☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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or
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ________ to ________
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Texas
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74-1563240
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(State or other jurisdiction of
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(IRS Employer
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incorporation or organization)
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Identification No.)
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P.O. Box 36611
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Dallas,
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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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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock ($1.00 par value)
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LUV
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New York Stock Exchange
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Large accelerated filer
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x
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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Item 1.
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Business
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Year
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Cost
(Millions)
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Average
Cost Per
Gallon
|
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Percentage of
Operating
Expenses
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|||||
2009
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$
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3,193
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$
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2.22
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31.2
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%
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2010
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$
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3,755
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$
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2.61
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33.4
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%
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2011
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$
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5,751
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$
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3.25
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38.2
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%
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2012
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$
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6,156
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$
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3.32
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37.3
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%
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2013
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$
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5,823
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$
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3.19
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35.3
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%
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2014
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$
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5,355
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$
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2.97
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32.6
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%
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2015
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$
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3,740
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$
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1.96
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23.6
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%
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2016
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$
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3,801
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$
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1.90
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22.7
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%
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2017
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$
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4,076
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$
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1.99
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23.0
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%
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2018
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$
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4,616
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$
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2.20
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24.6
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%
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2019
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$
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4,347
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$
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2.09
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22.3
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%
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First Quarter 2019
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$
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1,015
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$
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2.05
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21.9
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%
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Second Quarter 2019
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$
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1,136
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$
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2.13
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23.0
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%
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Third Quarter 2019
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$
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1,090
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$
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2.07
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22.6
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%
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Fourth Quarter 2019
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$
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1,105
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$
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2.09
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21.8
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%
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Year ended December 31,
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||||||||
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2019
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2018
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2017
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2016
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2015
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Available seat miles per fuel gallon consumed
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75.7
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76.3
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75.2
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74.4
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73.9
|
•
|
"Wanna Get Away" fares are generally the lowest fares and are typically subject to advance purchase requirements. They are nonrefundable, but, subject to Southwest's No Show Policy, funds may be applied towards future travel on Southwest. Wanna Get Away fares earn six Rapid Rewards® points, under Southwest's Rapid Rewards loyalty program, for each dollar spent on the base fare. The Company's loyalty program is discussed below under "Rapid Rewards Loyalty Program."
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•
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"Anytime" fares are, subject to Southwest's No Show Policy, refundable if canceled, or funds may be applied towards future travel on Southwest. If this fare is purchased with nonrefundable funds, then the funds will be nonrefundable if travel is canceled. Anytime fares earn 10 Rapid Rewards points for each dollar spent on the base fare.
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•
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"Business Select" fares are, subject to Southwest's No Show Policy, refundable if canceled, or funds may be applied towards future travel on Southwest. If this fare is purchased with nonrefundable funds, then the funds will be nonrefundable if travel is canceled. Business Select fares also include additional perks such as priority boarding with a boarding position in the first 15 boarding positions within boarding group "A," 12 Rapid Rewards points per dollar spent on the base fare - the highest loyalty point multiplier of all Southwest fare products, "Fly By®" priority security and/or ticket counter access in participating airports, and one complimentary premium beverage coupon for the day of travel (Customers must be of legal drinking age to drink alcoholic beverages).
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•
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the DOT has been given the authority to impose triple the maximum fines for damages to passengers' wheelchairs or other mobility aids, as well as for injury to passengers with disabilities;
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•
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the DOT has been directed to implement a rulemaking to require air carriers to promptly provide a refund for any ancillary fee paid for services a passenger does not receive; and
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•
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the Reauthorization Act makes it an unfair and deceptive practice to involuntarily deplane a revenue passenger onboard an aircraft if that passenger is traveling on a confirmed reservation and is checked-in for the relevant flight prior to the applicable check-in deadline.
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•
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introduced the MAX aircraft into the Company's fleet, which is more fuel-efficient and releases fewer CO2 emissions than the Company's other aircraft;
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•
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installation of blended winglets, which reduce drag and increase fuel efficiency, on all aircraft in the Company's fleet;
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•
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upgrading of the Company's 737-800 fleet with designed, split scimitar winglets;
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•
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periodic engine washes;
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•
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use of electric ground power for aircraft air and power at the gate and for ground support equipment at select locations;
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•
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deployment of auto-throttle and vertical navigation to maintain optimum cruising speeds;
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•
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implementation of engine start procedures to support the Company's single engine taxi procedures;
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•
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adjustment of the timing of auxiliary power unit starts on originating flights to reduce auxiliary power unit usage;
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•
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implementation of fuel planning initiatives to safely reduce loading of excess fuel;
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•
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aircraft cabin interior retrofitting to reduce weight;
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•
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reduction of aircraft engine idle speed while on the ground, which also increases engine life;
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•
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galley refreshes with dry goods weight reduction;
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•
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Company-optimized routes (flying the best wind routes to take advantage of tailwinds or to minimize headwinds);
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•
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improvements in flight planning algorithms to better match the Company's aircraft flight management system and thereby enable the Company to fly at the most efficient altitudes;
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•
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substitution of Pilot and Flight Attendant flight bags with lighter Electronic Flight Bag tablets; and
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•
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implementation of Real Time Descent Winds (automatic uplinking of up-to-date wind data to the aircraft, allowing crews to time the descent to minimize thrust inputs).
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Employee Group
|
Approximate Number of Employees
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Representatives
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Status of Agreement
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Southwest Pilots
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9,300
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Southwest Airlines Pilots' Association ("SWAPA")
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Amendable September 2020
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Southwest Flight Attendants
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16,000
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Transportation Workers of America, AFL-CIO, Local 556 ("TWU 556")
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In negotiations
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Southwest Ramp, Operations, Provisioning, Freight Agents
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13,800
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Transportation Workers of America, AFL-CIO, Local 555 ("TWU 555")
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Amendable February 2021
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Southwest Customer Service Agents, Customer Representatives, and Source of Support Representatives
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7,200
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International Association of Machinists and Aerospace Workers, AFL-CIO ("IAM 142")
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In negotiations
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Southwest Material Specialists (formerly known as Stock Clerks)
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300
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International Brotherhood of Teamsters, Local 19 ("IBT 19")
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Amendable April 2024
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Southwest Mechanics
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2,600
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Aircraft Mechanics Fraternal Association ("AMFA")
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Amendable August 2024
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Southwest Aircraft Appearance Technicians
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200
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AMFA
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Amendable November 2020
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Southwest Facilities Maintenance Technicians
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40
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AMFA
|
Amendable November 2022
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Southwest Dispatchers
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400
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Transportation Workers of America, AFL-CIO, Local 550 ("TWU 550")
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In negotiations
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Southwest Flight Simulator Technicians
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50
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International Brotherhood of Teamsters ("IBT")
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Amendable May 2024
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Southwest Flight Crew Training Instructors
|
130
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Transportation Workers of America, AFL-CIO, Local 557 ("TWU 557")
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In negotiations
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Southwest Meteorologists
|
10
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TWU 550
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In negotiations
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•
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increases in airport rates and charges;
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•
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limitations on airport gate capacity or use of other airport facilities such as the annual reallocation of capacity at John Wayne Airport in Orange County, California, which has caused the Company to reduce service at that airport in each of the last several years;
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•
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limitations on route authorities;
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•
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actions and decisions that create difficulties in obtaining access at slot-controlled airports (a "slot" is the right of an air carrier, pursuant to regulations of the FAA, to operate a takeoff or landing at a specific time at certain airports);
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•
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actions and decisions that create difficulties in obtaining operating permits and approvals;
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•
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changes to environmental regulations;
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•
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new or increased taxes or fees;
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•
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changes to laws that affect the services that can be offered by airlines in particular markets and at particular airports;
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•
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restrictions on competitive practices;
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•
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changes in laws that increase costs for safety, security, compliance, or other Customer Service standards;
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•
|
changes in laws that may limit the Company's ability to enter into fuel derivative contracts to hedge against increases in fuel prices;
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•
|
changes in laws that may limit or regulate the Company's ability to promote the Company’s business or fares;
|
•
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airspace closures or restrictions;
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•
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grounding of commercial air traffic by the FAA; and
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•
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the adoption of more restrictive locally-imposed noise regulations.
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•
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adverse weather and natural disasters such as the weather-related disruptions in fourth quarter 2019, which resulted in approximately 2,100 canceled flights;
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•
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changes in consumer preferences, perceptions, spending patterns, or demographic trends (including, without limitation, changes in travel patterns due to government shutdowns or sequestration);
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•
|
actual or potential disruptions in the air traffic control system (including, for example, as a result of inadequate FAA staffing levels due to government shutdowns or sequestration);
|
•
|
actual or perceived delays at various airports resulting from government shutdowns (including, for example, longer wait-times at TSA checkpoints due to inadequate TSA staffing levels);
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•
|
changes in the competitive environment due to industry consolidation, industry bankruptcies, and other factors;
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•
|
delays in deliveries of new aircraft (including, without limitation, due to FAA groundings of certain aircraft types or due to the closure of the FAA's aircraft registry during government shutdowns);
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•
|
outbreaks of disease; and
|
•
|
actual or threatened war, terrorist attacks, government travel warnings to certain destinations, travel restrictions, and political instability.
|
Type
|
|
Seats
|
|
Average
Age
(Yrs)
|
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Number of
Aircraft
|
|
Number
Owned (a)
|
|
Number
Leased
|
||||
737-700
|
|
143
|
|
15
|
|
|
506
|
|
|
394
|
|
|
112
|
|
737-800
|
|
175
|
|
4
|
|
|
207
|
|
|
200
|
|
|
7
|
|
737 MAX 8
|
|
175
|
|
2
|
|
|
34
|
|
|
31
|
|
|
3
|
|
Totals
|
|
|
|
12
|
|
|
747
|
|
|
625
|
|
|
122
|
|
(a)
|
As discussed further in Note 6 to the Consolidated Financial Statements, 96 of the Company's aircraft were pledged as collateral as of December 31, 2019, for secured borrowings and/or in the case that the Company has obligations related to its fuel derivative instruments with counterparties that exceed certain thresholds.
|
|
The Boeing Company
|
|
|
|
|
||||||
|
MAX 7
Firm Orders |
|
MAX 8
Firm Orders |
|
Additional MAX 8s
|
|
Total
|
||||
2019 Contractual Deliveries
|
7
|
|
|
20
|
|
|
13
|
|
|
40
|
|
2020 Contractual Deliveries
|
—
|
|
|
35
|
|
|
3
|
|
|
38
|
|
2020 Contractual Total
|
7
|
|
|
55
|
|
|
16
|
|
|
78
|
|
Item 4.
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Mine Safety Disclosures
|
Name
|
Position
|
Age
|
Gary C. Kelly
|
Chairman of the Board & Chief Executive Officer
|
64
|
Thomas M. Nealon
|
President
|
58
|
Michael G. Van de Ven
|
Chief Operating Officer
|
58
|
Robert E. Jordan
|
Executive Vice President Corporate Services
|
59
|
Tammy Romo
|
Executive Vice President & Chief Financial Officer
|
57
|
Mark R. Shaw
|
Executive Vice President & Chief Legal & Regulatory Officer
|
57
|
Andrew M. Watterson
|
Executive Vice President & Chief Commercial Officer
|
53
|
Gregory D. Wells
|
Executive Vice President Daily Operations
|
61
|
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2019
|
||||||||||||
Southwest Airlines Co.
|
|
$
|
100
|
|
|
$
|
102
|
|
|
$
|
120
|
|
|
$
|
158
|
|
|
$
|
114
|
|
|
$
|
134
|
|
S&P 500
|
|
$
|
100
|
|
|
$
|
101
|
|
|
$
|
113
|
|
|
$
|
138
|
|
|
$
|
132
|
|
|
$
|
174
|
|
NYSE ARCA Airline
|
|
$
|
100
|
|
|
$
|
85
|
|
|
$
|
109
|
|
|
$
|
116
|
|
|
$
|
91
|
|
|
$
|
112
|
|
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
|
|
||||||
October 1, 2019 through
October 31, 2019
|
|
2,019,792
|
|
|
$
|
—
|
|
(2)
|
2,019,792
|
|
|
$
|
1,900,051,674
|
|
|
November 1, 2019 through
November 30, 2019
|
|
—
|
|
|
$
|
—
|
|
(3)
|
—
|
|
|
$
|
1,350,051,674
|
|
|
December 1, 2019 through
December 31, 2019
|
|
7,276,275
|
|
|
$
|
—
|
|
(3)
|
7,276,275
|
|
|
$
|
1,350,051,674
|
|
|
Total
|
|
9,296,067
|
|
|
|
|
9,296,067
|
|
|
|
|
(1)
|
On May 16, 2018, the Company's Board of Directors authorized the repurchase of up to $2.0 billion of the Company's common stock. On May 15, 2019, the Company’s Board of Directors authorized the repurchase of up to $2.0 billion of the Company’s common stock in a new share repurchase authorization, upon the completion of the May 2018 share repurchase authorization. Repurchases are made in accordance with applicable securities laws in open market or private, including accelerated, repurchase transactions from time to time, depending on market conditions, and may be discontinued at any time.
|
(2)
|
Under an accelerated share repurchase program entered into by the Company with a third party financial institution in third quarter 2019 (the “Third Quarter 2019 ASR Program”), the Company paid $500 million and received an initial delivery of 7,471,534 shares during August 2019, representing an estimated 75 percent of the shares to be purchased by the Company under the Third Quarter 2019 ASR Program based on a volume-weighted average price of $50.1905 per share of the Company’s common stock on the NYSE during a calculation period between July 30, 2019 and August 20, 2019. Final settlement of the Third Quarter 2019 ASR Program occurred in October 2019 and was determined based generally on a discount to the volume-weighted average price per share of the Company's common stock during a calculation period completed in October 2019. Upon settlement, the third party financial institution delivered 2,019,792 additional shares of the Company’s common stock to the Company. In total, the average purchase price per share for the 9,491,326 shares repurchased under the Third Quarter 2019 ASR Program, upon completion of the Third Quarter 2019 ASR Program in October 2019, was $52.6797.
|
(3)
|
Under an accelerated share repurchase program entered into by the Company with a third party financial institution in fourth quarter 2019 (the "Fourth Quarter 2019 ASR Program"), the Company paid $550 million and received an initial delivery of 7,276,275 shares during December 2019, representing an estimated 75 percent of the shares to be purchased by the Company under the Fourth Quarter 2019 ASR Program based on a volume-weighted average price of $56.6911 per share of the Company’s common stock on the NYSE during a calculation period between November 13, 2019 and December 11, 2019. The third party financial institution delivered an additional 1,835,017 shares to the Company in further partial settlements of the Fourth Quarter 2019 ASR Program in January 2020, which was determined based generally on a discount to the volume-weighted average price per share of the Company's common stock during calculation periods completed in January 2020. The specific number of shares that the Company ultimately will repurchase under the Fourth Quarter 2019 ASR Program will be determined based generally on a discount to the volume-weighted average price per share of the Company’s common stock during a calculation period to be completed no later than February 13, 2020. At settlement, under certain circumstances, the third party financial institution may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the third party financial institution.
|
|
|
Year ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Financial Data (in millions, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
|
$
|
22,428
|
|
|
$
|
21,965
|
|
|
$
|
21,146
|
|
|
$
|
20,289
|
|
|
$
|
19,820
|
|
Operating expenses
|
|
19,471
|
|
|
18,759
|
|
|
17,739
|
|
|
16,767
|
|
|
15,821
|
|
|||||
Operating income
|
|
2,957
|
|
|
3,206
|
|
|
3,407
|
|
|
3,522
|
|
|
3,999
|
|
|||||
Other expenses (income) net
|
|
—
|
|
|
42
|
|
|
142
|
|
|
72
|
|
|
520
|
|
|||||
Income before taxes
|
|
2,957
|
|
|
3,164
|
|
|
3,265
|
|
|
3,450
|
|
|
3,479
|
|
|||||
Provision (benefit) for income taxes
|
|
657
|
|
|
699
|
|
|
(92
|
)
|
|
1,267
|
|
|
1,298
|
|
|||||
Net income
|
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
$
|
3,357
|
|
|
$
|
2,183
|
|
|
$
|
2,181
|
|
Net income per share, basic
|
|
$
|
4.28
|
|
|
$
|
4.30
|
|
|
$
|
5.58
|
|
|
$
|
3.48
|
|
|
$
|
3.30
|
|
Net income per share, diluted
|
|
$
|
4.27
|
|
|
$
|
4.29
|
|
|
$
|
5.57
|
|
|
$
|
3.45
|
|
|
$
|
3.27
|
|
Cash dividends per common share
|
|
$
|
0.700
|
|
|
$
|
0.605
|
|
|
$
|
0.475
|
|
|
$
|
0.375
|
|
|
$
|
0.285
|
|
Total assets at period-end
|
|
$
|
25,895
|
|
|
$
|
26,243
|
|
|
$
|
25,110
|
|
|
$
|
23,286
|
|
|
$
|
21,312
|
|
Long-term obligations at period-end
|
|
$
|
1,846
|
|
|
$
|
2,771
|
|
|
$
|
3,320
|
|
|
$
|
2,821
|
|
|
$
|
2,541
|
|
Stockholders’ equity at period-end
|
|
$
|
9,832
|
|
|
$
|
9,853
|
|
|
$
|
9,641
|
|
|
$
|
7,784
|
|
|
$
|
7,358
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue passengers carried (000s)
|
|
134,056
|
|
|
134,890
|
|
|
130,256
|
|
|
124,720
|
|
|
118,171
|
|
|||||
Enplaned passengers (000s)
|
|
162,681
|
|
|
163,606
|
|
|
157,677
|
|
|
151,740
|
|
|
144,575
|
|
|||||
Revenue passenger miles (RPMs) (in millions)(a)
|
|
131,345
|
|
|
133,322
|
|
|
129,041
|
|
|
124,798
|
|
|
117,500
|
|
|||||
Available seat miles (ASMs) (in millions)(b)
|
|
157,254
|
|
|
159,795
|
|
|
153,811
|
|
|
148,522
|
|
|
140,501
|
|
|||||
Load factor(c)
|
|
83.5
|
%
|
|
83.4
|
%
|
|
83.9
|
%
|
|
84.0
|
%
|
|
83.6
|
%
|
|||||
Average length of passenger haul (miles)
|
|
980
|
|
|
988
|
|
|
991
|
|
|
1,001
|
|
|
994
|
|
|||||
Average aircraft stage length (miles)
|
|
748
|
|
|
757
|
|
|
754
|
|
|
760
|
|
|
750
|
|
|||||
Trips flown
|
|
1,367,727
|
|
|
1,375,030
|
|
|
1,347,893
|
|
|
1,311,149
|
|
|
1,267,358
|
|
|||||
Seats flown (000s)(d)
|
|
206,390
|
|
|
207,223
|
|
|
200,879
|
|
|
193,168
|
|
|
184,955
|
|
|||||
Seats per trip(e)
|
|
150.9
|
|
|
150.7
|
|
|
149.0
|
|
|
147.3
|
|
|
145.9
|
|
|||||
Average passenger fare
|
|
$
|
154.98
|
|
|
$
|
151.64
|
|
|
$
|
151.73
|
|
|
$
|
152.89
|
|
|
$
|
154.85
|
|
Passenger revenue yield per RPM (cents)(f)
|
|
15.82
|
|
|
15.34
|
|
|
15.32
|
|
|
15.28
|
|
|
15.57
|
|
|||||
Operating revenues per ASM (cents)(g)(j)
|
|
14.26
|
|
|
13.75
|
|
|
13.75
|
|
|
13.66
|
|
|
13.98
|
|
|||||
Passenger revenue per ASM (cents)(h)
|
|
13.21
|
|
|
12.80
|
|
|
12.85
|
|
|
12.84
|
|
|
13.02
|
|
|||||
Operating expenses per ASM (cents)(i)
|
|
12.38
|
|
|
11.74
|
|
|
11.53
|
|
|
11.29
|
|
|
11.26
|
|
|||||
Operating expenses per ASM, excluding fuel (cents)
|
|
9.62
|
|
|
8.85
|
|
|
8.88
|
|
|
8.73
|
|
|
8.60
|
|
|||||
Operating expenses per ASM, excluding fuel and profitsharing (cents)
|
|
9.19
|
|
|
8.51
|
|
|
8.53
|
|
|
8.34
|
|
|
8.16
|
|
|||||
Fuel costs per gallon, including fuel tax
|
|
$
|
2.09
|
|
|
$
|
2.20
|
|
|
$
|
1.99
|
|
|
$
|
1.90
|
|
|
$
|
1.96
|
|
Fuel costs per gallon, including fuel tax, economic
|
|
$
|
2.09
|
|
|
$
|
2.20
|
|
|
$
|
2.06
|
|
|
$
|
2.00
|
|
|
$
|
2.13
|
|
Fuel consumed, in gallons (millions)
|
|
2,077
|
|
|
2,094
|
|
|
2,045
|
|
|
1,996
|
|
|
1,901
|
|
|||||
Active fulltime equivalent Employees
|
|
60,767
|
|
|
58,803
|
|
|
56,110
|
|
|
53,536
|
|
|
49,583
|
|
|||||
Aircraft at end of period
|
|
747
|
|
|
750
|
|
|
706
|
|
|
723
|
|
|
704
|
|
(a)
|
A revenue passenger mile is one paying passenger flown one mile. Also referred to as "traffic," which is a measure of demand for a given period.
