Delta Airlines 2010 Annual Report Download - page 78

Table of Contents
NOTE 7. PURCHASE COMMITMENTS AND CONTINGENCIES
Aircraft Purchase Commitments
Future aircraft purchase commitments at December 31, 2010 are estimated to total approximately $2.6 billion. The following table shows the timing of
these commitments:
Years Ending December 31,
(in millions) Total
2011 $ 60
2020 to 2022 2,500
Total $ 2,560
Our aircraft purchase commitments at December 31, 2010 relate to 18 B-787-8 aircraft and 12 previously owned MD-90 aircraft. During 2010, we entered
into an agreement with The Boeing Company to reaffirm our previous orders for 18 B-787-8 aircraft and to defer delivery of those aircraft from 2008-2010 to
2020-2022. Our aircraft purchase commitments do not include orders for five A319-100 aircraft and two A320-200 aircraft because we have the right to
cancel these orders.
Contract Carrier Agreements
During the year ended December 31, 2010, we had Contract Carrier agreements with 10 Contract Carriers, including our wholly-owned subsidiary,
Comair.
On July 1, 2010, we sold Compass and Mesaba, our wholly-owned subsidiaries, to Trans States and Pinnacle, respectively. The sales of Compass and
Mesaba did not have a material impact on our Consolidated Financial Statements. Upon the closing of these transactions, we entered into new or amended
long-term capacity purchase agreements with Compass, Mesaba and Pinnacle.
On September 1, 2010, Freedom Airlines, Inc. ceased operating flights for us under a capacity purchase agreement.
Capacity Purchase Agreements. During the year ended December 31, 2010, eight Contract Carriers operated for us (in addition to Comair) under capacity
purchase agreements. Under these agreements, the Contract Carriers operate some or all of their aircraft using our flight designator codes, and we control the
scheduling, pricing, reservations, ticketing and seat inventories of those aircraft and retain the revenues associated with those flights. We pay those airlines an
amount, as defined in the applicable agreement, which is based on a determination of their cost of operating those flights and other factors intended to
approximate market rates for those services.
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