þ
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended March 31,
2008
|
|
or
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ________ to
________
|
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)
|
|
Number of shares of Common Stock
outstanding as of the close of business on April 16, 2008:
731,757,810
|
March
31, 2008
|
December
31, 2007
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 2,982 | $ | 2,213 | ||||
Short-term
investments
|
140 | 566 | ||||||
Accounts
and other receivables
|
350 | 279 | ||||||
Inventories
of parts and supplies, at cost
|
265 | 259 | ||||||
Fuel
derivative contracts
|
1,248 | 1,069 | ||||||
Prepaid
expenses and other current assets
|
65 | 57 | ||||||
Total
current assets
|
5,050 | 4,443 | ||||||
Property
and equipment, at cost:
|
||||||||
Flight
equipment
|
13,408 | 13,019 | ||||||
Ground
property and equipment
|
1,555 | 1,515 | ||||||
Deposits
on flight equipment purchase contracts
|
541 | 626 | ||||||
15,504 | 15,160 | |||||||
Less
allowance for depreciation and amortization
|
4,413 | 4,286 | ||||||
11,091 | 10,874 | |||||||
Other
assets
|
1,890 | 1,455 | ||||||
$ | 18,031 | $ | 16,772 | |||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 787 | $ | 759 | ||||
Accrued
liabilities
|
3,756 | 3,107 | ||||||
Air
traffic liability
|
1,198 | 931 | ||||||
Current
maturities of long-term debt
|
40 | 41 | ||||||
Total
current liabilities
|
5,781 | 4,838 | ||||||
Long-term
debt less current maturities
|
2,079 | 2,050 | ||||||
Deferred
income taxes
|
2,611 | 2,535 | ||||||
Deferred
gains from sale and leaseback of aircraft
|
103 | 106 | ||||||
Other
deferred liabilities
|
272 | 302 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock
|
808 | 808 | ||||||
Capital
in excess of par value
|
1,212 | 1,207 | ||||||
Retained
earnings
|
4,811 | 4,788 | ||||||
Accumulated
other comprehensive income
|
1,492 | 1,241 | ||||||
Treasury
stock, at cost
|
(1,138 | ) | (1,103 | ) | ||||
Total
stockholders' equity
|
7,185 | 6,941 | ||||||
$ | 18,031 | $ | 16,772 | |||||
See
accompanying notes.
|
Three
months ended March 31,
|
||||||||
2008
|
2007
|
|||||||
OPERATING
REVENUES:
|
||||||||
Passenger
|
$ | 2,414 | $ | 2,112 | ||||
Freight
|
34 | 30 | ||||||
Other
|
82 | 56 | ||||||
Total
operating revenues
|
2,530 | 2,198 | ||||||
OPERATING
EXPENSES:
|
||||||||
Salaries,
wages, and benefits
|
800 | 767 | ||||||
Fuel
and oil
|
753 | 564 | ||||||
Maintenance
materials and repairs
|
143 | 136 | ||||||
Aircraft
rentals
|
38 | 39 | ||||||
Landing
fees and other rentals
|
171 | 136 | ||||||
Depreciation
and amortization
|
145 | 135 | ||||||
Other
operating expenses
|
392 | 337 | ||||||
Total
operating expenses
|
2,442 | 2,114 | ||||||
OPERATING
INCOME
|
88 | 84 | ||||||
OTHER
EXPENSES (INCOME):
|
||||||||
Interest
expense
|
28 | 29 | ||||||
Capitalized
interest
|
(8 | ) | (13 | ) | ||||
Interest
income
|
(7 | ) | (13 | ) | ||||
Other
(gains) losses, net
|
38 | (68 | ) | |||||
Total
other expenses (income)
|
51 | (65 | ) | |||||
INCOME
BEFORE INCOME TAXES
|
37 | 149 | ||||||
PROVISION
FOR INCOME TAXES
|
3 | 56 | ||||||
NET
INCOME
|
$ | 34 | $ | 93 | ||||
NET
INCOME PER SHARE, BASIC
|
$.05 | $.12 | ||||||
NET
INCOME PER SHARE, DILUTED
|
$.05 | $.12 | ||||||
WEIGHTED
AVERAGE SHARES
|
||||||||
OUTSTANDING:
|
||||||||
Basic
|
733 | 786 | ||||||
Diluted
|
734 | 800 | ||||||
See
accompanying notes.
