Delaware | 13-1502798 | |
(State or other jurisdiction | (I.R.S. Employer Identification No.) | |
of incorporation or organization) | ||
4333 Amon Carter Blvd. | ||
Fort Worth, Texas | 76155 | |
(Address of principal executive offices) | (Zip Code) |
o Large Accelerated Filer | o Accelerated Filer | þ Non-Accelerated Filer (Do not check if a smaller reporting company) |
o Smaller Reporting Company |
Item 1. | Financial Statements |
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues |
||||||||
Passenger |
$ | 4,134 | $ | 3,831 | ||||
Regional Affiliates |
577 | 498 | ||||||
Cargo |
169 | 154 | ||||||
Other revenues |
647 | 580 | ||||||
Total operating revenues |
5,527 | 5,063 | ||||||
Expenses |
||||||||
Aircraft fuel |
1,638 | 1,330 | ||||||
Wages, salaries and benefits |
1,557 | 1,550 | ||||||
Regional payments to AMR Eagle |
604 | 516 | ||||||
Other rentals and landing fees |
318 | 320 | ||||||
Maintenance, materials and repairs |
244 | 284 | ||||||
Commissions, booking fees and
credit card expense |
256 | 234 | ||||||
Depreciation and amortization |
234 | 230 | ||||||
Aircraft rentals |
163 | 132 | ||||||
Food service |
121 | 115 | ||||||
Other operating expenses |
658 | 674 | ||||||
Total operating expenses |
5,793 | 5,385 | ||||||
Operating Loss |
(266 | ) | (322 | ) | ||||
Other Income (Expense) |
||||||||
Interest income |
6 | 5 | ||||||
Interest expense |
(158 | ) | (167 | ) | ||||
Interest capitalized |
7 | 9 | ||||||
Related party interest - net |
(4 | ) | (3 | ) | ||||
Miscellaneous - net |
(16 | ) | (11 | ) | ||||
(165 | ) | (167 | ) | |||||
Loss Before Income Taxes |
(431 | ) | (489 | ) | ||||
Income tax |
- | - | ||||||
Net Loss |
$ | (431 | ) | $ | (489 | ) | ||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current Assets |
||||||||
Cash |
$ | 281 | $ | 165 | ||||
Short-term investments |
5,510 | 4,322 | ||||||
Restricted cash and short-term investments |
455 | 450 | ||||||
Receivables, net |
902 | 719 | ||||||
Inventories, net |
545 | 542 | ||||||
Fuel derivative contracts |
693 | 269 | ||||||
Other current assets |
344 | 277 | ||||||
Total current assets |
8,730 | 6,744 | ||||||
Equipment and Property |
||||||||
Flight equipment, net |
9,582 | 9,815 | ||||||
Other equipment and property, net |
2,115 | 2,170 | ||||||
Purchase deposits for flight equipment |
497 | 355 | ||||||
12,194 | 12,340 | |||||||
Equipment and Property Under Capital Leases |
||||||||
Flight equipment, net |
310 | 194 | ||||||
Other equipment and property, net |
48 | 49 | ||||||
358 | 243 | |||||||
International slots and route authorities |
708 | 708 | ||||||
Domestic slots and airport operating and gate lease
rights, less accumulated amortization, net |
206 | 212 | ||||||
Other assets |
2,188 | 2,175 | ||||||
$ | 24,384 | $ | 22,422 | |||||
Liabilities and Stockholders Equity |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ | 1,191 | $ | 1,073 | ||||
Accrued liabilities |
2,208 | 1,955 | ||||||
Air traffic liability |
4,290 | 3,656 | ||||||
Payable to affiliates, net |
2,850 | 2,955 | ||||||
Current maturities of long-term debt |
1,566 | 1,468 | ||||||
Current obligations under capital leases |
100 | 107 | ||||||
Total current liabilities |
12,205 | 11,214 | ||||||
Long-term debt, less current maturities |
6,918 | 6,095 | ||||||
Obligations under capital leases, less current obligations |
588 | 497 | ||||||
Pension and postretirement benefits |
7,926 | 7,876 | ||||||
Other liabilities, deferred gains and deferred credits |
3,082 | 3,076 | ||||||
Stockholders Equity |
||||||||
Common stock |
- | - | ||||||
Additional paid-in capital |
3,990 | 3,981 | ||||||
Accumulated other comprehensive loss |
(2,442 | ) | (2,865 | ) | ||||
Accumulated deficit |
(7,883 | ) | (7,452 | ) | ||||
(6,335 | ) | (6,336 | ) | |||||
$ | 24,384 | $ | 22,422 | |||||
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net Cash Provided by Operating Activities |
$ | 672 | $ | 405 | ||||
Cash Flow from Investing Activities: |
||||||||
Capital expenditures |
(252 | ) | (306 | ) | ||||
Net (increase) decrease in short-term investments |
(1,188 | ) | (111 | ) | ||||
Net (increase) decrease in restricted cash and short-term investments |
(5 | ) | - | |||||
Proceeds from sale of equipment and property |
(7 | ) | 1 | |||||
Cash collateral on spare parts financing |
- | - | ||||||
Net cash provided by (used for) investing activities |
(1,452 | ) | (416 | ) | ||||
Cash Flow from Financing Activities: |
||||||||
Payments on long-term debt and capital lease obligations |
(171 | ) | (181 | ) | ||||
Proceeds from: |
||||||||
Issuance of debt and sale leaseback transactions |
1,172 | 297 | ||||||
Reimbursement from construction reserve account |
- | 1 | ||||||
Funds transferred to affiliates, net |
(105 | ) | (70 | ) | ||||
Net cash provided by (used for) financing activities |
896 | 47 | ||||||
Net increase (decrease) in cash |
116 | 36 | ||||||
Cash at beginning of period |
165 | 149 | ||||||
Cash at end of period |
$ | 281 | $ | 185 | ||||
-3-
1. | The accompanying unaudited condensed consolidated financial statements have been prepared in
accordance with United States (U.S.) generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion of
management, these financial statements contain all adjustments, consisting of normal recurring
accruals, necessary to present fairly the financial position, results of operations and cash
flows for the periods indicated. Results of operations for the periods presented herein are
not necessarily indicative of results of operations for the entire year. American Airlines,
Inc. (American or the Company) is a wholly owned subsidiary of AMR Corporation (AMR). The
condensed consolidated financial statements also include the accounts of variable interest
entities for which the Company is the primary beneficiary. For further information, refer to
the consolidated financial statements and footnotes included in the American Airlines, Inc.
