2 to Southwest’s Current Report on Form 8-K dated
January 18, 2007).
|
||
Supplemental
Agreement No. 52 to Purchase Agreement No. 1810,
|
||
dated
January 19, 1994 between The Boeing Company and
Southwest.
|
||
Pursuant
to 17 CFR 240.24b-2, confidential information has been
omitted
|
||
and
has been filed separately with the Securities and Exchange
Commission
|
||
pursuant
to a Confidential Treatment Application filed with the
|
||
Commission.
|
||
Rule
13a-14(a) Certification of Chief Executive Officer
|
||
Rule
13a-14(a) Certification of Chief Financial Officer
|
||
Section
1350 Certifications of Chief Executive Officer and Chief
Financial
|
||
Officer
|
THE
BOEING COMPANY
|
SOUTHWEST
AIRLINES CO.
|
|
By:
/s/
Nobuko Wiles
|
By:
/s/
Scott Topping
|
|
Its:
Attorney-In-Fact
|
Its:
VP Treasurer
|
Page
|
SA
|
||
Number
|
Number
|
||
ARTICLES
|
|||
1.
|
Subject
Matter of Sale
|
1-1
|
SA-13
|
2.
|
Delivery,
Title and Risk
|
||
of
Loss
|
2-1
|
SA-28
|
|
3.
|
Price
of Aircraft
|
3-1
|
SA-47
|
4.
|
Taxes
|
4-1
|
|
5.
|
Payment
|
5-1
|
|
6.
|
Excusable
Delay
|
6-1
|
|
7.
|
Changes
to the Detail
|
||
Specification
|
7-1
|
SA-1
|
|
8.
|
Federal
Aviation Requirements and Certificates and Export
|
||
License
|
8-1
|
||
9.
|
Representatives,
Inspection,
|
||
Flights
and Test Data
|
9-1
|
||
10.
|
Assignment,
Resale or Lease
|
10-1
|
|
11.
|
Termination
for Certain Events
|
11-1
|
|
12.
|
Product
Assurance; Disclaimer and
|
||
Release;
Exclusion of Liabilities; Customer Support;
|
|||
Indemnification
and Insurance
|
12-1
|
||
13.
|
Buyer
Furnished Equipment and
|
||
Spare
Parts
|
13-1
|
||
14.
|
Contractual
Notices and Requests
|
14-1
|
|
15.
|
Miscellaneous
|
15-1
|
|
SA
|
||
Number
|
||
TABLE
|
||
1.
|
Aircraft
Information Table
|
SA-52
|
|
||
2.
|
Option
Aircraft Information Table
|
SA-52
|
A
|
Aircraft
Configuration
|
SA-47
|
|
B
|
Product
Assurance Document
|
SA-1
|
|
C
|
Customer
Support Document
|
||
D
|
Price
Adjustments Due to
|
||
Economic
Fluctuations - Aircraft
|
|||
E
|
Buyer
Furnished Equipment
|
||
Provisions
Document
|
|||
F
|
Defined
Terms Document
|
1810-1
|
Waiver
of Aircraft Demonstration Flight
|
SA
|
||
Number
|
||
RESTRICTED
LETTER AGREEMENTS
|
||
6-1162-RLL-932R2