|
Three
months ended March 31,
|
||||||||
2008
|
2007
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$ | 34 | $ | 93 | ||||
Adjustments
to reconcile net income to
|
||||||||
cash
provided by operating activities:
|
||||||||
Depreciation
and amortization
|
145 | 135 | ||||||
Deferred
income taxes
|
(5 | ) | 42 | |||||
Amortization
of deferred gains on sale and
|
||||||||
leaseback
of aircraft
|
(3 | ) | (4 | ) | ||||
Share-based
compensation expense
|
5 | 13 | ||||||
Excess
tax benefits from share-based
|
||||||||
compensation
arrangements
|
- | (29 | ) | |||||
Changes
in certain assets and liabilities:
|
||||||||
Accounts
and other receivables
|
(70 | ) | (37 | ) | ||||
Other
current assets
|
26 | (56 | ) | |||||
Accounts
payable and accrued liabilities
|
616 | 383 | ||||||
Air
traffic liability
|
267 | 210 | ||||||
Other,
net
|
(51 | ) | (133 | ) | ||||
Net
cash provided by operating activities
|
964 | 617 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases
of property and equipment, net
|
(364 | ) | (325 | ) | ||||
Purchases
of short-term investments
|
(1,221 | ) | (914 | ) | ||||
Proceeds
from sales of short-term investments
|
1,459 | 968 | ||||||
Net
cash used in investing activities
|
(126 | ) | (271 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from Employee stock plans
|
11 | 78 | ||||||
Payments
of long-term debt and capital lease obligations
|
(19 | ) | (9 | ) | ||||
Payments
of cash dividends
|
(7 | ) | (7 | ) | ||||
Repurchase
of common stock
|
(54 | ) | (209 | ) | ||||
Excess
tax benefits from share-based
|
||||||||
compensation
arrangements
|
- | 29 | ||||||
Net
cash used in financing activities
|
(69 | ) | (118 | ) | ||||
NET
CHANGE IN CASH AND
|
||||||||
CASH
EQUIVALENTS
|
769 | 228 | ||||||
CASH
AND CASH EQUIVALENTS AT
|
||||||||
BEGINNING
OF PERIOD
|
2,213 | 1,390 | ||||||
CASH
AND CASH EQUIVALENTS
|
||||||||
AT
END OF PERIOD
|
$ | 2,982 | $ | 1,618 | ||||
CASH
PAYMENTS FOR:
|
||||||||
Interest,
net of amount capitalized
|
$ | 25 | $ | 19 | ||||
Income
taxes
|
$ | 6 | $ | 1 | ||||
See
accompanying notes.
|
Three
months ended March 31,
|
|||||||||
2008
|
2007
|
||||||||
NUMERATOR:
|
|||||||||
Net
income
|
$ | 34 | $ | 93 | |||||
DENOMINATOR:
|
|||||||||
Weighted-average
shares
|
|||||||||
outstanding,
basic
|
733 | 786 | |||||||
Dilutive
effect of Employee stock
|
|||||||||
options
|
1 | 14 | |||||||
Adjusted
weighted-average shares
|
|||||||||
outstanding,
diluted
|
734 | 800 | |||||||
NET
INCOME PER SHARE:
|
|||||||||
Basic
|
$.05 | $.12 | |||||||
Diluted
|
$.05 | $.12 |
Three
months ended March 31,
|
|||||||||
(In
millions)
|
2008
|
2007
|
|||||||
Fuel
hedge (gains) included in Fuel and oil expense
|
$ | (291 | ) | $ | (79 | ) | |||
Mark-to-market
impact from fuel contracts settling in future
|
|||||||||
periods
- included in Other (gains) losses, net
|
7 | (85 | ) | ||||||
Ineffectiveness
from fuel hedges settling in future periods -
|
|||||||||
included
in Other (gains) losses, net
|
- | 6 | |||||||
Realized
ineffectiveness and mark-to-market (gains) or
|
|||||||||
losses
- included in Other (gains) losses, net
|
16 | (4 | ) | ||||||
Premium
cost of fuel contracts included in Other (gains) losses,
net
|
14 | 14 |
March
31,
|
December
31,
|
|||||||
(In
millions)
|
2008
|
2007
|
||||||
Fair
value of current fuel contracts (Fuel derivative