|
(b)
|
An available seat mile is one seat (empty or full) flown one mile. Also referred to as "capacity," which is a measure of the space available to carry passengers in a given period.
|
(c)
|
Revenue passenger miles divided by available seat miles.
|
(d)
|
Seats flown is calculated using total number of seats available by aircraft type multiplied by the total trips flown by the same aircraft type during a particular period.
|
(e)
|
Seats per trip is calculated by dividing seats flown by trips flown.
|
(f)
|
Calculated as passenger revenue divided by revenue passenger miles. Also referred to as "yield," this is the average cost paid by a paying passenger to fly one mile, which is a measure of revenue production and fares.
|
(g)
|
Calculated as operating revenues divided by available seat miles. Also referred to as "operating unit revenues" or "RASM," this is a measure of operating revenue production based on the total available seat miles flown during a particular period.
|
(h)
|
Calculated as passenger revenue divided by available seat miles. Also referred to as "passenger unit revenues," this is a measure of passenger revenue production based on the total available seat miles flown during a particular period.
|
(i)
|
Calculated as operating expenses divided by available seat miles. Also referred to as "unit costs" or "cost per available seat mile," this is the average cost to fly an aircraft seat (empty or full) one mile, which is a measure of cost efficiencies.
|
(j)
|
Year ended 2015 RASM excludes a $172 million one-time special revenue adjustment in July 2015 as a result of the Company's amendment of its co-branded credit card agreement with Chase Bank USA, N.A. and the resulting required change in accounting methodology. Including the special revenue adjustment, RASM would have been 14.11 cents for the year ended 2015.
|
|
|
Year ended
|
|
|
||||||
(in millions, except per share amounts)
|
|
December 31,
|
|
|
||||||
GAAP
|
|
2019
|
|
2018
|
|
Percent Change
|
||||
Operating income
|
|
$
|
2,957
|
|
|
$
|
3,206
|
|
|
(7.8)
|
Net income
|
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
(6.7)
|
Net income per share, diluted
|
|
$
|
4.27
|
|
|
$
|
4.29
|
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP
|
|
|
|
|
|
|
||||
Operating income
|
|
$
|
2,957
|
|
|
$
|
3,167
|
|
|
(6.6)
|
Net income
|
|
$
|
2,300
|
|
|
$
|
2,435
|
|
|
(5.5)
|
Net income per share, diluted
|
|
$
|
4.27
|
|
|
$
|
4.24
|
|
|
0.7
|
•
|
The Company's Mechanics and Related Employees, represented by Aircraft Mechanics Fraternal Association, ratified a new collective-bargaining agreement with the Company. The newly ratified contract becomes amendable in August 2024.
|
•
|
The Company's Flight Simulator Technicians, represented by International Brotherhood of Teamsters, ratified a new collective-bargaining agreement with the Company. The newly ratified contract becomes amendable in May 2024.
|
•
|
The Company's Material Specialists, represented by International Brotherhood of Teamsters Local 19, ratified a new collective-bargaining agreement with the Company. The newly ratified contract becomes amendable in April 2024.
|
|
Year ended December 31,
|
|
Per ASM
|
|
Percent
|
|||||||||
(in cents, except for percentages)
|
2019
|
|
2018
|
|
change
|
|
change
|
|||||||
Salaries, wages, and benefits
|
|
5.27
|
¢
|
|
|
4.79
|
¢
|
|
|
0.48
|
¢
|
|
10.0
|
%
|
Fuel and oil
|
2.76
|
|
|
2.89
|
|
|
(0.13
|
)
|
|
(4.5
|
)
|
|||
Maintenance materials and repairs
|
0.78
|
|
|
0.69
|
|
|
0.09
|
|
|
13.0
|
|
|||
Landing fees and airport rentals
|
0.87
|
|
|
0.83
|
|
|
0.04
|
|
|
4.8
|
|
|||
Depreciation and amortization
|
0.78
|
|
|
0.75
|
|
|
0.03
|
|
|
4.0
|
|
|||
Other operating expenses
|
1.92
|
|
|
1.79
|
|
|
0.13
|
|
|
7.3
|
|
|||
Total
|
|
12.38
|
¢
|
|
|
11.74
|
¢
|
|
|
0.64
|
¢
|
|
5.5
|
%
|
Employee Group
|
Approximate Number of Employees
|
Representatives
|
Amendable Date
|
Southwest Flight Attendants
|
16,000
|
Transportation Workers of America, AFL-CIO, Local 556 ("TWU 556")
|
November 2018
|
Southwest Customer Service Agents, Customer Representatives, and Source of Support Representatives
|
7,200
|
International Association of Machinists and Aerospace Workers, AFL-CIO ("IAM 142")
|
December 2018
|
Southwest Dispatchers
|
400
|
Transportation Workers of America, AFL-CIO, Local 550 ("TWU 550")
|
June 2019
|
Southwest Flight Crew Training Instructors
|
130
|
Transportation Workers of America, AFL-CIO, Local 557 ("TWU 557")
|
January 2020
|
Southwest Meteorologists
|
10
|
TWU 550
|
June 2019
|
Period
|
Maximum percent of estimated fuel consumption covered by fuel derivative contracts at varying West Texas Intermediate/Brent Crude Oil, Heating Oil, and Gulf Coast Jet Fuel-equivalent price levels (a)
|
||||
2020
|
59%
|
||||
2021
|
54%
|
||||
2022
|
31%
|
||||
Beyond 2022
|
less than 5%
|
Year
|
|
Fair value of fuel
derivative contracts
at December 31, 2019
|
|
Amount of losses deferred
in AOCI at December 31,
2019 (net of tax)
|
||||
2020
|
|
$
|
48
|
|
|
$
|
(36
|
)
|
2021
|
|
33
|
|
|
(43
|
)
|
||
2022
|
|
27
|
|
|
(17
|
)
|
||
Beyond 2022
|
|
2
|
|
|
—
|
|
||
Total
|
|
$
|
110
|
|
|
$
|
(96
|
)
|
|
Estimated economic fuel price per gallon, including taxes and fuel hedging premiums (e)
|
|||
Average Brent Crude Oil
price per barrel
|
First Quarter 2020 (c)
|
Full Year 2020 (d)
|
||
$55
|
$1.85 - $1.95
|
$1.80 - $1.90
|
||
$60
|
$1.95 - $2.05
|
$1.95 - $2.05
|
||
Current Market (a)
|
$2.05 - $2.15
|
$2.00 - $2.10
|
||
$70
|
$2.15 - $2.25
|
$2.20 - $2.30
|
||
$80
|
$2.25 - $2.35
|
$2.35 - $2.45
|
||
$90
|
$2.35 - $2.45
|
$2.50 - $2.60
|
||
Estimated fuel hedging premium expense per gallon (b)
|
$0.05
|
$0.04
|
|
Year ended December 31,
|
|
Percent
|
|||||||
|
2019
|
|
2018
|
|
Change
|
|||||
Fuel and oil expense, unhedged
|
$
|
4,299
|
|
|
$
|
4,649
|
|
|
|
|
Add: Premium cost of fuel contracts
|
95
|
|
|
135
|
|
|
|
|||
Deduct: Fuel hedge gains included in Fuel and oil expense, net
|
(47
|
)
|
|
(168
|
)
|
|
|
|||
Fuel and oil expense, as reported
|
$
|
4,347
|
|
|
$
|
4,616
|
|
|
|
|
Add: Contracts settling in the current period, but for which the impact has been recognized in a prior period (a)
|
—
|
|
|
14
|
|
|
|
|||
Fuel and oil expense, excluding special items (economic)
|
$
|
4,347
|
|
|
$
|
4,630
|
|
|
(6.1
|
)%
|
|
|
|
|
|
|
|||||
Total operating expenses, as reported
|
$
|
19,471
|
|
|
$
|
18,759
|
|
|
|
|
Add: Contracts settling in the current period, but for which the impact has been recognized in a prior period (a)
|
—
|
|
|
14
|
|
|
|
|||
Add: Gain on sale of retired Boeing 737-300 aircraft
|
—
|
|
|
25
|
|
|
|
|||
Total operating expenses, excluding special items
|
$
|
19,471
|
|
|
$
|
18,798
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|||||
Operating income, as reported
|
$
|
2,957
|
|
|
$
|
3,206
|
|
|
|
|
Deduct: Contracts settling in the current period, but for which the impact has been recognized in a prior period (a)
|
—
|
|
|
(14
|
)
|
|
|
|||
Deduct: Gain on sale of retired Boeing 737-300 aircraft
|
—
|
|
|
(25
|
)
|
|
|
|||
Operating income, excluding special items
|
$
|
2,957
|
|
|
$
|
3,167
|
|
|
(6.6
|
)%
|
|
|
|
|
|
|
|||||
Net income, as reported
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
|
|
Deduct: Contracts settling in the current period, but for which the impact has been recognized in a prior period (a)
|
—
|
|
|
(14
|
)
|
|
|
|||
Deduct: Gain on sale of retired Boeing 737-300 aircraft
|
—
|
|
|
(25
|
)
|
|
|
|||
Add: Net income tax impact of special items (b)
|
—
|
|
|
9
|
|
|
|
|||
Net income, excluding special items
|
$
|
2,300
|
|
|
$
|
2,435
|
|
|
(5.5
|
)%
|
|
|
|
|
|
|
|||||
Net income per share, diluted, as reported
|
$
|
4.27
|
|
|
$
|
4.29
|
|
|
|
|
Deduct: Impact from fuel contracts
|
—
|
|
|
(0.02
|
)
|
|
|
|||
Deduct: Impact of special items
|
—
|
|
|
(0.04
|
)
|
|
|
|||
Add: Net income tax impact of special items (b)
|
—
|
|
|
0.01
|
|
|
|
|||
Net income per share, diluted, excluding special items
|
$
|
4.27
|
|
|
$
|
4.24
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|||||
Operating expenses per ASM (cents)
|
|
12.38
|
¢
|
|
|
11.74
|
¢
|
|
|
|
Deduct: Fuel and oil expense divided by ASMs
|
(2.76
|
)
|
|
(2.89
|
)
|
|
|
|||
Add: Impact of special items
|
—
|
|
|
0.02
|
|
|
|
|||
Deduct: Profitsharing expense divided by ASMs
|
(0.43
|
)
|
|
(0.34
|
)
|
|
|
|||
Operating expenses per ASM, excluding Fuel and oil expense, special items, and profitsharing (cents)
|
|
9.19
|
¢
|
|
|
8.53
|
¢
|
|
7.7
|
%
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
||||||
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|
||||||
Operating income, as reported
|
$
|
2,957
|
|
|
$
|
3,206
|
|
|
$
|
3,407
|
|
|
Net impact from fuel contracts
|
—
|
|
|
(14
|
)
|
|
(156
|
)
|
|
|||
Lease termination expense
|
—
|
|
|
—
|
|
|
33
|
|
|
|||
Boeing 737-300 aircraft grounding charge
|
—
|
|
|
—
|
|
|
63
|
|
|
|||
Gain on sale of retired Boeing 737-300 aircraft
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
|||
Operating income, non-GAAP
|
2,957
|
|
|
3,167
|
|
|
3,347
|
|
|
|||
Net adjustment for aircraft leases (a)
|
120
|
|
|
99
|
|
|
110
|
|
|
|||
Adjusted operating income, non-GAAP (A)
|
$
|
3,077
|
|
|
$
|
3,266
|
|
|
$
|
3,457
|
|
|
|
|
|
|
|
|
|
||||||
Non-GAAP tax rate (B)
|
22.2
|
%
|
(d)
|
22.1
|
%
|
(e)
|
36.1
|
%
|
(f)
|
|||
|
|
|
|
|
|
|
||||||
Net operating profit after-tax, NOPAT (A* (1-B) = C)
|
$
|
2,394
|
|
|
$
|
2,545
|
|
|
$
|
2,210
|
|
|
|
|
|
|
|
|
|
||||||
Debt, including finance leases (b)
|
$
|
3,070
|
|
|
$
|
3,521
|
|
|
$
|
3,259
|
|
|
Equity (b)
|
9,869
|
|
|
9,853
|
|
|
8,194
|
|
|
|||
Net present value of aircraft operating leases (b)
|
512
|
|
|
584
|
|
|
785
|
|
|
|||
Average invested capital
|
$
|
13,451
|
|
|
$
|
13,958
|
|
|
$
|
12,238
|
|
|
Equity adjustment for hedge accounting (c)
|
2
|
|
|
(144
|
)
|
|
296
|
|
|
|||
Adjusted average invested capital (D)
|
$
|
13,453
|
|
|
$
|
13,814
|
|
|
$
|
12,534
|
|
|
|
|
|
|
|
|
|
||||||
Non-GAAP ROIC, pre-tax (A/D)
|
22.9
|
%
|
|
23.6
|
%
|
|
27.6
|
%
|
|
|||
|
|
|
|
|
|
|
||||||
Non-GAAP ROIC, after-tax (C/D)
|
17.8
|
%
|
|
18.4
|
%
|
|
17.6
|
%
|
|
1.
|
A gain recognized in first quarter 2018, associated with the sale of 39 Boeing 737-300 ("Classic") aircraft and a number of spare engines to a third party. These aircraft were previously retired as part of the Company's exit of its Classic fleet. The gain was not anticipated, and the Company associates it with the grounding charge recorded in third quarter 2017;
|
2.
|
Lease termination costs recorded as a result of the Company acquiring 13 of its Classic aircraft off operating leases as part of the Company’s strategic effort to remove its Classic aircraft from operations on or before September 29, 2017, in the most economically advantageous manner possible. The Company had not budgeted for these early lease termination costs, as they were subject to negotiations being concluded with the third
|
3.
|
An Aircraft grounding charge recorded in third quarter 2017, as a result of the Company grounding its remaining Classic aircraft on September 29, 2017. The loss was a result of the remaining net lease payments due and certain lease return requirements that could have to be performed on these leased aircraft prior to their return to the lessors as of the cease-use date. The Company had not budgeted for the lease return requirements, as they were subject to negotiation with third party lessors.
|
Share repurchases (in millions)
|
|
Shares received
|
|
Cash paid
|
||
First Quarter 2019 Accelerated Share Repurchase Program
|
|
9.38
|
|
$
|
500
|
|
Second Quarter 2019 Accelerated Share Repurchase Program
|
|
7.82
|
|
400
|
|
|
Third Quarter 2019 Accelerated Share Repurchase Program
|
|
9.49
|
|
500
|
|
|
Fourth Quarter 2019 Accelerated Share Repurchase Program
|
|
9.11
|
(a)
|
550
|
|
|
Open Market Share Repurchases
|
|
0.95
|
|
50
|
|
|
Total
|
|
36.75
|
|
$
|
2,000
|
|
|
|
Obligations by period (in millions)
|
||||||||||||||||||
Contractual obligations
|
|
2020
|
|
2021 - 2022
|
|
2023 - 2024
|
|
Thereafter
|
|
Total
|
||||||||||
Long-term debt (a)
|
|
$
|
734
|
|
|
$
|
480
|
|
|
$
|
43
|
|
|
$
|
776
|
|
|
$
|
2,033
|
|
Interest commitments - fixed (b)
|
|
52
|
|
|
83
|
|
|
53
|
|
|
67
|
|
|
255
|
|
|||||
Interest commitments - floating (c)
|
|
18
|
|
|
8
|
|
|
6
|
|
|
4
|
|
|
36
|
|
|||||
Facility and other operating lease commitments
|
|
107
|
|
|
131
|
|
|
88
|
|
|
580
|
|
|
906
|
|
|||||
Aircraft operating lease commitments (d)
|
|
285
|
|
|
267
|
|
|
117
|
|
|
81
|
|
|
750
|
|
|||||
Aircraft finance lease commitments (e)
|
|
107
|
|
|
200
|
|
|
184
|
|
|
230
|
|
|
721
|
|
|||||
Aircraft purchase commitments (f)
|
|
2,106
|
|
|
2,862
|
|
|
3,495
|
|
|
1,509
|
|
|
9,972
|
|
|||||
Other commitments
|
|
217
|
|
|
227
|
|
|
108
|
|
|
320
|
|
|
872
|
|
|||||
Total contractual obligations
|
|
$
|
3,626
|
|
|
$
|
4,258
|
|
|
$
|
4,094
|
|
|
$
|
3,567
|
|
|
$
|
15,545
|
|
(a)
|
Includes principal only. See Note 6 to the Consolidated Financial Statements for additional information.
