Airtran 2008 Annual Report Download - page 61

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Aircraft Acquisitions, Purchase Commitments and Financings
During 2008, we took delivery of eight purchased B737 aircraft from The Boeing Company (“Boeing”), of
which two were sold upon delivery and two were sold after delivery. In May, July and October 2008, we
entered into agreements to defer delivery dates for 37 B737 aircraft originally scheduled for delivery between
2008 and 2012 to delivery dates between 2013 and 2016. As of December 31, 2008, we had on order 55 B737
aircraft with delivery dates between 2009 and 2016.
We may reduce or delay further growth in our fleet and are evaluating possible net reductions in our current
fleet including through the sale of additional aircraft. The table below illustrates, as of December 31, 2008, all
aircraft currently scheduled for delivery:
Firm Aircraft Deliveries
B737
2009 4
2010 -
2011 5
2012 9
2013 5
2014 14
2015 8
2016 10
Total 55
Our aircraft purchase commitments for the next five years and thereafter, in aggregate, are (in millions): 2009—
$135; 2010—$45; 2011—$210; 2012—$365; and 2013—$230; and thereafter $1,290. These amounts include
payment commitments, including payment of pre-delivery deposits, for aircraft on firm order. Aircraft purchase
commitments include the forecasted impact of contractual price escalations and directly related costs. The
aircraft purchase commitment totals do not reflect the effects of prearranged aircraft financings, or planned
disposition of aircraft.
Our B737 contract with Boeing requires us to make pre-delivery deposits to Boeing. No additional pre-delivery
deposits are due for the 2009 scheduled deliveries. Although we typically have financed a significant portion of
our pre-delivery deposit requirements with debt from banks, we currently have no such financing in place for
our deliveries in 2011 and beyond and we have no assurance that, given the current status of the financial
markets, satisfactory financing will be available to us when we are obligated to make pre-delivery deposit
payments of $16.2 million in 2009.
We have agreed to sell two B737 aircraft to a foreign air carrier in 2009 contemporaneous with the delivery
thereof to us. The same foreign air carrier purchased two B737s from us in 2008. However, these pending
transactions are subject to customary closing conditions, some of which are outside of our control, and therefore
we cannot give any assurances that the closing of these transactions will occur. We have not arranged financing
for such aircraft as we intend for those aircraft to be sold to the buyer substantially contemporaneously with our
purchase from Boeing. We have arranged backstop secured debt financing to fund a portion of the purchase
price of each of the remaining two 2009 aircraft deliveries.
While our intention is to finance the remainder of the aircraft on order through either debt financing, lease
financing, or both, we have not yet arranged for any such financing. However, we have sale/leaseback
commitments from an aircraft leasing company with respect to four spare engines to be delivered through 2010.
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