contracts)
|
$ | 1,248 | $ | 1,069 | ||||
Fair
value of noncurrent fuel contracts (Other assets)
|
1,503 | 1,318 | ||||||
Due
from third parties for settled fuel contracts (Accounts
|
||||||||
and
other receivables)
|
122 | 109 | ||||||
Net
unrealized gains from fuel hedges, net of tax (Accumulated
|
||||||||
other
comprehensive income)
|
1,481 | 1,221 |
Three
months ended March 31,
|
|||||||||
(In
millions)
|
2008
|
2007
|
|||||||
Net
income
|
$ | 34 | $ | 93 | |||||
Unrealized
gain (loss) on derivative instruments,
|
|||||||||
net
of deferred taxes of ($151) and ($84)
|
260 | 135 | |||||||
Other,
net of deferred taxes of $6 and $0
|
(9 | ) | (1 | ) | |||||
Total
other comprehensive income
|
251 | 134 | |||||||
Comprehensive
income
|
$ | 285 | $ | 227 |
Accumulated
|
||||||||||||
Fuel
|
other
|
|||||||||||
hedge
|
comprehensive
|
|||||||||||
(In
millions)
|
derivatives
|
Other
|
income
(loss)
|
|||||||||
Balance
at December 31, 2007
|
$ | 1,220 | $ | 21 | $ | 1,241 | ||||||
2008
changes in value
|
430 | (9 | ) | 421 | ||||||||
Reclassification
to earnings
|
(170 | ) | - | (170 | ) | |||||||
Balance
at March 31, 2008
|
$ | 1,480 | $ | 12 | $ | 1,492 |
March
31,
|
December
31,
|
|||||||
(In
millions)
|
2008
|
2007
|
||||||
Noncurrent
fuel hedge contracts, at fair value
|
$ | 1,503 | $ | 1,318 | ||||
Auction
rate securities
|
180 | - | ||||||
Other
|
207 | 137 | ||||||
Other
assets
|
$ | 1,890 | $ | 1,455 |
March
31,
|
December
31,
|
|||
(In
millions)
|
2008
|
2007
|
||
Retirement
Plans
|
$ 144
|
$
132
|
||
Aircraft
Rentals
|
102
|
125
|
||
Vacation
Pay
|
168
|
164
|
||
Advances
and deposits
|
2,589
|
2,020
|
||
Deferred
income taxes
|
434
|
370
|
||
Other
Accrued Benefit
|
155
|
132
|
||
Other
|
164
|
164
|
||
Accrued
liabilities
|
$ 3,756
|
$
3,107
|
Three
months ended March 31,
|
|||||||||
(In
millions)
|
2008
|
2007
|
|||||||
Service
cost
|
$ | 3 | $ | 4 | |||||
Interest
cost
|
1 | 1 | |||||||
Net
periodic postretirement benefit cost
|
$ | 4 | $ | 5 |
Fair Value
Measurements at Reporting Date Using
|
||||||||||||||||
Quoted
Prices in
|
Significant
|
|||||||||||||||
Active
Markets for
|
Significant
Other
|
Unobservable
|
||||||||||||||
(in
millions)
|
Identical
Assets
|
Observable
Inputs
|
Inputs
|
|||||||||||||
Description
|
3/31/2008
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
||||||||||||
Auction
Rate Securities
|
$ | 320 | $ | - | $ | - | $ | 320 | ||||||||
Other
Available-for-sale Securities
|
25 | 25 | - | - | ||||||||||||
Interest
Rate Derivatives
|
63 | - | 63 | - | ||||||||||||
Fuel
Derivatives
|
2,761 | - | 901 | 1,860 | ||||||||||||
Other
Available-for-sale Securities
|
11 | - | - | 11 | ||||||||||||
Total
assets measured at fair value
|
$ | 3,180 | $ | 25 | $ | 964 | $ | 2,191 |
Fair Value
Measurements Using Significant
|
||||||||||||||||
Unobservable Inputs
(Level 3)
|
||||||||||||||||
Fuel
|
Auction
Rate
|
Other
|
||||||||||||||
(in
millions)
|
Derivatives
|
Securities
|
Investments
|
Total
|
||||||||||||
Balance
at 12/31/07
|
$ | 1,725 | $ | - | $ | 12 | $ | 1,737 | ||||||||
Transfers
to Level 3
|
- | 463 | - | 463 | ||||||||||||
Total
gains or (losses) (realized or unrealized)
|
||||||||||||||||
Included
in earnings
|
(34 | ) | - | (1 | ) | (35 | ) | |||||||||
Included
in other comprehensive income
|
415 | (10 | ) | - | 405 | |||||||||||