|
(b)
|
Related to fixed-rate debt (either at issuance or through swaps) only.
|
(c)
|
Interest obligations associated with floating-rate debt (either at issuance or through swaps) is estimated utilizing forward interest rate curves as of December 31, 2019, and can be subject to significant fluctuation.
|
(d)
|
Includes the impact of the B717 lease/sublease transaction entered into in 2012. See Note 7 to the Consolidated Financial Statements for additional information.
|
(e)
|
Includes principal and interest on finance leases. See Note 7 to the Consolidated Financial Statements for additional information.
|
(f)
|
This reflects firm orders for purchased MAX aircraft from Boeing; shifting the 28 MAX aircraft originally scheduled for delivery in 2019 into 2020 and 2021 as MAX deliveries were suspended as of March 13, 2019, and the timeline of future deliveries is uncertain. The FAA will ultimately determine the timing of the MAX return to service, and the Company therefore offers no assurances that current estimation and timelines of aircraft purchase commitments are correct. See Part I, Item 2 for a complete table of the Company’s contractual firm deliveries.
|
|
|
Estimated useful life
|
|
Estimated
residual value
|
Airframes and engines
|
|
25 years
|
|
15 percent
|
Spare aircraft engines
|
|
25 years
|
|
20 percent
|
Aircraft parts
|
|
Fleet life
|
|
4 percent
|
Ground property and equipment
|
|
5 to 30 years
|
|
0 to 10 percent
|
•
|
Allocation of Passenger Revenue - Revenues from Passengers, related to travel, who also earn Rapid Rewards Points have been allocated between flight (recognized as revenue when transportation is provided) and Rapid Rewards Points (deferred until points are redeemed) based on each obligation’s relative standalone selling price. The Company utilizes historical earning patterns to assist in this allocation.
|
•
|
Fair Value of Rapid Rewards Points - Determined from the base fare value of tickets which were purchased using prior point redemptions for travel and other products and services, which the Company believes to be indicative of the fair value of points as perceived by Customers and representative of the value of each point at the time of redemption. The Company’s booking site allows a Customer to toggle between fares utilizing either cash or point redemptions, which provides the Customer with an approximation of the equivalent value of their points. The value can differ, however, based on demand, the amount of time prior to the flight, and other factors. The fare mix during the period measured represents a constraint, which could result in the assumptions above changing at the measurement date, as fare classes can have different coefficients used to determine the total loyalty points needed to purchase an award ticket. The mixture of these fare classes and changes in the coefficients used by the Company could cause the fair value per point to increase or decrease.
|
(in millions)
|
|
December 31, 2019
|
||
2.75% Notes due 2022
|
|
$
|
300
|
|
3.00% Notes due 2026
|
|
300
|
|
|
7.375% Debentures due 2027
|
|
100
|
|
|
3.45% Notes due 2027
|
|
300
|
|
|
|
Principal
amount
(in millions)
|
|
Effective
fixed rate
|
|
Final
maturity
|
|
Underlying collateral
|
|||
Term Loan Agreement
|
|
$
|
134
|
|
|
5.223
|
%
|
|
5/9/2020
|
|
21 specified Boeing 737-700 aircraft
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,548
|
|
|
$
|
1,854
|
|
Short-term investments
|
1,524
|
|
|
1,835
|
|
||
Accounts and other receivables
|
1,086
|
|
|
568
|
|
||
Inventories of parts and supplies, at cost
|
529
|
|
|
461
|
|
||
Prepaid expenses and other current assets
|
287
|
|
|
310
|
|
||
Total current assets
|
5,974
|
|
|
5,028
|
|
||
|
|
|
|
||||
Property and equipment, at cost:
|
|
|
|
|
|
||
Flight equipment
|
21,629
|
|
|
21,753
|
|
||
Ground property and equipment
|
5,672
|
|
|
4,960
|
|
||
Deposits on flight equipment purchase contracts
|
248
|
|
|
775
|
|
||
Assets constructed for others
|
164
|
|
|
1,768
|
|
||
|
27,713
|
|
|
29,256
|
|
||
Less allowance for depreciation and amortization
|
10,688
|
|
|
9,731
|
|
||
|
17,025
|
|
|
19,525
|
|
||
Goodwill
|
970
|
|
|
970
|
|
||
Operating lease right-of-use assets
|
1,349
|
|
|
—
|
|
||
Other assets
|
577
|
|
|
720
|
|
||
|
$
|
25,895
|
|
|
$
|
26,243
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
1,574
|
|
|
$
|
1,416
|
|
Accrued liabilities
|
1,749
|
|
|
1,749
|
|
||
Current operating lease liabilities
|
353
|
|
|
—
|
|
||
Air traffic liability
|
4,457
|
|
|
4,134
|
|
||
Current maturities of long-term debt
|
819
|
|
|
606
|
|
||
Total current liabilities
|
8,952
|
|
|
7,905
|
|
||
|
|
|
|
||||
Long-term debt less current maturities
|
1,846
|
|
|
2,771
|
|
||
Air traffic liability - noncurrent
|
1,053
|
|
|
936
|
|
||
Deferred income taxes
|
2,364
|
|
|
2,427
|
|
||
Construction obligation
|
164
|
|
|
1,701
|
|
||
Noncurrent operating lease liabilities
|
978
|
|
|
—
|
|
||
Other noncurrent liabilities
|
706
|
|
|
650
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Common stock, $1.00 par value: 2,000,000,000 shares authorized;
807,611,634 shares issued in 2019 and 2018
|
808
|
|
|
808
|
|
||
Capital in excess of par value
|
1,581
|
|
|
1,510
|
|
||
Retained earnings
|
17,945
|
|
|
15,967
|
|
||
Accumulated other comprehensive income (loss)
|
(61
|
)
|
|
20
|
|
||
Treasury stock, at cost: 288,547,318 and 255,008,275 shares
in 2019 and 2018 respectively
|
(10,441
|
)
|
|
(8,452
|
)
|
||
Total stockholders' equity
|
9,832
|
|
|
9,853
|
|
||
|
$
|
25,895
|
|
|
$
|
26,243
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
OPERATING REVENUES:
|
|
|
|
|
|
||||||
Passenger
|
$
|
20,776
|
|
|
$
|
20,455
|
|
|
$
|
19,763
|
|
Freight
|
172
|
|
|
175
|
|
|
173
|
|
|||
Other
|
1,480
|
|
|
1,335
|
|
|
1,210
|
|
|||
Total operating revenues
|
22,428
|
|
|
21,965
|
|
|
21,146
|
|
|||
|
|
|
|
|
|
||||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
||||
Salaries, wages, and benefits
|
8,293
|
|
|
7,649
|
|
|
7,305
|
|
|||
Fuel and oil
|
4,347
|
|
|
4,616
|
|
|
4,076
|
|
|||
Maintenance materials and repairs
|
1,223
|
|
|
1,107
|
|
|
1,001
|
|
|||
Landing fees and airport rentals
|
1,363
|
|
|
1,334
|
|
|
1,292
|
|
|||
Depreciation and amortization
|
1,219
|
|
|
1,201
|
|
|
1,218
|
|
|||
Other operating expenses
|
3,026
|
|
|
2,852
|
|
|
2,847
|
|
|||
Total operating expenses
|
19,471
|
|
|
18,759
|
|
|
17,739
|
|
|||
|
|
|
|
|
|
||||||
OPERATING INCOME
|
2,957
|
|
|
3,206
|
|
|
3,407
|
|
|||
|
|
|
|
|
|
||||||
OTHER EXPENSES (INCOME):
|
|
|
|
|
|
|
|
||||
Interest expense
|
118
|
|
|
131
|
|
|
114
|
|
|||
Capitalized interest
|
(36
|
)
|
|
(38
|
)
|
|
(49
|
)
|
|||
Interest income
|
(90
|
)
|
|
(69
|
)
|
|
(35
|
)
|
|||
Other (gains) losses, net
|
8
|
|
|
18
|
|
|
112
|
|
|||
Total other expenses (income)
|
—
|
|
|
42
|
|
|
142
|
|
|||
|
|
|
|
|
|
||||||
INCOME BEFORE INCOME TAXES
|
2,957
|
|
|
3,164
|
|
|
3,265
|
|
|||
PROVISION (BENEFIT) FOR INCOME TAXES
|
657
|
|
|
699
|
|
|
(92
|
)
|
|||
NET INCOME
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
$
|
3,357
|
|
NET INCOME PER SHARE, BASIC
|
$
|
4.28
|
|
|
$
|
4.30
|
|
|
$
|
5.58
|
|
NET INCOME PER SHARE, DILUTED
|
$
|
4.27
|
|
|
$
|
4.29
|
|
|
$
|
5.57
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
NET INCOME
|
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
$
|
3,357
|
|
Unrealized gain (loss) on fuel derivative instruments, net of
deferred taxes of ($16), ($7), and $185
|
|
(53
|
)
|
|
(26
|
)
|
|
317
|
|
|||
Unrealized gain (loss) on interest rate derivative instruments, net of
deferred taxes of ($8), $1, and $4
|
|
(25
|
)
|
|
6
|
|
|
7
|
|
|||
Unrealized gain (loss) on defined benefit plan items, net of deferred
taxes of ($9), $15, and $2
|
|
(29
|
)
|
|
52
|
|
|
3
|
|
|||
Other, net of deferred taxes of $8, ($2), and $5
|
|
26
|
|
|
(6
|
)
|
|
8
|
|
|||
OTHER COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(81
|
)
|
|
$
|
26
|
|
|
$
|
335
|
|
COMPREHENSIVE INCOME
|
|
$
|
2,219
|
|
|
$
|
2,491
|
|
|
$
|
3,692
|
|
|
|
Year ended December 31, 2019, 2018, and 2017
|
||||||||||||||||||||||
|
|
Common
Stock
|
|
Capital in
excess of
par value
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Treasury
stock
|
|
Total
|
||||||||||||
Balance at December 31, 2016
|
|
$
|
808
|
|
|
$
|
1,410
|
|
|
$
|
10,761
|
|
|
$
|
(323
|
)
|
|
$
|
(4,872
|
)
|
|
$
|
7,784
|
|
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,600
|
)
|
|
(1,600
|
)
|
||||||
Issuance of common and treasury stock pursuant to Employee stock plans
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
14
|
|
||||||
Share-based compensation
|
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
||||||
Cash dividends, $.475 per share
|
|
—
|
|
|
—
|
|
|
(286
|
)
|
|
—
|
|
|
—
|
|
|
(286
|
)
|
||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
3,357
|
|
|
335
|
|
|
—
|
|
|
3,692
|
|
||||||
Balance at December 31, 2017 (as reported)
|
|
$
|
808
|
|
|
$
|
1,451
|
|
|
$
|
13,832
|
|
|
$
|
12
|
|
|
$
|
(6,462
|
)
|
|
$
|
9,641
|
|
Cumulative effect of adopting Accounting Standards Update No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (See Note 2 to the Consolidated Financial Statements for additional information)
|
|
—
|
|
|
—
|
|
|
18
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
||||||
Balance after adjustment for the new accounting standard
|
|
$
|
808
|
|
|
$
|
1,451
|
|
|
$
|
13,850
|
|
|
$
|
(6
|
)
|
|
$
|
(6,462
|
)
|
|
$
|
9,641
|
|
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
|
(2,000
|
)
|
||||||
Issuance of common and treasury stock pursuant to Employee stock plans
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
23
|
|
||||||
Share-based compensation
|
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
||||||
Cash dividends, $.605 per share
|
|
—
|
|
|
—
|
|
|
(348
|
)
|
|
—
|
|
|
—
|
|
|
(348
|
)
|
||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
2,465
|
|
|
26
|
|
|
—
|
|
|
2,491
|
|
||||||
Balance at December 31, 2018 (as reported)
|
|
$
|
808
|
|
|
$
|
1,510
|
|
|
$
|
15,967
|
|
|
$
|
20
|
|
|
$
|
(8,452
|
)
|
|
$
|
9,853
|
|
Cumulative effect of adopting Accounting Standards Update No. 2016-02, Leases, codified in Accounting Standards Codification 842 (See Note 2 to the Consolidated Financial Statements for additional information)
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||||
Balance after adjustment for the new accounting standard
|
|
$
|
808
|
|
|
$
|
1,510
|
|
|
$
|
16,022
|
|
|
$
|
20
|
|
|
$
|
(8,452
|
)
|
|
$
|
9,908
|
|
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
|
(2,000
|
)
|
||||||
Issuance of common and treasury stock pursuant to Employee stock plans
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
27
|
|
||||||
Share-based compensation
|
|
—
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||||
Cash dividends, $.700 per share
|
|
—
|
|
|
—
|
|
|
(377
|
)
|
|
—
|
|
|
—
|
|
|
(377
|
)
|
||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
2,300
|
|
|
(81
|
)
|
|
—
|
|
|
2,219
|
|
||||||
Balance at December 31, 2019
|
|
$
|
808
|
|
|
$
|
1,581
|
|
|
$
|
17,945
|
|
|
$
|
(61
|
)
|
|
$
|
(10,441
|
)
|
|
$
|
9,832
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net income
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
$
|
3,357
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
1,219
|
|
|
1,201
|
|
|
1,218
|
|
|||
Boeing 737-300 aircraft grounding charge
|
—
|
|
|
—
|
|
|
63
|
|
|||
Unrealized/realized gains on fuel derivative instruments
|
—
|
|
|
(14
|
)
|
|
(50
|
)
|
|||
Deferred income taxes
|
(55
|
)
|
|
301
|
|
|
(1,066
|
)
|
|||
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
||||
Accounts and other receivables
|
(94
|
)
|
|
117
|
|
|
(102
|
)
|
|||
Other assets
|
239
|
|
|
(227
|
)
|
|
(262
|
)
|
|||
Accounts payable and accrued liabilities
|
298
|
|
|
545
|
|
|
233
|
|
|||
Air traffic liability
|
440
|
|
|
506
|
|
|
343
|
|
|||
Other liabilities
|
(277
|
)
|
|
—
|
|
|
—
|
|
|||
Cash collateral received from (provided to) derivative counterparties
|
25
|
|
|
(15
|
)
|
|
316
|
|
|||
Other, net
|
(108
|
)
|
|
14
|
|
|
(121
|
)
|
|||
Net cash provided by operating activities
|
3,987
|
|
|
4,893
|
|
|
3,929
|
|
|||
|
|
|
|
|
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Capital expenditures
|
(1,027
|
)
|
|
(1,922
|
)
|
|
(2,123
|
)
|
|||
Supplier proceeds
|
400
|
|
|
—
|
|
|
—
|
|
|||
Assets constructed for others
|
—
|
|
|
(54
|
)
|
|
(126
|
)
|
|||
Purchases of short-term investments
|
(2,122
|
)
|
|
(2,409
|
)
|
|
(2,380
|
)
|
|||
Proceeds from sales of short-term and other investments
|
2,446
|
|
|
2,342
|
|
|
2,221
|
|
|||
Other, net
|
—
|
|
|
5
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(303
|
)
|
|
(2,038
|
)
|
|
(2,408
|
)
|
|||
|
|
|
|
|
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Proceeds from issuance of long-term debt
|
—
|
|
|
—
|
|
|
600
|
|
|||
Proceeds from Employee stock plans
|
40
|
|
|
35
|
|
|
29
|
|
|||
Reimbursement for assets constructed for others
|
—
|
|
|
170
|
|
|
126
|
|
|||
Payments of long-term debt and finance lease obligations
|
(615
|
)
|
|
(342
|
)
|
|
(592
|
)
|
|||
Payments of cash dividends
|
(372
|
)
|
|
(332
|
)
|
|
(274
|
)
|
|||
Repayment of construction obligation
|
—
|
|
|
(30
|
)
|
|
(10
|
)
|
|||
Repurchase of common stock
|
(2,000
|
)
|
|
(2,000
|
)
|
|
(1,600
|
)
|
|||
Other, net
|
(43
|
)
|
|
3
|
|
|
15
|
|
|||
Net cash used in financing activities
|
(2,990
|
)
|
|
(2,496
|
)
|
|
(1,706
|
)
|
|||
|
|
|
|
|
|
|
|
|
|||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
694
|
|
|
359
|
|
|
(185
|
)
|
|||
|
|
|
|
|
|
||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,854
|
|
|
1,495
|
|
|
1,680
|
|
|||
|
|
|
|
|
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
2,548
|
|
|
$
|
1,854
|
|
|
$
|
1,495
|
|
|
|
|
|
|
|
||||||
CASH PAYMENTS FOR:
|
|
|
|
|
|
||||||
Interest, net of amount capitalized
|
$
|
88
|
|
|
$
|
107
|
|
|
$
|
81
|
|
Income taxes
|
$
|
779
|
|
|
$
|
327
|
|
|
$
|
992
|
|
|
|
|
|
|
|
||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:
|
|
|
|
|
|
||||||
Flight equipment under finance leases
|
$
|
1
|
|
|
$
|
32
|
|
|
$
|
233
|
|
Assets constructed for others
|
$
|
65
|
|
|
$
|
171
|
|
|
$
|
197
|
|
Supplier receivables
|
$
|
428
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(in millions, except per share amounts)
|
Year ended December 31, 2017
|
||
Depreciation and amortization expense
|
$
|
21
|
|
Net income *
|
$
|
(19
|
)
|
Net income per basic share
|
$
|
(0.03
|
)
|
Net income per diluted share
|
$
|
(0.03
|
)
|
|
|
|
Year ended December 31, 2019
|
|
Year ended December 31, 2018
|
|||||||||||||
(in millions)
|
Weighted-average useful life (in years)
|
|
Gross carrying
amount
|
|
Accumulated
amortization
|
|
Gross carrying amount
|
|
Accumulated Amortization
|
|||||||||
Customer relationships/marketing agreements
|
12
|
|
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
27
|
|
|
$
|
25
|
|
Owned domestic slots (a)
|
Indefinite
|
|
|
295
|
|
|
n/a
|
|
|
295
|
|
|
n/a
|
|
||||
Gate leasehold rights (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
180
|
|
|
78
|
|
||||
Total
|
12
|
|
|
$
|
309
|
|
|
$
|
13
|
|
|
$
|
502
|
|
|
$
|
103
|
|
|
Balance as of January 1, 2019
|
||||||||||
(in millions)
|
Balances removed under prior accounting
|
|
Balances added under New Lease Standard
|
|
Net impact of New Lease Standard
|
||||||
Prepaid expenses and other current assets
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Flight equipment
|
—
|
|
|
(110
|
)
|
|
(110
|
)
|
|||
Assets constructed for others
|
1,669
|
|
|
—
|
|
|
(1,669
|
)
|
|||
Less allowance for depreciation and amortization
|
(166
|
)
|
|
(2
|
)
|
|
164
|
|
|||
Operating lease right-of-use assets
|
—
|
|
|
1,466
|
|
|
1,466
|
|
|||
Other assets
|
121
|
|
|
—
|
|
|
(121
|
)
|
|||
Total assets
|
$
|
1,625
|
|
|
$
|
1,354
|
|
|
$
|
(271
|
)
|
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
Accrued liabilities
|
37
|
|
|
—
|
|
|
(37
|
)
|
|||
Current operating lease liabilities
|
—
|
|
|
355
|
|
|
355
|
|
|||
Current maturities of long-term debt
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
|||
Long-term debt less current maturities
|
—
|
|
|
(96
|
)
|
|
(96
|
)
|
|||
Deferred income taxes
|
(17
|
)
|
|
—
|
|
|
17
|
|
|||
Construction obligation
|
1,602
|
|
|
—
|
|
|
(1,602
|
)
|
|||
Noncurrent operating lease liabilities
|
—
|
|
|
1,119
|
|
|
1,119
|
|
|||
Other noncurrent liabilities
|
60
|
|
|
—
|
|
|
(60
|
)
|
|||
Retained earnings
|
(65
|
)
|
|
(10
|
)
|
|
55
|
|
|||
Total liabilities and stockholders' equity
|
$
|
1,625
|
|
|
$
|
1,354
|
|
|
$
|
(271
|
)
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
NUMERATOR:
|
|
|
|
|
|
||||||
Net income
|
$
|
2,300
|
|
|
$
|
2,465
|
|
|
$
|
3,357
|
|
|
|
|
|
|
|
||||||
DENOMINATOR:
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding, basic
|
538
|
|
|
573
|
|
|
601
|
|
|||
Dilutive effect of restricted stock units
|
1
|
|
|
1
|
|
|
2
|
|
|||
Adjusted weighted-average shares outstanding, diluted
|
539
|
|
|
574
|
|
|
603
|
|
|||
|
|
|
|
|
|
||||||
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
4.28
|
|
|
$
|
4.30
|
|
|
$
|
5.58
|
|
Diluted
|
$
|
4.27
|
|
|
$
|
4.29
|
|
|
$
|
5.57
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
(in millions)
|
|
ACFO
|
ACFO,
Net (a)
|
Construction Obligation
|
|
ACFO
|
ACFO,
Net (a)
|
Construction Obligation
|
||||||||||||
FLL Terminal
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
313
|
|
$
|
304
|
|
$
|
308
|
|
LAX Terminal 1
|
|
—
|
|
—
|
|
—
|
|
|
485
|
|
459
|
|
476
|
|
||||||
LAX Terminal 1.5
|
(b)
|
164
|
|
164
|
|
164
|
|
|
99
|
|
99
|
|
99
|
|
||||||
LFMP Terminal
|
|
—
|
|
—
|
|
—
|
|
|
545
|
|
460
|
|
502
|
|
||||||
LFMP Parking Garage
|
|
—
|
|
—
|
|
—
|
|
|
200
|
|
200
|
|
200
|
|
||||||
HOU International Terminal
|
(c)
|
—
|
|
—
|
|
—
|
|
|
126
|
|
115
|
|
116
|
|
||||||
|
|
$
|
164
|
|
$
|
164
|
|
$
|
164
|
|
|
$
|
1,768
|
|
$
|
1,637
|
|
$
|
1,701
|
|
|
Year ended December 31,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Passenger non-loyalty
|
$
|
17,578
|
|
|
$
|
17,506
|
|
|
$
|
16,934
|
|
Passenger loyalty - air transportation
|
2,487
|
|
|
2,307
|
|
|
2,263
|
|
|||
Passenger ancillary sold separately
|
711
|
|
|
642
|
|
|
566
|
|
|||
Total passenger revenues
|
$
|
20,776
|
|
|
$
|
20,455
|
|
|
$
|
19,763
|
|
•
|
Allocation of Passenger Revenue - Revenues from Passengers, related to travel, who also earn Rapid Rewards Points have been allocated between flight (recognized as revenue when transportation is provided) and Rapid Rewards Points (deferred until points are redeemed) based on each obligation’s relative standalone selling price. The Company utilizes historical earning patterns to assist in this allocation.