|
Promotional
Support
|
SA-13
|
|
|
|
(superseded
by 6-1162-933R20)
|
||
6-1162-RLL-933R20
|
***
|
SA-47
|
6-1162-RLL-934R3
|
Disclosure
of Confidential
|
SA-14
|
Information
|
||
6-1162-RLL-935R1
|
Performance
Guarantees
|
SA-1
|
6-1162-NIW-890
|
***
|
SA-39
|
6-1162-RLL-936R4
|
Certain
Contractual Matters
|
SA-4
|
6-1162-RLL-937
|
Alternate
Advance Payment Schedule
|
|
6-1162-RLL-938
|
***
|
|
6-1162-RLL-939R1
|
Certification
Flight Test Aircraft
|
SA-1
|
6-1162-RLL-940R1
|
Training
Matters
|
SA-1
|
6-1162-RLL-941R2
|
Other
Matters
|
SA-13
|
6-1162-RLL-942
|
Open
Configuration Matters
|
|
6-1162-RLL-943R1
|
Substitution
Rights
|
SA-6
|
6-1162-RLL-944
|
Airframe
Maintenance Material Cost
|
|
Protection
Program
|
||
6-1162-RLL-945
|
Comparison
of 737-7H4 and 737-3H4
|
|
Block
Fuel Burn
|
||
6-1162-RLL-1855R3
|
Additional
Contractual Matters
|
SA-4
|
6-1162-RLL-1856
|
***
|
SA-1
|
6-1162-RLL-1857
|
Service
Ready Validation Program
|
SA-1
|
Field
Test
|
||
6-1162-RLL-1858R1
|
Escalation
Matters
|
SA-4
|
SA
|
||
Number
|
||
RESTRICTED
LETTER AGREEMENTS
|
||
6-1162-RLL-2036
|
Amortization
of Costs for
|
|
Customer
Unique Changes
|
SA-1
|
|
6-1162-RLL-2037
|
Reconciliation
of the Aircraft
|
SA-1
|
Basic
Price
|
||
6-1162-RLL-2073
|
Maintenance
Training Matters
|
SA-1
|
|
|
|
(Superseded
by 6-1162-KJJ-054R1)
|
||
6-1162-KJJ-054R1
|
Business
Matters
|
|
6-1162-KJJ-055R1
|
Structural
Matters
|
SA-25
|
6-1162-KJJ-056
|
Noise
and Emission Matters
|
SA-13
|
6-1162-KJJ-057
|
Product
Development Matters
|
SA-13
|
6-1162-KJJ-058
|
Additional
Substitution Rights
|
SA-13
|
6-1162-KJJ-150
|
Flight
Control Computer & Mode
|
SA-14
|
Control
Panel Spares Matter
|
||
6-1162-MSA-185R3
|
Delivery
Change Contractual
|
SA-21
|
Matters
|
||
|
|
|
(superseded
by 6-1162-JMG-669R1)
|
||
|
|
|
(superseded
by 6-1162-JMG-669R2)
|
||
|
|
|
(superseded
by 6-1162-JMG-669R3)
|
||
|
|
|
(superseded
by 6-1162-JMG-669R4)
|
||
|
|
|
(superseded
by 6-1162-JMG-669R5)
|
||
Base
Aircraft Price
|
Special
Features
|
Aircraft
Basic Price
|
Base
Year Dollars
|
||
Block
A, B, C, D & E Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
F & G Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
H Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
I Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
J Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
K Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
K-W Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
L Aircraft
|
***
|
***
|
***
|
July
1992
|
|
Block
T Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
T-W Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
T-W-1 / T-W-1a Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
T-W-2 / T-W-2a Aircraft
|
***
|
***
|
***
|
July
1999
|
|
Block
K-W Aircraft: Block K airplanes with production winglets
installation
|
|||||
Block
T-W Aircraft: Block T airplanes with production winglets
installation
|
|||||
Block
T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from
May 1,
2006 through June 2008 at the signing
|
|||||
of
SA-47 -- (T-W-1a Aircraft -- Advance Payment Schedule per LA
6-1162-JGM-669)
|
|||||
Block
T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which becomes Firm
Aircraft
after signing of SA-47 and
|
|||||
Firm
Aircaft contracted to deliver in July 2008 and on at the signing
of SA47
--
|
|||||
(T-W-2a
Aircraft -- Advance Payment Schedule per LA
6-1162-JGM-669)
|
|
|
|
Escalation
Estimate
|
|
|
Delivery
|
Number
of
|
Aircraft
|
Adv
Payment Base
|
|
|
Date
|
Aircraft
|
Block
|
Price
Per A/P
|
Serial
Number
|
|
Dec-2000
|
2
|
E
|
***
|
|
|
Jan-2001
|
1
|
E
|
***
|
|
|
Feb-2001
|
1
|
E
|
***
|
|
|
Mar-2001
|
2
|
E
|
***
|
|
|
Jun-2001
|
3
|
E
|
***
|
|
|
Sep-2001
|
3
|
E
|
***
|
|
|
Oct-1998
|
1
|
F
|
***
|
|
|
Nov-1998
|
2
|
F
|
***
|
|
|
Dec-1998
|
2
|
F
|
***
|
|
|
Mar-1999
|
2
|
G
|
***
|
|
|
Jun-1999
|
2
|
H
|
***
|
|
|
Jul-1999
|
1
|
H
|
***
|
|
|
Aug-1999
|
1
|
H
|
***
|
|
|
Sep-1999
|
2
|
H
|
***
|
|
|
Oct-1999
|
1
|
H
|
***
|
|
|
Mar-2000
|
1
|
H
|
***
|
|
|
Apr-2000
|
2
|
H
|
***
|
|
|
Sep-2000
|
1
|
H
|
***
|
|
|
Oct-2000
|
2
|
H
|
***
|
|
|
Mar-2001
|
2
|
H
|
***
|
|
|
Apr-2001
|
1
|
H
|
***
|
|
|
Oct-2001
|
3
|
H
|
***
|
|
|
Nov-2001
|
2
|
I
|
***
|
|
|
Dec-2001
|
1
|
I
|
***
|
|
|
Jan-2002
|
1
|
I
|
***
|
|
|
Mar-2002
|
4
|
I
|
***
|
|
|
Apr-2002
|
2
|
I
|
***
|
|
|
Dec-2002
|
2
|
I
|
***
|
|
|
May-2003
|
1
|
I
|
***
|
|
|
