EX-10.10.10 17 d573709dex101010.htm EX-10.10.10 EX-10.10.10

Exhibit 10.10.10

***Text Omitted and Filed Separately with the Securities and Exchange Commission

Confidential Treatment Requested Under

17 C.F.R. Sections 200.80(b)(4) and 230.406

NINTH AMENDMENT TO THE CAPACITY PURCHASE AGREEMENT

This Ninth Amendment (this “Amendment”) is entered into this XXX day of January, 2017 by and among United Airlines, Inc., a Delaware corporation (“United”), Mesa Airlines, Inc., a Nevada corporation (“Contractor”) and Mesa Air Group, Inc., a Nevada Corporation (“Parent”) and is effective as of XXX XX , 2017.

WHEREAS, United, Contractor and Parent are parties to that certain Capacity Purchase Agreement, dated as of August 29, 2013 (as previously amended by the parties thereto, the “Agreement”) (Capitalized teams not otherwise defined herein will have the same meanings as those contained in the Agreement.);

WHEREAS, the parties desire to amend the Agreement to add twelve (12) E175 aircraft, which will be purchased by United and leased by United to Contractor, as Covered Aircraft to the Agreement; and

WHEREAS, such additional E175 Covered Aircraft will not be considered Growth Aircraft; and

WHEREAS, the parties desire to amend certain provisions of the Agreement and

NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Agreement as follows:

 

  1.

Section 2.4(b) is amended by deleting the phrase:

“With respect to E175 covered Aircraft with Aircraft Numbers 1 through and including 30”

and replacing it with the following:

“With respect to United Owned E175 Covered Aircraft.”

 

  2.

Section 3.3(a) is amended by deleting the phrase:

“Covered Aircraft with Aircraft Numbers 1 through 30 (as set forth on Schedule 1 to the Agreement)”

and replacing it with the following:

“United Owned E 175 Covered Aircraft.”

 

  3.

Article III is hereby amended to add a new subsection, 3.6(a) (ix), as follows:

“ a fixed margin rate (not subject to escalation) of [***] for each United Owned E175 Covered Aircraft that are numbered 49 through 60.

 

1


  4.

Section 3.6(b)(iii)(A)(8) is amended by deleting each of the three instances of the phrase:

“E175 covered Aircraft Numbers 1 through and including 30”

and replacing each with the following:

“United Owned E175 Covered Aircraft.”

 

  5.

Section 3.6(b)(iii)(A)(9) is amended by deleting the phrase:

“E175 covered Aircraft Numbers 1 through and including 30”

and replacing it with the following:

“United Owned E175 Covered Aircraft.”

 

  6.

Section 3.6(b)(iii)(A)(10) is amended by deleting the phrase:

“E175 covered Aircraft Numbers 1 through and including 30”

and replacing it with the following:

“United Owned E175 Covered Aircraft.”

 

  7.

Section 3.6(b)(iii)(A)(11) is amended by deleting the phrase:

“E175 covered Aircraft Numbers 1 through and including 30”

and replacing it with the following:

“United Owned E175 Covered Aircraft.”

 

  8.

Section 3.6(b)(iii)(A)(12) is amended by deleting the phrase:

“E175 covered Aircraft Numbers 1 through and including 30”

and replacing it with the following:

“United Owned E175 Covered Aircraft.”

 

  9.

Section 3.6(b)(iii)(A)(13) is amended by deleting the phrase:

“E175 covered Aircraft Numbers 1 through and including 30”

and replacing it with the following:

“United Owned E175 Covered Aircraft.”

 

2


  10.

Section 3.6(d) is deleted in its entirety and replaced with the following:

“(d) Ownership Rate. As compensation for the cost of ownership of the ten (10) 2015 New Aircraft financed pursuant to the EETC Transaction as listed by expected U.S. registration number (“Reg. No.”) in Schedule 5 hereto (the “EETC Aircraft”), United shall pay to Contractor during the calendar month of the payment date set forth in Schedule 5 hereto on the Table therein applicable to such EETC Aircraft the amount set forth opposite such payment date on such Table (the “Ownership Rate”), in four (4) equal installments during such month (consistent with the payment schedule referenced in Section 3.6(c)(i)), provided that United shall have no obligation to make a payment with respect to an EETC Aircraft that would otherwise be due during the calendar month of any such payment date that occurs after the earliest of (i) in the case of any EETC Aircraft not previously financed pursuant to the EETC Transaction, the date that such EETC Aircraft is no longer able to be financed pursuant to the EETC Transaction, (ii) the date of withdrawal of such EETC Aircraft from the capacity purchase provisions of this Agreement, (iii) the date of purchase of such EETC Aircraft by United and (iv) the date that all equipment notes issued in the EETC Transaction with respect to such EETC Aircraft shall have been paid in full, and such EETC Aircraft shall cease to be an EETC Aircraft on such earliest date. If an EETC Aircraft ceases to be an EETC Aircraft pursuant to clause (i) of the preceding sentence, within five Business Days after the date of such cessation (the “Trigger Date”), Contractor shall pay to United the amount set forth in Schedule 6 hereto on the Table therein applicable to such Aircraft opposite the Trigger Date (or, if such Trigger Date is not set forth on such Table, opposite the date set forth on such Table immediately preceding such Trigger Date).”