Purhases
and settlements (net)
|
(246 | ) | (133 | ) | - | (379 | ) | |||||||||
Balance
at 3/31/08
|
$ | 1,860 | $ | 320 | $ | 11 | $ | 2,191 | ||||||||
The
amount of total gains or (losses) for the
|
||||||||||||||||
period
included in earnings attributable to the
|
||||||||||||||||
change
in unrealized gains or losses relating to
|
||||||||||||||||
assets
still held at 3/31/08
|
$ | (26 | ) | $ | - | $ | (1 | ) | $ | (27 | ) |
Three
months ended March 31,
|
||||||||||||
2008
|
2007
|
Change
|
||||||||||
Revenue
passengers carried
|
21,504,821 | 19,960,933 | 7.7 | % | ||||||||
Enplaned
passengers
|
24,708,615 | 22,903,073 | 7.9 | % | ||||||||
Revenue
passenger miles (RPMs) (000s)
|
17,592,159 | 16,109,071 | 9.2 | % | ||||||||
Available
seat miles (ASMs) (000s)
|
25,193,437 | 23,678,376 | 6.4 | % | ||||||||
Load
factor
|
69.8 | % | 68.0 | % |
1.8
|
pts | ||||||
Average
length of passenger haul (miles)
|
818 | 807 | 1.4 | % | ||||||||
Average
aircraft stage length (miles)
|
627 | 627 | 0.0 | % | ||||||||
Trips
flown
|
294,790 | 276,900 | 6.5 | % | ||||||||
Average
passenger fare
|
$112.24 | $105.79 | 6.1 | % | ||||||||
Passenger
revenue yield per RPM (cents)
|
13.72 | 13.11 | 4.7 | % | ||||||||
Operating
revenue yield per ASM (cents)
|
10.04 | 9.28 | 8.2 | % | ||||||||
Operating
expenses per ASM (cents)
|
9.69 | 8.93 | 8.5 | % | ||||||||
Fuel
costs per gallon, excluding fuel tax
|
$2.01 | $1.60 | 25.6 | % | ||||||||
Fuel
consumed, in gallons (millions)
|
373 | 352 | 6.0 | % | ||||||||
Full-time
equivalent Employees at period-end
|
33,895 | 32,962 | 2.8 | % | ||||||||
Size
of fleet at period-end
|
527 | 489 | 7.8 | % |
Three
months ended March 31,
|
Per
ASM
|
Percent
|
|||||||||||||||
2008
|
2007
|
Change
|
Change
|
||||||||||||||
Salaries,
wages, and benefits
|
3.17 | 3.24 | (.07 | ) | (2.2 | ) | |||||||||||
Fuel
and oil
|
2.99 | 2.38 | .61 | 25.6 | |||||||||||||
Maintenance
materials
|
|||||||||||||||||
and
repairs
|
.57 | .58 | (.01 | ) | (1.7 | ) | |||||||||||
Aircraft
rentals
|
.15 | .16 | (.01 | ) | (6.3 | ) | |||||||||||
Landing
fees and other rentals
|
.68 | .58 | .10 | 17.2 | |||||||||||||
Depreciation
|
.58 | .57 | .01 | 1.8 | |||||||||||||
Other
operating expenses
|
1.55 | 1.42 | .13 | 9.2 | |||||||||||||
Total
|
9.69 | 8.93 | .76 | 8.5 |
Three
months ended March 31,
|
|||||||||
(In
millions)
|
2008
|
2007
|
|||||||
Mark-to-market
impact from fuel contracts settling in future
|
|||||||||
periods
- included in Other (gains) losses, net
|
$ | 7 | $ | (85 | ) | ||||
Ineffectiveness
from fuel hedges settling in future periods -
|
|||||||||
included
in Other (gains) losses, net
|
- | 6 | |||||||
Realized
ineffectiveness and mark-to-market (gains) or
|
|||||||||
losses
- included in Other (gains) losses, net
|
16 | (4 | ) | ||||||
Premium
cost of fuel contracts included in Other (gains) losses,
net
|
14 | 14 | |||||||
Other
|
1 | 1 | |||||||
$ | 38 | $ | (68 | ) |
Average
|
Number
|
Number
|
Number
|
|||||||||||||||||||
737
Type
|
Seats
|
Age
(Yrs)
|
of
Aircraft
|
Owned
|
Leased
|
|||||||||||||||||
-300
|
137 | 16.8 | 189 | 112 | 77 | |||||||||||||||||
-500
|
122 | 16.9 | 25 | 16 | 9 | |||||||||||||||||
-700
|
137 | 4.2 | 313 | 309 | 4 | |||||||||||||||||
TOTALS
|
9.3 | 527 | 437 | 90 |
|
(i)
|
the
price and availability of aircraft fuel and the Company’s ability to pass
