þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2011
|
|
or
|
¨
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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
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(IRS Employer
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incorporation or organization)
|
Identification No.)
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P.O. Box 36611
|
|
Dallas, Texas
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75235-1611
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
þ
|
Accelerated filer
¨
|
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
¨
|
|
Number of shares of Common Stock outstanding as of the close of business on October 19, 2011: 778,522,395
|
Condensed Consolidated Balance Sheet as of September 30, 2011 and December 31, 2010 | |
Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2011 and 2010 | |
Condensed Consolidated Statement of Cash Flows for the three and nine months ended September 30, 2011 and 2010 | |
Notes to Condensed Consolidated Financial Statements |
|
|
|
||||||
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September 30,
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December 31,
|
||||||
|
2011
|
2010
|
||||||
ASSETS
|
|
|
||||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
|
$ | 1,016 | $ | 1,261 | ||||
Short-term investments
|
2,640 | 2,277 | ||||||
Accounts and other receivables
|
369 | 195 | ||||||
Inventories of parts and supplies, at cost
|
459 | 243 | ||||||
Deferred income taxes
|
- | 214 | ||||||
Prepaid expenses and other current assets
|
110 | 89 | ||||||
Total current assets
|
4,594 | 4,279 | ||||||
|
||||||||
Property and equipment, at cost:
|
||||||||
Flight equipment
|
15,451 | 13,991 | ||||||
Ground property and equipment
|
2,303 | 2,122 | ||||||
Deposits on flight equipment purchase contracts
|
229 | 230 | ||||||
|
17,983 | 16,343 | ||||||
Less allowance for depreciation and amortization
|
6,149 | 5,765 | ||||||
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11,834 | 10,578 | ||||||
Goodwill
|
970 | - | ||||||
Other assets
|
487 | 606 | ||||||
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$ | 17,885 | $ | 15,463 | ||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 1,083 | $ | 739 | ||||
Accrued liabilities
|
1,193 | 863 | ||||||
Air traffic liability
|
2,058 | 1,198 | ||||||
Current maturities of long-term debt
|
986 | 505 | ||||||
Total current liabilities
|
5,320 | 3,305 | ||||||
|
||||||||
Long-term debt less current maturities
|
3,220 | 2,875 | ||||||
Deferred income taxes
|
1,856 | 2,493 | ||||||
Deferred gains from sale and leaseback of aircraft
|
78 | 88 | ||||||
Other non-current liabilities
|
926 | 465 | ||||||
Stockholders' equity:
|
||||||||
Common stock
|
808 | 808 | ||||||
Capital in excess of par value
|
1,222 | 1,183 | ||||||
Retained earnings
|
5,251 | 5,399 | ||||||
Accumulated other comprehensive loss
|
( 513 | ) | (262 | ) | ||||
Treasury stock, at cost
|
(283 | ) | (891 | ) | ||||
Total stockholders' equity
|
6,485 | 6,237 | ||||||
|
$ | 17,885 | $ | 15,463 | ||||
|
||||||||
|
||||||||
See accompanying notes.
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|
Three months ended
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Nine months ended
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||||||||||||||
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September 30,
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September 30,
|
||||||||||||||
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2011
|
2010
|
2011
|
2010
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||||||||||
Net income (loss)
|
$ | (140 | ) | $ | 205 | $ | 26 | $ | 328 | |||||||
Adjustments to reconcile net income (loss) to
|
||||||||||||||||
cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
191 | 161 | 523 | 469 | ||||||||||||
Unrealized (gain) loss on fuel derivative instruments
|
393 | (17 | ) | 274 | 171 | |||||||||||
Deferred income taxes
|
(90 | ) | 20 | 33 | 96 | |||||||||||
Amortization of deferred gains on sale and
|
||||||||||||||||
leaseback of aircraft
|
(3 | ) | (3 | ) | (10 | ) | (10 | ) | ||||||||
Changes in certain assets and liabilities (excluding the effects of acquired business):
|
||||||||||||||||
Accounts and other receivables
|
11 | 42 | (96 | ) | (66 | ) | ||||||||||
Other current assets
|
(42 | ) | 7 | (180 | ) | (6 | ) | |||||||||
Accounts payable and accrued liabilities
|
(39 | ) | (5 | ) | 266 | 189 | ||||||||||
Air traffic liability
|
(92 | ) | (63 | ) | 485 | 379 | ||||||||||
Cash collateral received from (provided to)
|
||||||||||||||||
derivative counterparties
|
(409 | ) | 15 | (429 | ) | 150 | ||||||||||
Other, net
|
2 | 23 | 93 | (408 | ) | |||||||||||
Net cash provided by (used in) operating activities
|
(218 | ) | 385 | 985 | 1,292 | |||||||||||
|
||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Payment to acquire AirTran, net of AirTran cash on hand
|
- | - | (35 | ) | - | |||||||||||
Payments for purchase of property and equipment, net
|
(276 | ) | (100 | ) | (548 | ) | (398 | ) | ||||||||
Purchases of short-term investments
|
(1,525 | ) | (1,151 | ) | (4,788 | ) | (4,331 | ) | ||||||||
Proceeds from sales of short-term investments
|
1,664 | 939 | 4,414 | 3,484 | ||||||||||||
Net cash used in investing activities
|
(137 | ) | (312 | ) | (957 | ) | (1,245 | ) | ||||||||
|
||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds from Employee stock plans
|
4 | 10 | 35 | 45 | ||||||||||||
Proceeds from termination of interest rate
|
||||||||||||||||
derivative instrument
|
- | - | 76 | - | ||||||||||||
Payments of long-term debt and capital lease obligations
|
(48 | ) | (39 | ) | (110 | ) | (123 | ) | ||||||||
Payments of convertible debt
|
- | - | (81 | ) | - | |||||||||||
Payment of credit line borrowing
|
- | - | - | (44 | ) | |||||||||||
Payments of cash dividends
|
(3 | ) | (3 | ) | (14 | ) | (13 | ) | ||||||||
Repurchase of common stock
|
(175 | ) | - | (175 | ) | - | ||||||||||
Other, net
|
(2 | ) | 1 | (4 | ) | 5 | ||||||||||
Net cash used in financing activities
|
(224 | ) | (31 | ) | (273 | ) | (130 | ) | ||||||||
|
||||||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(579 | ) | 42 | (245 | ) | (83 | ) | |||||||||
|
||||||||||||||||
CASH AND CASH EQUIVALENTS AT
|
||||||||||||||||
BEGINNING OF PERIOD
|
1,595 | 989 | 1,261 | 1,114 | ||||||||||||
|
||||||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||
AT END OF PERIOD
|
$ | 1,016 | $ | 1,031 | $ | 1,016 | $ | 1,031 |
(in millions)
|
May 2, 2011
|
|||
Assets
|
|
|||
Cash and cash equivalents
|
$ | 477 | ||
Restricted cash
|
6 | |||
Other current assets
|
234 | |||
Operating property and equipment
|
1,151 | |||
Goodwill
|
970 | |||
Other identified intangibles
|
125 | |||
Deferred income taxes
|
163 | |||
Other noncurrent assets
|
45 | |||
Liabilities
|
||||
Long-term debt and capital leases, including current portion
|
(1,119 | ) | ||
Air traffic liability
|
(354 | ) | ||
Other liabilities assumed
|
(657 | ) | ||
Net assets acquired
|
$ | 1,041 | ||
|
·
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Customer Relationships: Amortized based on an accelerated amortization schedule to reflect the estimated free cash flows the customer relationships are expected to provide.
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·
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Trademarks/Trade names: Amortized based on an accelerated amortization schedule to reflect the estimated free cash flows the assets are expected to provide.