Annual Report on Form 10-K filed on February 16, 2011 (2010 Form 10-K). |
2. | As of March 31, 2011, American had 15 Boeing 737-800 aircraft purchase commitments for the
remainder of 2011 and 28 Boeing 737-800 aircraft purchase commitments in 2012 and, in addition
to those commitments, American had firm commitments for eleven Boeing 737-800 aircraft and
seven Boeing 777-200ER aircraft scheduled to be delivered in 2013 through 2016. During the
first quarter of 2011, the Company amended Purchase Agreement No. 1980 with Boeing and
exercised rights to acquire four Boeing 777-300ER aircraft, including two scheduled for
delivery in 2012 and two scheduled for delivery in 2013. In April 2011, the Company
exercised rights to acquire a fifth Boeing 777-300ER aircraft, which is scheduled for delivery
in 2013. In 2008, American entered into a purchase agreement with Boeing (subject to certain
reconfirmation rights) to acquire 42 Boeing 787-9 aircraft, with the right to acquire an
additional 58 Boeing 787-9 aircraft. The first such Boeing 787-9 aircraft is currently
scheduled to be delivered (subject to certain confirmation rights) in 2014. American has
selected GE Aviation as the exclusive provider of engines for its expected order of Boeing
787-9 aircraft. |
As of March 31, 2011, payments for the above purchase commitments under these arrangements
will approximate $820 million
in the remainder of 2011, $1.2 billion in 2012, $580 million in 2013, $290 million in 2014, $169
million in 2015, and $80 million for 2016. These amounts are net of purchase deposits currently
held by the manufacturers. American has granted Boeing a security interest in Americans
purchase deposits with Boeing. The Companys purchase deposits totaled $497 million at March
31, 2011. |
3. | Accumulated depreciation of owned equipment and property at March 31, 2011 and December 31,
2010 was $9.9 billion and $9.8 billion, respectively. Accumulated amortization of equipment
and property under capital leases at March 31, 2011 and December 31, 2010 was $519 million and
$579 million, respectively. |
4. | The Company provides a valuation allowance for deferred tax assets when it is more likely
than not that some portion, or all, of its deferred tax assets will not be realized. The
Companys deferred tax asset valuation allowance remained approximately the same during the
three months ended March 31, 2011 at $3.6 billion as of March 31, 2011, including the impact
of comprehensive income for the three months ended March 31, 2011 and changes from other
adjustments. |
-4-
Under current accounting rules, the Company is required to consider all items (including items
recorded in other comprehensive income) in determining the amount of tax benefit that results
from a loss from continuing operations and that should be allocated to continuing operations.