 

  11.

Section 3.6(e) is deleted in its entirety and replaced with the following:

“(e) Ownership Rate For Secured Loan Aircraft. As compensation for the cost of ownership of each Secured Loan Aircraft, United shall pay to Contractor an amount equal to each regularly scheduled payment of principal and interest with respect to the loan under the Secured Loan Agreement with respect to such Secured Loan Aircraft in four (4) equal installments during the calendar month (consistent with the payment schedule referenced in Section 3.6(c)(i)) of the payment date on which such payment is due under the applicable Secured Loan Agreement (the “Secured Loan Ownership Rate”), provided that United shall have no obligation to make any Secured Loan Ownership Rate payment with respect to a Secured Loan Aircraft (x) to the extent United shall have paid the corresponding principal and interest payment pursuant to United’s guaranty under the applicable Secured Loan Transaction and United has not been reimbursed as of the first day of the month in during which such Secured Loan Ownership Rate payment is due or (y) if such payment would otherwise first become due on any such payment month that occurs after the earliest of (i) the date of withdrawal of such Secured Loan Aircraft from the capacity purchase provisions of this Agreement, (ii) the date of purchase of such Secured Loan Aircraft by United, and (iii) the date that all principal of and interest on the loans under the Secured Loan Agreements with respect to such Secured Loan Aircraft shall have been paid in full, and such Secured Loan Aircraft shall cease to be a Secured

 

3


Loan Aircraft on such earliest date. United shall be entitled to set-off against its obligation to make any Secured Loan Ownership Rate payment with respect to any Secured Loan Aircraft any amount that United shall have paid under United’s guaranty with respect to any due and unpaid Contractor obligation under the related Secured Loan Transaction for which United has not been reimbursed as of the date such Secured Loan Ownership Rate payment is due.”

 

  12.

The following new Section 10.9 is added to the Agreement:

 

  “10.9

New Aircraft Configuration. Contractor shall ensure that any Covered Aircraft added to scope of this Agreement materially conform to United’s then-current specifications, including, but not limited to, specifications for aircraft configuration, galley, seats, winglets, and other standards, and that such aircraft are consistent with the specifications and livery applicable to such fleet type.”

 

  13.

Schedule 1 is deleted in its entirety and replaced with the revised Schedule 1 attached hereto.

 

  14.

Schedule lA is deleted in its entirety and replaced with the revised Schedule lA attached hereto.

 

  15.

Schedule 2A is deleted in its entirety and replaced with the revised Schedule 2A attached hereto.

 

  16.

Exhibit A is amended by the addition of the following new definition:

United Owned E175 Covered Aircraft” means those E175 Covered Aircraft identified as United owned E175 Covered Aircraft on Schedule 1.

 

  17.

Exhibit A is amended by deleting the definition “Committed Delivery Date.”

 

  18.

Condition precedent. This Amendment will have no effect until the following conditions precedent have been met:

 

  (a)

This Amendment has been executed United, Contractor and Parent;

  (b)

United has received an assignment from Republic Airlines, Inc. of the right to purchase the twelve (12) E175 aircraft that are the subject of this Amendment pursuant to terms that are reasonably acceptable to United; and

  (c)

United’s senior management and board of directors have approved the purchase of the purchase of the twelve (12) E175 aircraft that are the subject of this Amendment.

 

  19.

This Amendment may be executed in multiple counterparts, each which will be considered an original hereof. Except as expressly amended in this Amendment, the Agreement will remain in full force and effect.

[SIGNATURE PAGE FOLLOWS]

 

4


IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed in duplicate (each of which duplicates are deemed to be an original) by their duty authorized representatives as of the date first set forth above.

 

UNITED AIRLINES, INC.

By:

Name: Gerald Laderman

Title: Senior Vice President Finance and acting

  Chief Financial Officer

MESA AIR GROUP, INC.

By:

Name:

Title:

MESA AIRLINES, INC.