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·
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Domestic Slots: Straight-line amortization for owned slots based on the applicable estimated useful life. Straight-line amortization for leased slots over the applicable lease term.
|
·
|
Internally developed software: Straight-line amortization over the expected useful life of the software.
|
·
|
Non-compete agreements: Straight-line amortization over the expected useful life of the applicable contract.
|
|
Estimated fair value
|
Weighted-average
|
Accumulated
|
|||||||||
|
of asset/(liability)
|
useful life
|
amortization
|
|||||||||
|
(in millions)
|
(in years)
|
(in millions)
|
|||||||||
Customer relationships/marketing agreements
|
$ | 39 | 4 | $ | 8 | |||||||
Trademarks/trade names
|
36 | 3 | 5 | |||||||||
Domestic Slots
|
43 | 24 | 1 | |||||||||
Internally developed software
|
2 | 2 | 1 | |||||||||
Noncompete agreements
|
5 | 2 | 1 | |||||||||
Total
|
$ | 125 | 10 | $ | 16 | |||||||
|
·
|
The synergies and other benefits that are expected to result from combining the operations of AirTran with the operations of the Company; and
|
·
|
Any intangible assets that do not qualify for separate recognition, such as the AirTran trained and assembled workforce.
|
·
|
The fair value of specific executory contracts, and deferred income taxes and liabilities, pending finalization of valuation efforts; and
|
·
|
The purchase price allocable to goodwill, as a result of changes to the aforementioned items.
|
|
|
Three months ended
|
|
|
Nine months ended
|
||||
September 30,
|
|
September 30,
|
|||||||
(In millions, except per share data)
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
Total operating revenues
|
$
|
4,312
|
$
|
3,860
|
|
$
|
12,495
|
$
|
10,961
|
Net income
|
|
(157)
|
|
231
|
|
|
7
|
|
345
|
Net income per share, basic
|
|
(0.20)
|
|
0.29
|
|
|
0.01
|
|
0.44
|
Net income per share, diluted
|
|
(0.20)
|
|
0.29
|
|
|
0.01
|
|
0.44
|
|
Three months ended
|
Nine months ended
|
||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
NUMERATOR:
|
|
|
|
|
||||||||||||
Net income (loss)
|
$ | (140 | ) | $ | 205 | $ | 26 | $ | 328 | |||||||
|
||||||||||||||||
DENOMINATOR:
|
||||||||||||||||
Weighted average shares
|
||||||||||||||||
outstanding, basic
|
$ | 792 | $ | 746 | $ | 773 |
$
|
745 | ||||||||
Dilutive effect of Employee stock
|
||||||||||||||||
awards
|
- | 1 | 1 | 1 | ||||||||||||
Adjusted weighted-average shares
|
||||||||||||||||
outstanding, diluted
|
792 | 747 | 774 | 746 | ||||||||||||
|
||||||||||||||||
NET INCOME (LOSS) PER SHARE:
|
||||||||||||||||
Basic
|
$ | (0.18 | ) | $ | 0.27 | $ | 0.03 | $ | 0.44 | |||||||
|
||||||||||||||||
Diluted
|
$ | (0.18 | ) | $ | 0.27 | $ | 0.03 | $ | 0.44 | |||||||
|
||||||||||||||||
Antidilutive stock options
|
||||||||||||||||
excluded from calculations
|
48 | 64 | 48 | 70 | ||||||||||||
|
||||||||||||||||
|
|
Fuel hedged as of
|
|||
|
September 30, 2011
|
|||
Period (by year)
|
(gallons in millions)
|
|||
Fourth quarter 2011
|
177 | |||
2012
|
1,341 | |||
2013
|
969 | |||
2014
|
777 | |||
2015
|
357 |
|
|
Asset derivatives
|
Liability derivatives
|
||||||||||||||
|
Balance Sheet
|
Fair value at
|
Fair value at
|
Fair value at
|
Fair value at
|
||||||||||||
(in millions)
|
location
|
9/30/2011
|
12/31/10
|
9/30/2011
|
12/31/10
|
||||||||||||
Derivatives designated as hedges*
|
|
|
|
|
|
||||||||||||
Fuel derivative contracts (gross)
|
Other current assets
|
$ | - | $ | 151 | $ | - | $ | 16 | ||||||||
Fuel derivative contracts (gross)
|
Other assets
|
- | 547 | - | 88 | ||||||||||||
Fuel derivative contracts (gross)
|
Accrued liabilities
|
71 | 122 | 138 | 18 | ||||||||||||
Fuel derivative contracts (gross)
|
Other noncurrent liabilities
|
361 | 71 | 157 | 9 | ||||||||||||
Interest rate derivative contracts
|
Other current assets
|
1 | 73 | 6 | - | ||||||||||||
Interest rate derivative contracts
|
Other assets
|
63 | - | - | - | ||||||||||||
Interest rate derivative contracts
|
Other noncurrent liabilities
|
- | - | 136 | 4 | ||||||||||||
|
|
||||||||||||||||
Total derivatives designated as hedges
|
|
$ | 496 | $ | 964 | $ | 437 | $ | 135 | ||||||||
|
|
||||||||||||||||
Derivatives not designated as hedges*
|
|
||||||||||||||||
Fuel derivative contracts (gross)
|
Other current assets
|
$ | - | $ | 164 | $ | - | $ | 284 | ||||||||
Fuel derivative contracts (gross)
|
Other assets
|
- | 212 | - | 304 | ||||||||||||
Fuel derivative contracts (gross)
|
Accrued liabilities
|
257 | 40 | 525 | 222 | ||||||||||||
Fuel derivative contracts (gross)
|
Other noncurrent liabilities
|
109 | 33 | 635 | 257 | ||||||||||||
|
|
||||||||||||||||
Total derivatives not designated as hedges
|
|
$ | 366 | $ | 449 | $ | 1,160 | $ | 1,067 | ||||||||
|
|
||||||||||||||||
Total derivatives
|
|
$ | 862 | $ | 1,413 | $ | 1,597 | $ | 1,202 | ||||||||
|
|
||||||||||||||||
* Represents the position of each trade before consideration of offsetting positions with each counterparty and does not include the impact of cash collateral deposits provided to or received from counterparties. See discussion of credit risk and collateral following in this Note.
|
|
Balance Sheet
|
September 30,
|
December 31,
|
||||||
(in millions)
|
location
|
2011
|
2010
|
||||||
Cash collateral deposits provided
|
Offset against Other
|
|
|
||||||
to counterparties - noncurrent
|
noncurrent liabilities
|
$ | 246 | $ | 125 | ||||
Cash collateral deposits provided
|
Offset against Accrued
|
||||||||
to counterparties - current
|
liabilities
|
212 | - | ||||||
Cash collateral deposits held from
|
Offset against Other
|
||||||||
counterparty - noncurrent
|
assets
|
- | 60 | ||||||
Cash collateral deposits held from
|
Offset against Other
|
||||||||
counterparty - current
|
current assets
|
- | - | ||||||
Due to third parties for settled fuel contracts
|
Accrued liabilities
|
10 | - | ||||||
Receivable from third parties for settled
|
Accounts and other
|
||||||||
fuel contracts
|
receivables
|
- | 1 | ||||||
Net unrealized (gains) losses from fuel
|
Accumulated other
|
||||||||
hedges, net of tax
|
comprehensive (income) loss
|
469 | 250 |
Derivatives not in cash flow hedging relationships
|
||||||
|
(Gain) loss
|
|
||||
|
recognized in income on
|
|
||||
|
derivatives
|
|
||||
|
Three months ended
|
Location of (gain) loss
|
||||
|
September 30,
|
recognized in income
|
||||
(in millions)
|
2011
|
|
2010
|
on derivatives
|
||
Fuel derivative contracts
|
$284 |
|
$(26) |
Other (gains) losses, net
|
|
Three months ended September 30,
|
|||||||
(In millions)
|
2011
|
2010
|
||||||
Net income (loss)
|
$ | (140 | ) | $ | 205 | |||
Unrealized gain (loss) on fuel derivative instruments,
|
||||||||
net of deferred taxes of ($233) and $124
|
(372 | ) | 199 | |||||
