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TableofContents
NOTE10.COMMITMENTSANDCONTINGENCIES
Aircraft Purchase and Lease Commitments
AtDecember31,2015,futureaircraftpurchasecommitmentstotaledapproximately$13.6billionandincluded70B-737-900ER,45A321-200,25A330-
900neo,25A350-900,19E190-100,18B-787-8andsixA330-300aircraft.Wehaveobtained,butareundernoobligationtouse,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,includingforourcurrentordersofB-737-900ERaircraft.
(inmillions) Total
2016 $ 2,140
2017 2,500
2018 2,510
2019 1,500
2020 1,900
Thereafter 3,010
Total $ 13,560
Inaddition,wehaveagreementswithSouthwestAirlinesandTheBoeingCompanytoleaseoneadditionalB-717-200aircraft,whichwillbedeliveredduring
theMarch2016quarterandcompletesthe88B-717-200aircraftweagreedtolease.
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withthird-partyregionalcarriers.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.
(inmillions) Amount(1)
2016 $ 2,160
2017 2,270
2018 2,110
2019 1,960
2020 1,650
Thereafter 2,170
Total $ 12,320
(1)Theseamountsexcludecontractcarrierpaymentsaccountedforasoperatingleasesofaircraft,whicharedescribedinNote7.Thecontingenciesdescribedbelowunder“Contingencies
RelatedtoTerminationofShuttleAmericaAgreements”arealsoexcludedfromthistable.
RevenueProrationAgreement.AsofDecember31,2015,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.
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