By:

Name:

Title:

 

5


IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed in duplicate (each of which duplicates are deemed to be an original) by their duly authorized representatives as of the date first set forth above.

 

UNITED AIRLINES, INC.

By:

Name: Gerald Laderman

Title: Senior Vice President Finance and acting

  Chief Financial Officer

MESA AIR GROUP, INC.

By:

Name:

Title:

MESA AIRLINES, INC.

By:

Name:

Title:

 

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SCHEDULE 1

Covered Aircraft

Table 1: E175 Covered Aircraft

 

Aircraft  

No.

  

Aircraft

Type

  

Tail

No.

   MSN   

Actual
Delivery

Date

  

Actual In-

Service
Date

   Scheduled
Exit Date
   Scheduled
Term
   Category
1.    E175    N87302    17000394    4/11/2014    6/15/2014    6/15/2019    5 years    United Owned
2.    E175    N88301    17000388    3/26/2014    7/15/2014    7/15/2019    5 years    United Owned
3.    E175    N87303    17000398    4/25/2015    7/15/2014    7/20/2019    5 years    United Owned
4.    E175    N89304    17000406    6/16/2014    8/10/2014    8/10/2019    5 years    United Owned
5.    E175    N93305    17000412    7/25/2014    8/19/2014    8/19/2019    5 years    United Owned
6.    E175    N87306    17000414    7/25/2014    9/10/2014    9/10/2019    5 years    United Owned
7.    E175    N84307    17000419    9/8/2014    9/20/2014    9/20/2019    5 years    United Owned
8.    E175    N89308    17000422    9/11/2014    10/5/2014    10/5/2019    5 years    United Owned
9.    E175    N86309    17000426    10/9/2014    10/26/2014    10/26/2019    5 years    United Owned
10.    E175    N88310    17000427    10/16/2014    11/10/2014    11/10/2019    5 years    United Owned
11.    E175    N86311    17000429    10/16/2014    11/20/2014    11/20/2019    5 years    United Owned
12.    E175    N86312    17000432    11/6/2014    12/3/2014    12/3/2019    5 years    United Owned
13.    E175    N89313    17000433    11/6/2014    12/18/2014    12/18/2019    5 years    United Owned
14.    E175    N82314    17000436    11/20/2014    12/30/2014    12/30/2019    5 years    United Owned
15.    E175    N89315    17000437    11/20/2014    1/6/2015    1/6/2020    5 years    United Owned
16.    E175    N86316    17000438    12/4/2014    1/24/2015    1/24/2020    5 years    United Owned
17.    E175    N89317    17000442    12/4/2014    2/12/2015    2/12/2020    5 years    United Owned
18.    E175    N87318    17000443    12/16/2014    2/20/2015    2/20/2020    5 years    United Owned
19.    E175    N87319    17000448    12/18/2014    3/5/2015    3/5/2020    5 years    United Owned
20.    E175    N85320    17000454    2/26/2015    3/25/2015    3/25/2020    5 years    United Owned
21.    E175    N89321    17000459    3/5/2015    4/7/2015    4/7/2020    5 years    United Owned
22.    E175    N86322    17000465    4/9/2015    4/23/2015    4/23/2020    5 years    United Owned
23.    E175    N85323    17000469    4/9/2015    5/6/2015    5/6/2020    5 years    United Owned

 

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24.    E175    N86324    17000471    4/16/2015    5/24/2015    5/24/2020    5 years    United Owned
25.    E175    N88325    17000474    5/14/2015    6/4/2015    6/4/2020    5 years    United Owned
26.    E175    N88326    17000478    5/21/2015    6/20/2015    6/20/2020    5 years    United Owned
27.    E175    N88327    17000479    6/8/2015    7/2/2015    7/2/2020    5 years    United Owned
28.    E175    N88328    17000480    6/11/2015    7/25/2015    7/25/2020    5 years    United Owned
29.    E175    N88329    17000487    6/25/2015    8/10/2015    8/10/2020    5 years    United Owned
30.    E175    N88330    17000488    6/29/2015    8/18/2015    8/18/2020    5 years    United Owned
31.    E175    N87337    17000551    3/22/2016    6/9/2016    6/9/2028    12 years    Block 1 2015 New Aircraft
32.    E175    N87339    17000559    5/16/2016    7/11/2016    7/11/2028    12 years    Block 1 2015 New Aircraft
33.    E175    N85340    17000562    5/23/2016    7/25/2016    7/24/2028    12 years    Block 1 2015 New Aircraft
34.    E175    N88341    17000563    6/7/2016    8/15/2016    8/15/2028    12 years    Block 1 2015 New Aircraft
35.    E175    N89342    17000570    6/23/2016    8/22/2016    8/22/2028    12 years    Block 1 2015 New Aircraft
36.    E175    N80343    17000571    7/6/2016    9/12/2016    9/12/2028    12 years    Block 1 2015 New Aircraft
37.    E175    N86344    17000534    7/7/2016    9/12/2016    9/12/2028    12 years    Block 1 2015 New Aircraft
38.    E175    N87345    17000582    8/18/2016    10/17/2016    10/17/2028    12 years    Block 1 2015 New Aircraft
39.    E175    N88346    17000583    8/18/2016    10/17/2016    10/17/2028    12 years    Block 1 2015 New Aircraft
40.    E175    N86347    17000599    9/22/2016    11/26/2016    11/26/2028    12 years    Block 1 2015 New Aircraft
41.    E175    N88331    17000530    12/18/2015    1/25/2016    1/25/2028    12 years    Block 2 2015 New Aircraft
42.    E175    N88332    17000531    12/22/2015    2/18/2016    2/28/2028    12 years    Block 2 2015 New Aircraft
43.    E175    N82333    17000532    12/22/2016    3/1/2016    3/1/2028    12 years    Block 2 2015 New Aircraft