Unrealized gain (loss) on interest rate swaps,
|
||||||||
net of deferred taxes of ($19) and ($7)
|
(30 | ) | (12 | ) | ||||
Other, net of deferred taxes of ($3) and $1
|
(4 | ) | 1 | |||||
Total other comprehensive income (loss)
|
(406 | ) | 188 | |||||
|
||||||||
Comprehensive income (loss)
|
$ | (546 | ) | $ | 393 | |||
|
|
Nine months ended September 30,
|
|||||||
(In millions)
|
2011
|
2010
|
||||||
Net income
|
$ | 26 | $ | 328 | ||||
Unrealized gain (loss) on fuel derivative instruments,
|
||||||||
net of deferred taxes of ($137) and $100
|
(219 | ) | 160 | |||||
Unrealized gain (loss) on interest rate swaps,
|
||||||||
net of deferred taxes of ($22) and ($21)
|
(34 | ) | (34 | ) | ||||
Other, net of deferred taxes of $1 and $0
|
2 | (1 | ) | |||||
Total other comprehensive income (loss)
|
(251 | ) | 125 | |||||
|
||||||||
Comprehensive income (loss)
|
$ | (225 | ) | $ | 453 |
|
Fuel
|
Interest
|
|
Accumulated other
|
||||||||||||
|
hedge
|
rate
|
|
comprehensive
|
||||||||||||
(In millions)
|
derivatives
|
derivatives
|
Other
|
income (loss)
|
||||||||||||
Balance at June 30, 2011
|
$ | (97 | ) | $ | (38 | ) | $ | 28 | $ | (107 | ) | |||||
Changes in fair value
|
(417 | ) | (30 | ) | (4 | ) | (451 | ) | ||||||||
Reclassification to earnings
|
45 | - | - | 45 | ||||||||||||
Balance at September 30, 2011
|
$ | (469 | ) | $ | (68 | ) | $ | 24 | $ | (513 | ) |
|
Fuel
|
Interest
|
|
Accumulated other
|
||||||||||||
|
hedge
|
rate
|
|
comprehensive
|
||||||||||||
(In millions)
|
derivatives
|
derivatives
|
Other
|
income (loss)
|
||||||||||||
Balance at December 31, 2010
|
$ | (250 | ) | $ | (34 | ) | $ | 22 | $ | (262 | ) | |||||
Changes in fair value
|
(297 | ) | (34 | ) | 2 | (329 | ) | |||||||||
Reclassification to earnings
|
78 | - | - | 78 | ||||||||||||
Balance at September 30, 2011
|
$ | (469 | ) | $ | (68 | ) | $ | 24 | $ | (513 | ) |
|
September 30,
|
December 31,
|
||||||
(In millions)
|
2011
|
2010
|
||||||
Derivative contracts
|
$ | - | $ | 307 | ||||
Intangible assets
|
168 | 60 | ||||||
Non-current investments
|
112 | 97 | ||||||
Other
|
207 | 142 | ||||||
Other assets
|
$ | 487 | $ | 606 |
|
September 30,
|
December 31,
|
||||||
(In millions)
|
2011
|
2010
|
||||||
Retirement plans
|
$ | 83 | $ | 171 | ||||
Aircraft rentals
|
107 | 27 | ||||||
Vacation pay
|
239 | 200 | ||||||
Advances and deposits
|
39 | 33 | ||||||
Derivative contracts
|
116 | 79 | ||||||
Workers compensation
|
155 | 142 | ||||||
Deferred taxes
|
159 | - | ||||||
Other
|
295 | 211 | ||||||
Accrued liabilities
|
$ | 1,193 | $ | 863 |
|
September 30,
|
December 31,
|
||||||
(In millions)
|
2011
|
2010
|
||||||
Postretirement obligation
|
$ | 105 | $ | 91 | ||||
Non-current leasehold interest
|
337 | - | ||||||
Construction obligation
|
152 | 86 | ||||||
Other
|
332 | 288 | ||||||
Other non-current liabilities
|
$ | 926 | $ | 465 | ||||
|
||||||||
|
(In millions)
|
September 30, 2011
|
|||
B737 Aircraft Purchase Financing Facilities:
|
|
|||
Floating-rate aircraft notes payable through 2020, 1.91 percent
|
|
|||
weighted-average interest rate as of September 30, 2011
|
$ | 616 | ||
Fixed-rate aircraft notes payable through 2018, 7.02 percent
|
||||
weighted-average interest rate as of September 30, 2011
|
43 | |||
|
||||
Fixed-rate B717 aircraft notes payable through 2017, 10.43 percent
|
||||
weighted-average interest rate as of September 30, 2011
|
78 | |||
5.25% convertible senior notes due 2016
|
119 | |||
Total long-term debt
|
856 | |||
Less current maturities of long-term debt
|
(75 | ) | ||
Long-term debt less current maturities
|
$ | 781 | ||
|
|
|
|
Fair value measurements at reporting date using
|
||||||||||||||
|
|
|
Quoted prices in active markets for identical assets
|
Significant other observable inputs
|
Significant unobservable inputs
|
||||||||||||
|
|
|
|||||||||||||||
|
|
|
|||||||||||||||
Description
|
December 31, 2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets
|
(in millions)
|
||||||||||||||||
Cash equivalents
|
$ | 1,261 | $ | 1,261 | $ | - | $ | - | |||||||||
Short-term investments:
|
|||||||||||||||||
|
Treasury bills
|
2,010 | 2,010 | - | - | ||||||||||||
|
Certificates of deposit
|
267 | - | 267 | - | ||||||||||||
Noncurrent investments (a)
|
93 | - | - | 93 | |||||||||||||
Interest rate derivatives
|
73 | - | 73 | - | |||||||||||||
Fuel derivatives:
|
|||||||||||||||||
|
Swap contracts (b)
|
33 | - | 33 | - | ||||||||||||
|
Option contracts(b)
|
233 | - | - | 233 | ||||||||||||
|
Swap contracts (c)
|
286 | - | 286 | - | ||||||||||||
|
Option contracts(c)
|
788 | - | - | 788 | ||||||||||||
Other available-for-sale securities
|
39 | 34 | - | 5 | |||||||||||||
Total assets
|
$ | 5,083 | $ | 3,305 | $ | 659 | $ | 1,119 | |||||||||
|
|
||||||||||||||||
Liabilities
|
|||||||||||||||||
Fuel derivatives:
|
|||||||||||||||||
|
Swap contracts (b)
|
$ | (387 | ) | $ | - | $ | (387 | ) | $ | - | ||||||
|
Option contracts(b)
|
(119 | ) | - | - | (119 | ) | ||||||||||
|
Swap contracts (c)
|
(476 | ) | - | (476 | ) | - | ||||||||||
|
Option contracts(c)
|
(216 | ) | - | - | (216 | ) | ||||||||||
Interest rate derivatives
|
(4 | ) | - | (4 | ) | - | |||||||||||
Total liabilities
|
$ | (1,202 | ) | $ | - | $ | (867 | ) | $ | (335 | ) | ||||||
|
|
||||||||||||||||
(a)
|
Auction rate securities included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
|
||||||||||||||||
(b)
|
In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net liability, and are also net of cash collateral provided to counterparties. See Note 5.
|
||||||||||||||||
(c)
|
In the unaudited Condensed Consolidated Balance Sheet, amounts are presented as a net asset, and are also net of cash collateral received from counterparties. See Note 5.
|
|
Fair value measurements using significant
|
||||||||||||||||
|
unobservable inputs (Level 3)
|
||||||||||||||||
|
Fuel
|
Auction rate
|
|
Other
|
|
||||||||||||
(in millions)
|
derivatives
|
securities
|
|
securities
|
Total
|
||||||||||||
Balance at June 30, 2011
|
$ | 846 | $ | 84 |
|
$ | 5 | $ | 935 | ||||||||
Total gains or (losses) (realized or unrealized)
|
|
||||||||||||||||
Included in earnings
|
(635 | ) | - |
|
- | (635 | ) | ||||||||||
Included in other comprehensive income
|
(624 | ) | (3 | ) |
|
- | (627 | ) | |||||||||
Purchases
|
105 | - |
|
- | 105 | ||||||||||||
Sales
|
(93 | ) | - |
|
- | (93 | ) | ||||||||||
Settlements
|
(32 | ) | - |
|
- | (32 | ) | ||||||||||
Balance at September 30, 2011
|
$ | (433 | ) | $ | 81 |
(a)
|
$ | 5 | $ | (347 | ) | ||||||
|
|
||||||||||||||||
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 September 30, 2011
|
$ | (614 | ) | $ | - |
|
$ | - | $ | (614 | ) | ||||||
|
|
||||||||||||||||
(a) Included in Other assets in the unaudited Condensed Consolidated Balance Sheet.
