United Airlines 2011 Annual Report Download - page 27

Table of Contents
• Three Airbus A330s which are subleased to another airline;
• Two leased 757-200s, which have been returned to the lessor;
• 16 Boeing 737-300s, of which four are owned and 12 are leased;
• 18 owned Boeing 737-500s; and
• 30 leased ERJ-135s, five of which are subleased to another airline.
Firm Order and Option Aircraft .
As of December 31, 2011, United and Continental had firm commitments and options to purchase the following aircraft:
 . As of December 31, 2011, United had firm commitments to purchase 50 new aircraft (25 Boeing 787 aircraft and 25
Airbus A350XWB aircraft) scheduled for delivery from 2016 through 2019. United also has options to purchase 42 Airbus A319 and A320 aircraft, and
purchase rights for 50 Boeing 787 aircraft and 50 Airbus A350XWB aircraft.
United has secured considerable backstop financing commitments from its aircraft and engine manufacturers, subject to certain customary conditions.
However, United can provide no assurance that backstop financing, or any other financing not already in place, for aircraft and engine deliveries will be
available to United on acceptable terms when necessary or at all.
 . As of December 31, 2011, Continental had firm commitments to purchase 82 new aircraft (57 Boeing 737 aircraft
and 25 Boeing 787 aircraft) scheduled for delivery from 2012 through 2016. Continental expects to place into service 19 Boeing 737 aircraft, of which two
have been delivered prior to the filing of this report, and five Boeing 787 aircraft in 2012. Continental also has options to purchase 89 additional Boeing 737
and 787 aircraft.
Continental does not have backstop financing or any other financing currently in place for the Boeing aircraft on order. Financing will be necessary to satisfy
Continental’s capital commitments for its firm order aircraft and other related capital expenditures. Continental can provide no assurance that backstop
financing, or any other financing not already in place, for aircraft and engine deliveries will be available to Continental on acceptable terms when necessary or
at all.
The Company is currently in discussions with Boeing over potential compensation related to delays in the 787 aircraft deliveries. The Company is not able to
estimate the ultimate success, amount of, nature or timing of any potential recoveries from Boeing over such delays.
See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Note 17 in Item 8 of this report for information
related to future capital commitments to purchase these aircraft.

United’s and Continental’s principal facilities relate to leases of airport facilities, gates, hangar sites, terminal buildings and other facilities in most of the
municipalities they serve with their most significant leases at airport hub locations. United has major terminal facility leases at SFO, Washington Dulles,
Chicago O’Hare, LAX and Denver with expiration dates ranging from 2012 to 2025. Continental has major facility leases at Newark Liberty, Houston Bush,
Cleveland Hopkins and Guam with expiration dates ranging from 2012 through 2041. Substantially all of these facilities are leased on a net-rental basis,
resulting in the Company’s responsibility for maintenance, insurance and other facility-related expenses and services.
United and Continental also maintain administrative offices, terminal, catering, cargo and other airport facilities, training facilities, maintenance facilities and
other facilities to support operations in the cities served. United also
26