 

8


44.    E175    N86334    17000534    1/29/2016    3/15/2016    3/15/2028    12 years    Block 2 2015 New Aircraft
45.    E175    N88335    17000538    2/15/2016    4/5/2016    4/5/2028    12 years    Block 3 2015 New Aircraft
46.    E175    N86336    17000548    3/22/2016    6/8/2016    6/8/2028    12 years    Block 3 2015 New Aircraft
47.    E175    N82338    17000552    5/10/2016    7/11/2016    7/11/2028    12 years    Block 3 2015 New Aircraft
48.    E175    N80348    17000591    9/29/2016    11/30/2016    11/30/2028    12 years    Block 3 2015 New Aircraft
49.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
50.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
51.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
52.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
53.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
54.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
55.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
56.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
57.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
58.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
59.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned
60.    E175    TBD    TBD    Note 1(b)    Note 1(e)    Note 1(g)    5 years    United Owned

Note 1 – Relating to all Covered Aircraft (except where specified otherwise):

 

  a)

No later than one hundred and fifty (150) days prior to the scheduled delivery date for an aircraft set forth on Schedule 1A (the “Scheduled Delivery Date”), United shall inform Contractor if there is any change to the Scheduled In-Service Date (as specified in Table 1A), for such Covered Aircraft, it being understood that (x) such communication from United to Contractor shall not be binding for purposes of selecting the actual Committed In-Service Date pursuant to Clause (d) of this Note 1, below, and (y) such dates shall be used by Contractor and United in anticipating aircraft available to schedule and with respect to any applicable Final Monthly Schedule. The date that an aircraft is actually delivered to United or to Contractor

 

9


 

pursuant to Section 10.7, as the case may be will be referred to as the “Actual Delivery Date.”

 

  b)

Subject to the provisions to the first sentence of Section 2.1(a) of this Agreement, United shall provide a final notice of the actual delivery date of any United Owned E175 Covered Aircraft (the “Final Notice”) to Contractor no later than the earlier of (x) Actual Delivery Date, and (y) the day following the completion of the final inspection of such aircraft, which notice shall determine the delivery date of the aircraft for purposes of this Schedule 1, and which determination shall be confirmed in writing by the parties.

 

  c)

United shall use its commercially reasonable efforts to provide Contractor with notice regarding the delivery status of each United Owned E175 Covered Aircraft from time to time in advance of the delivery of a Final Notice with respect to such E175 Covered Aircraft, including without limitation information relating to the commencement of the delivery inspection period, delays in delivery, or otherwise relating to the delivery of such aircraft.

 

  d)

Following the determination of the Actual Delivery Date for a Covered Aircraft, Contractor shall inform United of a projected Actual In-Service Date for such aircraft (the “Committed In-Service Date”), which shall be no later than the first to occur of (x) the 60th day following the Actual Delivery Date, except in the case of United Owned E175 Aircraft 49 through and including 60, the 30th day following the Actual Delivery Date, and (y) the date set forth under the caption “Scheduled In-Service Date” for such aircraft on Schedule 1A (as such Scheduled In-Service Date may be amended pursuant to clause (a) of this Note 1 or delayed by, and only to the extent such date is delated by, a delay attributable to the manufacturer or by a delay due to an Act of God that continues for fewer than fifteen (15) days).

 

  e)

On the date that any Covered Aircraft becomes available to schedule under the provisions of this Agreement, such aircraft shall be deemed to have been placed into service hereunder (such date being the “Actual In-Service Date” for such aircraft.