|
|||||||||||||||||
|
|
Carrying
|
Estimated fair
|
||||||
(In millions)
|
value
|
value
|
||||||
10.5% Notes due 2011
|
$ | 399 | $ | 391 | ||||
French credit agreements due 2012
|
10 | 10 | ||||||
6.5% Notes due 2012
|
379 | 385 | ||||||
5.25% Notes due 2014
|
350 | 367 | ||||||
5.75% Notes due 2016
|
271 | 298 | ||||||
5.25% Convertible senior notes due 2016
|
120 | 114 | ||||||
5.125% Notes due 2017
|
300 | 322 | ||||||
French credit agreements due 2018
|
69 | 69 | ||||||
Fixed rate B717 aircraft notes payable through 2017 - 10.43%
|
68 | 73 | ||||||
Fixed rate B737 aircraft notes payable through 2018 - 7.02%
|
41 | 44 | ||||||
Term loan agreement due 2019 - 6.64%
|
276 | 282 | ||||||
Term loan agreement due 2019 - 6.84%
|
105 | 114 | ||||||
Term loan agreement due 2020 - 5.223%
|
496 | 447 | ||||||
Floating rate B737 aircraft notes payable through 2020 - 1.91%
|
634 | 634 | ||||||
Pass through certificates due 2022
|
411 | 420 | ||||||
7.375% Debentures due 2027
|
64 | 81 |
·
|
it grows the Company’s presence in key markets it did not previously serve and represents a significant step toward positioning the Company for future growth;
|
·
|
it allows the Company to offer more low-fare destinations by extending its network and diversifying into new markets, including significant opportunities to and from Atlanta, the busiest airport in the United States and the largest domestic market the Company previously did not serve;
|
·
|
it expands the Company’s presence in slot-controlled markets where the Company previously had little (New York LaGuardia) or no (Ronald Reagan Washington National Airport) service;
|
·
|
it expands the Company’s service in other key domestic markets, including Boston and Baltimore, and adds destinations to its route system;
|
·
|
it increases the Company’s share of current domestic market share capacity (as measured by ASMs);
|
·
|
it provides access to near-international leisure markets in the Caribbean and Mexico, as well as smaller cities, and provides firsthand and meaningful insight into these new expansion opportunities; and
|
·
|
based on current operations, the combined company is expected to serve more than 100 million customers annually from more than 100 different U.S. and near-international destinations.
|
·
|
Implementation of the Company’s All New Rapid Rewards
®
frequent flyer program, which took place in first quarter 2011 and which has exceeded the Company’s expectations in the number of frequent flyer members added, the amount spent per member on airfare, the number of Southwest/Chase co-branded credit card members added, and the number of frequent flyer points purchased by program members;
|
·
|
The addition of a larger aircraft, the Boeing 737-800, to the Company’s fleet, which is scheduled to begin in first quarter 2012 and is expected to allow the Company to profitably expand to new destinations, including near-international locations, generate additional revenue by replacing current aircraft on specified routes and locations that are restricted due to space constraints or slot controls, and operate at a lower seat mile cost; and
|
·
|
The replacement of the Company’s reservations system, which is currently limited to domestic service, which will allow the Company to add international destinations, as well as other important Customer Service automations and functionality.
|
|
|
|
|
Dollar change
|
Dollar change
|
Percent change
|
||||||||||||||||||
|
Three months ended
|
|
attributable
|
excluding
|
excluding
|
|||||||||||||||||||
|
September 30,
|
Dollar
|
to AirTran
|
AirTran
|
AirTran
|
|||||||||||||||||||
|
2011
|
2010
|
change
|
results
|
results
|
results
|
||||||||||||||||||
OPERATING REVENUES:
|
|
|
|
|
|
|
||||||||||||||||||
Passenger
|
$ | 4,014 | $ | 3,032 | $ | 982 | $ | 656 | $ | 326 | 10.8 | |||||||||||||
Freight
|
35 | 31 | 4 | - | 4 | 12.9 | ||||||||||||||||||
Other
|
262 | 129 | 133 | 102 | 31 | 24.0 | ||||||||||||||||||
Total operating revenues
|
$ | 4,311 | $ | 3,192 | $ | 1,119 | $ | 758 | $ | 361 | 11.3 |
|
Three months ended September 30,
|
Per ASM
|
Percent
|
|||||||||||||
(in cents, except for percentages)
|
2011
|
2010
|
change
|
change
|
||||||||||||
Salaries, wages, and benefits
|
3.44 | ¢ | 3.67 | ¢ | (0.23 | ) ¢ | (6.3 | ) | ||||||||
Fuel and oil
|
4.76 | 3.63 | 1.13 | 31.1 | ||||||||||||
Maintenance materials
|
||||||||||||||||
and repairs
|
0.82 | 0.77 | 0.05 | 6.5 | ||||||||||||
Aircraft rentals
|
0.27 | 0.17 | 0.10 | 58.8 | ||||||||||||
Landing fees and other rentals
|
0.77 | 0.82 | (0.05 | ) | (6.1 | ) | ||||||||||
Depreciation and amortization
|
0.57 | 0.63 | (0.06 | ) | (9.5 | ) | ||||||||||
Acquisition and integration
|
0.07 | - | 0.07 |
n.a.
|
||||||||||||
Other operating expenses
|
1.56 | 1.41 | 0.15 | 10.6 | ||||||||||||
Total
|
12.26 | ¢ | 11.10 | ¢ | 1.16 | ¢ | 10.5 |
|
|
|
|
Dollar change
|
Dollar change
|
Percent change
|
||||||||||||||||||
(in millions, except for
percentages)
|
Three months ended
|
|
attributable
|
excluding
|
excluding
|
|||||||||||||||||||
September 30,
|
Dollar
|
to AirTran
|
AirTran
|
AirTran
|
||||||||||||||||||||
2011
|
2010
|
change
|
results
|
results
|
results
|
|||||||||||||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
||||||||||||||||||
Salaries, wages, and benefits
|
$ | 1,146 | $ | 938 | $ | 208 | $ | 141 | $ | 67 | 7.1 | |||||||||||||
Fuel and oil
|
1,586 | 926 | 660 | 314 | 346 | 37.4 | ||||||||||||||||||
Maintenance materials
|
||||||||||||||||||||||||
and repairs
|
272 | 196 | 76 | 66 | 10 | 5.1 | ||||||||||||||||||
Aircraft rentals
|
90 | 43 | 47 | 59 | (12 | ) | (27.9 | ) | ||||||||||||||||
Landing fees and other rentals
|
257 | 210 | 47 | 43 | 4 | 1.9 | ||||||||||||||||||
Depreciation and amortization
|
191 | 161 | 30 | 16 | 14 | 8.7 | ||||||||||||||||||
Acquisition and integration
|
22 | 1 | 21 | 3 | 18 |
n.a.