Jun-2003
|
2
|
I
|
***
|
|
|
Jul-2003
|
1
|
I
|
***
|
|
|
Aug-2003
|
1
|
I
|
***
|
|
|
Sep-2003
|
3
|
I
|
***
|
|
|
Nov-2002
|
1
|
J
|
***
|
|
|
Dec-2002
|
1
|
J
|
***
|
|
|
Nov-2003
|
2
|
J
|
***
|
|
|
Dec-2003
|
2
|
J
|
***
|
|
|
Mar-2004
|
1
|
J
|
***
|
|
|
Mar-2004
|
1
|
K
|
***
|
|
|
Apr-2004
|
3
|
K
|
***
|
|
|
May-2004
|
1
|
K
|
***
|
|
|
Jun-2004
|
2
|
K
|
***
|
|
|
Jul-2004
|
2
|
K
|
***
|
|
|
Sep-2004
|
1
|
K-W
|
***
|
|
|
Oct-2004
|
4
|
K-W
|
***
|
|
Oct-1999
|
1
|
L
|
***
|
|
|
Nov-1999
|
2
|
L
|
***
|
|
|
Dec-1999
|
1
|
L
|
***
|
|
|
Jun-2000
|
3
|
L
|
***
|
|
|
Jul-2000
|
3
|
L
|
***
|
|
|
Sep-2000
|
1
|
L
|
***
|
|
|
Oct-2000
|
1
|
L
|
***
|
|
|
Nov-2000
|
4
|
L
|
***
|
|
|
Dec-2000
|
1
|
L
|
***
|
|
|
Jan-2001
|
1
|
L
|
***
|
|
|
Feb-2001
|
1
|
L
|
***
|
|
|
Jul-2001
|
1
|
L
|
***
|
|
|
Sep-2001
|
1
|
L
|
***
|
|
|
Oct-2001
|
1
|
L
|
***
|
|
|
Mar-2003
|
2
|
L
|
***
|
|
|
Jul-2003
|
1
|
L
|
***
|
|
|
Aug-2003
|
2
|
L
|
***
|
|
|
Nov-2001
|
1
|
T
|
***
|
|
|
Feb-2002
|
1
|
T
|
***
|
|
|
Jan-2004
|
2
|
T
|
***
|
|
|
Feb-2004
|
1
|
T
|
***
|
|
|
Apr-2004
|
3
|
T
|
***
|
|
|
May-2004
|
1
|
T
|
***
|
|
|
Jun-2004
|
6
|
T
|
***
|
|
|
Jul-2004
|
2
|
T
|
***
|
|
|
Aug-2004
|
6
|
T-W
|
***
|
|
|
Sep-2004
|
4
|
T-W
|
***
|
|
|
Oct-2004
|
0
|
T-W
|
***
|
|
|
Nov-2004
|
3
|
T-W
|
***
|
|
|
Dec-2004
|
3
|
T-W
|
***
|
|
|
Jan-2005
|
5
|
T-W
|
***
|
|
|
Feb-2005
|
3
|
T-W
|
***
|
|
|
Mar-2005
|
4
|
T-W
|
***
|
|
|
Apr-2005
|
4
|
T-W
|
***
|
|
|
May-2005
|
2
|
T-W
|
***
|
|
|
Jun-2005
|
4
|
T-W
|
***
|
|
|
Jul-2005
|
2
|
T-W
|
***
|
|
|
Aug-2005
|
2
|
T-W
|
***
|
|
|
Sep-2005
|
3
|
T-W
|
***
|
|
|
Oct-2005
|
2
|
T-W
|
***
|
|
|
Nov-2005
|
2
|
T-W
|
***
|
|
|
Dec-2005
|
1
|
T-W
|
***
|
|
|
Jan-2006
|
1
|
T-W
|
***
|
|
|
Feb-2006
|
4
|
T-W
|
***
|
|
|
Mar-2006
|
3
|
T-W
|
***
|
|
|
Apr-2006
|
2
|
T-W
|
***
|
|
|
May-2006
|
5
|
T-W-1
|
***
|
|
|
Jun-2006
|
5
|
T-W-1
|
***
|
|
Jul-2006
|
3
|
T-W-1
|
***
|
|
|
Aug-2006
|
3
|
T-W-1
|
***
|
|
|
Sep-2006
|
3
|
T-W-1
|
***
|
|
|
Oct-2006
|
1
|
T-W-1
|
***
|
|
|
Nov-2006
|
2
|
T-W-1
|
***
|
|
|
Dec-2006
|
2
|
T-W-1
|
***
|
|
|
Jan-2007
|
2
|
T-W-1
|
***
|
|
|
Feb-2007
|
3
|
T-W-1
|
***
|
|
|
Mar-2007
|
2
|
T-W-1
|
***
|
|
|