 

  f)

As soon as practicable following the determination of the Actual Delivery Date and the Actual In-Service for an E175 Covered Aircraft, the parties hereto shall revise Schedule 1 accordingly.

 

  g)

The scheduled exit date (the “Scheduled Exit Date”) for Covered Aircraft will be the date that is the number of years specified for such aircraft in Table 1 above after the Actual In-Service Date of such Covered Aircraft.

 

  h)

Following the determinations of the Actual Delivery Date (as applicable), the Actual In-Service Date and the Scheduled Exit date for Covered Aircraft Contract and United shall update this Schedule 1 accordingly, and Schedule 1 will be deemed to be amended accordingly without any further action by the parties hereto.

Note 2 – Relating to all United Owned E175 Covered Aircraft:

The Scheduled Exit Dates set forth in the above table shall be adjusted from time to time to reflect any extension of the Term for any United Owned E175 Covered Aircraft pursuant to Section 10.2 of this Agreement.

 

10


Note 3 – [RESERVED]

Note 4 – Relating to 2015 New Aircraft:

The delivery dates and in-service dates for 2015 New Aircraft must satisfy the following conditions:

 

  a)

No later than one hundred fifty (150) days prior to the Scheduled Delivery Date for each 2015 New Aircraft, or as soon as practically possible for any of the 2015 New Aircraft, as set forth on Schedule 1A attached hereto, Contractor and United shall meet to discuss the dates that are likely to be selected as the Committed In-Service Date for each of the 2015 New Aircraft, it being understood that (x) such discussions shall not be binding for purposes of selecting the actual Committed In-Service Date pursuant to clause (d) below, and (y) such dates shall be used by Contractor and United in anticipating aircraft available to schedule and with respect to any applicable Final Monthly Schedule.

 

  b)

Ninety (90), sixty (60) and thirty (30) days prior to the Scheduled Delivery Date for each of the 2015 New Aircraft as set forth on Schedule 1A attached hereto, and reasonably from time to time thereafter, Contractor shall provide United with notice regarding the delivery status of such 2015 New Aircraft, including without limitation information relating to the commencement of the delivery inspection period (which notice is anticipated to be given no later than twenty (20) days prior to actual delivery date of such aircraft), delays in delivery, or otherwise relating to the delivery of such aircraft.

 

  c)

With respect to each 2015 New Aircraft, Contractor shall provide a Final Notice to United no later than the earlier of (x) the Actual Delivery Date, and (y) the Actual Delivery Date, and which determination shall be confirmed in writing by the parties.

 

  d)

Following the determination of the Actual Delivery Date for a 2015 New Aircraft pursuant to clause (c) above, the parties shall determine a Committed In-Service Date, which shall be note later than the first to occur of (x) the 60th day following the Actual Delivery Date and (y) the date set forth under the caption “Scheduled In-Service Date” for such aircraft on Schedule 1A attached hereto (as such Scheduled In-Service Date may be delayed by, and only to the extent such date is delayed by, a delay attributable to the manufacturer or by a delay due to an Act of God that continues for fewer than fifteen (15) days), and which determination shall be confirmed in writing by the parties.

Table 2 CRJ Covered Aircraft

 

Aircraft

Number

   Aircraft Type    Tail Number    CRJ Scheduled
Delivery Date
   CRJ In-Service
Date
01   

CRJ700

       

September 1, 2013

  

September 1, 2013

02   

CRJ700

       

September 1, 2013

  

September 1, 2013

 

11


03   

CRJ700

       

September 1, 2013

  

September 1, 2013

04   

CRJ700

       

September 1, 2013

  

September 1, 2013

05   

CRJ700

       

September 1, 2013

  

September 1, 2013

06   

CRJ700

       

September 1, 2013

  

September 1, 2013

07   

CRJ700

       

September 1, 2013

  

September 1, 2013

08   

CRJ700

       

September 1, 2013

  

September 1, 2013

09   

CRJ700

       

September 1, 2013

  

September 1, 2013

10   

CRJ700

       

September 1, 2013

  

September 1, 2013

11   

CRJ700

       

September 1, 2013

  

September 1, 2013

12   

CRJ700

       

September 1, 2013

  

September 1, 2013

13   

CRJ700

       

September 1, 2013

  

September 1, 2013

14   

CRJ700

       

September 1, 2013

  

September 1, 2013

15   

CRJ700

       

September 1, 2013

  

September 1, 2013

16   

CRJ700

       

September 1, 2013

  

September 1, 2013

17   

CRJ700

       

September 1, 2013

  

September 1, 2013

18   

CRJ700

       

September 1, 2013

  