|
•
|
Fair Value of Rapid Rewards Points - Determined from the base fare value of tickets which were purchased using prior point redemptions for travel and other products and services, which the Company believes to be indicative of the fair value of points as perceived by Customers and representative of the value of each point at the time of redemption. The Company’s booking site allows a Customer to toggle between fares utilizing either cash or point redemptions, which provides the Customer with an approximation of the equivalent value of their points. The value can differ, however, based on demand, the amount of time prior to the flight, and other factors. The fare mix during the period measured represents a constraint, which could result in the assumptions above changing at the measurement date, as fare classes can have different coefficients used to determine the total loyalty points needed to purchase an award ticket. The mixture of these fare classes and changes in the coefficients used by the Company could cause the fair value per point to increase or decrease.
|
•
|
Tickets and Rapid Rewards Points - When a flight occurs, the related performance obligation is satisfied and the related value provided by the Customer, whether from purchased tickets or Rapid Rewards Points, is recognized as revenue.
|
•
|
Loyalty points redeemed for goods and/or services other than travel - Rapid Rewards Members have the option to redeem points for goods and services offered through a third party vendor, who acts as principal. The performance obligation related to the purchase of these goods and services is satisfied when the good and/or service is delivered to the Customer.
|
•
|
Marketing Royalties - As part of its Agreement with Chase, Southwest provides certain deliverables, including use of the Southwest Airlines’ brand, access to Rapid Rewards Member lists, advertising elements, and the Company’s resource team. These performance obligations are satisfied each month that the Agreement is active.
|
|
Balance as of
|
||||||
(in millions)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Air traffic liability - passenger travel and ancillary passenger services
|
$
|
2,125
|
|
|
$
|
2,059
|
|
Air traffic liability - loyalty program
|
3,385
|
|
|
3,011
|
|
||
Total Air traffic liability
|
$
|
5,510
|
|
|
$
|
5,070
|
|
|
Year ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Air traffic liability - loyalty program - beginning balance
|
$
|
3,011
|
|
|
$
|
2,667
|
|
Amounts deferred associated with points awarded
|
2,941
|
|
|
2,717
|
|
||
Revenue recognized from points redeemed - Passenger
|
(2,487
|
)
|
|
(2,307
|
)
|
||
Revenue recognized from points redeemed - Other
|
(80
|
)
|
|
(66
|
)
|
||
Air traffic liability - loyalty program - ending balance
|
$
|
3,385
|
|
|
$
|
3,011
|
|
|
Air traffic liability
|
||
Balance at December 31, 2018
|
$
|
5,070
|
|
Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty)
|
21,296
|
|
|
Revenue from amounts included in contract liability opening balances
|
(3,816
|
)
|
|
Revenue from current period sales
|
(17,040
|
)
|
|
Balance at December 31, 2019
|
$
|
5,510
|
|
|
Air traffic liability
|
||
Balance at December 31, 2017
|
$
|
4,565
|
|
Current period sales (passenger travel, ancillary services, flight loyalty, and partner loyalty)
|
21,026
|
|
|
Revenue from amounts included in contract liability opening balances
|
(3,479
|
)
|
|
Revenue from current period sales
|
(17,042
|
)
|
|
Balance at December 31, 2018
|
$
|
5,070
|
|
(in millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
2.75% Notes due November 2019
|
|
$
|
—
|
|
|
$
|
300
|
|
Term Loan Agreement payable through May 2019 - 6.315%
|
|
—
|
|
|
23
|
|
||
Term Loan Agreement payable through July 2019 - 4.84%
|
|
—
|
|
|
10
|
|
||
2.65% Notes due 2020
|
|
500
|
|
|
492
|
|
||
Term Loan Agreement payable through 2020 - 5.223%
|
|
134
|
|
|
187
|
|
||
737 Aircraft Notes payable through 2020
|
|
20
|
|
|
67
|
|
||
2.75% Notes due 2022
|
|
300
|
|
|
300
|
|
||
Pass Through Certificates due 2022 - 6.24%
|
|
197
|
|
|
250
|
|
||
Term Loan Agreement payable through 2026 - 3.03%
|
|
178
|
|
|
197
|
|
||
3.00% Notes due 2026
|
|
300
|
|
|
300
|
|
||
3.45% Notes due 2027
|
|
300
|
|
|
300
|
|
||
7.375% Debentures due 2027
|
|
122
|
|
|
125
|
|
||
Finance leases
|
|
627
|
|
|
845
|
|
||
|
|
$
|
2,678
|
|
|
$
|
3,396
|
|
Less current maturities
|
|
819
|
|
|
606
|
|
||
Less debt discount and issuance costs
|
|
13
|
|
|
19
|
|
||
|
|
$
|
1,846
|
|
|
$
|
2,771
|
|
|
|
|
||
(in millions)
|
Balance Sheet location
|
December 31, 2019
|
||
Assets
|
|
|
||
Operating
|
Operating lease right-of-use assets (net)
|
$
|
1,349
|
|
Finance
|
Property and equipment (net of allowance for depreciation and amortization of $455)
|
779
|
|
|
Total lease assets
|
|
$
|
2,128
|
|
|
|
|
||
Liabilities
|
|
|
||
Current
|
|
|
||
Operating
|
Current operating lease liabilities
|
$
|
353
|
|
Finance
|
Current maturities of long-term debt
|
85
|
|
|
Noncurrent
|
|
|
||
Operating
|
Noncurrent operating lease liabilities
|
978
|
|
|
Finance
|
Long-term debt less current maturities
|
542
|
|
|
Total lease liabilities
|
|
$
|
1,958
|
|
(in millions)
|
Statement of Comprehensive Income location
|
Year ended December 31, 2019
|
||
Operating lease cost - aircraft (a)
|
Other operating expenses
|
$
|
182
|
|
Operating lease cost - other
|
Landing fees and airport rentals, and Other operating expenses
|
89
|
|
|
Short-term lease cost
|
Other operating expenses
|
4
|
|
|
Variable lease cost
|
Landing fees and airport rentals, and Other operating expenses
|
1,377
|
|
|
Finance lease cost:
|
|
|
||
Amortization of lease liabilities
|
Depreciation and amortization
|
116
|
|
|
Interest on lease liabilities
|
Interest expense
|
26
|
|
|
Total net finance lease cost
|
|
$
|
142
|
|
(in millions)
|
Year ended December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows for operating leases
|
$
|
379
|
|
Operating cash flows for finance leases
|
26
|
|
|
Financing cash flows for finance leases
|
85
|
|
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
Operating leases
|
230
|
|
|
Finance leases
|
1
|
|
(in millions)
|
Operating leases
|
|
Finance leases
|
||||
2020
|
$
|
392
|
|
|
$
|
107
|
|
2021
|
257
|
|
|
102
|
|
||
2022
|
141
|
|
|
98
|
|
||
2023
|
113
|
|
|
94
|
|
||
2024
|
92
|
|
|
90
|
|
||
Thereafter
|
661
|
|
|
230
|
|
||
Total lease payments
|
$
|
1,656
|
|
|
$
|
721
|
|
Less imputed interest
|
(325
|
)
|
|
(94
|
)
|
||
Total lease obligations
|
1,331
|
|
|
627
|
|
||
Less current obligations
|
(353
|
)
|
|
(85
|
)
|
||
Long-term lease obligations
|
$
|
978
|
|
|
$
|
542
|
|
(in millions)
|
|
Capital
leases
|
|
Operating
leases
|
|
Subleases
|
|
Operating
leases, net
|
||||||||
2019
|
|
$
|
111
|
|
|
$
|
348
|
|
|
$
|
(92
|
)
|
|
$
|
256
|
|
2020
|
|
109
|
|
|
357
|
|
|
(78
|
)
|
|
279
|
|
||||
2021
|
|
105
|
|
|
244
|
|
|
(41
|
)
|
|
203
|
|
||||
2022
|
|
100
|
|
|
172
|
|
|
(17
|
)
|
|
155
|
|
||||
2023
|
|
97
|
|
|
146
|
|
|
(7
|
)
|
|
139
|
|
||||
Thereafter
|
|
335
|
|
|
474
|
|
|
(1
|
)
|
|
473
|
|
||||
Total minimum lease payments
|
|
$
|
857
|
|
|
$
|
1,741
|
|
|
$
|
(236
|
)
|
|
$
|
1,505
|
|
Less amount representing interest
|
|
126
|
|
|
|
|
|
|
|
|||||||
Present value of minimum lease payments (a)
|
|
731
|
|
|
|
|
|
|
|
|||||||
Less current portion
|
|
85
|
|
|
|
|
|
|
|
|||||||
Long-term portion
|
|
$
|
646
|
|
|
|
|
|
|
|
|
|
All Restricted Stock Units
|
|||||
|
|
Units (000)
|
|
Wtd. Average
Fair Value
(per share)
|
|||
Outstanding December 31, 2016
|
|
1,439
|
|
|
$
|
36.52
|
|
Granted
|
|
717
|
|
(a)
|
52.73
|
|
|
Vested
|
|
(806
|
)
|
|
30.23
|
|
|
Surrendered
|
|
(56
|
)
|
|
43.86
|
|
|
Outstanding December 31, 2017
|
|
1,294
|
|
|
45.32
|
|
|
Granted
|
|
782
|
|
(b)
|
60.80
|
|
|
Vested
|
|
(670
|
)
|
|
45.11
|
|
|
Surrendered
|
|
(64
|
)
|
|
47.05
|
|
|
Outstanding December 31, 2018, Unvested
|
|
1,342
|
|
|
52.56
|
|
|
Granted
|
|
994
|
|
(c)
|
57.49
|
|
|
Vested
|
|
(744
|
)
|
|
42.42
|
|
|
Surrendered
|
|
(47
|
)
|
|
57.72
|
|
|
Outstanding December 31, 2019, Unvested
|
|
1,545
|
|
|
57.65
|
|
|
|
Maximum fuel hedged as of
|
|
|
|
|
|
December 31, 2019
|
|
Derivative underlying commodity type as of
|
|
Period (by year)
|
|
(gallons in millions) (a)
|
|
December 31, 2019
|
|
2020
|
|
1,301
|
|
|
WTI crude oil, Brent crude oil, and Heating oil
|
2021
|
|
1,169
|
|
|
WTI crude and Brent crude oil
|
2022
|
|
603
|
|
|
WTI crude and Brent crude oil
|
Beyond 2022
|
|
32
|
|
|
WTI crude oil
|
Balance Sheet location of hedged item
|
|
Carrying amount of the hedged liabilities
|
|
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a)
|
||||||||||||
|
|
December 31,
|
|
December 31,
|
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Current maturities of long-term debt
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt less current maturities
|
|
—
|
|
|
791
|
|
|
19
|
|
|
11
|
|
||||
|
|
$
|
500
|
|
|
$
|
791
|
|
|
$
|
19
|
|
|
$
|
11
|
|
|
|
Balance Sheet
|
|
December 31,
|
|
December 31,
|
||||
(in millions)
|
|
location
|
|
2019
|
|
2018
|
||||
Cash collateral deposits held from counterparties for fuel contracts - current
|
|
Offset against Prepaid expenses and other current assets
|
|
$
|
10
|
|
|
$
|
—
|
|
Cash collateral deposits held from counterparties for fuel contracts - noncurrent
|
|
Offset against Other assets
|
|
15
|
|
|
—
|
|
|
Counterparty (CP)
|
|
|
||||||||||||||||||||||||
(in millions)
|
A
|
|
B
|
|
C
|
|
D
|
|
E
|
|
Other(a)
|
|
Total
|
||||||||||||||
Fair value of fuel derivatives
|
$
|
22
|
|
|
$
|
16
|
|
|
$
|
36
|
|
|
$
|
12
|
|
|
$
|
8
|
|
|
$
|
16
|
|
|
$
|
110
|
|
Cash collateral held from CP
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||||
Aircraft collateral pledged to CP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Letters of credit (LC)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Option to substitute LC for aircraft
|
(200) to (600)(b)
|
|
N/A
|
|
(150) to (550)(c)
|
|
(150) to (550)(c)
|
|
N/A
|
|
|
|
|
||||||||||||||
Option to substitute LC for cash
|
N/A
|
|
N/A
|
|
(75) to (150) or >(550)(c)
|
|
(125) to (150) or >(550)(d)
|
|
(d)
|
|
|
|
|
||||||||||||||
If credit rating is investment
grade, fair value of fuel
derivative level at which:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash is provided to CP
|
>(100)
|
|
>(50)
|
|
(75) to (150) or >(550)(e)
|
|
(125) to (150) or >(550)(e)
|
|
>(40)
|
|
|
|
|
||||||||||||||
Cash is received from CP
|
>0(e)
|
|
>150(e)
|
|
>250(e)
|
|
>125(e)
|
|
>100(e)
|
|
|
|
|
||||||||||||||
Aircraft or cash can be pledged to
CP as collateral
|
(200) to (600)(f)
|
|
N/A
|
|
(150) to (550)(c)
|
|
(150) to (550)(c)
|
|
N/A
|
|
|
|
|
||||||||||||||
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash is provided to CP
|
(0) to (200) or >(600)
|
|
(g)
|
|
(0) to (150) or >(550)
|
|
(0) to (150) or >(550)
|
|
(g)
|
|
|
|
|
||||||||||||||
Cash is received from CP
|
(g)
|
|
(g)
|
|
(g)
|
|
(g)
|
|
(g)
|
|
|
|
|
||||||||||||||
Aircraft or cash can be pledged to
CP as collateral
|
(200) to (600)
|
|
N/A
|
|
(150) to (550)
|
|
(150) to (550)
|
|
N/A
|
|
|
|
|
|
|
|
|
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, 2019
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets
|
|
(in millions)
|
||||||||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (a)
|
|
$
|
1,999
|
|
|
$
|
1,999
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial paper
|
|
535
|
|
|
—
|
|
|
535
|
|
|
—
|
|
||||
Certificates of deposit
|
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
|
||||||||
Treasury bills
|
|
1,196
|
|
|
1,196
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
|
268
|
|
|
—
|
|
|
268
|
|
|
—
|
|
||||
Time deposits
|
|
60
|
|
|
—
|
|
|
60
|
|
|
—
|
|
||||
Interest rate derivatives (see Note 10)
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Fuel derivatives:
|
|
|
|
|
|
|
|
|
||||||||
Option contracts (b)
|
|
110
|
|
|
—
|
|
|
—
|
|
|
110
|
|
||||
Other available-for-sale securities
|
|
197
|
|
|
197
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
|
$
|
4,381
|
|
|
$
|
3,392
|
|
|
$
|
879
|
|
|
$
|
110
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Interest rate derivatives (see Note 10)
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
Quantitative information about Level 3 fair value measurements
|
||||
|
Valuation technique
|
Unobservable input
|
Period (by year)
|
Range
|
Fuel derivatives
|
Option model
|
Implied volatility
|
2020
|
13-34%
|
|
|
|
2021
|
17-23%
|
|
|
|
2022
|
17-19%
|
|
|
|
Beyond 2022
|
18-19%
|
(in millions)
|
Carrying value
|
|
Estimated fair value
|
|
Fair value level hierarchy
|
||||
2.65% Notes due 2020
|
$
|
500
|
|
|
$
|
503
|
|
|
Level 2
|
Term Loan Agreement payable through 2020 - 5.223%
|
134
|
|
|
134
|
|
|
Level 3
|
||
737 Aircraft Notes payable through 2020
|
20
|
|
|
20
|
|
|
Level 3
|
||
2.75% Notes due 2022
|
300
|
|
|
304
|
|
|
Level 2
|
||
Pass Through Certificates due 2022 - 6.24%
|
197
|
|
|
208
|
|
|
Level 2
|
||
Term Loan Agreement payable through 2026 - 3.03%
|
178
|
|
|
178
|
|
|
Level 3
|
||
3.00% Notes due 2026
|
300
|
|
|
308
|
|
|
Level 2
|
||
3.45% Notes due 2027