Apr-2007
|
3
|
T-W-1
|
***
|
|
|
May-2007
|
3
|
T-W-1
|
***
|
|
|
Jun-2007
|
2
|
T-W-1
|
***
|
|
|
Jun-2007
|
1
|
T-W-1a
|
***
|
36528
|
|
Jul-2007
|
2
|
T-W-1
|
***
|
|
|
Jul-2007
|
1
|
T-W-1a
|
***
|
36610
|
|
Aug-2007
|
2
|
T-W-1
|
***
|
|
|
Aug-2007
|
3
|
T-W-1a
|
***
|
36611,
36632 & 36633
|
|
Sep-2007
|
2
|
T-W-1
|
***
|
|
|
Sep-2007
|
1
|
T-W-1a
|
***
|
36612
|
|
Oct-2007
|
2
|
T-W-1
|
***
|
|
|
Oct-2007
|
1
|
T-W-1a
|
***
|
36613
|
|
Nov-2007
|
2
|
T-W-1
|
***
|
|
|
Nov-2007
|
1
|
T-W-1a
|
***
|
36614
|
|
Dec-2007
|
2
|
T-W-1
|
***
|
|
|
Dec-2007
|
1
|
T-W-1a
|
***
|
36615
|
|
Jan-2008
|
1
|
T-W-1
|
***
|
|
|
Jan-2008
|
2
|
T-W-1a
|
***
|
36616
& 36617
|
|
Jan-2008
|
1
|
T-W-2
|
***
|
36887
|
|
Feb-2008
|
1
|
T-W-1
|
***
|
|
|
Feb-2008
|
3
|
T-W-1a
|
***
|
36618,
36619 & 36620
|
|
Mar-2008
|
1
|
T-W-1
|
***
|
|
|
Mar-2008
|
2
|
T-W-1a
|
***
|
36621
& 36622
|
|
Mar-2008
|
1
|
T-W-2
|
***
|
36888
|
|
Apr-2008
|
1
|
T-W-1
|
***
|
|
|
Apr-2008
|
2
|
T-W-1a
|
***
|
36623
& 36624
|
|
May-2008
|
1
|
T-W-1
|
***
|
|
|
May-2008
|
2
|
T-W-1a
|
***
|
36625
& 36626
|
|
Jun-2008
|
1
|
T-W-1
|
***
|
|
|
Jun-2008
|
2
|
T-W-1a
|
***
|
36627
& 36628
|
|
Jul-2008
|
2
|
T-W-2a
|
***
|
|
|
Jul-2008
|
2
|
T-W-2a
|
***
|
36889
& 36890
|
|
Aug-2008
|
1
|
T-W-2a
|
***
|
|
|
Sep-2008
|
1
|
T-W-2a
|
***
|
|
|
Oct-2008
|
2
|
T-W-2a
|
***
|
|
|
Nov-2008
|
2
|
T-W-2a
|
***
|
|
|
Dec-2008
|
1
|
T-W-2a
|
***
|
|
|
Jan-2009
|
1
|
T-W-2a
|
***
|
|
|
Feb-2009
|
2
|
T-W-2a
|
***
|
|
Table
1 to
Purchase
Agreement No. 1810
Aircraft
Information Table
|
|||||
Mar-2009
|
2
|
T-W-2a
|
***
|
|
|
Apr-2009
|
2
|
T-W-2a
|
***
|
|
|
May-2009
|
2
|
T-W-2a
|
***
|
|
|
Jun-2009
|
2
|
T-W-2a
|
***
|
|
|
Jul-2009
|
2
|
T-W-2a
|
***
|
|
|
Aug-2009
|
1
|
T-W-2a
|
***
|
|
|
Sep-2009
|
1
|
T-W-2a
|
***
|
|
|
Oct-2009
|
1
|
T-W-2a
|
***
|
|
|
Nov-2009
|
1
|
T-W-2a
|
***
|
|
|
Dec-2009
|
1
|
T-W-2a
|
***
|
|
|
Jan-2010
|
1
|
T-W-2a
|
***
|
|
|
Feb-2010
|
1
|
T-W-2a
|
***
|
|
|
Mar-2010
|
1
|
T-W-2a
|
***
|
|
|
Apr-2010
|
1
|
T-W-2a
|
***
|
|
|
May-2010
|
1
|
T-W-2a
|
***
|
|
|
Jun-2010
|
1
|
T-W-2a
|
***
|
|
|
Jul-2010
|
1
|
T-W-2a
|
***
|
|
|
Aug-2010
|
1
|
T-W-2a
|
***
|
|
|
Sep-2010
|
1
|
T-W-2a
|
***
|
|
|