September 1, 2013

19   

CRJ700

       

September 1, 2013

  

September 1, 2013

20   

CRJ700

       

September 1, 2013

  

September 1, 2013

 

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Table 3 CRJ Covered Aircraft

 

Aircraft Number    CRJ Scheduled Exit Date12    Scheduled Term3
01    August 31, 2019    6 yrs 3 mos
02    August 31, 2019    6 yrs 3 mos
03    August 31, 2019    6 yrs 3 mos
04    August 31, 2019    6 yrs 3 mos
05    September 30, 2019    6 yrs 4 mos
06    September 30, 2019    6 yrs 4 mos
07    September 30, 2019    6 yrs 4 mos
08    September 30, 2019    6 yrs 4 mos
09    October 31, 2019    6 yrs 5 mos
10    October 31, 2019    6 yrs 5 mos
11    October 31, 2019    6 yrs 5 mos
12    October 31, 2019    6 yrs 5 mos
13    November 30, 2019    6 yrs 6 mos
14    November 30, 2019    6 yrs 6 mos
15    November 30, 2019    6 yrs 6 mos
16    November 30, 2019    6 yrs 6 mos
17    December 31, 2019    6 yrs 7 mos
18    December 31, 2019    6 yrs 7 mos
19    December 31, 2019    6 yrs 7 mos
20    December 31, 2019    6 yrs 7 mos

SCHEDULE 1A

E175 Covered Aircraft Scheduled Delivery Dates and Scheduled In-Service Dates

 

 

 

1 The CRJ Scheduled Exit Dates and Schedule Term set forth in the above table shall be adjusted from time to time to reflect any extension of Term for any CRJ Covered Aircraft pursuant to Section 10.2 of this Agreement and to coincide with the schedule change date within United’s Scheduling system most closely following any applicable exit date.

2 Contractor shall provide United, not later than ninety (90) days prior to each CRJ Scheduled Exit Date, with specific tail numbers identifying the CRJ Covered Aircraft to be terminated on such date.

3 Upon the CRJ Scheduled Exit Date, the Term associated with each of the CRJ Covered Aircraft shall expire.

 

13


Aircraft Number    Scheduled Delivery Date    Scheduled In-Service Date
1.    30-Mar-14    31-Jul-14
2.    30-Apr-14    14-Aug-14
3.    30-Apr-14    14-Aug-14
4.    30-Jun-14    14-Sep-14
5.    30-Ju1-14    30-Sep-14
6.    30-Jul-14    15-Oct-14
7.    30-Aug-14    31-Oct-14
8.    30-Aug-14    14-Nov-14
9.    30-Oct-14    15-Dec-14
10.    30-Oct-14    15-Dec-14
11.    30-Oct-14    14-Jan-14
12.    30-Nov-14    14-Jan-14
13.    30-Nov-14    14-Feb-15
14.    30-Nov-14    14-Feb-15
15.    30-Dec-14    17-Mar-15
16.    30-Dec-14    17-Mar-15
17.    30-Dec-14    17-Mar-15
18.    28-Feb-15    14-Apr-15
19.    28-Feb-15    14-Apr-15
20.    30-Mar-15    15-May-15
21.    30-Mar-15    15-May-15
22.    30-Apr-15    14-Jun-15
23.    30-Apr-15    14-Jun-15
24.    30-May-15    15-Jul-15
25.    30-Jun-15    14-Aug-15
26.    30-Jun-15    14-Aug-15
27.    30-Jun-15    14-Sep-15
28.    30-Jul-15    14-Sep-15
29.    30-Jul-15    15-Oct-15
30.    30-Jun-15    15-Sep-15

 

14


31.    Apr-16    8-Jun-16
32.    May-16    11-Jul-16
33.    May-16    25-Jul-15
34.    Jun-16    15-Aug-16
35.    Jun-16    22-Aug-16
36.    Jul-16    12-Sep-16
37.    Jul-16    12-Sep-16
38.    Aug-16    17-Oct-16
39.    Aug-16    17-Oct-17
40.    Sep-16    26-Nov-16
41.    Dec-15    25-Jan-16
42.    Dec-15    18-Feb-16
43.    Dec-15    1-Mar-16
44.    Jan-16    15-Mar-16
45.    Feb-16    5-Apr-16
46.    Apr-16    8-Jun-16
47.    May-16    11-Jul-16
48.    Sep-16    30-Nov-16
49.    May-17    Note 1
50.    May-17    Note 1
51.    Jun-17    Note 1
52.    Jun-17    Note 1
53.    Jul-17    Note 1
54.    Aug-17    Note 1
55.    Sept-17    Note 1
56.    Oct-17    Note 1
57.    Oct-17    Note 1
58.    Nov-17    Note 1
59.    Dec-17    Note 1
60.    Dec-17    Note 1

 

15


*Notwithstanding the date listed for this aircraft, Contractor agrees to use its best efforts to place this aircraft in service by it associated Target In-Service Date.