fuel cost increases through to the consumer in the form of fare
increases;
|
|
(ii)
|
the
Company’s ability to timely and effectively prioritize its revenue and
cost reduction initiatives and its related ability to timely and
effectively implement, transition, and maintain the necessary information
technology systems and infrastructure to support these
initiatives;
|
|
(iii)
|
the
extent and timing of the Company’s investment of incremental operating
expenses and capital expenditures to develop and implement its initiatives
and its corresponding ability to effectively control its operating
expenses;
|
|
(iv)
|
the
Company’s dependence on third party arrangements to assist with
implementation of certain of its
initiatives;
|
(v)
|
the
impact of governmental regulations and inquiries on the Company’s
operating costs, as well as its operations generally, and the impact of
developments affecting the Company’s outstanding litigation and other
claims against the Company;
|
(vi)
|
the
impact of certain pending technological initiatives on the Company’s
technology infrastructure, including its point of sale, ticketing, revenue
accounting, payroll and financial reporting
areas;
|
(vii)
|
competitor
capacity and load factors;
|
(viii)
|
the
Company’s ability to obtain financing on acceptable terms, and other
uncertainties created by the current instability of the credit markets;
and
|
|
(ix)
|
other
factors as set forth in the Company’s filings with the Securities and
Exchange Commission, including the detailed factors discussed under the
heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2007.
|
(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, 2008 through January 31, 2008
|
600,000 | $ | 12.02 | 600,000 | $ | 492,787,550 | ||||||||||
February
1, 2008 through February 28, 2008
|
3,800,000 | $ | 12.34 | 3,800,000 | $ | 445,880,340 | ||||||||||
March
1, 2008 through March 31, 2008
|
- | $ | - | - | $ | 445,880,340 | ||||||||||
Total
|
4,400,000 | 4,400,000 |
a)
|
Exhibits
|
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)); Articles of Amendment
to
|
||
Articles
of Incorporation of Southwest Airlines Co. (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2007 (File No. 1-7259)).
|
||
3.2
|
Amended
and Restated Bylaws of Southwest, effective September 20,
2007
|
|
(incorporated
by reference to Exhibit 3.1 to Southwest’s Current
Report
|
||
on
Form 8-K dated September 20, 2007 (File
No. 1-7259)).
|
||
10.1
|
Supplemental
Agreement No. 57 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
10.2
|
Supplemental
Agreement No. 58 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
10.3
|
Supplemental
Agreement No. 59 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
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
18, 2008
|
By
|
/s/ Laura
Wright
|
Laura
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)); Articles of Amendment
to
|
||
Articles
of Incorporation of Southwest Airlines Co. (incorporated
by
|
||
reference
to Exhibit 3.1 to Southwest’s Quarterly Report on Form 10-Q for
the
|
||
quarter
ended June 30, 2007 (File No. 1-7259)).
|
||
3.2
|
Amended
and Restated Bylaws of Southwest, effective September 20,
2007
|
|
(incorporated
by reference to Exhibit 3.1 to Southwest’s Current
Report
|
||
on
Form 8-K dated September 20, 2007 (File
No. 1-7259)).