|
||||||||||||||||||
Other operating expenses
|
522 | 362 | 160 | 98 | 62 | 17.1 | ||||||||||||||||||
Total operating expenses
|
$ | 4,086 | $ | 2,837 | $ | 1,249 | $ | 740 | $ | 509 | 17.9 |
Percent of estimated fuel consumption covered by fuel derivative contracts | |||||||||
|
at varying WTI crude-equivalent price levels
|
||||||||
Average WTI Crude Oil
|
|
|
|
||||||
price per barrel
|
4Q 2011 |
First Half 2012
|
Second Half 2012
|
||||||
Up to $90
|
approx. 10%
|
approx. 10%
|
|||||||
$90 to $100 |
approx. 15%
|
approx. 25%
|
|||||||
$100 to $110 |
approx. 10%
|
approx. 20%
|
approx. 55%
|
||||||
$110 to $120 |
approx. 45%
|
approx. 25%
|
approx. 70%
|
||||||
Above $120*
|
approx. 40%
|
approx. 20%
|
approx. 50%
|
||||||
|
|
|
Fair value
|
Amount of gains
|
||||||
|
(liability) of fuel
|
(losses) deferred
|
||||||
|
derivative contracts
|
in AOCI at September 30,
|
||||||
Year
|
at September 30, 2011
|
2011 (net of tax)
|
||||||
2011
|
$ | (52 | ) | $ | (55 | ) | ||
2012
|
(385 | ) | (226 | ) | ||||
2013
|
(248 | ) | (156 | ) | ||||
2014
|
28 | 1 | ||||||
2015
|
- | (33 | ) | |||||
Total
|
$ | (657 | ) | $ | (469 | ) |
|
|
Three months ended September 30,
|
||||
(In millions)
|
|
2011
|
|
|
2010
|
|
Mark-to-market impact from fuel contracts settling in future periods
|
$
|
288
|
|
$
|
(27)
|
|
Ineffectiveness from fuel hedges settling in future periods
|
|
78
|
|
|
(24)
|
|
Realized ineffectiveness and mark-to-market (gains) or losses
|
|
3
|
|
|
1
|
|
Premium cost of fuel contracts
|
|
36
|
|
|
37
|
|
|
|
$
|
405
|
|
$
|
(13)
|
|
|
|
|
Dollar change
|
Dollar change
|
Percent change
|
||||||||||||||||||
|
Nine months ended
|
|
attributable
|
excluding
|
excluding
|
|||||||||||||||||||
|
September 30,
|
Dollar
|
to AirTran
|
AirTran
|
AirTran
|
|||||||||||||||||||
|
2011
|
2010
|
change
|
results
|
results
|
results
|
||||||||||||||||||
OPERATING REVENUES:
|
|
|
|
|
|
|
||||||||||||||||||
Passenger
|
$ | 10,829 | $ | 8,544 | $ | 2,285 | $ | 1,123 | $ | 1,162 | 13.6 | |||||||||||||
Freight
|
103 | 94 | 9 | - | 9 | 9.6 | ||||||||||||||||||
Other
|
618 | 352 | 266 | 176 | 90 | 25.6 | ||||||||||||||||||
Total operating revenues
|
$ | 11,550 | $ | 8,990 | $ | 2,560 | $ | 1,299 | $ | 1,261 | 14.0 |
|
Nine months ended September 30,
|
Per ASM
|
Percent
|
|||||||||||||
(in cents, except for percentages)
|
2011
|
2010
|
change
|
change
|
||||||||||||
Salaries, wages, and benefits
|
3.61 | ¢ | 3.73 | ¢ | (0.12 | ) ¢ | (3.2 | ) | ||||||||
Fuel and oil
|
4.64 | 3.64 | 1.00 | 27.5 | ||||||||||||
Maintenance materials
|
||||||||||||||||
and repairs
|
.80 | .75 | 0.05 | 6.7 | ||||||||||||
Aircraft rentals
|
.24 | .18 | 0.06 | 33.3 | ||||||||||||
Landing fees and other rentals
|
.79 | .82 | (0.03 | ) | (3.7 | ) | ||||||||||
Depreciation and amortization
|
.59 | .64 | (0.05 | ) | (7.8 | ) | ||||||||||
Acquisition and integration
|
.11 | - | 0.11 |
n.a.
|
||||||||||||
Other operating expenses
|
1.54 | 1.40 | 0.14 | 10.0 | ||||||||||||
Total
|
12.32 | ¢ | 11.16 | ¢ | 1.16 | ¢ | 10.4 |
|
|
|
|
Dollar change
|
Dollar change
|
Percent change
|
||||||||||||||||||
|
Nine months ended
|
|
attributable
|
excluding
|
excluding
|
|||||||||||||||||||
(in millions, except for percentages)
|
September 30,
|
Dollar
|
to AirTran
|
AirTran
|
AirTran
|
|||||||||||||||||||
2011
|
2010
|
change
|
results
|
results
|
results
|
|||||||||||||||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
||||||||||||||||||
Salaries, wages, and benefits
|
$ | 3,226 | $ | 2,748 | $ | 478 | $ | 240 | $ | 238 | 8.7 | |||||||||||||
Fuel and oil
|
4,150 | 2,681 | 1,469 | 530 | 939 | 35.0 | ||||||||||||||||||
Maintenance materials
|
||||||||||||||||||||||||
and repairs
|
717 | 556 | 161 | 112 | 49 | 8.8 | ||||||||||||||||||
Aircraft rentals
|
214 | 135 | 79 | 99 | (20 | ) | (14.8 | ) | ||||||||||||||||
Landing fees and other rentals
|
705 | 606 | 99 | 72 | 27 | 4.5 | ||||||||||||||||||
Depreciation and amortization
|
523 | 469 | 54 | 26 | 28 | 6.0 | ||||||||||||||||||
Acquisition and integration
|
97 | 1 | 96 | 27 | 69 |
n.a.
|
||||||||||||||||||
Other operating expenses
|
1,372 | 1,022 | 350 | 163 | 187 | 18.3 | ||||||||||||||||||
Total operating expenses
|
$ | 11,004 | $ | 8,218 | $ | 2,786 | $ | 1,269 | $ | 1,517 | 18.5 |
|
|
Nine months ended September 30,
|
||||
(In millions)
|
|
2011
|
|
|
2010
|
|
Mark-to-market impact from fuel contracts settling in future periods
|
$
|
148
|
|
$
|
4
|
|
Ineffectiveness from fuel hedges settling in future periods
|
|
115
|
|
|
22
|
|
Realized ineffectiveness and mark-to-market (gains) or losses
|
|
(6)
|
|
|
13
|
|
Premium cost of fuel contracts
|
|
93
|
|
|
98
|
|
Other
|
|
1
|
|
|
1
|
|
|
|
$
|
351
|
|
$
|
138
|
|
|
|
|
|
Average
|
|
Number
|
|
Number
|
|
Number
|
|
|
Type
|
|
Seats
|
|
Age (Yrs)
|
|
of Aircraft
|
|
Owned
|
|
Leased
|
|
|
717-200
|
|
117
|
|
10
|
|
88
|
|
8
|
|
80
|
|
|
737-300
|
|
137
|
|
20
|
|
165
|
|
98
|
|
67
|
|
|
737-500
|
|
122
|
|
20
|
|
25
|
|
16
|
|
9
|
|
|
737-700
|
|
137
|
|
7
|
|
421
|
|
376
|
|
45
|
|
|
TOTALS
|
|
|
|
11
|
|
699
|
|
498
|
|
201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
·
|
the Company’s plans and expectations related to its acquisition of AirTran, including, without limitation, the Company’s integration plans and expectations and the anticipated impact of the acquisition on (i) the Company’s results of operations; (ii) the Company’s growth plans, including its network and fleet plans; (iii) the Company’s customer experience; and (iv) the Company’s ability to respond to the economic and competitive challenges of the airline industry;
|
·
|
the Company’s growth plans, including its capacity and fleet plans;
|
·
|
the Company’s projected results of operations;
|
·
|
the Company’s plans and expectations with respect to managing risk associated with volatile jet fuel prices;
|
·
|
the Company’s expectations with respect to liquidity, including anticipated needs for, and sources of, funds;
|
·
|
the Company’s assessment of market risks; and
|
·
|
the Company’s plans and expectations related to legal proceedings.
|
·
|
changes in the price of aircraft fuel, the impact of hedge accounting, and any changes to the Company’s fuel hedging strategies and positions;
|
·
|
the impact of the economy on the demand for air travel and the impact of fuel prices, economic conditions, and actions of competitors on the Company’s business decisions, plans, and strategies;
|
·
|
the Company’s ability to successfully integrate AirTran and the Company’s related ability to (i) maintain positive relations with employees and employee representatives, (ii) timely and effectively address related collective bargaining agreements, and (iii) retain key AirTran employees;
|
·
|
the Company’s ability to realize expected synergies from the AirTran acquisition;
|
·
|
the Company’s ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and the impact of technological initiatives on the Company’s operations and reporting;
|
·
|
the Company’s ability to timely and effectively prioritize its strategic initiatives and related expenditures;
|
·
|
the Company’s dependence on third parties to assist with implementation of certain of its initiatives;
|
·
|
the impact of governmental legislation and regulation on the Company’s operations, fuel hedging strategies, and costs; and
|
·
|
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, 2010.
|
Issuer Purchases of Equity Securities (1)
|
||||||||||||||||
|
(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
|
||||||||||||
July 1, 2011 through
|
|
|
|
|
||||||||||||
July 31, 2011
|
- | $ | - | - | $ | 445,880,340 | (1) | |||||||||
August 1, 2011 through
|
||||||||||||||||
August 31, 2011
|
14,900,000 | $ | 8.29 | 14,900,000 | $ | 376,474,270 | ||||||||||
September 1, 2011 through
|
||||||||||||||||
September 30, 2011
|
6,262,600 | $ | 8.22 | 6,262,600 | $ | 325,004,354 | ||||||||||
Total
|
21,162,600 | 21,162,600 | ||||||||||||||
|
(1)
|
In January 2008, the Company’s Board of Directors authorized the repurchase of up to $500 million of the Company’s common stock. Through February 15, 2008, the Company had repurchased 4.4 million shares for a total of approximately $54 million, at which time repurchases under the program were suspended. On August 5, 2011, the Company’s Board of Directors authorized the Company to resume a share repurchase program and approved the Company’s repurchase, on a discretionary basis, of a total of up to $500 million of the Company’s common stock following such authorization. During third quarter 2011, the Company purchased approximately 21 million shares of its common stock for approximately $175 million of the $500 million in total currently authorized by the Board. Repurchases are made in accordance with applicable securities laws in the open market or in private transactions from time to time, depending on market conditions, and may be discontinued at any time.