|
300
|
|
|
317
|
|
|
Level 2
|
||
7.375% Debentures due 2027
|
122
|
|
|
150
|
|
|
Level 2
|
(in millions)
|
Fuel derivatives
|
|
Interest rate derivatives
|
|
Defined benefit plan items
|
|
Other
|
|
Deferred tax impact
|
|
Accumulated other
comprehensive income (loss) |
||||||||||||
Balance at December 31, 2017
|
$
|
3
|
|
|
$
|
(7
|
)
|
|
$
|
(9
|
)
|
|
$
|
33
|
|
|
$
|
(8
|
)
|
|
$
|
12
|
|
ASU 2017-12 adoption adjustment (a)
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(20
|
)
|
||||||
ASU 2018-02 stranded AOCI adoption adjustment (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Changes in fair value
|
—
|
|
|
1
|
|
|
67
|
|
|
(8
|
)
|
|
(14
|
)
|
|
46
|
|
||||||
Reclassification to earnings
|
(33
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
(20
|
)
|
||||||
Balance at December 31, 2018
|
$
|
(56
|
)
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
25
|
|
|
$
|
(7
|
)
|
|
$
|
20
|
|
Changes in fair value
|
(117
|
)
|
|
(38
|
)
|
|
(38
|
)
|
|
34
|
|
|
37
|
|
|
(122
|
)
|
||||||
Reclassification to earnings
|
48
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
41
|
|
||||||
Balance at December 31, 2019
|
$
|
(125
|
)
|
|
$
|
(33
|
)
|
|
$
|
20
|
|
|
$
|
59
|
|
|
$
|
18
|
|
|
$
|
(61
|
)
|
Year ended December 31, 2019
|
||||||
(in millions)
|
|
Amounts reclassified from AOCI
|
|
Affected line item in the Consolidated Statement of Comprehensive Income
|
||
AOCI components
|
|
|
||||
Unrealized loss on fuel derivative instruments
|
|
$
|
48
|
|
|
Fuel and oil expense
|
|
|
11
|
|
|
Less: Tax expense
|
|
|
|
$
|
37
|
|
|
Net of tax
|
Unrealized loss on interest rate derivative instruments
|
|
$
|
5
|
|
|
Interest expense
|
|
|
1
|
|
|
Less: Tax expense
|
|
|
|
$
|
4
|
|
|
Net of tax
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
41
|
|
|
Net of tax
|
(in millions)
|
|
2019
|
|
2018
|
||||
APBO at beginning of period
|
|
$
|
232
|
|
|
$
|
275
|
|
Service cost
|
|
17
|
|
|
18
|
|
||
Interest cost
|
|
10
|
|
|
9
|
|
||
Benefits paid
|
|
(9
|
)
|
|
(5
|
)
|
||
Actuarial (gain)/loss
|
|
38
|
|
|
(69
|
)
|
||
Plan amendments
|
|
—
|
|
|
4
|
|
||
APBO at end of period
|
|
$
|
288
|
|
|
$
|
232
|
|
(in millions)
|
|
2019
|
|
2018
|
||||
Funded status
|
|
$
|
(288
|
)
|
|
$
|
(232
|
)
|
Unrecognized net actuarial gain
|
|
(24
|
)
|
|
(64
|
)
|
||
Unrecognized prior service cost
|
|
4
|
|
|
5
|
|
||
Accumulated other comprehensive income
|
|
20
|
|
|
59
|
|
||
Cost recognized on Consolidated Balance Sheet
|
|
$
|
(288
|
)
|
|
$
|
(232
|
)
|
(in millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost
|
|
$
|
17
|
|
|
$
|
18
|
|
|
$
|
18
|
|
Interest cost
|
|
10
|
|
|
9
|
|
|
11
|
|
|||
Amortization of prior service cost
|
|
1
|
|
|
3
|
|
|
3
|
|
|||
Amortization of net gain
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Net periodic postretirement benefit cost
|
|
$
|
26
|
|
|
$
|
30
|
|
|
$
|
32
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Weighted-average discount rate
|
|
3.30
|
%
|
|
4.35
|
%
|
|
3.65
|
%
|
Assumed healthcare cost trend rate (a)
|
|
7.13
|
%
|
|
7.13
|
%
|
|
7.08
|
%
|
(a)
|
The assumed healthcare cost trend rate is expected to be 6.79% for 2020, then decline gradually to 5.19% by 2027 and remain level thereafter.
|
(in millions)
|
|
2019
|
|
2018
|
||||
DEFERRED TAX LIABILITIES:
|
|
|
|
|
||||
Accelerated depreciation
|
|
$
|
3,096
|
|
|
$
|
3,395
|
|
Operating lease right-of-use assets
|
|
293
|
|
|
—
|
|
||
Other
|
|
93
|
|
|
92
|
|
||
Total deferred tax liabilities
|
|
3,482
|
|
|
3,487
|
|
||
DEFERRED TAX ASSETS:
|
|
|
|
|
||||
Construction obligation
|
|
38
|
|
|
355
|
|
||
Accrued employee benefits
|
|
346
|
|
|
329
|
|
||
Rapid rewards loyalty liability
|
|
305
|
|
|
267
|
|
||
Operating lease liabilities
|
|
308
|
|
|
—
|
|
||
Other
|
|
121
|
|
|
109
|
|
||
Total deferred tax assets
|
|
1,118
|
|
|
1,060
|
|
||
Net deferred tax liability
|
|
$
|
2,364
|
|
|
$
|
2,427
|
|
(in millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
CURRENT:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
610
|
|
|
$
|
338
|
|
|
$
|
904
|
|
State
|
|
102
|
|
|
60
|
|
|
72
|
|
|||
Total current
|
|
712
|
|
|
398
|
|
|
976
|
|
|||
DEFERRED:
|
|
|
|
|
|
|
||||||
Federal
|
|
(18
|
)
|
|
299
|
|
|
200
|
|
|||
State
|
|
(6
|
)
|
|
2
|
|
|
2
|
|
|||
Change in federal statutory tax rate (a)
|
|
(31
|
)
|
|
—
|
|
|
(1,270
|
)
|
|||
Total deferred
|
|
(55
|
)
|
|
301
|
|
|
(1,068
|
)
|
|||
|
|
$
|
657
|
|
|
$
|
699
|
|
|
$
|
(92
|
)
|
(in millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Tax at statutory U.S. tax rates
|
|
$
|
621
|
|
|
$
|
664
|
|
|
$
|
1,143
|
|
State income taxes, net of federal benefit
|
|
76
|
|
|
49
|
|
|
50
|
|
|||
Change in federal statutory tax rate (a)
|
|
(31
|
)
|
|
—
|
|
|
(1,270
|
)
|
|||
Other, net
|
|
(9
|
)
|
|
(14
|
)
|
|
(15
|
)
|
|||
Total income tax provision (benefit)
|
|
$
|
657
|
|
|
$
|
699
|
|
|
$
|
(92
|
)
|
(in millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Trade receivables
|
|
$
|
53
|
|
|
$
|
57
|
|
Credit card receivables
|
|
112
|
|
|
107
|
|
||
Business partners and other suppliers
|
|
779
|
|
|
319
|
|
||
Income tax receivable
|
|
87
|
|
|
22
|
|
||
Other
|
|
55
|
|
|
63
|
|
||
Accounts and other receivables
|
|
$
|
1,086
|
|
|
$
|
568
|
|
(in millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Derivative contracts
|
|
$
|
49
|
|
|
$
|
95
|
|
Intangible assets, net
|
|
296
|
|
|
400
|
|
||
Finance lease receivable
|
|
—
|
|
|
61
|
|
||
Other
|
|
232
|
|
|
164
|
|
||
Other assets
|
|
$
|
577
|
|
|
$
|
720
|
|
(in millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Accounts payable trade
|
|
$
|
304
|
|
|
$
|
263
|
|
Salaries payable
|
|
231
|
|
|
216
|
|
||
Taxes payable excluding income taxes
|
|
227
|
|
|
220
|
|
||
Aircraft maintenance payable
|
|
162
|
|
|
69
|
|
||
Fuel payable
|
|
129
|
|
|
122
|
|
||
Other payable
|
|
521
|
|
|
526
|
|
||
Accounts payable
|
|
$
|
1,574
|
|
|
$
|
1,416
|
|
(in millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Profitsharing and savings plans
|
|
$
|
695
|
|
|
$
|
580
|
|
Vacation pay
|
|
434
|
|
|
403
|
|
||
Health
|
|
120
|
|
|
107
|
|
||
Workers compensation
|
|
166
|
|
|
166
|
|
||
Property and income taxes
|
|
79
|
|
|
68
|
|
||
Other
|
|
255
|
|
|
425
|
|
||
Accrued liabilities
|
|
$
|
1,749
|
|
|
$
|
1,749
|
|
(in millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Postretirement obligation
|
|
$
|
288
|
|
|
$
|
232
|
|
Other deferred compensation
|
|
313
|
|
|
247
|
|
||
Other
|
|
105
|
|
|
171
|
|
||
Other noncurrent liabilities
|
|
$
|
706
|
|
|
$
|
650
|
|
|
|
Three months ended
|
|
||||||||||||||
(in millions except per share amounts)
|
|
March 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
|
||||||||
2019
|
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
5,149
|
|
|
$
|
5,909
|
|
|
$
|
5,639
|
|
|
$
|
5,729
|
|
|
Operating income
|
|
505
|
|
|
968
|
|
|
819
|
|
|
665
|
|
|
||||
Income before income taxes
|
|
504
|
|
|
968
|
|
|
819
|
|
|
666
|
|
|
||||
Net income
|
|
387
|
|
|
741
|
|
|
659
|
|
|
514
|
|
(a)
|
||||
Net income per share, basic
|
|
0.70
|
|
|
1.37
|
|
|
1.24
|
|
|
0.98
|
|
(a)
|
||||
Net income per share, diluted
|
|
0.70
|
|
|
1.37
|
|
|
1.23
|
|
|
0.98
|
|
(a)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
March 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
4,944
|
|
|
$
|
5,742
|
|
|
$
|
5,575
|
|
|
$
|
5,704
|
|
|
Operating income
|
|
616
|
|
|
972
|
|
|
798
|
|
|
820
|
|
|
||||
Income before income taxes
|
|
602
|
|
|
960
|
|
|
786
|
|
|
817
|
|
|
||||
Net income
|
|
463
|
|
|
733
|
|
|
615
|
|
|
654
|
|
|
||||
Net income per share, basic
|
|
0.79
|
|
|
1.27
|
|
|
1.08
|
|
|
1.17
|
|
|
||||
Net income per share, diluted
|
|
0.79
|
|
|
1.27
|
|
|
1.08
|
|
|
1.17
|
|
|
Plan Category
|
|
Number of Securities
to be Issued Upon
Exercise of
Outstanding
Options,
Warrants, and
Rights
(a)
|
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants, and
Rights
(b)
|
|
|
Number of Securities Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected
in Column (a))
(c)
|
|
|||||||
Equity Compensation Plans Approved by Security Holders
|
|
1,545,172
|
|
(1
|
)
|
|
$
|
—
|
|
(2
|
)
|
|
27,426,634
|
|
(3
|
)
|
Equity Compensation Plans not Approved by Security Holders
|
|
1,800
|
|
|
|
$
|
9.00
|
|
|
|
—
|
|
|
|||
Total
|
|
1,546,972
|
|
|
|
$
|
—
|
|
(2
|
)
|
|
27,426,634
|
|
|
(1)
|
Restricted share units settleable in shares of the Company’s common stock.
|
(2)
|
Restricted share units discussed in footnote (1) above do not have a weighted average exercise price because the restricted share units do not have an exercise price upon vesting.
|
(3)
|
Of these shares, (i) 7,348,212 shares remained available for issuance under the Company’s tax-qualified employee stock purchase plan; and (ii) 20,078,422 shares remained available for issuance under the Company’s 2007 Equity Incentive Plan in connection with the exercise of stock options and stock appreciation rights, the settlement of awards of restricted stock, restricted stock units, and phantom shares, and the grant of unrestricted shares of common stock; however, no more than 1,152,529 shares remain available for grant in connection with awards of unrestricted shares of common stock, stock-settled phantom shares, and awards to non-Employee members of the Board. These shares are in addition to the shares reserved for issuance pursuant to outstanding awards included in column (a).
|
|
|
|
21
|
|
|
|
|
|
23
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
(1)
|
Certain confidential information contained in this agreement has been omitted because it (i) is not material and (ii) would likely cause competitive harm to the Company if publicly disclosed.
|
(2)
|
Management contract or compensatory plan or arrangement.
|
(3)
|
This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.
|
|
SOUTHWEST AIRLINES CO.
|
|
|
|
|
February 3, 2020
|
By
|
/s/ Tammy Romo
|
|
|
|
|
|
Tammy Romo
|
|
|
Executive Vice President & Chief Financial Officer
|
|
|
(On behalf of the Registrant and in
|
|
|
her capacity as Principal Financial
|
|
|
& Accounting Officer)
|
Signature
|
|
Title
|
/s/ GARY C. KELLY
|
|
Chairman of the Board & Chief Executive Officer (Principal Executive Officer)
|
Gary C. Kelly
|
|
|
|
|
|
/s/ TAMMY ROMO
|
|
Executive Vice President & Chief Financial Officer (Principal Financial & Accounting Officer)
|
Tammy Romo
|
|
|
|
|
|
/s/ RON RICKS
|
|
Vice Chairman of the Board
|
Ron Ricks
|
|
|
|
|
|
/s/ DAVID W. BIEGLER
|
|
Director
|
David W. Biegler
|
|
|
|
|
|
/s/ J. VERONICA BIGGINS
|
|
Director
|
J. Veronica Biggins
|
|
|
|
|
|
/s/ DOUGLAS H. BROOKS
|
|
Director
|
Douglas H. Brooks
|
|
|
|
|
|
/s/ WILLIAM H. CUNNINGHAM
|
|
Director
|
William H. Cunningham
|
|
|
|
|
|
/s/ JOHN G. DENISON
|
|
Director
|
John G. Denison
|
|
|
|
|
|
/s/ THOMAS W. GILLIGAN
|
|
Director
|
Thomas W. Gilligan
|
|
|
|
|
|
/s/ GRACE D. LIEBLEIN
|
|
Director
|
Grace D. Lieblein
|
|
|
|
|
|
/s/ NANCY B. LOEFFLER
|
|
Director
|
Nancy B. Loeffler
|
|
|
|
|
|
/s/ JOHN T. MONTFORD
|
|
Director
|
John T. Montford
|
|
|
|
•
|
|
cumulative voting in the election of our board of directors, which would otherwise allow less than a majority of shareholders to elect director candidates, is prohibited under our certificate of formation;
|
|
•
|
|
our board of directors fixes the size of the board of directors, may create new directorships and may appoint new directors to serve in such newly-created positions until the next election of one or more directors by our shareholders;
|
|
•
|
|
our board of directors may amend or repeal our bylaws, or adopt new bylaws, unless (a) such power is reserved exclusively to our shareholders in whole or part by our certificate of formation or the laws of Texas or (b) our shareholders in amending, repealing or adopting a particular bylaw have expressly provided that our board of directors may not amend or repeal that bylaw;
|
|
•
|
|
all shareholder actions must be taken at a regular or special meeting of our shareholders and cannot be taken by written consent without a meeting;
|
|
•
|
|
we have advance notice procedures with respect to shareholder proposals and the nomination of candidates for election as directors;
|
|
•
|
|
our directors may be removed only for cause, by vote of the holders of a majority of the shares then entitled to vote for the election of directors; and
|
|
•
|
|
unless we consent in writing to the selection of an alternative forum, the United States District Court for the Northern District of Texas or, if such court lacks jurisdiction, the state district court of Dallas County, Texas, shall, to the fullest extent permitted by applicable law, be the sole and exclusive forum for certain types of actions or proceedings.
|
|
|
|
Supplemental Agreement No. 11
|
|
to
|
|
Purchase Agreement No. 03729
|
|
between
|
|
THE BOEING COMPANY
|
|
and
|
|
SOUTHWEST AIRLINES CO.
|
|
Relating to Boeing Model 737-8 and 737-7 Aircraft
|
RECITALS:
|
1.
|
TABLE OF CONTENTS.
|
SWA-PA-03729
|
1
|
SA-11
|
|
BOEING PROPRIETARY
|
|
|
|
|
EXECUTED IN DUPLICATE as of the day and year first above written.
|
|
|
|
THE BOEING COMPANY
|
SOUTHWEST AIRLINES CO.
