Delta Airlines 2013 Annual Report Download - page 84

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Operating Leases
NOTE 10 . COMMITMENTS AND CONTINGENCIES
Aircraft Purchase and Lease Commitments
At December 31, 2013 , future aircraft purchase commitments total approximately $9.1 billion and include 88 B-737-900ER, 30 A321-200,
28 CRJ-900, 18 B-787-8 aircraft and 10 A330-300 aircraft. We have obtained long-term financing commitments for a substantial portion of the
purchase price of all of these aircraft, except for the 18 B-787-8 aircraft. Our purchase commitment for the 18 B-787-8 aircraft provides for
certain aircraft substitution rights.
We also have agreements with Southwest Airlines and The Boeing Company to lease 88 B-717-200 aircraft. We took delivery of 13 B-717-
200 aircraft during 2013 and deliveries will continue through 2015.
Contract Carrier Agreements
We have contract carrier agreements with regional carriers with agreements expiring from 2016 to 2022 .
Capacity Purchase Agreements . Most of our Contract Carriers operate for us 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.
76
Years Ending December 31,
(in millions) Delta Lease
Payments
(1)
Contract Carrier
Aircraft Lease
Payments
(2)
Total
2014
1,079
$
350
$
1,429
2015
1,028
328
1,356
2016
900
286
1,186
2017
785
241
1,026
2018
635
196
831
Thereafter
5,442
224
5,666
Total minimum lease payments
9,869
$
1,625
$
11,494
(1)
Includes payments accounted for as construction obligations. See Note 5
.
(2)
Represents the minimum lease obligations under our Contract Carrier agreements with Chautauqua Airlines, Inc. (“Chautauqua”), Compass Airlines, Inc., ExpressJet Airlines,
Inc., GoJet Airlines, LLC, Shuttle America Corporation (“Shuttle America”) and SkyWest Airlines, Inc.
Years Ending December 31,
(in millions) Total
2014
$
1,585
2015
1,215
2016
1,700
2017
1,495
2018
450
Thereafter
2,700
Total
$
9,145