|
a) Exhibits | |
2.1
|
Agreement and Plan of Merger among Southwest Airlines Co., AirTran Holdings, Inc., and Guadalupe Holdings Corp., dated as of September 26, 2010 (the schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K)(incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated September 26, 2010 (File No. 1-7259)).
|
3.1
|
Restated Articles of Incorporation of the Company effective February 3, 1994;
|
Articles of Amendment to the Articles of Incorporation of the Company effective
|
|
May 31, 1996; Articles of Amendment to the Articles of Incorporation of the Company
|
|
effective July 2, 1998; Articles of Amendment to the Articles of Incorporation of the
|
|
Company effective June 2, 1999; Articles of Amendment to the Articles of
|
|
Incorporation of the Company effective May 24, 2001; Articles of Amendment to
|
|
the Articles of Incorporation of the Company effective June 5, 2007 (incorporated by
|
|
reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year
|
|
ended December 31, 2009 (File No. 1-7259)).
|
|
3.2
|
Amended and Restated Bylaws of the Company, effective November 19,
|
2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report
|
|
on Form 8-K dated November 19, 2009 (File No. 1-7259)).
|
|
10.1
|
Supplemental Agreement No. 74 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. (2)
|
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
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.
|
(2)
|
Furnished, not filed.
|
|
SOUTHWEST AIRLINES CO.
|
|
October 24, 2011
|
By
|
/s/ Laura Wright
|
Laura Wright
|
||
Chief Financial Officer
|
||
(On behalf of the Registrant and in
|
||
her capacity as Principal Financial
|
||
and Accounting Officer)
|
2.1
|
Agreement and Plan of Merger among Southwest Airlines Co., AirTran Holdings, Inc., and Guadalupe Holdings Corp., dated as of September 26, 2010 (the schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K)(incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated September 26, 2010 (File No. 1-7259)).
|
3.1
|
Restated Articles of Incorporation of the Company effective February 3, 1994;
|
Articles of Amendment to the Articles of Incorporation of the Company effective
|
|
May 31, 1996; Articles of Amendment to the Articles of Incorporation of the Company
|
|
effective July 2, 1998; Articles of Amendment to the Articles of Incorporation of the
|
|
Company effective June 2, 1999; Articles of Amendment to the Articles of
|
|
Incorporation of the Company effective May 24, 2001; Articles of Amendment to
|
|
the Articles of Incorporation of the Company effective June 5, 2007 (incorporated by
|
|
reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year
|
|
ended December 31, 2009 (File No. 1-7259)).
|
|
3.2
|
Amended and Restated Bylaws of the Company, effective November 19,
|
2009 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report
|
|
on Form 8-K dated November 19, 2009 (File No. 1-7259)).
|
|
10.1
|
Supplemental Agreement No. 74 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. (2)
|
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
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.
|
(2)
|
Furnished, not filed.
|
Supplemental Agreement No. 74
|
to
|
Purchase Agreement No. 1810
|
between
|
THE BOEING COMPANY
|
and
|
SOUTHWEST AIRLINES CO.
|
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft
|
Aircraft
|
Block
|
MSN
|
Contracted
Delivery Month
|
Revised
Delivery Month
|
Firm Aircraft
|
Block T-W-2b
|
36638
|
March 2013
|
January 2013
|
Firm Aircraft
|
Block T-W-2b
|
36893
|
April 2013
|
February 2013
|
Option Aircraft
|
Block U-W-1a
|
n/a
|
January 2013
|
March 2013
|
Option Aircraft
|
Block U-W-1a
|
n/a
|
February 2013
|
April 2013
|
THE BOEING COMPANY
|
SOUTHWEST AIRLINES CO
|
By: /s/ Cheri A. Fischer
|
By: /s/ Scott Topping
|
Its: Attorney-In-Fact
|
Its: Vice President Treasurer
|
TABLE OF CONTENTS
|
|||
Page
|
SA
|
||
Number
|
Number
|
||
ARTICLES
|
|||
1.
|
Subject Matter of Sale……….…….………………………….....................................................................1-1
|
SA-73
|
|
2.
|
Delivery, Title and Risk
|
||
|
of Loss………………………………………….............................................................................................2-1
|
SA-28
|
|
3.
|
Price of Aircraft……………………………………......................................................................................3-1
|
SA-73
|
|
4.
|
Taxes…………………………………………..……......................................................................................4-1
|
||
5.
|
Payment……………………………...............................................................................................................5-1
|
||
6.
|
Excusable Delay………………………………….........................................................................................6-1
|
||
7.
|
Changes to the Detail
|
||
Specification………………………………...................................................................................................7-1
|
SA-73
|
||
|
|||
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
|
6-1162-NIW-1369
|
***
|
SA-46
|
6-1162-NIW-1983
|
***
|
SA-62
|
SWA-PA-1810-LA-1000419
|
***
|
SA-64
|
SWA-PA-1810-LA-1001315
|
***
|
SA-66
|
SWA-PA-1810-LA-02710
|
***
|
SA-72
|
SWA-PA-1810-LA-100398
|
737-800 Promotional Support
|
SA-71
|
SWA-PA-1810-LA-1003490
|
***
|
SA-71
|
SWA-PA-1810-LA-1003367
|
***
|
SA-71
|
Table 1 to
|
Purchase Agreement No. 1810
|
Aircraft Information Table
|
Base Aircraft
|