|
|
|
|
|
By: /s/ Kyle Kersavage
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By: /s/ Chris Monroe
|
|
Chris Monroe
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Its: Attorney-In-Fact
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Its: SVP, Finance
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SWA-PA-03729
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2
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SA-11
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BOEING PROPRIETARY
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TABLE OF CONTENTS
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ARTICLES
|
TITLES
|
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Article 1
|
Quantity, Model and Description
|
SA-2
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Article 2
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Delivery Schedule
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Article 3
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Price
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Article 4
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Payment
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SA-2
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Article 5
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Additional Terms
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TABLE
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TITLE
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1A
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737-8 Aircraft Information Table
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SA-11
|
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1B
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737-7 Aircraft Information Table
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SA-8
|
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EXHIBIT
|
||
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A1
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737-8 Aircraft Configuration
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SA-11
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A2
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737-7 Aircraft Configuration
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SA-8
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B*
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Aircraft Delivery Requirements and Responsibilities
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SUPPLEMENTAL EXHIBITS
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TITLES
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|
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AE1*
|
Escalation Adjustment/Airframe and Optional Features
|
|
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BFE1
|
BFE Variables for 737-8
|
SA-7
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BFE2
|
BFE Variables for 737-7
|
SA-8
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CS1
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Customer Support Variables
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CS1-7MAX
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Customer Support Variables
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SA-2
|
|
|
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EE1*
|
Engine Escalation/Engine Warranty and Patent Indemnity
|
|
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SLP1*
|
Service Life Policy Components
|
LETTER AGREEMENTS
|
TITLES
|
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SWA-PA-03729-LA-1106463R3
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Open Matters
|
SA-8
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SWA-PA-03729
|
|
SA-11
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BOEING PROPRIETARY
|
Page 1
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LETTER AGREEMENTS
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TITLES
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|
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SWA-PA-03729-LA-1106464*
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[***]
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SWA-PA-03729-LA-1106465*
|
[***]
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SWA-PA-03729-LA-1106466
|
[***]
|
|
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SWA-PA-03729-LA-1106467R2
|
[***]
|
SA-8
|
|
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SWA-PA-03729-LA-1106468*
|
[***]
|
|
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SWA-PA-03729-LA-1106469R1
|
[***]
|
SA-2
|
|
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SWA-PA-03729-LA-1106470R1
|
[***]
|
SA-2
|
|
|
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SWA-PA-03729-LA-1106471R1
|
Substitute Aircraft
|
SA-2
|
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SWA-PA-03729-LA-1106473R1
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[***]
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SA-5
|
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SWA-PA-03729-LA-1106474R2
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Option Aircraft
|
SA-8
|
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Attachment 1
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SA-10
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SWA-PA-03729-LA-1106475R3
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[***]
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SA-8
|
|
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SWA-PA-03729-LA-1106476R2
|
[***]
|
SA-8
|
|
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SWA-PA-03729-LA-1106477*
|
[***]
|
|
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SWA-PA-03729-LA-1106478
|
[***]
|
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SWA-PA-03729-LA-1106479R1
|
[***]
|
SA-2
|
|
|
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SWA-PA-03729-LA-1106480R1
|
[***]
|
SA-2
|
|
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SWA-PA-03729-LA-1106481R2
|
[***]
|
SA-2
|
|
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SWA-PA-03729-LA-1106482*
|
[***]
|
|
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SWA-PA-03729-LA-1106483*
|
[***]
|
|
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SWA-PA-03729-LA-1106484R1
|
[***]
|
SA-8
|
|
Attachment A
|
SA-8
|
|
Attachment B
|
SA-8
|
|
|
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SWA-PA-03729-LA-1106485*
|
[***]
|
|
|
|
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SWA-PA-03729-LA-1209080
|
[***]
|
SA-1
|
|
|
|
SWA-PA-03729
|
|
SA-11
|
|
BOEING PROPRIETARY
|
Page 2
|
LETTER AGREEMENTS
|
TITLES
|
|
|
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SWA-PA-03729-LA-1210419
|
[***]
|
|
|
|
SA-1
|
|
|
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SWA-PA-03729-LA-1300943
|
[***]
|
SA-2
|
|
|
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SWA-PA-03729-LA-1301168R3
|
[***]
|
SA-6
|
|
|
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SWA-PA-03729-LA-1301170R2
|
[***]
|
SA-8
|
|
|
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SWA-PA-03729-LA-1400371
|
[***]
|
SA-7
|
|
|
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SASWA-PA-03729-LA-1503792
|
Service Ready Operational Validation
|
SA-6
|
|
|
|
SWA-PA-03729-LA-1500831
|
[***]
|
SA-7
|
|
|
|
SWA‑PA‑03729‑LA‑1602486
|
[***]
|
SA-5
|
SWA-PA-03729
|
|
SA-11
|
|
BOEING PROPRIETARY
|
Page 3
|
Letter Agreement
|
Title
|
Last Updated under SA
|
Current Status
|
SWA-PA-03729-LA- 1106472R1
|
[***]
|
SA-2
|
Deleted under SA-4
|
SWA-PA- 01810/03729-LA- 1301169
|
[***]
|
SA-2
|
Deleted under SA-4
|
SWA-PA-03729
|
|
SA-11
|
|
BOEING PROPRIETARY
|
Page 4
|
Airframe Model/MTOW:
|
737-8
|
181,200 pounds
|
|
Detail Specification:
|
|
D019A008-P (5/1/2017)
|
|
|
|
Engine Model/Thrust:
|
CFMLEAP-1B28(2)
|
28,800 pounds
|
|
Airframe Price Base Year/Escalation Formula:
|
|
Jul-11
|
|
ECI-MFG/CPI
|
|
Airframe Price:
|
|
[***]
|
|
Engine Price Base Year/Escalation Formula:
|
|
N/A
|
|
N/A
|
|
Optional Features:
|
|
[***]
|
|
|
|
|
|
|
|
Sub-Total of Airframe and Features:
|
|
[***]
|
|
Airframe Escalation Data:
|
|
|
|
|
|
Engine Price (Per Aircraft):
|
|
[***]
|
|
Base Year Index (ECI):
|
|
|
[***]
|
|
|
Aircraft Basic Price (Excluding BFE/SPE):
|
|
[***]
|
|
Base Year Index (CPI
|
|
|
[***]
|
|
|
Buyer Furnished Equipment (BFE) Estimate:
|
|
[***]
|
|
|
|
|
|
|
|
Seller Purchased Equipment (SPE) Estimate:
|
|
[***]
|
|
|
|
|
|
|
|
Delivery
Date*
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Manufacturer
Serial
Number**
|
Escalation
Factor
|
Aircraft
Block
|
Notes
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
[***]
|
24 Mos.
[***]
|
21/18/12/9/6 Mos.
[***]
|
Total
[***]
|
||||||||
Jul-2017
|
1
|
[***]
|
36929†
|
[***]
|
A
|
Note 1
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2017
|
2
|
[***]
|
42558†, 42559†
|
[***]
|
C
|
Note 1
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2017
|
3
|
[***]
|
36979, 36930, 36984
|
[***]
|
A
|
Note 1
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2017
|
3
|
[***]
|
42563, 42566†, 42567
|
[***]
|
C
|
Note 1
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2017
|
1
|
[***]
|
36934
|
[***]
|
A
|
Note 1
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2017
|
1
|
[***]
|
42544
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2017
|
1
|
[***]
|
42570
|
[***]
|
C
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2017
|
1
|
[***]
|
36988†
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2017
|
1
|
[***]
|
42554†
|
[***]
|
C
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2018
|
1
|
[***]
|
36989†
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2018
|
1
|
[***]
|
42571
|
[***]
|
C
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2018
|
1
|
[***]
|
42546
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2018
|
1
|
[***]
|
42572
|
[***]
|
C
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2018
|
1
|
[***]
|
42547
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2018
|
1
|
[***]
|
42556†
|
[***]
|
C
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2018
|
3
|
[***]
|
42548, 37019, 42549
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2018
|
1
|
[***]
|
42574
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2018
|
1
|
[***]
|
42575
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2018
|
2
|
[***]
|
42573, 42576
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2018
|
1
|
[***]
|
42577
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2018
|
4
|
[***]
|
37042, 42550, 42551, 37043
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2019
|
1
|
[***]
|
42633
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2019
|
2
|
[***]
|
65437, 65436
|
[***]
|
E OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2019
|
3
|
[***]
|
42634, 42637, 42641
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2019
|
2
|
[***]
|
65471, 65438
|
[***]
|
E OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2019
|
4
|
[***]
|
42646, 42647, 42661, 42662
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2019
|
1
|
[***]
|
65439
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2019
|
1
|
[***]
|
65440
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Delivery
Date*
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Manufacturer
Serial
Number**
|
Escalation
Factor
|
Aircraft
Block
|
Notes
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
[***]
|
24 Mos.
[***]
|
21/18/12/9/6 Mos.
[***]
|
Total
[***]
|
||||||||
Nov-2019
|
1
|
[***]
|
42664
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2019
|
1
|
[***]
|
42536
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2019
|
1
|
[***]
|
65473
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2019
|
1
|
[***]
|
42666
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2019
|
1
|
[***]
|
36722
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2019
|
1
|
[***]
|
42537
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2020
|
1
|
[***]
|
36727
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2020
|
2
|
[***]
|
42579, 42580
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2020
|
1
|
[***]
|
42539
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2020
|
1
|
[***]
|
65441
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2020
|
1
|
[***]
|
42669
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2020
|
1
|
[***]
|
42553
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2020
|
1
|
[***]
|
35970
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2020
|
1
|
[***]
|
42607
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2020
|
1
|
[***]
|
65442
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2020
|
1
|
[***]
|
42665
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2020
|
1
|
[***]
|
42540
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2020
|
2
|
[***]
|
65443, 65444
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2020
|
2
|
[***]
|
42672, 42673
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2020
|
1
|
[***]
|
42541
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2020
|
2
|
[***]
|
65445, 65446
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2020
|
3
|
[***]
|
42691, 42674, 42694
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2020
|
1
|
[***]
|
33941
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2020
|
3
|
[***]
|
65447, 65448, 65472
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2020
|
1
|
[***]
|
42615
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2020
|
1
|
[***]
|
42543
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2020
|
1
|
[***]
|
65474
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2020
|
2
|
[***]
|
42697, 42699
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2020
|
1
|
[***]
|
36733
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2020
|
1
|
[***]
|
65475
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2020
|
1
|
[***]
|
42703
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2020
|
1
|
[***]
|
33940
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2021
|
1
|
[***]
|
35974
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2021
|
1
|
[***]
|
65450
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2021
|
1
|
[***]
|
65449
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2021
|
1
|
[***]
|
65451
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2021
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2021
|
1
|
[***]
|
42648
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Delivery
Date*
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Manufacturer
Serial
Number**
|
Escalation
Factor
|
Aircraft
Block
|
Notes
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
[***]
|
24 Mos.
[***]
|
21/18/12/9/6 Mos.
[***]
|
Total
[***]
|
||||||||
Mar-2021
|
1
|
[***]
|
65452
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2021
|
3
|
[***]
|
42649, 42650, 42651
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2021
|
1
|
[***]
|
65454
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2021
|
1
|
[***]
|
65453
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2021
|
3
|
[***]
|
42652, 42653, 42654
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2021
|
1
|
[***]
|
65455
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2021
|
1
|
[***]
|
65456
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2021
|
3
|
[***]
|
42655, 42656, 42670
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2021
|
1
|
[***]
|
65457
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2021
|
3
|
[***]
|
42657, 42658, 42671
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2021
|
1
|
[***]
|
65460
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2021
|
2
|
[***]
|
65459, 65458
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2021
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2021
|
1
|
[***]
|
65461
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2021
|
4
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2021
|
2
|
[***]
|
65463, 65462
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2021
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2021
|
1
|
[***]
|
65466
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2021
|
2
|
[***]
|
65465, 65464
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2021
|
1
|
[***]
|
65467
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2021
|
1
|
[***]
|
65468
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2021
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2022
|
1
|
[***]
|
65469
|
[***]
|
D OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2022
|
1
|
[***]
|
65470
|
[***]
|
OPEX
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2022
|
2
|
[***]
|
42678, 42679
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2022
|
3
|
[***]
|
42680, 42681, 42688
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2022
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2022
|
3
|
[***]
|
42682, 42683, 42684
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2022
|
3
|
[***]
|
42685, 42686, 42687
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2022
|
2
|
[***]
|
42689, 42690
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2022
|
3
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2022
|
2
|
[***]
|
42693, 42695
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2022
|
3
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2022
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2022
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2023
|
2
|
[***]
|
42560, 42565
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2023
|
2
|
[***]
|
42562, 42564
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Delivery
Date*
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Manufacturer
Serial
Number**
|
Escalation
Factor
|
Aircraft
Block
|
Notes
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
[***]
|
24 Mos.
[***]
|
21/18/12/9/6 Mos.
[***]
|
Total
[***]
|
||||||||
Mar-2023
|
1
|
[***]
|
42557
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2023
|
1
|
[***]
|
36732
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2023
|
1
|
[***]
|
42555
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2023
|
1
|
[***]
|
38806
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2023
|
2
|
[***]
|
42594, 42568
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2023
|
1
|
[***]
|
42581
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2023
|
1
|
[***]
|
37034
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2023
|
2
|
[***]
|
42597, 42582
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2023
|
1
|
[***]
|
42593
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2023
|
1
|
[***]
|
42552
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2023
|
2
|
[***]
|
42601, 42578
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2023
|
1
|
[***]
|
42605
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2023
|
1
|
[***]
|
42538
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2023
|
1
|
[***]
|
38815
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2023
|
1
|
[***]
|
42583
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2024
|
3
|
[***]
|
42611, 42584, 42585
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2024
|
3
|
[***]
|
42612, 42596, 42599
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2024
|
3
|
[***]
|
38817, 35968, 35972
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2024
|
2
|
[***]
|
42617, 42606
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2024
|
1
|
[***]
|
36736
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2024
|
3
|
[***]
|
42619, 42622, 42608
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2024
|
1
|
[***]
|
42610
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2024
|
1
|
[***]
|
42542
|
[***]
|
A
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2024
|
2
|
[***]
|
35963, 35967
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2024
|
2
|
[***]
|
42624, 42626
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2024
|
1
|
[***]
|
42630
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2024
|
1
|
[***]
|
36730
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2024
|
2
|
[***]
|
42625, 42636
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2024
|
1
|
[***]
|
42639
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2024
|
1
|
[***]
|
35971
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2024
|
2
|
[***]
|
42628, 42640
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2024
|
1
|
[***]
|
35975
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2025
|
2
|
[***]
|
38804, 38805
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jan-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2025
|
1
|
[***]
|
42643
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2025
|
1
|
[***]
|
36729
|
[***]
|
B
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Feb-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Mar-2025
|
2
|
[***]
|
42644, 42645
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Delivery
Date*
|
Number of
Aircraft
|
Escalation
Factor
(Airframe)
|
Manufacturer
Serial
Number**
|
Escalation
Factor
|
Aircraft
Block
|
Notes
|
Escalation Estimate
Adv Payment Base
Price Per A/P
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||
At Signing
[***]
|
24 Mos.
[***]
|
21/18/12/9/6 Mos.
[***]
|
Total
[***]
|
||||||||
Mar-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2025
|
2
|
[***]
|
42659, 42660
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Apr-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2025
|
1
|
[***]
|
42663
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
May-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2025
|
1
|
[***]
|
42667
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jun-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2025
|
1
|
[***]
|
42668
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Jul-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2025
|
1
|
[***]
|
42675
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Aug-2025
|
2
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2025
|
2
|
[***]
|
42676, 42677
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Sep-2025
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2025
|
2
|
[***]
|
42692, 42696
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Oct-2025
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2025
|
2
|
[***]
|
42698, 42700
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Nov-2025
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2025
|
2
|
[***]
|
42701, 42702
|
[***]
|
|
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Dec-2025
|
1
|
[***]
|
|
[***]
|
OPEX
|
Note 3
|
[***]
|
[***]
|
[***]
|
[***]
|
[***]
|
Total:
|
|
250
|
|
|
SA-11
|
SWA-PA-03729 107813 / 108198 / 108732
|
|
Page 5
|
|
Boeing Proprietary
|
|
|
|
|
|
|
|
|
|
|
737-8 AIRCRAFT CONFIGURATION
|
|
between
|
|
THE BOEING COMPANY
|
|
and
|
|
SOUTHWEST AIRLINES CO.