|
||
10.1
|
Supplemental
Agreement No. 57 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
10.2
|
Supplemental
Agreement No. 58 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
10.3
|
Supplemental
Agreement No. 59 to Purchase Agreement No. 1810,
|
|
dated
January 19, 1994, between The Boeing Company and Southwest
(1)
|
||
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
|
THE
BOEING COMPANY
|
SOUTHWEST
AIRLINES CO.
|
By:
/s/ Nobuko
Wiles
|
By:
/s/ Scott
Toppping
|
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
|
|||
RESTRICTED LETTER
AGREEMENTS
|
|||
6-1162-RLL-932R2
|
Promotional
Support
|
SA-13
|
|
6-1162-RLL-933R20
|
Option
Aircraft
|
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
|
***
|
||
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 Field Test
|
SA-1
|
|
6-1162-RLL-1858R1
|
Escalation
Matters
|
SA-4
|
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 became Firm Aircraft
after signing of SA-47 and
|
|||||
Firm
Aircraft contracted to deliver in July 2008 forward 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
|
3
|
T-W-1
|
***
|
|
Oct-2007
|
1
|
T-W-1a
|
***
|
36613
|
Nov-2007
|
1
|
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-2
|
***
|
36889
& 36890
|
Aug-2008
|
1
|
T-W-2a
|
***
|
|
Oct-2008
|
1
|
T-W-2a
|
***
|
|
Nov-2008
|
1
|
T-W-2a
|
***
|
|
Dec-2008
|
1
|
T-W-2a
|
***
|
|
Jan-2009
|
1
|
T-W-2a
|
***
|
|
Feb-2009
|
2
|
T-W-2a
|
***
|
|
Mar-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2
|
***
|
36899
& 36900
|
May-2009
|
2
|
T-W-2a
|
***
|
|
May-2009
|
1
|
T-W-2
|
***
|
36901
|
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
|
***
|
|
Jan-2013
|
1
|
T-W-2
|
***
|
36891
|
Jan-2013
|
1
|
T-W-2a
|
***
|
|
Feb-2013
|
1
|
T-W-2a
|
***
|
|
Mar-2013
|
1
|
T-W-2a
|
***
|
|
Mar-2013
|
1
|
T-W-2
|
***
|
|
Apr-2013
|
1
|
T-W-2
|
***
|
|
May-2013
|
1
|
T-W-2
|
***
|
|
Jun-2013
|
2
|
T-W-2
|
***
|
|
Jul-2013
|
1
|
T-W-2
|
***
|
|
Aug-2013
|
2
|
T-W-2
|
***
|
|
Sep-2013
|
2
|
T-W-2
|
***
|
|
Oct-2013
|
2
|
T-W-2
|
***
|
|
Nov-2013
|
1
|
T-W-2
|
***
|
|
Dec-2013
|
2
|
T-W-2
|
***
|
|
Jan-2014
|
1
|
T-W-2
|
***
|
|
Feb-2014
|
1
|
T-W-2
|
***
|
|
Mar-2014
|
1
|
T-W-2
|
***
|
|
Apr-2014
|
1
|
T-W-2
|
***
|
|
May-2014
|
1
|
T-W-2
|
***
|
|
Jun-2014
|
1
|
T-W-2
|
***
|
|
Jul-2014
|
1
|
T-W-2
|
***
|
|
Aug-2014
|
1
|
T-W-2
|
***
|
|
Sep-2014
|
1
|
T-W-2
|
***
|
|
Oct-2014
|
1
|
T-W-2
|
***
|
Aircraft
|
Number
of
|
Option
|
Adv
Payment Base
|
|
Delivery
|
Option
|
Aircraft
|
Price
Per
|
|
Mo.