Special Features
|
Aircraft Basic
|
||||
Price | Price | |||||
Block A, B, C, D & E Aircraft
|
***
|
***
|
***
|
|||
Block F & G Aircraft
|
***
|
***
|
***
|
|||
Block H Aircraft
|
***
|
***
|
***
|
|||
Block I Aircraft
|
***
|
***
|
***
|
|||
Block J Aircraft
|
***
|
***
|
***
|
|||
Block K Aircraft
|
***
|
***
|
***
|
|||
Block K-W Aircraft
|
***
|
***
|
***
|
|||
Block L Aircraft
|
***
|
***
|
***
|
|||
Block T Aircraft
|
***
|
***
|
***
|
|||
Block T-W Aircraft
|
***
|
***
|
***
|
|||
Block T-W-1 / T-W-1a Aircraft
|
***
|
***
|
***
|
|||
Block T-W-2 / T-W-2a Aircraft
|
***
|
***
|
***
|
|||
Block T-W-2b Aircraft*
|
***
|
***
|
***
|
|||
Block T-W-2c Aircraft***
|
***
|
***
|
***
|
|||
Block T-W-3 Aircraft**
|
***
|
***
|
***
|
|||
notes:
|
||||||
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)
|
||||||
Exhibit A-2 applies to Block T-W-2 / T-W-2a Aircraft delivering through Dec 2009 and the first Aircraft delivering in Jan 2010
|
||||||
Exhibit A-3 applies to Block T-W-2 / T-W-2a Aircraft the second Aircraft delivering in Jan 2010 and on
|
||||||
Block T-W-2b Aircraft - Advance Payment Schedule per LA SWA-PA-1810-LA-1001315;
|
||||||
* Exhibit A-4 applies to Block T-W-2b Aircraft as identified in Exhibit A-4 to the Purchase Agreement^
|
||||||
***Exhibit A-1A applies to Block T-W-2c Aircraft per SA69
|
||||||
Block T-W-3 Aircraft (Substitute Aircraft per SA71) - Advance Payment Schedule per LA SWA-PA-1810-1001315
|
||||||
**First minor model Special Features price = *** due to non-recuring charges^^
|
||||||
**Exhibit A.2 applies to Block T-W-3 Aircraft
|
||||||
SWA - PA No. 1810
APR54184
|
Page 1
|
SA-74
|
Table 1 to
|
Purchase Agreement No. 1810
|
Aircraft Information Table
|
Escalation Estimate
|
||||
Delivery
|
Number of
|
Aircraft
|
Adv Payment Base
|
|
Date
|
Aircraft
|
Block
|
Price Per A/P
|
Serial Number
|
Nov-1999
|
2
|
L
|
***
|
|
Dec-1999
|
1
|
L
|
***
|
|
Mar-2000
|
1
|
H
|
***
|
|
Apr-2000
|
2
|
H
|
***
|
|
Jun-2000
|
3
|
L
|
***
|
|
Jul-2000
|
3
|
L
|
***
|
|
Sep-2000
|
1
|
H
|
***
|
|
Sep-2000
|
1
|
L
|
***
|
|
Oct-2000
|
2
|
H
|
***
|
|
Oct-2000
|
1
|
L
|
***
|
|
Nov-2000
|
4
|
L
|
***
|
|
Dec-2000
|
2
|
E
|
***
|
|
Dec-2000
|
1
|
L
|
***
|
|
Jan-2001
|
1
|
E
|
***
|
|
Jan-2001
|
1
|
L
|
***
|
|
Feb-2001
|
1
|
E
|
***
|
|
Feb-2001
|
1
|
L
|
***
|
|
Mar-2001
|
2
|
E
|
***
|
|
Mar-2001
|
2
|
H
|
***
|
|
Apr-2001
|
1
|
H
|
***
|
|
Jun-2001
|
3
|
E
|
***
|
|
Jul-2001
|
1
|
L
|
***
|
|
Sep-2001
|
3
|
E
|
***
|
|
Sep-2001
|
1
|
L
|
***
|
|
Oct-2001
|
3
|
H
|
***
|
|
Oct-2001
|
1
|
L
|
***
|
|
Nov-2001
|
2
|
I
|
***
|
|
Nov-2001
|
1
|
T
|
***
|
|
Dec-2001
|
1
|
I
|
***
|
|
Jan-2002
|
1
|
I
|
***
|
|
Feb-2002
|
1
|
T
|
***
|
|
Mar-2002
|
4
|
I
|
***
|
|
Apr-2002
|
2
|
I
|
***
|
|
Nov-2002
|
1
|
J
|
***
|
|
Dec-2002
|
2
|
I
|
***
|
|
Dec-2002
|
1
|
J
|
***
|
|
Mar-2003
|
2
|
L
|
***
|
|
May-2003
|
1
|
I
|
***
|
|
Jun-2003
|
2
|
I
|
***
|
|
Jul-2003
|
1
|
I
|
***
|
|
Jul-2003
|
1
|
L
|
***
|
|
Aug-2003
|
1
|
I
|
***
|
|
Aug-2003
|
2
|
L
|
***
|
|
Sep-2003
|
3
|
I
|
***
|
|
Nov-2003
|
2
|
J
|
***
|
|
Dec-2003
|
2
|
J
|
***
|
|
Jan-2004
|
2
|
T
|
***
|
|
Feb-2004
|
1
|
T
|
***
|
|
Mar-2004
|
1
|
J
|
***
|
|
Mar-2004
|
1
|
K
|
***
|
|
Apr-2004
|
3
|
K
|
***
|
|
Apr-2004
|
3
|
T
|
***
|
|
May-2004
|
1
|
K
|
***
|
|
May-2004
|
1
|
T
|
***
|
|
Jun-2004
|
2
|
K
|
***
|
|
Jun-2004
|
6
|
T
|
***
|
SWA - PA No. 1810
APR54184
|
Page 2
|
SA-74
|
Table 1 to
|
Purchase Agreement No. 1810
|
Aircraft Information Table
|
Escalation Estimate
|
||||
Delivery
|
Number of
|
Aircraft
|
Adv Payment Base
|
|
Date
|
Aircraft
|
Block
|
Price Per A/P
|
Serial Number
|
Jul-2004
|
2
|
K
|
***
|
|
Jul-2004
|
2
|
T
|
***
|
|
Aug-2004
|
6
|
T-W
|
***
|
|
Sep-2004
|
1
|
K-W
|
***
|
|
Sep-2004
|
4
|
T-W
|
***
|
|
Oct-2004
|
4
|
K-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
|
***
|
SWA - PA No. 1810
APR54184
|
Page 3
|
SA-74
|
Table 1 to
|
Purchase Agreement No. 1810
|
Aircraft Information Table
|
Escalation Estimate
|
||||
Delivery
|
Number of
|
Aircraft
|
Adv Payment Base
|
|
Date
|
Aircraft
|
Block
|
Price Per A/P
|
Serial Number
|
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
|
1
|
T-W-2
|
***
|
36900
|
May-2009
|
2
|
T-W-2a
|
***
|
|
Jan-2010
|
1
|
T-W-2
|
***
|
36913
|
Feb-2010
|
1
|
T-W-2a
|
***
|
36659
|
Mar-2010
|
1
|
T-W-2a
|
***
|
36660
|
Mar-2010
|
1
|
T-W-2
|
***
|
36918
|
May-2010
|
1
|
T-W-2a
|
***
|
36662
|
May-2010
|
1
|
T-W-2
|
***
|
36924
|
Jun-2010
|
1
|
T-W-2a
|
***
|
36663
|
Jul-2010
|
1
|
T-W-2a
|
***
|
36664
|
Aug-2010
|
1
|
T-W-2a
|
***
|
36665
|
Oct-2010
|
1
|
T-W-2b
|
***
|
36667
|
Dec-2010
|
1
|
T-W-2b
|
***
|
36668
|
Feb-2011
|
1
|
T-W-2b
|
***
|
36669
|
March-11
|
1
|
T-W-2b
|
***
|
36671
|
March-11
|
1
|
T-W-2c
|
***
|
36726
|
April-11
|
1
|
T-W-2b
|
***
|
36672
|
April-11
|
1
|
T-W-2c
|
***
|
33936
|
May-11
|
1
|
T-W-2b
|
***
|
36673
|
May-11
|
1
|
T-W-2b
|
***
|
41528
|
June-11
|
1
|
T-W-2b
|
***
|
36674
|
July-11
|
3
|
T-W-2b
|
***
|
36675, 36963, 36962
|
August-11
|
2
|
T-W-2b
|
***
|
36676, 36965
|
September-11
|
2
|
T-W-2b
|
***
|
36677, 36966
|
Oct-2011
|
1
|
T-W-2b
|
***
|
36967
|
Dec-2011
|
2
|
T-W-2b
|
***
|
36679, TBD
|
Mar-2012
|
1
|
T-W-3
|
***
|
36680
|
Mar-2012
|
1
|
T-W-3
|
***
|
36980
|
Apr-2012
|
3
|
T-W-3
|
***
|
36681, 36983, 36683
|
May-2012
|
3
|
T-W-3
|
***
|
36682, 36985, 36987
|
Jul-2012
|
2
|
T-W-3
|
***
|
36684, 36990
|
Aug-2012
|
2
|
T-W-3
|
***
|
36685, 36992
|
Sep-2012