The Company generally does not record any such tax benefit allocation in interim reporting
periods as the Company concluded the potential benefit is not considered realizable because the
change in the pension liability, a material component of other comprehensive income, is
determined annually. Thus, any such interim tax benefit allocation may subsequently be subject
to reversal. |
||
5. | Long-term debt consisted of (in millions): |
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Secured variable and fixed rate indebtedness due through 2021 (effective rates from 2.28% - 13.00% at March 31, 2011) |
$ | 3,884 | $ | 3,002 | ||||
Enhanced equipment trust certificates due through 2019 (rates from 3.85% - 12.00% at March 31, 2011) |
2,040 | 2,002 | ||||||
6.00% - 8.50% special facility revenue bonds due through 2036 |
1,642 | 1,641 | ||||||
AAdvantage Miles advance purchase (net of discount of $110
million) (effective rate 8.30%) |
890 | 890 | ||||||
Other |
28 | 28 | ||||||
8,484 | 7,563 | |||||||
Less current maturities |
1,566 | 1,468 | ||||||
Long-term debt, less current maturities |
$ | 6,918 | $ | 6,095 | ||||
The Companys future long-term debt and operating lease payments have changed as its ordered
aircraft are delivered and such deliveries have been financed. As of March 31, 2011, maturities
of long-term debt (including sinking fund requirements) for the next five years are: remainder
of 2011 $1.9 billion, 2012 $1.4 billion, 2013 $714 million, 2014 $693 million, and
2015 $447. The 2011 amount includes approximately $600 million that was refinanced in
January 2011 as described below and thus is excluded from current maturities. Future minimum
lease payments required under operating leases that have initial or remaining non-cancelable
lease terms in excess of a year as of March 31, 2011, were: remainder of 2011 $853 million,
2012 $1.1 billion, 2013 $966 million, 2014 $825 million, 2015 $668 million, and 2016
and beyond $6.0 billion. |
||
As of March 31, 2011, American had issued guarantees covering approximately $854 million of
AMRs unsecured debt (and interest thereon). In addition, as of March 31, 2011, AMR and
American had issued guarantees covering approximately $193 million of AMR Eagles secured debt
(and interest thereon). |
||
On January 25, 2011, American closed on a $657 million
offering of Class A and Class B Pass
Through Trust Certificates (the Certificates). The equipment notes expected to be held by each
pass through trust will be issued for each of (a) 15 Boeing 737-823 aircraft delivered new to
American from 1999 to 2001, (b) six Boeing 757-223 aircraft delivered new to American in 1999
and 2001, (c) two Boeing 767-323ER aircraft delivered new to American in 1999 and (d) seven
Boeing 777-223ER aircraft delivered new to American from 1999 to 2000. At closing, 27 of the
aircraft were encumbered by either private mortgages or by liens to secure debt incurred in
connection with the issuance of enhanced equipment trust certificates in 2001, all of which
mature in 2011. As a result, the proceeds from the sale of the Certificates of each trust will
initially be held in escrow with a depositary, pending the financing of each aircraft under an
indenture relating to the Certificates. |
-5-
Interest of 5.25% and 7.00% per annum on the issued and
outstanding Series A equipment notes and Series B equipment notes, respectively, will be payable semiannually on January 31 and July 31 of each
year, commencing on July 31, 2011, and principal on such equipment notes is scheduled for
payment on January 31 and July 31 of certain years, commencing on July 31, 2011. The payment
obligations of American under the equipment notes will be fully and unconditionally guaranteed
by AMR Corporation. Approximately $47 million of the proceeds from sale of the Certificates
were received by American as of March 31, 2011, in exchange for equipment notes secured by three
737-823 aircraft. Approximately $483 million, $24 million,
and $103 million from the sale of Certificates are expected to be received in the second, third, and fourth
quarter of 2011, respectively. |
||
In March 2011, American issued $1 billion aggregate principal amount of senior secured notes due
2016 (the Senior Secured Notes) guaranteed by AMR. The Senior Secured Notes bear
interest at a rate of 7.50% per annum, payable semi-annually on March 15 and September 15 of
each year, beginning September 15, 2011. As is customary for financings of this nature, the
indebtedness evidenced by the Senior Secured Notes may be accelerated upon the occurrence of
events of default under the related indenture.
The Senior Secured Notes are senior secured obligations of American and unconditionally
guaranteed on an unsecured basis by AMR. Subject to certain limitations and exceptions,
the Senior Secured Notes are secured by certain of Americans landing and takeoff slots on
routes between the United States and Londons Heathrow Airport and between the United States and
certain Asia airports, and airport gate leaseholds utilized in connection with these routes. |
||
American, at its option, may redeem some or all of the Senior Secured Notes at any time on or
after March 15, 2013, at specified redemption prices, plus accrued and unpaid interest, if any.
In addition, at any time prior to March 15, 2013, American, at its option, may redeem some or
all of the Senior Secured Notes at a redemption price equal to 100% of their principal amount
plus a make-whole premium and accrued and unpaid interest, if any. In addition, at any time
prior to March 15, 2014, American, at its option, may redeem (1) up to 35% of the aggregate
principal amount of the Senior Secured Notes with the proceeds of certain equity offerings at a