Note 1 – The scheduled in service date for these Covered Aircraft will be no sooner than May, 2017, subject to such acceleration or other variation as United and Contractor may mutually agree in writing from time to time, each party acting reasonably, to meet each parties’ operational requirements.

SCHEDULE 2A

E175 Covered Aircraft Compensation for Carrier Controlled Costs

The following Table 1 shall apply per corresponding year to United Owned E175 Covered Aircraft flown under this Agreement when Contractor’s ORD United Express flying represents [***] or more of the Contractor’s entire United Express operation for United, including both E175 Covered Aircraft and CRJ Covered Aircraft, and shall become effective at the Actual In-Service Date for each such United Owned E175 Covered Aircraft; provided, however, once an aircraft is in service then for the years subsequent to the year in which such aircraft entered service, as identified below, the rates shown for each such subsequent year shall take effect as of June 1 of that year through the term for such aircraft (unless earlier terminated pursuant to the provisions of the Agreement):

Table 1 – United Owned E175 Covered (ORD > 50%)

 

    

Category45

    

Year

 

  

  for each

block hour

 

  

  for each
flight hour

 

  

for each
scheduled
Flight
departure

 

  

for
interrupted
trip expense
per
passenger

 

  

per aircraft
per month

 

  

per aircraft per

month AD

payment

pursuant to
Section

3.6(b)(iii)(A)(8)

 

2014   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Dec 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2016

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2017

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

 

 

 

4 The rates included in this table do not include costs payable by United as Pass-Through Costs pursuant to Section 3.6(b)(iii)(A) of the Agreement, specifically including: (i) non-expendable repair/replacement costs, (ii) engine maintenance, (iii) Airframe Heavy Maintenance, (iv) landing gear maintenance, and (iv) APU maintenance.

5 Aircraft Numbers 49 through and included 60 will be paid a fixed margin rate of [***] per aircraft, per month with no escalation due throughout the term.

 

 

16


     Category45     

Year

 

  

  for each

block hour

 

  

  for each

flight hour

 

  

for each
scheduled
Flight
departure

 

  

for
interrupted
trip expense
per
passenger

 

  

per aircraft
per month

 

  

per aircraft per

month AD

payment

pursuant to
Section

3.6(b)(iii)(A)(8)

 

June 1,

2018

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2019

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2020

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2021

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2022

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Jane 1,

2023

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Jane 1,

2024

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2025

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2026

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Effective as of September 20, 2014, the following Table 1A shall apply per corresponding year to United Owned E175 Covered Aircraft flown under this Agreement when Contractor’s ORD United Express flying represents less than [***] of the Contractor’s entire United Express operation for United, including both E175 Covered Aircraft and CRJ Covered Aircraft provided, however, once an aircraft is in service then for the years subsequent to the year in which such aircraft entered service, as identified below, the rates shown for each such subsequent year shall take effect as of June 1 of that year through the term for such aircraft (unless earlier terminated pursuant to the provisions of the Agreement):

Table 1A – United Owned E175 Covered (ORD < [***])

 

 

 

17


    

Category67

    

Year

 

  

  for each

block hour

 

  

  for each

flight hour

 

  

for each
scheduled
Flight
departure

 

  

for
interrupted
trip expense
per
passenger

 

  

per aircraft
per month

 

  

per aircraft per

month AD

payment

pursuant to
Section

3.6(b)(iii)(A)(8)

 

September

20, 2014

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Dec 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2016

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2017

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2018

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2019

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2020

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2021

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2022

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Jane 1,

2023

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Jane 1,

2024

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2025

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2026

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

The following Table 2 shall apply per corresponding year to Block 1 of the 2015 New Aircraft and shall become effective at the Actual In-Service Date for each such E175 Covered Aircraft; provided, however, once such a 2015 New Aircraft is in service then for the years subsequent to the year in which such aircraft entered service, as identified below, the rates shown

 

 

6 The rates included in this table do not include costs payable by United as Pass-Through Costs pursuant to Section 3.6(b)(iii)(A) of the Agreement, specifically including: (i) non-expendable repair/replacement costs, (ii) engine maintenance, (iii) Airframe Heavy Maintenance, (iv) landing gear maintenance, and (iv) APU maintenance.

7 Aircraft Numbers 49 through and included 60 will be paid a fixed margin rate of [***] per aircraft, per month with no escalation due throughout the term.