|
|
Exhibit A1 to Purchase Agreement Number PA-03729
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 1
|
|
|
|
|
|
|
|
|
|
Exhibit A1
|
|
737-8 AIRCRAFT CONFIGURATION
|
|
Dated December 13, 2011
|
|
relating to
|
|
BOEING MODEL 737-8 AIRCRAFT
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 2
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
0110-000030
|
MAJOR MODEL 737 AIRPLANE
|
[***]
|
[***]
|
[***]
|
0110E131A08
|
MINOR MODEL 737-8 AIRPLANE
|
[***]
|
[***]
|
[***]
|
0170B401A73
|
CLIMATE - NORMAL WEATHER OPERATIONS
|
[***]
|
[***]
|
[***]
|
0170B871A31
|
GALLEY AFT COMPLEX - G4B GALLEY - DOMED AFT BULKHEAD (BASELINE)
|
[***]
|
[***]
|
[***]
|
0170C204A96
|
CARGO LINERS- HEAVY DUTY - FORWARD
|
[***]
|
[***]
|
[***]
|
0170C204A99
|
CARGO LINERS- HEAVY DUTY- AFT
|
[***]
|
[***]
|
[***]
|
0170C430H07
|
PC - FLIGHT DECK - ROLLER SUNSHADES - DELETION - NUMBER 2 AND 3 WINDOWS - FLIGHT DECK - SFE
|
[***]
|
[***]
|
[***]
|
0170C939A02
|
COMMUNICATIONS - BASIC COMMUNICATIONS CONFIGURATION WITH HF
|
[***]
|
[***]
|
[***]
|
0170D347B33
|
LAVATORY AFT COMPLEX - TWO ADVANCED LAVATORIES WITH TWO DOUBLE ATTENDANT SEATS
|
[***]
|
[***]
|
[***]
|
0170D360B56
|
PC - LAVATORY AFT COMPLEX - TWO LAVATORIES WITH TWO DOUBLE ATTENDANT SEATS, NO CURTAIN AND UNIQUE HANDSET FACEPLATE DISPLAY - BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
0170D387A08
|
AVIONICS - DUAL FMC WITH MULTI-CONTROL DISPLAY UNIT
|
[***]
|
[***]
|
[***]
|
0170D837A13
|
FLEXIBLE CERTIFICATION
|
[***]
|
[***]
|
[***]
|
0170E173B00
|
FLIGHT DECK - TWO OBSERVERS
|
[***]
|
[***]
|
[***]
|
0170E656A04
|
AIRFRAME - 737-8
|
[***]
|
[***]
|
[***]
|
0220E684A09
|
TYPE CERTIFICATE & CERTIFICATE OF AIRWORTHINESS
|
[***]
|
[***]
|
[***]
|
0221A609B52
|
DISPATCH WITH GEAR EXTENDED FOR REVENUE FLIGHT
|
[***]
|
[***]
|
[***]
|
0221B463A04
|
MP-CERT. OF TAKEOFF & LANDING WITH 15 KNOT TAILWIND
|
[***]
|
[***]
|
[***]
|
0221E029A02
|
SKID-RESISTANT RUNWAY TAKEOFF WITH ANTISKID SYSTEM INOPERATIVE
|
[***]
|
[***]
|
[***]
|
0222E052A08
|
SHORT FIELD PERFORMANCE ENHANCEMENT: INSTALLATION OF TWO POSITION TAIL SKID
|
[***]
|
[***]
|
[***]
|
0226B694H86
|
MP - GNSS LANDING SYSTEM (GLS) - CATEGORY I APPROACH CAPABILITY - ACTIVATION - IN LIEU OF PARTIAL PROVISIONS
|
[***]
|
[***]
|
[***]
|
0226C594A28
|
GNSS LANDING SYSTEM (GLS) - CATEGORY I APPROACH CAPABILITY- PARTIAL PROVISIONS
|
[***]
|
[***]
|
[***]
|
0226E437D67
|
MP- GNSS LANDING SYSTEM (GLS) - CHANGE INCORP- CATEGORY I APPROACH CAPABILITY - ACTIVATION - IN LIEU OF PARTIAL PROVISIONS
|
[***]
|
[***]
|
[***]
|
0228E437A74
|
AIRPLANE FLIGHT MANUAL
|
[***]
|
[***]
|
[***]
|
0252A541A02
|
ENGLISH UNITS FOR FLIGHT AND OPERATIONS MANUALS, CDS
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 3
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
|
INDICATIONS, AND FMCS PARAMETERS - CELSIUS TEMPERATURE
|
|
|
|
0254-000003
|
USPHS CERTIFICATE OF SANITARY CONSTRUCTION
|
[***]
|
[***]
|
[***]
|
0315E684A03
|
CERTIFIED OPERATIONAL WEIGHTS AND STRUCTURAL DESIGN WEIGHTS
|
[***]
|
[***]
|
[***]
|
1110E559D06
|
EXTERIOR NON-REGULATORY MARKINGS
|
[***]
|
[***]
|
[***]
|
1110E624B44
|
EXTERIOR REGULATORY MARKINGS AND COLOR SCHEME
|
[***]
|
[***]
|
[***]
|
1130E559D12
|
CARGO COMPARTMENT PLACARDS
|
[***]
|
[***]
|
[***]
|
1130E559D13
|
LIGHTED SIGNS - BI-LINGUAL SPANISH/ENGLISH
|
[***]
|
[***]
|
[***]
|
1130E559D15
|
INTERIOR PLACARDS AND MARKERS - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2103E437E01
|
MP - AC HEAT EXCHANGER OUTLET TEMPERATURE MONITORING SENSOR - INSTALLATION
|
[***]
|
[***]
|
[***]
|
2103E437E14
|
MP - AC HEAT EXCHANGER OUTLET TEMPERATURE MONITORING SENSOR - CHANGE INCORP - INSTALLATION
|
[***]
|
[***]
|
[***]
|
2130-000010
|
600 FPM CABIN PRESSURE ASCENT RATE
|
[***]
|
[***]
|
[***]
|
2130-000015
|
750 FPM CABIN PRESSURE DESCENT RATE
|
[***]
|
[***]
|
[***]
|
2160-000025
|
CABIN TEMPERATURE INDICATION - DEGREES FAHRENHEIT
|
[***]
|
[***]
|
[***]
|
2170-000021
|
OZONE CONTROL - SPACE PROVISIONS FOR CATALYTIC CONVERTERS
|
[***]
|
[***]
|
[***]
|
2210-000003
|
AUTOFLIGHT - INHIBIT GLIDE SLOPE CAPTURE PRIOR TO LOCALIZER CAPTURE
|
[***]
|
[***]
|
[***]
|
2210-000123
|
AUTOFLIGHT - FLIGHT DIRECTOR TAKEOFF MODE WINGS LEVEL
|
[***]
|
[***]
|
[***]
|
2210-000128
|
AUTOFLIGHT - CONTROL WHEEL STEERING WARNING
|
[***]
|
[***]
|
[***]
|
2210-000142
|
AUTOFLIGHT - ALTITUDE ALERT - 300/900 FEET
|
[***]
|
[***]
|
[***]
|
2210C175A38
|
AUTOFLIGHT - GO-AROUND ROLL MODE - LNAV
|
[***]
|
[***]
|
[***]
|
2230-000137
|
AUTOTHROTTLE - FMCS - TAKEOFF PROFILE THRUST REDUCTION ALTITUDE
|
[***]
|
[***]
|
[***]
|
2310C410A91
|
COMMUNICATIONS CONTROL PANELS - DUAL GABLES RADIO TUNING PANELS CAPABLE OF (2) HF SYSTEMS AND (3) VHF SYSTEMS (8.33 KHZ CAPABLE) - P/N G7404-124 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2312A639A46
|
VHF COMMUNICATIONS - ACTIVATION OF KEYLINE TIMER
|
[***]
|
[***]
|
[***]
|
2312E173A49
|
VHF COMMUNICATIONS - TRIPLE HONEYWELL ARINC 750 RTA-50D VHF FM IMMUNE TRANSCEIVERS WITH 8.33
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 4
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
|
KHZ CHANNEL SPACING, VDL MODE 2, AND CMC INTERFACE CAPABILITY - P/N 965-1696-021 - BFE/SPE
|
|
|
|
2315E706A59
|
MP - SATCOM - INSTALLATION OF PARTIAL WIRING AND MOUNTING PROVISIONS - ICG MODEL ICS-300 IRIDIUM SATCOM SYSTEM WITH A SINGLE TOP MOUNTED DUAL ELEMENT IRIDIUM ANTENNA
|
[***]
|
[***]
|
[***]
|
2321-000050
|
SELCAL - AVTECH FIVE CHANNEL DECODER - P/N 1200008-000 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2321-000063
|
SELCAL - ANNUNCIATION ON AUDIO SELECTOR PANELS
|
[***]
|
[***]
|
[***]
|
2322C939A05
|
CMU - INSTALLATION OF PARTIAL PROVISIONS FOR A SINGLE CMU IN ACCORDANCE WITH ARINC 758
|
[***]
|
[***]
|
[***]
|
2322C939A06
|
COMMUNICATIONS MANAGEMENT UNIT (CMU) - DATA LINK RECORDING ACTIVATION
|
[***]
|
[***]
|
[***]
|
2322E437D59
|
MP - CMU - INSTALLATION OF WIRING PROVISIONS BETWEEN THE ONBOARD NETWORK SYSTEM (ONS) AND THE COMMUNICATION MANAGEMENT UNIT PROVISIONS
|
[***]
|
[***]
|
[***]
|
2322E516A03
|
CMU - INSTALLATION OF HONEYWELL MARK II ARINC 758 LEVEL AOA CMU W/ARINC SERVICE PROVIDER - DATA LINK RECORDING CAPABLE - P/N 965-0758-006 - BFE / SPE
|
[***]
|
[***]
|
[***]
|
2324D197A18
|
EMERGENCY LOCATOR TRANSMITTER (ELT) - ACR ELECTRONICS AUTOMATIC FIXED - WITH NAVIGATION INTERFACE UNIT (NIU) - MODE S BROADCAST - WITH ANTENNA P/N 110-337 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2331B754B15
|
PASSENGER ADDRESS (PA) SYSTEM - ARINC 715 - ROCKWELL COLLINS AMPLIFIER - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2331E097A10
|
PRAM/BMM SYSTEM - PANASONIC - FASTEN SEAT BELT/DECOMPRESSION DISCRETES ACTIVATED - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2350A150D50
|
AUDIO INTEGRATING - INHIBIT AURAL ALERT TRANSMISSIONS THROUGH CAPTAIN, FIRST OFFICER'S AND FIRST OBSERVER'S HEADPHONES
|
[***]
|
[***]
|
[***]
|
2350B872A08
|
AUDIO CONTROL PANEL - INTEGRATED SELCAL, CREW CALL, AND SATCOM FUNCTIONS - INSTALLATION - 3 VHF/2 HF
|
[***]
|
[***]
|
[***]
|
2351-000042
|
CONTROL WHEEL PUSH TO TALK (PTT) SWITCH - STANDARD THREE POSITION
|
[***]
|
[***]
|
[***]
|
2351A213A33
|
AUDIO INTEGRATION - INSTALLATION - TWO-PLUG AUDIO JACKS IN THE FLIGHT DECK
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 5
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
2351A213B77
|
BOOM MICROPHONE HEADSETS - CAPTAIN AND FIRST OFFICER - TELEX AIRMAN 750 - P/N 64300-200 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2351D360C80
|
PASSENGER CABIN MEDICAL COMMUNICATIONS SYSTEM - BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2371B628B32
|
VOICE RECORDER AND MICROPHONE/MONITOR - HONEYWELL - 2 HOUR RECORDING TIME - WITH DATALINK RECORDING CAPABILITY - P/N 980-6032-001 & P/N 980-6116-001 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2371B628B41
|
VOICE RECORDER - RECORDER INDEPENDENT POWER SUPPLY (RIPS) - AFT LOWERED CEILING
|
[***]
|
[***]
|
[***]
|
2371E437C25
|
MP - VOICE RECORDER - REPLACEMENT - VOICE RECORDER WITH 90 DAY BATTERY IN LIEU OF VOICE RECORDER WITH 30 DAY BATTERY - HONEYWELL INTERNATIONAL INC - BFE
|
[***]
|
[***]
|
[***]
|
2451B750A96
|
GALLEY G2 POWER - 17.25 KVA - COMPLETE PROVISIONS
|
[***]
|
[***]
|
[***]
|
2451B815K32
|
POWER DISTRIBUTION - WIRING INSTALLATION FOR ADDITIONAL CAPACITY
|
[***]
|
[***]
|
[***]
|
2451D360M03
|
MP - MOD STD SEL - GALLEY G4B POWER - REVISION - 12 KVA INSTALLATION AND PROVISIONS FOR 17.25 KVA IN LIEU OF COMPLETE INSTALLATION
|
[***]
|
[***]
|
[***]
|
2451E447B64
|
GALLEY G1 & G7 POWER - 12 KVA
|
[***]
|
[***]
|
[***]
|
2454E484B59
|
IN-SEAT POWER OUTLETS - INSTALLATION - FULL CABIN WITH 59 USB POWER SUPPLIES AND 175 HIGH POWER USB OUTLETS - ASTRONICS AES - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2454E484C79
|
MP - IN-SEAT POWER OUTLETS - DELETION - FULL CABIN WITH 59 USB POWER SUPPLIES AND 175 HIGH POWER USB OUTLETS - ASTRONICS AES - BFE
|
[***]
|
[***]
|
[***]
|
2500E559K65
|
MP - CLOSET - REPLACEMENT - FWD RH FULL HEIGHT CLOSET IN LIEU OF FULL HEIGHT/HALF HEIGHT G2 GALLEY - STA 325 - 343 - ENCORE - BFE
|
[***]
|
[***]
|
[***]
|
2500E559K83
|
MP - INTERIOR ARRANGEMENT - REVISION - DETACHABLE EMERGENCY EQUIPMENT - BFE
|
[***]
|
[***]
|
[***]
|
2500E559M56
|
MP - MOD STD SEL - CABIN INTERPHONE SYSTEMS - ATTENDANT HANDSETS WITH UNIQUE FACEPLATE
|
[***]
|
[***]
|
[***]
|
2500E559R44
|
MP - INTERIOR ARRANGEMENT - REVISION - ADDITION OF SLIDE-OUT STOWAGE IN LAVS D & E AND REVISION TO EMERGENCY EQUIPMENT REVISION TO EMERGENCY EQUIPMENT
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 6
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
2500E559Y62
|
MP - NON-CERTIFIED FLYAWAY KIT - ADDITION - FIRST AID KIT BRACKET
|
[***]
|
[***]
|
[***]
|
2513C410C22
|
FLIGHT COMPARTMENT ACCOMMODATIONS - EMERGENCY EVACUATION CHECKLIST PLACARD ON THE CAPTAIN AND FIRST OFFICER'S CONTROL COLUMNS
|
[***]
|
[***]
|
[***]
|
2513E437A99
|
LOG BOOK HOLDER - INSTALLATION - ON AFT FACE OF P8 AISLESTAND
|
[***]
|
[***]
|
[***]
|
2514E559T12
|
MP - SIDEWALL LINING AND AIR RETURN GRILLE - REVISION - ENHANCED FASTENING PROVISIONS
|
[***]
|
[***]
|
[***]
|
2520E559D17
|
INTERIOR COLOR AND MATERIAL - STANDARD OFFERING
|
[***]
|
[***]
|
[***]
|
2520E559L37
|
MP - PASSENGER COMPARTMENT - REVISION - DECORATIVE LAMINATE - FORWARD MONUMENTS
|
[***]
|
[***]
|
[***]
|
2523E559E42
|
PASSENGER SERVICE UNITS - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2525A627A07
|
DOUBLE ATTENDANT SEAT - WALL MOUNTED - STA 304
|
[***]
|
[***]
|
[***]
|
2525C204F39
|
LARGE LOWER STOWAGE BOX FOR DOUBLE ATTENDANT SEAT - STA 304 LH
|
[***]
|
[***]
|
[***]
|
2525C204F40
|
LARGE LOWER STOWAGE BOX FOR DOUBLE ATTENDANT SEAT - STA 949 LH
|
[***]
|
[***]
|
[***]
|
2525C204F41
|
LARGE LOWER STOWAGE BOX FOR DOUBLE ATTENDANT SEAT - STA 949 RH
|
[***]
|
[***]
|
[***]
|
2525C204K04
|
HIC AND FEMUR LOAD COMPLIANCE - ECONOMY CLASS SEATS
|
[***]
|
[***]
|
[***]
|
2525C204K05
|
HIC AND FEMUR LOAD COMPLIANCE - ATTENDANT SEATS
|
[***]
|
[***]
|
[***]
|
2525E559D22
|
ECONOMY CLASS SEATS - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2527E559H50
|
FLOOR COVERING - CARPET - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2527E559H51
|
FLOOR COVERING - GALLEY AND ENTRYWAY FLOOR MAT - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2528C204J16
|
FORWARD CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2528C204J18
|
SECOND FORWARD CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2528C204J20
|
FIRST MID CABIN CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 7
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
2528C204J22
|
SECOND MID-CABIN CENTER OVERHEAD STOWAGE COMPARTMENT - PROVISIONED FOR PALLETIZED EQUIPMENT AND LIFE RAFTS - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2528E559D23
|
LITERATURE POCKETS
|
[***]
|
[***]
|
[***]
|
2528E559D24
|
OVERHEAD STOWAGE BINS - ADDITIONAL FEATURES - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2529D360B52
|
FORWARD ATTENDANT WORKSTATION - PANEL & HANDSET - UNIQUE FACEPLATE DISPLAY
|
[***]
|
[***]
|
[***]
|
2530D383A11
|
G1 GALLEY - AFT STATION 297 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2530E559D10
|
GALLEY G2 - STA 325-343 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2530E559D27
|
G7 GALLEY - AFT OF DOOR 1, LEFT - AFT STA 374 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2530E559D29
|
GALLEY INSERT PART NUMBERS - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2530E559K27
|
MP - GALLEY - REVISION - G1 GALLEY AFT STA 293 IN LIEU OF STA 297
|
[***]
|
[***]
|
[***]
|
2530E624B45
|
GALLEY PART NUMBERS - STANDARD EFFORT - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2530E624B63
|
GALLEY CHILLER - AFT G4B GALLEY - PROVISIONS
|
[***]
|
[***]
|
[***]
|
2540D347A92
|
LA ADVANCED LAVATORY
|
[***]
|
[***]
|
[***]
|
2540E559D31
|
LA ADVANCED LAVATORY SELECTABLES
|
[***]
|
[***]
|
[***]
|
2540E559D32
|
LD ADVANCED LAVATORY SELECTABLES
|
[***]
|
[***]
|
[***]
|
2540E559D33
|
LE ADVANCED LAVATORY SELECTABLES
|
[***]
|
[***]
|
[***]
|
2540E559N20
|
MP - LAVATORIES - REVISION - LAVS D AND E - NON-SPACEWALL IN LIEU OF SPACEWALL
|
[***]
|
[***]
|
[***]
|
2560-000269
|
CREW LIFE VEST STOWAGE - FLIGHT DECK, SECOND OBSERVER - CAPTAIN'S SEAT BACK
|
[***]
|
[***]
|
[***]
|
2560C410D09
|
CREW LIFE VESTS - FLIGHT DECK, WITH SECOND OBSERVER - EASTERN AERO MARINE INC - P/N P01202-301C - BFE/SPE
|
[***]
|
[***]
|
[***]
|
2562E559E21
|
OVERWATER EMERGENCY EQUIPMENT - BFE/SPE - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2562E559K34
|
MP - OVERWATER EMERGENCY EQUIPMENT - DELETION - LIFE RAFTS - EASTERN AERO MARINE - BFE
|
[***]
|
[***]
|
[***]
|
2562E559U37
|
MP - OVERWATER EMERGENCY EQUIPMENT - REPLACEMENT - PASSENGER LIFE VEST - EASTERN AERO MARINE INC - BFE
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 8
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
2564E559D98
|
DETACHABLE EMERGENCY EQUIPMENT - PASSENGER COMPARTMENT - BFE/SPE - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
2564E559X35
|
MP - DETACHABLE EMERGENCY EQUIPMENT - PASSENGER COMPARTMENT - DELETION - FIRST AID KIT - MINE SAFETY APPLIANCES CO - BFE
|
[***]
|
[***]
|
[***]
|
2622E088A14
|
APU FIRE EXTINGUISHER BOTTLE - COMMON WITH ENGINE BOTTLES
|
[***]
|
[***]
|
[***]
|
2841-000004
|
STANDARD FUEL SYSTEM ACCURACY - NO FUEL DENSITOMETERS
|
[***]
|
[***]
|
[***]
|
2841-000012
|
FUEL QUANTITY INDICATORS ON RIGHT WING FUELING PANEL
|
[***]
|
[***]
|
[***]
|
2844-000019
|
FUEL MEASURING STICKS IN LINEAR UNITS WITH CONVERSION TABLES IN U.S. GALLONS
|
[***]
|
[***]
|
[***]
|
2911-000042
|
ENGINE-DRIVEN HYDRAULIC PUMPS WITH VESPEL SPLINE - EATON (VICKERS) - 10-62167
|
[***]
|
[***]
|
[***]
|
2911-000044
|
AC MOTOR-DRIVEN HYDRAULIC PUMPS - EATON (VICKERS) - 10-60556
|
[***]
|
[***]
|
[***]
|
2911E684D00
|
MP - AC MOTOR DRIVEN HYDRAULIC PUMPS - INSTALL TWO PARKER (ABEX) IN LIEU OF TWO EATON (VICKERS) - SFE
|
[***]
|
[***]
|
[***]
|
3041-000003
|
NO HEATED FLIGHT COMPARTMENT NUMBER 3 WINDOW
|
[***]
|
[***]
|
[***]
|
3131-000143
|
ACCELEROMETER - HONEYWELL P/N 971-4193-001 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3131B628B16
|
DIGITAL FLIGHT DATA RECORDER (DFDR) - HONEYWELL - 1024 WORDS PER SECOND MAXIMUM DATA RATE - P/N 980-4750-009 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3131E103A15
|
DIGITAL FLIGHT DATA ACQUISITION UNIT (DFDAU) - CATIIIB/IAN/GLS/NPS CAPABLE - WITH ACMS CAPABILITY - ONS - SFE
|
[***]
|
[***]
|
[***]
|
3131E437C26
|
MP - FLIGHT DATA RECORDER SYSTEM - REPLACEMENT - FLIGHT DATA RECORDER WITH 90 DAY BATTERY IN LIEU OF FLIGHT DATA RECORDER WITH 30 DAY BATTERY - HONEYWELL INTERNATIONAL INC - BFE
|
[***]
|
[***]
|
[***]
|
3132E437D35
|
MP - ARINC 615 PORTABLE DATA LOADER CONNECTOR - INSTALLATION - FLIGHT DECK - P61-4 MAINTENANCE BITE PANEL
|
[***]
|
[***]
|
[***]
|
3133-000123
|
ARINC 740 PRINTER PROVISIONS IN THE FLIGHT DECK AISLESTAND
|
[***]
|
[***]
|
[***]
|
3135E437D40
|
MP - ONBOARD NETWORK SYSTEM - QUICK ACCESS RECORDER - DAR OUTPUT 23300
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 9
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
3161-000133
|
ENGINE FUEL FLOW - FULL TIME DISPLAY - PRIMARY ENGINE DISPLAY UNIT
|
[***]
|
[***]
|
[***]
|
3161C175A22
|
ENGINE OIL QUANTITY DISPLAY - PERCENT - ENGINE DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000018
|
ATTITUDE COMPARATOR - FLASHING - ADI
|
[***]
|
[***]
|
[***]
|
3162-000022
|
FLIGHT DIRECTOR COMMAND DISPLAY - SPLIT AXIS - ADI
|
[***]
|
[***]
|
[***]
|
3162-000028
|
RADIO ALTITUDE - BELOW ADI
|
[***]
|
[***]
|
[***]
|
3162-000030
|
RISING RUNWAY - DISPLAYED ON THE ADI
|
[***]
|
[***]
|
[***]
|
3162-000036
|
LANDING ALTITUDE REFERENCE BAR - PRIMARY FLIGHT DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000040
|
BARO MINIMUMS POINTER - DISPLAYED ON SELECTION OF RADIO ALTITUDE MINIMUMS - PRIMARY FLIGHT DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000044
|
TCAS RESOLUTION ADVISORY - VSI
|
[***]
|
[***]
|
[***]
|
3162-000051
|
ILS LOCALIZER DEVIATION EXPANDED SCALE - AUTOPILOT OR FLIGHT DIRECTOR MODE
|
[***]
|
[***]
|
[***]
|
3162-000059
|
MAP MODE ORIENTATION - TRACK UP - NAVIGATION DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000064
|
RANGE ARCS - NAVIGATION DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000079
|
MANUALLY TUNED VOR SELECTED COURSE LINES DISPLAYED - NAVIGATION DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000084
|
TCAS 3 NM RANGE RING - NAVIGATION DISPLAY
|
[***]
|
[***]
|
[***]
|
3162-000088
|
AIRSPEED BUG - ENABLED - 80 KNOT SETTING - MACH AIRSPEED INDICATOR
|
[***]
|
[***]
|
[***]
|
3162A627A36
|
CDS - SOFTWARE ACTIVATION - VNAV SPEED BANDS - ENABLE
|
[***]
|
[***]
|
[***]
|
3162C594A29
|
CDS - SOFTWARE ACTIVATION - NAVIGATION PERFORMANCE SCALES - ENABLE
|
[***]
|
[***]
|
[***]
|
3162E437C95
|
MP - FLIGHT AND NAVIGATION DISPLAYS - LANDING SYS ELECTRONIC PLACARD WORKSHEET - AUXILIARY DISPLAY
|
[***]
|
[***]
|
[***]
|
3244-000008
|
SERVICE INTERPHONE CONNECTOR - EXTERNAL POWER PANEL
|
[***]
|
[***]
|
[***]
|
3245B290A77
|
WHEELS AND TIRES - NOSE LANDING GEAR - WHEELS - GOODRICH - INSTALLATION WITH SFE 12 PR, 235 MPH RATED RADIAL TIRES
|
[***]
|
[***]
|
[***]
|
3245B290A92
|
BRAKES - CARBON - GOODRICH
|
[***]
|
[***]
|
[***]
|
3245C927A08
|
WHEELS AND TIRES - MAIN LANDING GEAR - WHEELS FOR CARBON BRAKES - GOODRICH - INSTALLATION WITH 30-PR, 235 MPH RADIAL TIRES
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 10
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
3321C869A65
|
PASSENGER CABIN LIGHTING - SINGLE-ZONE CONTROL - 737 BOEING SKY INTERIOR
|
[***]
|
[***]
|
[***]
|
3324C195A04
|
NO SMOKING SIGN - SILK SCREENED SYMBOL AND RETAIN CHIME FUNCTION
|
[***]
|
[***]
|
[***]
|
3327D380B90
|
GALLEY LIGHTS - 28 VDC POWER - GALLEY G7 / CLOSET
|
[***]
|
[***]
|
[***]
|
3327E559L81
|
MP - GALLEY LIGHTS - 28 VDC POWER - DELETION - GALLEY G7 / CLOSET
|
[***]
|
[***]
|
[***]
|
3350E097A38
|
EMERGENCY ESCAPE PATH LIGHTING - FLOOR MOUNTED - NARROW COLOR PHOTOLUMINESCENT
|
[***]
|
[***]
|
[***]
|
3412-000022
|
DUAL ELEMENT NON-ASPIRATED TAT PROBE
|
[***]
|
[***]
|
[***]
|
3430B866A28
|
ILS/GPS MULTI-MODE RECEIVER (MMR) - HONEYWELL - P/N 066-50029-1201 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3430E437D65
|