redemption price of 107.5% of their principal amount, plus accrued and unpaid interest, if any,
and (2) during any 12-month period, up to 10% of the original aggregate principal amount of the
Senior Secured Notes at a redemption price of 103% of their principal amount, plus accrued and
unpaid interest, if any. If American sells certain assets or if a change of control (as
defined in the indenture) occurs, American must offer to repurchase the Senior Secured Notes at
prices specified in the indenture. |
||
The indenture for the Senior Secured Notes includes covenants that, among other things, limit
the ability of the Company and its subsidiaries to merge, consolidate, sell assets, incur additional indebtedness,
issue preferred stock, make investments and pay dividends. In addition, if American fails to
maintain a collateral ratio of 1.5 to 1.0, American must pay additional interest on the notes at
the rate of 2% per annum until the collateral coverage ratio equals at least 1.5 to 1.0. |
||
In 2010, American and Japan Airlines (JAL) entered into a Joint Business Agreement (JBA) to
enhance their scope of cooperation on routes between North America and Asia through adjustments
to their respective networks, flight schedules, and other business activities. American and JAL
began implementing the JBA on April 1, 2011. |
||
American and JAL entered into a Revenue Sharing Agreement, effective April 1, 2011, as
envisaged by the JBA. The agreement provides for shared revenues, expanded codesharing,
enhanced frequent flyer program reciprocity, and cooperation in other areas. Under this
agreement, American has also given JAL a guarantee of certain minimum incremental revenue
resulting from the successful operation of the joint business for the first three years
following implementation of the JBA, subject to certain terms and conditions. The amount
required to be paid by the Company under the guarantee will not exceed $100 million in any of
such years. Due to various uncertainties, including uncertainties as a result of the earthquake
and tsunami that impacted Japan in March 2011, the Company is still evaluating the fair value of
the guarantee, which will be recorded upon the effective date. The amount, if any, that the
Company may ultimately be required to pay under the guarantee is not estimable at this time. |
||
Almost all of the Companys aircraft assets (including aircraft eligible for the benefits of
Section 1110 of the U.S. Bankruptcy Code) are encumbered. |
-6-
6. | The Company utilizes the market approach to measure fair value for its financial assets and
liabilities. The market approach uses prices and other relevant information generated by
market transactions involving identical or comparable assets or liabilities. The Companys
short-term investments classified as Level 2 primarily utilize broker quotes in a non-active
market for valuation of these securities. The Companys fuel derivative contracts, which
consist primarily of heating oil option and collar contracts, are valued using energy and
commodity market data which is derived by combining raw inputs with quantitative models and
processes to generate forward curves and volatilities. No changes in valuation techniques or
inputs occurred during the three months ended March 31, 2011. |
Assets and liabilities measured at fair value on a recurring basis are summarized below: |
(in millions) | Fair Value Measurements as of March 31, 2011 | |||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Short term investments 1, 2 |
||||||||||||||||
Money market funds |
$ | 648 | $ | 648 | $ | - | $ | - | ||||||||
Government agency investments |
577 | - | 577 | - | ||||||||||||
Repo investments |
1,488 | - | 1,488 | - | ||||||||||||
Corporate obligations |
884 | - | 884 | - | ||||||||||||
Bank notes/Certificates of deposit/Time deposit |
1,913 | - | 1,913 | - | ||||||||||||
5,510 | 648 | 4,862 | - | |||||||||||||
Restricted cash and short-term investments 1 |
455 | 455 | - | - | ||||||||||||
Fuel derivative contracts 1 |
693 | - | 693 | - | ||||||||||||
Fuel derivative liability 1 |
- | - | - | - | ||||||||||||
Total |
$ | 6,658 | $ | 1,103 | $ | 5,555 | $ | - | ||||||||
-7-
The fair values of the Companys long-term debt were estimated using quoted market prices where
available. For long-term debt not actively traded, fair values were estimated using discounted
cash flow analyses, based on the Companys current estimated incremental borrowing rates for
similar types of borrowing arrangements. |
The carrying value and estimated fair values of the Companys long-term debt, including current
maturities, were (in millions): |
March 31, 2011 | December 31, 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Secured variable and fixed rate
indebtedness |
$ | 3,884 | $ | 3,948 | $ | 3,002 | $ | 2,907 | ||||||||
Enhanced equipment trust certificates |
2,040 | 2,143 | 2,002 | 2,127 | ||||||||||||
6.0% - 8.5% special facility revenue
bonds |
1,642 | 1,629 | 1,641 | 1,657 | ||||||||||||
AAdvantage Miles advance purchase |
890 | 905 | 890 | 903 | ||||||||||||
Other |
28 | 28 | 28 | 28 | ||||||||||||
$ | 8,484 | $ | 8,653 | $ | 7,563 | $ | 7,622 | |||||||||
7. | The following tables provide the components of net periodic benefit cost for the three months
ended March 31, 2011 and 2010 (in millions): |
Retiree Medical and Other | ||||||||||||||||
Pension Benefits | Benefits | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Components of net periodic
benefit cost |
||||||||||||||||
Service cost |
$ | 95 | $ | 93 | $ | 15 | $ | 15 | ||||||||
Interest cost |
190 | 185 | 44 | 42 | ||||||||||||
Expected return on assets |
(163 | ) | (149 | ) | (5 | ) | (4 | ) | ||||||||
Amortization of: |
||||||||||||||||