& Yr.
|
Aircraft
|
Block
|
Option
Aircraft
|
Option
Exercise
|
Jun-2009
|
1
|
U-W-1
|
***
|
February
1, 2008
|
Jul-2009
|
2
|
U-W-1
|
***
|
March
3, 2008
|
Aug-2009
|
1
|
U-W-1
|
***
|
April
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
|
1
|
U-W-1
|
***
|
September
1, 2008
|
Feb-2010
|
1
|
U-W-1
|
***
|
October
1, 2008
|
Mar-2010
|
1
|
U-W-1
|
***
|
November
3, 2008
|
Apr-2010
|
1
|
U-W-1
|
***
|
December
1, 2008
|
May-2010
|
2
|
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
|
1
|
U-W-1
|
***
|
September
1, 2009
|
Feb-2011
|
2
|
U-W-1
|
***
|
October
1, 2009
|
Mar-2011
|
1
|
U-W-1
|
***
|
November
2, 2009
|
Apr-2011
|
1
|
U-W-1
|
***
|
December
1, 2009
|
May-2011
|
2
|
U-W-1
|
***
|
January
1, 2010
|
Jun-2011
|
2
|
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
|
Total
|
83
|
THE
BOEING COMPANY
|
SOUTHWEST
AIRLINES CO.
|
By:
/s/ Nobuko
Wiles
|
By:
/s/ Laura
Wright
|
Its:
Attorney-In-Fact
|
Its:
SVP Finance
& CFO
|
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
|
||
RESTRICTED LETTER
AGREEMENTS
|
||
6-1162-RLL-932R2
|
Promotional
Support
|
SA-13
|
6-1162-RLL-933R20
|
Option
Aircraft
|
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
|
***
|
|
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
|
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 became Firm Aircraft
after signing of SA-47 and
|
|||||
Firm
Aircraft contracted to deliver in July 2008 forward 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
|
3
|
T-W-1
|
***
|
|
Oct-2007
|
1
|
T-W-1a
|
***
|
36613
|
Nov-2007
|
1
|
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-2
|
***
|
36889
& 36890
|
Aug-2008
|
1
|
T-W-2a
|
***
|
|
Oct-2008
|
1
|
T-W-2a
|
***
|
|
Nov-2008
|
1
|
T-W-2a
|
***
|
|
Dec-2008
|
1
|
T-W-2a
|
***
|
|
Jan-2009
|
1
|
T-W-2a
|
***
|
|
Feb-2009
|
2
|
T-W-2a
|
***
|
|
Mar-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2
|
***
|
36899
& 36900
|
May-2009
|
2
|
T-W-2a
|
***
|
|
May-2009
|
1
|
T-W-2
|
***
|
36901
|
Jun-2009
|
2
|
T-W-2a
|
***
|
|
Jun-2009
|
1
|
T-W-2
|
***
|
36902
|
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
|
***
|
Aircraft
|
Number
of
|
Option
|
Adv
Payment Base
|
|
Delivery
|
Option
|
Aircraft
|
Price
Per
|
|
Mo.
& Yr.
|
Aircraft
|
Block
|
Option
Aircraft
|
Option
Exercise
|
Jun-2009
|
1
|
U-W-1
|
***
|
February
1, 2008
|
Jul-2009
|
2
|
U-W-1
|
***
|
March
3, 2008
|
Aug-2009
|
1
|
U-W-1
|
***
|
April
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
|
1
|
U-W-1
|
***
|
September
1, 2008
|
Feb-2010
|
1
|
U-W-1
|
***
|
October
1, 2008
|
Mar-2010
|
1
|
U-W-1
|
***
|
November
3, 2008
|
Apr-2010
|
1
|
U-W-1
|
***
|
December
1, 2008
|
May-2010
|
2
|
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
|
1
|
U-W-1
|
***
|
September
1, 2009
|
Feb-2011
|
2
|
U-W-1
|
***
|
October
1, 2009
|
Mar-2011
|
1
|
U-W-1
|
***
|
November
2, 2009
|
Apr-2011
|
1
|
U-W-1
|
***
|
December
1, 2009
|
May-2011
|
2
|
U-W-1
|
***
|
January
1, 2010
|
Jun-2011
|
2
|
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
|
Total
|
83
|
THE
BOEING COMPANY
|
SOUTHWEST
AIRLINES CO.
