Delta Airlines 2011 Annual Report Download - page 82
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Years Ending December 31,
(in millions) Total
2012 $ 215
2013 530
2014 745
2015 760
2016 760
Thereafter 3,810
Total $ 6,820
During 2011, we entered into an agreement with The Boeing Company to purchase 100 B-737-900ER aircraft with deliveries beginning in 2013 and
continuing through 2018. We have obtained committed long-term financing for a substantial portion of the purchase price of these aircraft.
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, 2011, we had contract carrier agreements with nine contract carriers, including our wholly-owned subsidiary,
Comair. Our third-party contract carrier agreements have expiration dates ranging from 2016 to 2022.
Capacity Purchase Agreements . During the year ended December 31, 2011 , seven 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.
The following table shows our minimum fixed obligations under these capacity purchase agreements (excluding Comair). The obligations set forth in the
table contemplate minimum levels of flying by the Contract Carriers under the respective agreements and also reflect assumptions regarding certain costs
associated with the minimum levels of flying such as the cost of fuel, labor, maintenance, insurance, catering, property tax and landing fees. Accordingly, our
actual payments under these agreements could differ materially from the minimum fixed obligations set forth in the table below.
Years Ending December 31,
(in millions) Amount (1)
2012 $ 2,340
2013 2,420
2014 2,430
2015 2,400
2016 2,100
Thereafter 5,700
Total $ 17,390
(1) These amounts exclude Contract Carrier lease payments accounted for as operating leases, which are described in Note 8. The contingencies described below under “Contingencies
Related to Termination of Contract Carrier Agreements” are also excluded from this table.
Revenue Proration Agreements. As of December 31, 2011, we had a revenue proration agreement with American Eagle Airlines, Inc. In addition, a
portion of our Contract Carrier agreement with SkyWest Airlines, Inc. is structured as a revenue proration agreement. These revenue proration agreements
establish a fixed dollar or percentage division of revenues for tickets sold to passengers traveling on connecting flight itineraries.
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