Prior service cost |
4 | 4 | (7 | ) | (5 | ) | ||||||||||
Unrecognized net (gain) loss |
37 | 37 | (2 | ) | (2 | ) | ||||||||||
Net periodic benefit cost |
$ | 163 | $ | 170 | $ | 45 | $ | 46 | ||||||||
The Company is required to make minimum contributions to its defined benefit pension plans
under the minimum funding requirements of the Employee Retirement Income Security Act (ERISA),
the Pension Funding Equity Act of 2004, the Pension Protection Act of 2006, and the Pension
Relief Act (Relief Act) of 2010. Under the Relief Act, the Companys estimates its 2011
minimum required contribution to its defined benefit pension plans to be approximately $520
million. The Company contributed $89 million to its defined benefit pension plans during the
first quarter of 2011 and $99 million on April 15, 2011. |
-8-
AMERICAN AIRLINES, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Unaudited) |
8. | As a result of the revenue environment, high fuel prices and the Companys restructuring
activities, including its capacity reductions, the Company has recorded a number of charges
during the last few years. In 2008 and 2009, the Company announced capacity reductions due to
unprecedented high fuel costs at that time and the other challenges facing the industry. In
connection with these capacity reductions, the Company incurred special charges related to
aircraft and certain other charges. |
The following table summarizes the components of the Companys special charges, the remaining
accruals for these charges and the capacity reduction related charges (in millions) as of March
31, 2011: |
Aircraft | Facility | |||||||||||
Charges | Exit Costs | Total | ||||||||||
Remaining accrual
at December 31,
2010 |
$ | 59 | $ | 27 | $ | 86 | ||||||
Capacity reduction charges |
- | - | - | |||||||||
Non-cash charges |
- | - | - | |||||||||
Adjustments |
(1 | ) | - | (1 | ) | |||||||
Payments |
(15 | ) | (1 | ) | (16 | ) | ||||||
Remaining accrual
at
March 31, 2011 |
$ | 43 | $ | 26 | $ | 69 | ||||||
Cash outlays related to the accruals for aircraft charges and facility exit costs will occur
through 2017 and 2018, respectively. |
9. | As part of the Companys risk management program, it uses a variety of financial instruments,
primarily heating oil option and collar contracts, as cash flow hedges to mitigate commodity
price risk. The Company does not hold or issue derivative financial instruments for trading
purposes. As of March 31, 2011, the Company had fuel derivative contracts outstanding
covering 29 million barrels of jet fuel that will be settled over the next 21 months. A
deterioration of the Companys liquidity and financial position may negatively affect the
Companys ability to hedge fuel in the future. |
For the quarters ended March 31, 2011 and 2010, the Company recognized a decrease and an
increase of approximately $90 million and $45 million, respectively, in fuel expense on the
accompanying consolidated statements of operations related to its fuel hedging agreements,
including the ineffective portion of the hedges. The net fair value of the Companys fuel
hedging agreements at March 31, 2011 and December 31, 2010, representing the amount the Company
would receive upon termination of the agreements (net of settled contract assets), totaled $623
million and $257 million, respectively. |
-9-
AMERICAN AIRLINES, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Unaudited) |
The impact of cash flow hedges on the Companys consolidated financial statements is depicted below (in millions): | ||
Fair Value of Aircraft Fuel Derivative Instruments (all cash flow hedges) |
Asset Derivatives as of | Liability Derivatives as of | |||||||||||||||||||||
March 31, 2011 | December 31, 2010 | March 31, 2011 | December 31, 2010 | |||||||||||||||||||
Balance |
Balance | Balance | Balance | |||||||||||||||||||
Sheet | Fair | Sheet | Fair | Sheet | Fair | Sheet | Fair | |||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | |||||||||||||||
Fuel derivative |
Fuel derivative |
Fuel derivative |
Fuel derivative |
|||||||||||||||||||
contracts |
$ | 693 | contracts | $ | 269 | liability | $ | - | liability | $ | - |
Effect of Aircraft Fuel Derivative Instruments on Statements of Operations (all cash flow hedges) |
Amount of Gain | Amount of Gain | Amount of Gain | ||||||||||||
(Loss) | (Loss) | (Loss) | ||||||||||||
Recognized in | Location of Gain | Reclassified from | Location of Gain | Recognized in | ||||||||||
OCI on | (Loss) Reclassified | Accumulated OCI | (Loss) Recognized | Income on | ||||||||||
Derivative1 as of | from Accumulated | into Income 1, 3 as | in Income on | Derivative 2, 3 as | ||||||||||
March 31, | OCI into Income 1, 3 | of March 31, | Derivative 2, 3 | of March 31, | ||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||
$ 475 | $ 4 | Aircraft Fuel | $ 87 | $ (46) | Aircraft Fuel | $ 3 | $ 1 |
1 | Effective portion of gain (loss) | |
2 | Ineffective portion of gain (loss) | |
3 | Does not include expense allocated to AMR Eagle |
The Company is also exposed to credit losses in the event of non-performance by counterparties
to these financial instruments, and although no assurances can be given, the Company does not
expect any counterparty to fail to meet its obligations. The credit exposure related to these
financial instruments is represented by the fair value of contracts with a positive fair value
at the reporting date, reduced by the effects of master netting agreements. To manage credit
risks, the Company selects counterparties based on credit ratings, limits its exposure to a
single counterparty under defined guidelines, and monitors the market position of the program
and its relative market position with each counterparty. The Company also maintains
