Delta Airlines 2014 Annual Report Download - page 90

NOTE 12 . COMMITMENTS AND CONTINGENCIES
Aircraft Purchase and Lease Commitments
At December 31, 2014 , future aircraft purchase commitments totaled approximately $14.0 billion and included 69 B-737-900ER, 45 A321-200,
25
A330-900neo, 25 A350-900, 18 B-787-8, 10 A330-300 and two CRJ-900 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.
In addition, we have agreements with Southwest Airlines and The Boeing Company to lease an additional 36 B-717-200 aircraft, which will be
delivered during 2015.
Contract Carrier Agreements
We have contract carrier agreements with regional carriers expiring from 2016 to 2024 .
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.
The following table shows our minimum fixed obligations under our existing capacity purchase agreements. 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.
Revenue Proration Agreement . As of December 31, 2014
, a portion of our Contract Carrier agreement with SkyWest Airlines, Inc. is structured as
a revenue proration agreement. This revenue proration agreement establishes a fixed dollar or percentage division of revenues for tickets sold to
passengers traveling on connecting flight itineraries.
83
Years Ending December 31,
(in millions) Total
2015
$
1,480
2016
1,970
2017
2,390
2018
2,230
2019
1,060
Thereafter
4,820
Total
$
13,950
Years Ending December 31,
(in millions) Amount
(1)
2015
$
2,220
2016
1,930
2017
1,720
2018
1,550
2019
1,430
Thereafter
2,370
Total
$
11,220
(1)
These amounts exclude Contract Carrier payments accounted for as operating leases of aircraft, which are described in Note 9
. The contingencies described below under
“Contingencies Related to Termination of Contract Carrier Agreements” are also excluded from this table.