Oct-2010
|
1
|
T-W-2a
|
***
|
|
|
Jan-2011
|
1
|
T-W-2a
|
***
|
|
|
Feb-2011
|
1
|
T-W-2a
|
***
|
|
|
Mar-2011
|
1
|
T-W-2a
|
***
|
|
|
Apr-2011
|
1
|
T-W-2a
|
***
|
|
|
May-2011
|
1
|
T-W-2a
|
***
|
|
|
Jun-2011
|
1
|
T-W-2a
|
***
|
|
|
Jul-2011
|
1
|
T-W-2a
|
***
|
|
|
Aug-2011
|
1
|
T-W-2a
|
***
|
|
|
Sep-2011
|
1
|
T-W-2a
|
***
|
|
|
Oct-2011
|
1
|
T-W-2a
|
***
|
|
|
Jan-2012
|
1
|
T-W-2a
|
***
|
|
|
Feb-2012
|
1
|
T-W-2a
|
***
|
|
|
Mar-2012
|
1
|
T-W-2a
|
***
|
|
|
Apr-2012
|
1
|
T-W-2a
|
***
|
|
|
May-2012
|
1
|
T-W-2a
|
***
|
|
|
Jun-2012
|
1
|
T-W-2a
|
***
|
|
|
Jul-2012
|
1
|
T-W-2a
|
***
|
|
|
Aug-2012
|
1
|
T-W-2a
|
***
|
|
|
Sep-2012
|
1
|
T-W-2a
|
***
|
|
|
Oct-2012
|
1
|
T-W-2a
|
***
|
|
Price
Description of Option Aircraft:
|
||||||||
Base
Aircraft Price
|
Special
Features
|
Aircraft
Basic Price
|
Base
Year Dollars
|
|||||
Block
U Option Aircraft
|
***
|
***
|
***
|
July
1999
|
||||
(without
Winglets)
|
||||||||
Block
U-W Option Aircraft
|
***
|
***
|
***
|
July
1999
|
||||
(with
Winglets)
|
||||||||
Block
U-W-1 Option Aircraft
|
***
|
***
|
***
|
July
1999
|
||||
Delivery
of
Purchase
Right
Aircraft:
|
Quantity
|
54
|
||||||
Delivery
Period of
Purchase
Right
Aircraft:
|
Complete
delivery not later than Dec. 31, 2014
|
|||||||
Condition
of Offer for
Purchase
Right
Aircraft:
|
Subject
to Available Position
|
|||||||
Remaining
Option Aircraft:
|
112
|
|||||||
Aircraft
|
Number
of
|
Option
|
Adv
Payment Base
|
|
|
Delivery
|
Options
|
Aircraft
|
Price
Per
|
|
|
Mo.
& Yr.
|
Aircraft
|
Block
|
Option
Aircraft
|
Option
Exercise
|
|
|
|
|
***
|
|
Exercised
|
|
|
|
***
|
|
Exercised
|
|
|
|
***
|
|
Exercised
|
Aug-2008
|
1
|
U-W-1
|
***
|
April
2, 2007
|
|
Dec-2008
|
1
|
U-W-1
|
***
|
August
1, 2007
|
|
Jan-2009
|
3
|
U-W-1
|
***
|
September
3, 2007
|
|
Mar-2009
|
3
|
U-W-1
|
***
|
November
1, 2007
|
|
Apr-2009
|
2
|
U-W-1
|
***
|
December
3, 2007
|
|
May-2009
|
1
|
U-W-1
|
***
|
January
1, 2008
|
|
Jun-2009
|
1
|
U-W-1
|
***
|
February
1, 2008
|
|
Jul-2009
|
2
|
U-W-1
|
***
|
March
3, 2008
|
|
Aug-2009
|
2
|
U-W-1
|
***
|
April
1, 2008
|
|
Sep-2009
|
1
|
U-W-1
|
***
|
May
1, 2008
|
|
Oct-2009
|
1
|
U-W-1
|
***
|
June
2, 2008
|
|
Nov-2009
|
1
|
U-W-1
|
***
|