industry-standard security agreements with a number of its counterparties which may require the
Company or the counterparty to post collateral if the value of selected instruments exceeds
specified mark-to-market thresholds or upon certain changes in credit ratings. |
||
As of March 31, 2011, the Company had received cash collateral of $388 million which is included in
short-term investments. |
||
The Company includes changes in the fair value of certain derivative financial instruments that
qualify for hedge accounting and unrealized gains and losses on available-for-sale securities
in comprehensive income. For the three month periods ended March 31, 2011 and 2010,
comprehensive income (loss) was $(9) million and ($399) million, respectively. The difference
between net earnings (loss) and comprehensive income (loss) for the three month periods ended
March 31, 2011 and 2010 is due primarily to the accounting for the Companys derivative
financial instruments and the actuarial loss on the pension benefit obligation of the Companys
pension plans. |
-10-
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-15-
-16-
-17-
-18-
Three Months Ended March 31, 2011 | ||||||||||||||||
RASM | Y-O-Y | ASMs | Y-O-Y | |||||||||||||
(cents) | Change | (billions) | Change | |||||||||||||
DOT Domestic |
10.89 | 6.3 | % | 22.8 | (0.2 | )% | ||||||||||
International |
10.97 | 3.0 | 15.1 | 7.6 | ||||||||||||
DOT Latin America |
12.65 | 6.3 | 8.1 | 9.7 | ||||||||||||
DOT Atlantic |
9.07 | (2.4 | ) | 5.0 | (0.8 | ) | ||||||||||
DOT Pacific |
8.93 | (2.9 | ) | 2.0 | 23.2 |
-19-
(in millions) | Three Months | |||||||||||||||
Ended | Change | Percentage | ||||||||||||||
Operating Expenses | March 31, 2011 | from 2010 | Change | |||||||||||||
Aircraft
fuel |
$ | 1,638 | $ | 308 | 23.2 | % | (a | ) | ||||||||
Wages, salaries and
benefits |
1,557 | 7 | 0.5 | |||||||||||||
Regional payments to AMR Eagle |
604 | 88 | 17.1 | (b | ) | |||||||||||
Other rentals and landing fees |
318 | (2 | ) | (0.6 | ) | |||||||||||
Maintenance, materials and repairs |
244 | (40 | ) | (14.1 | ) | (c | ) | |||||||||
Commissions, booking fees and
credit card expense |
256 | 22 | 9.4 | (d | ) | |||||||||||
Depreciation and amortization |
234 | 4 | 1.7 | |||||||||||||
Aircraft rentals |
163 | 31 | 23.5 | (e | ) | |||||||||||
Food service |
121 | 6 | 5.2 | |||||||||||||
Other operating expenses |
658 | (16 | ) | (2.4 | ) | |||||||||||
Total operating expenses |
$ | 5,793 | $ | 408 | 7.6 | % | ||||||||||
(a) | Aircraft fuel expense increased primarily due to a 23.6 percent increase in the
Companys price per gallon of fuel (net of the impact of hedging gains of $90 million). |
||
(b) | Regional payments to AMR
Eagle expense increased in conjunction with an increase in fuel
expense. |
||
(c) | Maintenance, materials and repairs decreased primarily due to timing of repairs in
2010. |
||
(d) | Commissions, booking fees and credit card expenses increased due to a 9.2 percent
increase in operating revenues. |
||
(e) | Aircraft rental expense increased primarily due to new aircraft deliveries in 2011
and 2010. |
-20-
-21-
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues: |
||||||||
Regional Affiliates |
$ | 577 | $ | 498 | ||||
Other |
39 | 34 | ||||||
$ | 616 | $ | 532 | |||||
Expenses: |
||||||||
Regional payments |
$ | 619 | $ | 541 | ||||
Other incurred expenses |
102 | 88 | ||||||
$ | 721 | $ | 629 | |||||
-22-
-23-
-24-
-25-
-26-
10.1
|
Supplemental Agreement No. 21 to Purchase Agreement No. 1980 by and between American
Airlines, Inc. and The Boeing Company dated as of March 14, 2011. Portions of this Exhibit have been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
Rule 24b-2 of the Securities and Exchange Act of 1934, as amended. |
|
10.2
|
Supplemental Agreement No. 22 to Purchase Agreement No. 1980 by and between American
Airlines, Inc. and The Boeing Company dated as of March 31, 2011. Portions of this Exhibit have been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
Rule 24b-2 of the Securities and Exchange Act of 1934, as amended. |
|
12
|
Computation of ratio of earnings to fixed charges for the three months ended March 31, 2011 and 2010. |
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a). |
|
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a). |
|
32
|
Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002
(subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code). |
|
101
|
The following materials from Americans Quarterly Report on Form 10-Q for the quarter ended
March 31, 2011, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed
Consolidated Statements of Operations, (ii) the Condensed Consolidated Balance Sheets, (iii)
the Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Condensed Consolidated
Financial Statements, tagged as blocks of text.* |
|
*
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto
are deemed not filed or part of a registration statement or prospectus for purposes of
Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes
of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not
subject to liability under those sections. |
-27-
AMERICAN AIRLINES, INC. |
||||
Date: April 20, 2011 | BY: | /s/ Isabella D. Goren | ||
Isabella D. Goren | ||||
Senior Vice President and Chief Financial Officer |
-28-
P.A. No. 1980 | SA-21 |
THE BOEING COMPANY | AMERICAN AIRLINES, INC. | |||||||||
By:
|
By: | |||||||||
Name:
|
Name: | |||||||||
Its:
|
Attorney-In-Fact | Its: | ||||||||
P.A. No. 1980 | SA-21 |
PAGE & SA | ||||
ARTICLES | NUMBER | |||
1. | Quantity, Model and Description |
1, SA-20 | ||
2. | Delivery Schedule |
1, SA-20 | ||
3. | Price |
1, SA-20 | ||
4. | Payment |
2, SA-20 | ||
5. | Miscellaneous |
2, SA-20 |
TABLE | SA NUMBER | |||
1.
