United Airlines 2015 Annual Report Download - page 24

In addition to the aircraft operating in scheduled service presented in the tables above, United owns or leases the following aircraft listed below as of
December 31, 2015:
• One owned Boeing 767-200 which is being subleased to another airline;
• Eight Boeing 757-200s, seven of which are in the process of being returned to the lessor and one of which is owned and being held for disposition;
• One owned Airbus A330, which is subleased to another airline; and
• 25 leased Embraer ERJ 135s that are permanently grounded.
Firm Order and Option Aircraft
In January 2016, UAL entered into a purchase agreement amendment with The Boeing Company (“Boeing”) for a firm narrowbody aircraft order of 40
Boeing 737 Next Generation (“737NG”) aircraft. As of December 31, 2015 (as adjusted to include the order discussed above), United had firm commitments
and options to purchase aircraft from Boeing, Embraer S.A. (“Embraer”) and Airbus S.A.S. (“Airbus”) presented in the table below:



Airbus A350-1000 35
Boeing 737NG/737 MAX 9 155
Boeing 777-300ER 10
Boeing 787-8/-9/-10 30
Embraer E175 10
(a) United also has options and purchase rights for additional aircraft.
The aircraft listed in the table above are scheduled for delivery from 2016 through 2024. In 2016, United expects to take delivery of 15 Boeing 737NG
aircraft, five Boeing 787-9 aircraft, one Boeing 777-300ER aircraft and 10 Embraer E175 aircraft. See Notes 11 and 15 to the financial statements included in
Part II, Item 8 of this report for additional information.
United expects to take delivery of nine and five used Airbus A319s in 2016 and 2017, respectively. In addition, up to 14 additional used Airbus A319s may
be delivered between 2018 and 2021, subject to certain conditions.
In 2015, the Company continued its multi-year initiative to reduce its reliance on 50-seat regional aircraft operated by regional carriers doing business as
United Express. The Company expects to reduce its remaining 50-seat regional fleet by approximately half by the end of 2019. Republic is scheduled to
complete removal of the Bombardier Q400 aircraft from United Express service by the second quarter of 2016.

United’s principal facilities relate to leases of airport facilities, gates, hangar sites, terminal buildings and other facilities in most of the municipalities it
serves with its most significant leases at airport hub locations. United has major terminal facility leases at SFO, Washington Dulles, Chicago O’Hare, LAX,
Denver, Newark Liberty, Houston Bush, Hopkins International Airport and Guam with expiration dates ranging from 2016 to 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 also maintains 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 has multiple leases, which expire from 2022 through 2028 and include approximately 1,100,000 square
feet of office space for its corporate headquarters and operations center in downtown Chicago, and certain administrative offices in downtown Houston.
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Source: United Continental Holdings, Inc., 10-K, February 18, 2016 Powered by Morningstar® Document Research℠
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