|
By:
/s/ Nobuko
Wiles
|
By:
/s/ Laura
Wright
|
Its:
Attorney-In-Fact
|
Its:
SVP Finance
& CFO
|
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
|
||
RESTRICTED LETTER
AGREEMENTS
|
||
6-1162-RLL-932R2
|
Promotional
Support
|
SA-13
|
6-1162-RLL-933R20
|
Option
Aircraft
|
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
|
***
|
|
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
|
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 became Firm Aircraft
after signing of SA-47 and
|
|||||
Firm
Aircraft contracted to deliver in July 2008 forward 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
|
3
|
T-W-1
|
***
|
|
Oct-2007
|
1
|
T-W-1a
|
***
|
36613
|
Nov-2007
|
1
|
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-2
|
***
|
36889
& 36890
|
Aug-2008
|
1
|
T-W-2a
|
***
|
|
Oct-2008
|
1
|
T-W-2a
|
***
|
|
Nov-2008
|
1
|
T-W-2a
|
***
|
|
Dec-2008
|
1
|
T-W-2a
|
***
|
|
Jan-2009
|
1
|
T-W-2a
|
***
|
|
Feb-2009
|
2
|
T-W-2a
|
***
|
|
Mar-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2a
|
***
|
|
Apr-2009
|
2
|
T-W-2
|
***
|
36899
& 36900
|
May-2009
|
2
|
T-W-2a
|
***
|
|
May-2009
|
1
|
T-W-2
|
***
|
36901
|
Jun-2009
|
2
|
T-W-2a
|
***
|
|
Jun-2009
|
1
|
T-W-2
|
***
|
36902
|
Jul-2009
|
2
|
T-W-2a
|
***
|
|
Jul-2009
|
2
|
T-W-2
|
***
|
36903,
36904
|
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
|
***
|
|
Jan-2013
|
1
|
T-W-2
|
***
|
36891
|
Jan-2013
|
1
|
T-W-2a
|
***
|
|
Feb-2013
|
1
|
T-W-2a
|
***
|
|
Mar-2013
|
1
|
T-W-2a
|
***
|
|
Mar-2013
|
1
|
T-W-2
|
***
|
|
Apr-2013
|
1
|
T-W-2
|
***
|
|
May-2013
|
1
|
T-W-2
|
***
|
|
Jun-2013
|
2
|
T-W-2
|
***
|
|
Jul-2013
|
1
|
T-W-2
|
***
|
|
Aug-2013
|
2
|
T-W-2
|
***
|
|
Sep-2013
|
2
|
T-W-2
|
***
|
|
Oct-2013
|
2
|
T-W-2
|
***
|
|
Nov-2013
|
1
|
T-W-2
|
***
|
|
Dec-2013
|
2
|
T-W-2
|
***
|
|
Jan-2014
|
1
|
T-W-2
|
***
|
|
Feb-2014
|
1
|
T-W-2
|
***
|
|
Mar-2014
|
1
|
T-W-2
|
***
|
|
Apr-2014
|
1
|
T-W-2
|
***
|
|
May-2014
|
1
|
T-W-2
|
***
|
|
Jun-2014
|
1
|
T-W-2
|
***
|
|
Jul-2014
|
1
|
T-W-2
|
***
|
|
Aug-2014
|
1
|
T-W-2
|
***
|
|
Sep-2014
|
1
|
T-W-2
|
***
|
|
Oct-2014
|
1
|
T-W-2
|
***
|
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:
|
80
|
||||
Aircraft
|
Number
of
|
Option
|
Adv
Payment Base
|
|
Delivery
|
Option
|
Aircraft
|
Price
Per
|
|
Mo.
& Yr.
|
Aircraft
|
Block
|
Option
Aircraft
|
Option
Exercise
|
Aug-2009
|
1
|
U-W-1
|
***
|
April
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
|
1
|
U-W-1
|
***
|
September
1, 2008
|
Feb-2010
|
1
|
U-W-1
|
***
|
October
1, 2008
|
Mar-2010
|
1
|
U-W-1
|
***
|
November
3, 2008
|
Apr-2010
|
1
|
U-W-1
|
***
|
December
1, 2008
|
May-2010
|
2
|
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
|
1
|
U-W-1
|
***
|
September
1, 2009
|
Feb-2011
|
2
|
U-W-1
|
***
|
October
1, 2009
|
Mar-2011
|
1
|
U-W-1
|
***
|
November
2, 2009
|
Apr-2011
|
1
|
U-W-1
|
***
|
December
1, 2009
|
May-2011
|
2
|
U-W-1
|
***
|
January
1, 2010
|
Jun-2011
|
2
|
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
|
Total
|
80
|
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.
Wright
|
Laura
H. Wright
|
|
Chief
Financial Officer
|
|