|
777-200ER Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | Original Purchase Agreement, SA-3, SA-17 & SA-18 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT]Airframe Base Year |
||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT]Engine Base Year |
||||
1-1.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-1 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe & Engine Base Year |
||||
1-2.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-2 & SA-6 |
P.A. No. 1980 Table of Contents, Page i |
SA-21 |
TABLE | SA NUMBER | |||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe & Engine Base Year |
||||
1-3.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-4, SA-5, SA-6, SA-7 & SA-9 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe Base Year |
||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Engine Base Year |
||||
1-4.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-5, SA-6 & SA-9 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe Base Year |
||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Engine Base Year |
||||
1-5.
|
777-223IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-10, SA-11, SA-12 & SA-15 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe Base Year |
||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED |
P.A. No. 1980 Table of Contents, Page ii |
SA-21 |
TABLE | SA NUMBER | |||
SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year | ||||
1-6.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-13 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe Base Year |
||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Engine Base Year |
||||
1-7.
|
SA-20 777-323ER [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Aircraft Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Base Year | SA-20 | ||
TABLE | SA NUMBER | |||
2.
|
777-223IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-15 & SA-16 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Airframe Base Year |
||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] Engine Base Year |
||||
3.
|
777-223IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-15 & SA-16 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED |
P.A. No. 1980 Table of Contents, Page iii |
SA-21 |
TABLE | SA NUMBER | |||
SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Airframe Base Year (Pacific Aircraft) | ||||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year |
EXHIBIT | SA NUMBER | |||
A. | Aircraft Configuration |
|||
A1. | Aircraft Configuration 777-323ER |
SA-20 | ||
B. | Aircraft Delivery Requirements and Responsibilities |
SA-20 | ||
C. | Defined Terms |
SA-20 |
SUPPLEMENTAL EXHIBITS | SA NUMBER | |||
AE1. | Escalation Adjustment Airframe and Optional Features - 777-323ER |
SA-20 | ||
BFE1. | BFE Variables |
|||
BFE1-2. | BFE Variables - 777-323ER |
SA-20 | ||
CS1. | Customer Support Variables |
|||
CS1-2 | Customer Support Variables - 777-323ER |
SA-20 | ||
SLP1 | Service Life Policy Components |
|||
EE1-BR1. | Engine Escalation and Engine Warranty |
SA-15 | ||
EE1-2. | Engine Escalation, Engine Warranty and Patent Indemnity 777-323ER |
SA-20 |
P.A. No. 1980 Table of Contents, Page iv |
SA-21 |
PA or SA | ||||
LETTER AGREEMENTS | NUMBER | |||
6-1162-AKP-070
|
Miscellaneous Commitments for Model 737, 757, 767 and 777 Aircraft | |||
6-1162-AKP-071R1
|
Purchase Obligations | PA3219 | ||
6-1162-AKP-072R3
|
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
SA-20 | ||
6-1162-AKP-073R1
|
Accident Claims and Litigation | PA3219 | ||
6-1162-AKP-109R3
|
Business Considerations | SA-20 | ||
6-1162-AKP-110R3
|
Aircraft Purchase Rights and Substitution Rights | SA-20 | ||
Attachment A
|
Description and Price for Eligible Models | SA-20 | ||
Attachment B
|
Information Regarding MADP Rights | SA-20 | ||
Attachment C
|
QADP Rights Aircraft Delivery Quarters and Exercise Dates | SA-21 | ||
Attachment D
|
Forms of Purchase Agreement Supplement | SA-20 | ||
Attachment E
|
Letter Agreements | SA-20 | ||
Attachment F
|
Information regarding MADP and QADP Rights if no 787s are reconfirmed | SA-20 | ||
6-1162-AKP-111
|
Aircraft Performance Guarantees | |||
AAL-PA-1980-LA-1003346
|
Aircraft Performance Guarantees 777-323ER | SA-20 | ||
6-1162-AKP-112
|
Spares Matters | |||
6-1162-AKP-113
|
Model 777 Miscellaneous Commitments | |||
6-1162-AKP-114
|
Installation of Cabin Systems Equipment | |||
AAL-PA-1980-LA-1003493
|
Installation of Cabin Systems Equipment 777-323ER | SA-20 | ||
6-1162-AKP-115
|
Component and System Reliability Commitments | |||
6-1162-AKP-116
|
Price Adjustment on Rolls-Royce Engines | |||
6-1162-AKP-117
|
Delivery Schedule | |||
6-1162-AKP-118R2
|
Confidentiality | SA-20 | ||
6-1162-AKP-204
|
Multiple Operating Weight Program Model 777-200IGW Aircraft |
SA-6 | ||
AAL-PA-1980-LA-1003536
|
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
SA-20 | ||
AAL-PA-1980-LA-1003344
|
Open Configuration Matters -777-323ER | SA-20 |
P.A. No. 1980 | SA-21 | |||
Table of Contents, Page v |
P.A. No. 1980 | SA-21 | |||
Table of Contents, Page vi |
PA No. 1980 | SA No. 21 | Page 1 of 1 |
1. | Table of Contents: |
P.A. No. 1980 | SA-22 |
i
P.A. No. 1980 | SA-22 |
ii
THE BOEING COMPANY | AMERICAN AIRLINES, INC. | |||||
By:
|
By: | |||||
Name:
|
Name: | |||||
Its:
|
Attorney-In-Fact | Its: | ||||
P.A. No. 1980 | SA-22 |
iii
PAGE & SA | ||||
ARTICLES | NUMBER | |||
1.