 

18


for each such subsequent year shall take effect as of June 1 of that year through the term for such aircraft (unless earlier terminated pursuant to the provisions of the Agreement):

Table 2 – Block 1 of the 2015 New Aircraft

 

     Category8

Year

 

  

  for each

block hour

 

  

  for each

flight hour

 

  

for interrupted
trip expense
per departure

 

  

per aircraft in
fleet per month

 

  

per aircraft in
schedule per month

 

April 2016   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1, 2017   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1, 2018   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l, 2019   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l, 2020   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1, 2021   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l, 2022   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l, 2023   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l, 2024   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1, 2025   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1, 2026   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1, 2027   

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Table 3 – [RESERVED]

The following Table 4 shall apply per corresponding year to Block 2 of the 2015 New Aircraft and Block 3 of the 2015 New Aircraft and shall become effective at the Actual In-Service Date for each such E175 Covered Aircraft; provided, however, that once an aircraft is in service then for the years subsequent to the year in which such aircraft entered service, as identified below, the rates shown for each such subsequent year shall take effect as of June 1 of that year through the term for such aircraft (unless earlier terminated pursuant to the provisions of the Agreement):

Table 4 – Block 2 of the 2015 New Aircraft and Block 3 of the 2015 New Aircraft

 

 

8 The rates included in this table do not include costs payable by United as Pass-Through Costs pursuant to Section 3.6(b)(iii)(A) of the Agreement.

 

19


     Category9     

Year

 

  

  for each

block hour

 

  

for each

  flight

  hour

 

  

for
interrupted
trip expense
per
departure

 

                          

per aircraft in
fleet per
month

 

  

per aircraft in
schedule per
month

 

December

2015

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June 1,

2017

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June 1,

2018

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June l,

2019

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June l,

2020

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June 1,

2021

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June l,

2022

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June l,

2023

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June l,

2024

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June 1,

2025

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June 1,

2026

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

June 1,

2027

  

[***]

  

[***]

  

[***]

  

[***]  

  

[***]

  

[***]

SCHEDULE 2B

CRJ Covered Aircraft Compensation for Carrier Controlled Costs

The following rates shall apply to all CRJ Covered Aircraft flown under this Agreement when Contractor’s ORD United Express flying represents [***] or more of the Contractor’s entire United Express operation for United, including both E175 Covered Aircraft and CRJ Covered Aircraft, and shall become effective at the In-Service Date for each CRJ Covered Aircraft:

Table 2B – CRJ Covered Aircraft (ORD > [***])

 

 

9 The rates included in this table do not include costs payable by United as Pass-Through Costs pursuant to Section 3.6(b)(iii)(A) of the Agreement.

 

20


          Category               
                              United Cancelled Flights

Year

 

  

   for

  each

block

 hour

 

  

  for each
aircraft in
  schedule

 

  

for each
scheduled
Flight
departure

 

  

for
interrupted
trip expense
per
passenger

 

  

for each
completed
passenger

 

  

per aircraft
per month

 

  

per month

 

  

For each
block
hour for
United
Cancelled
Flight

 

  

For each
United
Cancelled
flight

 

June

2013

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Jan

2014

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June

2014

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Dec 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2016

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2017

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2018

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2019

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

Table 2B – CRJ Covered Aircraft (ORD < [***])

Effective as of September 20, 2014, the following rates shall apply to all CRJ Covered Aircraft flown under this Agreement when Contractor’s ORD United Express flying represents less than [***] of the Contractor’s entire United Express operation for United, including both E175 Covered Aircraft and CRJ Covered Aircraft:

 

          Category               
                              United Cancelled Flights

Year

 

  

   for

  each

block

 hour

 

  

  for each
aircraft in
  schedule

 

  

for each
scheduled
Flight
departure

 

  

for
interrupted
trip expense
per
passenger

 

  

for each
completed
passenger

 

  

per aircraft
per month

 

  

per month

 

  

For each
block
hour for
United
Cancelled
Flight

 

  

For each
United
Cancelled
flight

 

Sept 20,

2014

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

 

21


          Category               
                              United Cancelled Flights

Year

 

  

   for

  each

block

  hour

 

  

  for each
aircraft in
  schedule

 

  

for each
scheduled
Flight
departure

 

  

for
interrupted
trip expense
per
passenger

 

  

for each
completed
passenger

 

  

per aircraft
per month

 

  

per month

 

  

For each
block
hour for
United
Cancelled
Flight

 

  

For each
United
Cancelled
flight

 

Dec 1,

2015

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2016

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2017

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June l,

2018

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

June 1,

2019

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

  

[***]

 

22