July
1, 2008
|
|
Dec-2009
|
1
|
U-W-1
|
***
|
August
1, 2008
|
|
Jan-2010
|
3
|
U-W-1
|
***
|
September
1, 2008
|
|
Feb-2010
|
3
|
U-W-1
|
***
|
October
1, 2008
|
|
Mar-2010
|
2
|
U-W-1
|
***
|
November
3, 2008
|
|
Apr-2010
|
3
|
U-W-1
|
***
|
December
1, 2008
|
|
May-2010
|
3
|
U-W-1
|
***
|
January
1, 2009
|
|
Jun-2010
|
3
|
U-W-1
|
***
|
February
2, 2009
|
|
Jul-2010
|
2
|
U-W-1
|
***
|
March
2, 2009
|
|
Aug-2010
|
2
|
U-W-1
|
***
|
April
1, 2009
|
|
Sep-2010
|
2
|
U-W-1
|
***
|
May
1, 2009
|
|
Oct-2010
|
3
|
U-W-1
|
***
|
June
1, 2009
|
|
Nov-2010
|
3
|
U-W-1
|
***
|
July
1, 2009
|
|
Dec-2010
|
3
|
U-W-1
|
***
|
August
3, 2009
|
|
Jan-2011
|
3
|
U-W-1
|
***
|
September
1, 2009
|
|
Feb-2011
|
3
|
U-W-1
|
***
|
October
1, 2009
|
|
Mar-2011
|
2
|
U-W-1
|
***
|
November
2, 2009
|
|
Apr-2011
|
3
|
U-W-1
|
***
|
December
1, 2009
|
|
May-2011
|
3
|
U-W-1
|
***
|
January
1, 2010
|
|
Jun-2011
|
3
|
U-W-1
|
***
|
February
1, 2010
|
|
Jul-2011
|
2
|
U-W-1
|
***
|
March
1, 2010
|
|
Aug-2011
|
2
|
U-W-1
|
***
|
April
1, 2010
|
|
Sep-2011
|
2
|
U-W-1
|
***
|
May
3, 2010
|
|
Oct-2011
|
2
|
U-W-1
|
***
|
June
1, 2010
|
|
Nov-2011
|
3
|
U-W-1
|
***
|
July
1, 2010
|
|
Dec-2011
|
2
|
U-W-1
|
***
|
August
2, 2010
|
|
Jan-2012
|
3
|
U-W-1
|
***
|
September
1, 2010
|
|
Feb-2012
|
3
|
U-W-1
|
***
|
October
1, 2010
|
|
Mar-2012
|
2
|
U-W-1
|
***
|
November
1, 2010
|
|
Apr-2012
|
3
|
U-W-1
|
***
|
December
1, 2010
|
|
May-2012
|
3
|
U-W-1
|
***
|
January
3, 2011
|
|
Jun-2012
|
3
|
U-W-1
|
***
|
February
1, 2011
|
|
Jul-2012
|
2
|
U-W-1
|
***
|
March
1, 2011
|
|
Aug-2012
|
2
|
U-W-1
|
***
|
April
1, 2011
|
|
Sep-2012
|
2
|
U-W-1
|
***
|
May
2, 2011
|
|
Oct-2012
|
2
|
U-W-1
|
***
|
June
1, 2011
|
|
Nov-2012
|
3
|
U-W-1
|
***
|
July
1, 2011
|
|
Dec-2012
|
2
|
U-W-1
|
***
|
August
1, 2011
|
By:
|
/s/
Gary C. Kelly
|
|
Gary
C. Kelly
|
||
Chief
Executive Officer and
|
||
Vice
Chairman of the Board
|
||
of
Directors
|
||
By:
|
/s/
Laura H. Wright
|
Laura
H. Wright
|
|
Chief
Financial Officer
|
|
By:
|
/s/
Gary C. Kelly
|
Gary
C. Kelly
|
|
Chief
Executive Officer and
|
|
Vice
Chairman of the Board
|
|
of
Directors
|
|
By:
|
/s/
Laura H. Wrigh
t
|
Laura
H. Wright
|
|
Chief
Financial Officer
|
|