|
2
|
T-W-3
|
***
|
36686, 36994
|
Oct-2012
|
2
|
T-W-3
|
***
|
36687, 36997
|
Nov-2012
|
2
|
T-W-3
|
***
|
37005, 37003
|
Dec-2012
|
2
|
T-W-3
|
***
|
37006, 37009
|
SWA - PA No. 1810
APR54184
|
Page 4
|
SA-74
|
Table 1 to
|
Purchase Agreement No. 1810
|
Aircraft Information Table
|
Escalation Estimate
|
||||
Delivery
|
Number of
|
Aircraft
|
Adv Payment Base
|
|
Date
|
Aircraft
|
Block
|
Price Per A/P
|
Serial Number
|
Jan-2013
|
3
|
T-W-2b
|
***
|
36891, 36634, 36638
|
Feb-2013
|
2
|
T-W-2b
|
***
|
36635, 36893
|
Mar-2013
|
1
|
T-W-2b
|
***
|
36892
|
May-2013
|
1
|
T-W-2b
|
***
|
36894
|
Jun-2013
|
2
|
T-W-2b
|
***
|
36895, 36896
|
Jul-2013
|
1
|
T-W-2b
|
***
|
36897
|
Aug-2013
|
2
|
T-W-2b
|
***
|
36898, 36905
|
Sep-2013
|
2
|
T-W-2b
|
***
|
36907, 36911
|
Oct-2013
|
2
|
T-W-2b
|
***
|
36912, 36914
|
Nov-2013
|
1
|
T-W-2b
|
***
|
36915
|
Dec-2013
|
2
|
T-W-2b
|
***
|
36917, 36919
|
Jan-2014
|
2
|
T-W-2b
|
***
|
36920, 36909
|
Feb-2014
|
2
|
T-W-2b
|
***
|
36922, 36910
|
Mar-2014
|
3
|
T-W-2b
|
***
|
36943, 36927, 36925
|
Apr-2014
|
2
|
T-W-2b
|
***
|
36944, 36929
|
May-2014
|
1
|
T-W-2b
|
***
|
36946
|
Jun-2014
|
2
|
T-W-2b
|
***
|
36968, 36949
|
Jul-2014
|
1
|
T-W-2b
|
***
|
36951
|
Aug-2014
|
3
|
T-W-2b
|
***
|
36928, 36952, 37019
|
Sep-2014
|
1
|
T-W-2b
|
***
|
36954
|
Oct-2014
|
2
|
T-W-2b
|
***
|
36957, 37034
|
Nov-2014
|
1
|
T-W-2b
|
***
|
36971
|
Dec-2014
|
1
|
T-W-2b
|
***
|
37037
|
Jan-2015
|
1
|
T-W-2b
|
***
|
36899
|
Feb-2015
|
1
|
T-W-2b
|
***
|
36901
|
Mar-2015
|
2
|
T-W-2b
|
***
|
36902, 36936
|
Apr-2015
|
2
|
T-W-2b
|
***
|
36649, 36652
|
May-2015
|
1
|
T-W-2b
|
***
|
36903
|
Jun-2015
|
2
|
T-W-2b
|
***
|
36906, 36654
|
Jul-2015
|
1
|
T-W-2b
|
***
|
36655
|
Aug-2015
|
1
|
T-W-2b
|
***
|
36656
|
Sep-2015
|
1
|
T-W-2b
|
***
|
36657
|
Oct-2015
|
1
|
T-W-2b
|
***
|
36937
|
Dec-2015
|
1
|
T-W-2b
|
***
|
36941
|
Jan-2016
|
1
|
T-W-2b
|
***
|
36650
|
Feb-2016
|
2
|
T-W-2b
|
***
|
36904, 36932
|
Mar-2016
|
1
|
T-W-2b
|
***
|
36651
|
Apr-2016
|
2
|
T-W-2b
|
***
|
36653, 36938
|
May-2016
|
2
|
T-W-2b
|
***
|
36658, 36939
|
Jun-2016
|
1
|
T-W-2b
|
***
|
36916
|
Jul-2016
|
2
|
T-W-2b
|
***
|
36921, 36945
|
Aug-2016
|
1
|
T-W-2b
|
***
|
36678^
|
Aug-2016
|
1
|
T-W-2b
|
***
|
36661
|
Sep-2016
|
1
|
T-W-2b
|
***
|
36977^
|
Sep-2016
|
1
|
T-W-2b
|
***
|
36923
|
Oct-2016
|
1
|
T-W-2b
|
***
|
36666
|
Nov-2016
|
1
|
T-W-2b
|
***
|
36670
|
SWA - PA No. 1810
APR54184
|
Page 5
|
SA-74
|
Table 2 to Purchase Agreement No. 1810
|
(Letter Agreement No. 6-1162-RLL-933R20)
|
Option Aircraft Information Table
|
Price Description of Option Aircraft:
|
|||||||||
Base Aircraft
|
Special
|
Aircraft Basic
|
|||||||
Price | Features | Price | |||||||
Block U Option Aircraft
|
***
|
***
|
***
|
||||||
(without Winglets)
|
|||||||||
Block U-W Option Aircraft
|
***
|
***
|
***
|
||||||
(with Winglets)
|
|||||||||
Block U-W-1 Option Aircraft
|
***
|
***
|
***
|
||||||
Block U-W-1a Option Aircraft
|
***
|
***
|
***
|
||||||
Delivery of
Purchase Right
Aircraft:
|
Quantity
|
98
|
|||||||
Delivery Period of
Purchase Right
Aircraft:
|
Complete delivery not later than Dec. 31, 2021
|
||||||||
Condition of Offer for
Purchase Right
Aircraft:
|
Subject to Available Position
|
||||||||
SWA - PA1810
|
Page 1
|
SA-74
APR54184-1O
|
Table 2 to Purchase Agreement No. 1810
|
(Letter Agreement No. 6-1162-RLL-933R20)
|
Option Aircraft Information Table
|
Remaining Option Aircraft
|
37
|
Aircraft
|
Number of
|
Option
|
Adv Payment Base *
|
|
Delivery
|
Option
|
Aircraft
|
Price Per
|
|
Mo. & Yr.
|
Aircraft
|
Block
|
Option Aircraft
|
Option Exercise
|
Mar-2013
|
1
|
U-W-1a
|
***
|
November 1, 2011
|
Apr-2013
|
2
|
U-W-1a
|
***
|
December 1, 2011
|
May-2013
|
1
|
U-W-1a
|
***
|
January 1, 2012
|
Sep-2013
|
1
|
U-W-1a
|
***
|
May 1, 2012
|
Oct-2013
|
1
|
U-W-1a
|
***
|
June 1, 2012
|
Apr-2014
|
1
|
U-W-1a
|
***
|
December 1, 2012
|
Sep-2014
|
2
|
U-W-1a
|
***
|
May 1, 2013
|
Oct-2014
|
1
|
U-W-1a
|
***
|
June 1, 2013
|
Nov-2014
|
1
|
U-W-1a
|
***
|
July 1, 2013
|
Dec-2014
|
1
|
U-W-1a
|
***
|
August 1, 2013
|
Nov-2015
|
1
|
U-W-1a
|
***
|
July 1, 2014
|
Jan-2016
|
1
|
U-W-1a
|
***
|
September 1, 2014
|
Jun-2016
|
1
|
U-W-1a
|
***
|
February 1, 2015
|
Aug-2016
|
1
|
U-W-1a
|
***
|
April 1, 2015
|
Sep-2016
|
1
|
U-W-1a
|
***
|
May 1, 2015
|
Oct-2016
|
1
|
U-W-1a
|
***
|
June 1, 2015
|
Nov-2016
|
1
|
U-W-1a
|
***
|
July 1, 2015
|
Dec-2016
|
1
|
U-W-1a
|
***
|
August 1, 2015
|
Jan-2017
|
1
|
U-W-1a
|
***
|
September 1, 2015
|
Feb-2017
|
1
|
U-W-1a
|
***
|
October 1, 2015
|
Mar-2017
|
1
|
U-W-1a
|
***
|
November 1, 2015
|
Apr-2017
|
1
|
U-W-1a
|
***
|
December 1, 2015
|
May-2017
|
1
|
U-W-1a
|
***
|
January 1, 2016
|
Jun-2017
|
1
|
U-W-1a
|
***
|
February 1, 2016
|
Jul-2017
|
1
|
U-W-1a
|
***
|
March 1, 2016
|
Aug-2017
|
2
|
U-W-1a
|
***
|
April 1, 2016
|
Sep-2017
|
2
|
U-W-1a
|
***
|
May 1, 2016
|
Oct-2017
|
2
|
U-W-1a
|
***
|
June 1, 2016
|
Nov-2017
|
2
|
U-W-1a
|
***
|
July 1, 2016
|
Dec-2017
|
2
|
U-W-1a
|
***
|
August 1, 2016
|
Total
|
37
|
* Advance Payment Base Price for Option Aircraft scheduled for delivery 2011-2018 is based on 4th Qtr 2009 forecast
|
||||
By:
|
/s/ Gary C. Kelly
|
|
Gary C. Kelly
|
||
Chief Executive Officer
|
||
By:
|
/s/ Laura H. Wright
|
Laura H. Wright
|
|
Chief Financial Officer
|
|
By:
|
/s/ Gary C. Kelly
|
Gary C. Kelly
|
|
Chief Executive Officer
|
|
By:
|
/s/ Laura H. Wright
|
Laura H. Wright
|
|
Chief Financial Officer
|
|