MP - MULTI-MODE RECEIVER (MMR) AND VOR/MARKER BEACON - REPLACEMENT - HONEYWELL 3G MMR P/N 69002600-0101 IN LIEU OF EXISTING HONEYWELL MMR P/N 066-50029-1201 AND HONEYWELL VOR/MARKER BEACON P/N 69001410-100 - BFE
|
[***]
|
[***]
|
[***]
|
3430E437D69
|
MP - MULTI-MODE RECEIVER (MMR) AND VOR/MARKER BEACON - CHANGE INCORP - REPLACEMENT - HONEYWELL 3G MMR P/N 69002600-0101 IN LIEU OF EXISTING HONEYWELL MMR P/N 066-50029-1201 AND HONEYWELL VOR/MARKER BEACON P/N 69001410-100 - BFE
|
[***]
|
[***]
|
[***]
|
3431C175A06
|
NAVIGATION CONTROL PANEL (NCP) - GNSS LANDING SYSTEM (GLS) CAPABLE - GABLES - P/N G7501-01- BFE/SPE
|
[***]
|
[***]
|
[***]
|
3433C594A98
|
LOW RANGE RADIO ALTIMETER (LRRA) - CAT IIIB CAPABLE - HONEYWELL - P/N 066-50007-0531- BFE/SPE
|
[***]
|
[***]
|
[***]
|
3436E640B45
|
MP - HEAD UP DISPLAY (HUD) SYSTEM - INSTALLATION - SINGLE ROCKWELL COLLINS HEAD-UP GUIDANCE SYSTEM (HGS) MODEL 6000 WITH MCDU INTERFACE - STC CERTIFIED - BFE
|
[***]
|
[***]
|
[***]
|
3443B696L73
|
SINGLE WEATHER RADAR SYSTEM CONTROL PANEL - HONEYWELL RDR-4000 RADAR SYSTEM - P/N 930-5101-001 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3443E032A44
|
SINGLE WEATHER RADAR SYSTEM - WITH PREDICTIVE WINDSHEAR - HONEYWELL RDR-4000, VERSION 2 TRANSCEIVER - 930-2000-001 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
|
Boeing Proprietary
|
Page 11
|
|
|
|
|
|
|
|
|
|
CR
|
Title
|
2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
3445C594B01
|
TCAS SYSTEM - HONEYWELL TCAS COMPUTER P/N 940-0351-001 - TCAS CHANGE 7.1 COMPLIANT - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3446-000046
|
LOW VOLUME FOR ALTITUDE CALLOUTS
|
[***]
|
[***]
|
[***]
|
3446-000049
|
500 SMART CALLOUT INHIBITED
|
[***]
|
[***]
|
[***]
|
3446-000057
|
GROUND PROXIMITY WARNING SYSTEM ALTITUDE CALLOUTS - 100, 50, 30, 10
|
[***]
|
[***]
|
[***]
|
3446C174A14
|
ENHANCED GROUND PROXIMITY WARNING SYSTEM (EGPWS) - BANK ANGLE CALLOUT (VARIABLE CALLOUT BELOW 130 FT) - ENABLE
|
[***]
|
[***]
|
[***]
|
3451E097A30
|
VOR/MARKER BEACON - HONEYWELL RECEIVER P/N 69001410-100 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3453E052A56
|
ATC SYSTEM - HONEYWELL INTERNATIONAL INC ATC TRANSPONDER P/N 066-01212-0301 - ADS-B OUT DO-260B COMPLIANT - HONEYWELL INTERNATIONAL INC CONTROL PANEL P/N 071-01503-2601 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3455D338A05
|
DISTANCE MEASURING EQUIPMENT (DME) SCANNING INTERROGATOR- HONEYWELL P/N 066-50013-0111 - BFE/SPE
|
[***]
|
[***]
|
[***]
|
3461A150B73
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - ENGINE-OUT STANDARD INSTRUMENT DEPARTURES (SID'S) - ENABLE
|
[***]
|
[***]
|
[***]
|
3461A425A10
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - NAVIGATION DATABASE - CUSTOMER SUPPLIED
|
[***]
|
[***]
|
[***]
|
3461A425A17
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - AIRLINE OPERATIONAL COMMUNICATION DATA LINK (AOC DL) - FEATURE ACTIVATION
|
[***]
|
[***]
|
[***]
|
3461A425A30
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS)- ABEAM WAYPOINTS- ENABLE
|
[***]
|
[***]
|
[***]
|
3461A425A48
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - ACTIVATE COLOR OPERATION
|
[***]
|
[***]
|
[***]
|
3461A890A76
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - NAVIGATION DISPLAY - MISSED APPROACH IN CYAN UNTIL ACTIVE - ENABLE
|
[***]
|
[***]
|
[***]
|
3461B430C49
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - REQUIRED NAVIGATION PERFORMANCE (RNP) DEFAULT VALUE CHANGE
|
[***]
|
[***]
|
[***]
|
3461B696E14
|
MP - FMCE - ADDITIONAL CONTROL DISPLAY UNIT FIX PAGES - ENABLE
|
[***]
|
[***]
|
[***]
|
PA-03729
|
|
SA-11
|
Page A1-1
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Boeing Proprietary
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Page 12
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CR
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Title
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2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
3461B696K97
|
FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - VERTICAL RNP DEFAULT VALUE - REVISION
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[***]
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[***]
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[***]
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3461C175A11
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FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - AIR TRAFFIC SERVICES DATA LINK (ATS DL) - FANS FEATURE ACTIVATION
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[***]
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[***]
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[***]
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3461C175A14
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FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - FANS CAPABLE MCDU WITH ATC KEYBOARD - INSTALLATION-SFE
|
[***]
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[***]
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[***]
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3461C175A32
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FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - COMMON VNAV - ENABLE
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[***]
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[***]
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[***]
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3461C175A34
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FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - SPEED PROPAGATION FROM THE CRUISE PAGE TO THE DESCENT PAGE - ENABLE
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[***]
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[***]
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[***]
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3461C430J05
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FLIGHT MANAGEMENT COMPUTING SYSTEM (FMCS) - VOR INHIBIT
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[***]
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[***]
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[***]
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3461C594A26
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FLIGHT MANAGEMENT COMPUTING SYSTEM (FMCS) - INTENT DATA TRANSMITTED TO ACARS - ENABLE
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[***]
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[***]
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[***]
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3511B873B93
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CREW OXYGEN MASK - FULL FACE MASK WITH BUILT-IN SMOKE GOGGLES - SECOND OBSERVER - AV-OX INC - BFE/SPE
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[***]
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[***]
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[***]
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3511B873B94
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CREW OXYGEN MASK - FULL FACE MASK WITH BUILT-IN SMOKE GOGGLES - FIRST OBSERVER - AV-OX INC - BFE/SPE
|
[***]
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[***]
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[***]
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3511B873B95
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CREW OXYGEN MASKS - FULL FACE MASK WITH BUILT-IN SMOKE GOGGLES - CAPTAIN AND FIRST OFFICER - AV-OX INC - BFE/SPE
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[***]
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[***]
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[***]
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3811-000017
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POTABLE WATER - SERVICEABLE TO 40 GALLONS
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[***]
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[***]
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[***]
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3812-000002
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NO WATER QUANTITY GAUGE - WATER SERVICE PANEL
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[***]
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[***]
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[***]
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3832-000076
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NO SENSOR FOULED LIGHT - COVER PLATE
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[***]
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[***]
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[***]
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3832-000078
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NO WASTE QUANTITY GAUGE - COVER PLATE
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[***]
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[***]
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[***]
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3910E437A86
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AFT ELECTRONICS PANEL ARRANGEMENT WITH TWO RADIO TUNING PANELS AND ARINC 740 PRINTER PROVISIONS
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[***]
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[***]
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[***]
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4435E484C78
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MP - HIGH SPEED COMMUNICATION - STRUCTURAL PROVISIONS - KU BAND RADOME INSTALLATION - 737 BOEING SKY INTERIOR 159200
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[***]
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[***]
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[***]
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4435E484D01
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MP - HIGH SPEED COMMUNICATION - PARTIAL PROVISIONS - GLOBAL EAGLE ENTERTAINMENT CABIN NETWORK SYSTEM WITH KU BAND
CONNECTIVITY - THREE WIRELESS ACCESS POINTS (WAP) - 737 BOEING SKY INTERIOR
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[***]
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[***]
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[***]
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PA-03729
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SA-11
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Page A1-1
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Boeing Proprietary
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Page 13
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CR
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Title
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2011 $
-MSNs: 42554, 36989, 36988
Price
Per A/C
|
2011 $
-MSNs: 42558, 42559, 36929, 42566
Price
Per A/C
|
2011 $
All other follow- on
Price
Per A/C
|
4435E484D80
|
MP - HIGH-SPEED COMMUNICATIONS - INSTALLATION INTO PARTIAL PROVISIONS - WIRELESS CABIN NETWORK WITH 3 CWLU'S AND KU BAND CONNECTIVITY - GLOBAL EAGLE ENTERTAINMENT - CSE/SPE
|
[***]
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[***]
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[***]
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4435E484H13
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MP - HIGH SPEED COMMUNICATION - REPLACEMENT - TRI-BAND RADOME IN LIEU OF KU BAND RADOME
|
[***]
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[***]
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[***]
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4435E484H15
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MP - HIGH SPEED COMMUNICATION - CHANGE INCORP - REPLACEMENT - TRI-BAND RADOME IN LIEU OF KU BAND RADOME
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[***]
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[***]
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[***]
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4610E437C72
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MP - GROUND BASED CONNECTIVITY - INSTALLATION - AIRCRAFT WIRELESS LAN UNIT CELLULAR - TELEDYNE CONTROLS - BFE
|
[***]
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[***]
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[***]
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4610E437E26
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MP - ONBOARD NETWORK SYSTEM - ACTIVATION OF ONS-ACARS CMU INTERFACE
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[***]
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[***]
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[***]
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4610E437E28
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MP - ONBOARD NETWORK SYSTEM - CHANGE INCORP - ACTIVATION OF ONS-ACARS CMU INTERFACE
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[***]
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[***]
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[***]
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4610E839A41
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MP - ONBOARD NETWORK SYSTEM - REPLACEMENT - AIRCRAFT WIRELESS LAN UNIT - CELLULAR AND WIFI IN LIEU OF CELLULAR GROUND BASED CONNECTIVITY ONLY - TELEDYNE CONTROLS - BFE
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[***]
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[***]
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[***]
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5231A561C54
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CARGO DOOR - SOLID SKIN
|
[***]
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[***]
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[***]
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5300-000027
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UNDERSEAT FLOOR PANELS, LOW TRAFFIC CAPABILITY
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[***]
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[***]
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[***]
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5352A298A28
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RADOME- NORDAM- SFE
|
[***]
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[***]
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[***]
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7200D422A12
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CFM LEAP-1B ENGINES - 1B28B1 RATING
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[***]
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[***]
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[***]
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7200E430E27
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MP - CFM LEAP -1B ENGINES - CHANGE INCORP - REVISION - 1B28 RATING IN LIEU OF 1B28B1 RATING
|
[***]
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[***]
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[***]
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7200E684E22
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MP - CFM LEAP -1B ENGINES - REVISION - 1B28 RATING IN LIEU OF 1B28B1 RATING
|
[***]
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[***]
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[***]
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MISC THRUST
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SIDE LETTER PRICING
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[***]
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[***]
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[***]
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7900-000116
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LUBRICATING OIL - MOBIL JET II
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[***]
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[***]
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[***]
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MISC
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INTERIOR ALLOWANCE
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[***]
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[***]
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[***]
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TOTALS:
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[***]
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[***]
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[***]
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PA-03729
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SA-11
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Page A1-1
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Boeing Proprietary
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Page 14
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Name
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State or Other Jurisdiction of Incorporation
or Organization
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AirTran Airways 717 Leasing Corporation
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Delaware
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AirTran Airways, Inc.
|
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Delaware
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AirTran Holdings, LLC
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Texas
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AirTran Risk Management, Inc.
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Delaware
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Southwest Jet Fuel Co.
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Texas
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Triple Crown Insurance Co., Ltd.
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Bermuda
|
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By:
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/s/ Gary C. Kelly
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Gary C. Kelly
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Chairman of the Board & Chief Executive Officer
(Principal Executive Officer)
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By:
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/s/ Tammy Romo
|
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Tammy Romo
|
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Executive Vice President & Chief Financial Officer
(Principal Financial & Accounting Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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By:
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/s/ Gary C. Kelly
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|
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Gary C. Kelly
|
|
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Chairman of the Board & Chief Executive Officer
(Principal Executive Officer)
|
|
By:
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/s/ Tammy Romo
|
|
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Tammy Romo
|
|
|
Executive Vice President & Chief Financial Officer
(Principal Financial & Accounting Officer)
|