|
Quantity, Model and Description | 1, SA-20 | ||
2.
|
Delivery Schedule | 1, SA-20 | ||
3.
|
Price | 1, SA-20 | ||
4.
|
Payment | 2, SA-20 | ||
5.
|
Miscellaneous | 2, SA-20 |
TABLE | SA NUMBER | |||
1.
|
777-200ER Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Airframe Base Year | Original Purchase Agreement, SA-3, SA-17 & SA-18 |
||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year | ||||
1-1.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-1 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe & Engine Base Year |
||||
1-2.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-2 & SA-6 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED |
P.A. No. 1980 | SA-22 | |||
Table of Contents, Page i |
TABLE | SA NUMBER | |||
SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe & Engine Base Year |
||||
1-3.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-4, SA-5, SA-6, SA-7 & SA-9 |
||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe Base Year Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year |
||||
1-4.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-5, SA-6 & SA-9 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe Base Year Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year |
||||
1-5.
|
777-223IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-10, SA-11, SA-12 & SA-15 |
||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe Base Year Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A |
P.A. No. 1980 | SA-22 | |||
Table of Contents, Page ii |
TABLE | SA NUMBER | |||
REQUEST FOR CONFIDENTIAL TREATMENT] Engine
Base Year |
||||
1-6.
|
777-200IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-13 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe Base Year Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year |
||||
1-7.
|
777-323ER [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH
THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Aircraft Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY
WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Base Year
|
SA-22 |
TABLE | SA NUMBER | |||
2.
|
777-223IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-15 & SA-16 | ||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe Base Year Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year |
||||
3.
|
777-223IGW Aircraft Information Table: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-15 & SA-16 |
P.A. No. 1980 | SA-22 | |||
Table of Contents, Page iii |
TABLE | SA NUMBER | |||
Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]
Airframe Base Year (Pacific Aircraft) Jul. [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] Engine Base Year |
EXHIBIT | SA NUMBER | |||
A. |
Aircraft Configuration | |||
A1. |
Aircraft Configuration 777-323ER | SA-20 | ||
B. |
Aircraft Delivery Requirements and Responsibilities | SA-20 | ||
C. |
Defined Terms | SA-20 |
SUPPLEMENTAL EXHIBITS | SA NUMBER | |||
AE1.
|
Escalation Adjustment Airframe and Optional Features 777-323ER | SA-20 | ||
BFE1.
|
BFE Variables | |||
BFE1-2.
|
BFE Variables 777-323ER | SA-22 | ||
CS1.
|
Customer Support Variables | |||
CS1-2
|
Customer Support Variables 777-323ER | SA-20 | ||
SLP1
|
Service Life Policy Components | |||
EE1-BR1.
|
Engine Escalation and Engine Warranty | SA-15 | ||
EE1-2.
|
Engine Escalation, Engine Warranty and Patent Indemnity 777-323ER | SA-20 |
P.A. No. 1980 | SA-22 | |||
Table of Contents, Page iv |
PA or SA | ||||
LETTER AGREEMENTS | NUMBER | |||
6-1162-AKP-070
|
Miscellaneous Commitments for Model 737, 757, 767 and 777 Aircraft | |||
6-1162-AKP-071R1
|
Purchase Obligations | PA3219 | ||
6-1162-AKP-072R3
|
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | SA-20 | ||
6-1162-AKP-073R1
|
Accident Claims and Litigation | PA3219 | ||
6-1162-AKP-109R3
|
Business Considerations | SA-20 | ||
6-1162-AKP-110R3
|
Aircraft Purchase Rights and Substitution Rights | SA-20 | ||
Attachment A
|
Description and Price for Eligible Models | SA-20 | ||
Attachment B
|
Information Regarding MADP Rights | SA-22 | ||
Attachment C
|
Information Regarding QADP Rights | SA-20 | ||
Attachment D
|
Forms of Purchase Agreement Supplement | SA-20 | ||
Attachment E
|
Letter Agreements | SA-20 | ||
Attachment F
|
Information regarding MADP and QADP Rights if no 787s are reconfirmed | SA-20 | ||
6-1162-AKP-111
|
Aircraft Performance Guarantees | |||
AAL-PA-1980-LA-1003346
|
Aircraft Performance Guarantees 777-323ER | SA-20 | ||
AAL-PA-1980-LA-04205
|
Aircraft Performance Guarantees 777-323ER | SA-22 | ||
6-1162-AKP-112
|
Spares Matters | |||
6-1162-AKP-113
|
Model 777 Miscellaneous Commitments | |||
6-1162-AKP-114R1
|
Installation of Cabin Systems Equipment | SA-22 | ||
AAL-PA-1980-LA-1003493
|
Installation of Cabin Systems Equipment 777-323ER | SA-20 | ||
6-1162-AKP-115
|
Component and System Reliability Commitments | |||
6-1162-AKP-116
|
Price Adjustment on Rolls-Royce Engines | |||
6-1162-AKP-117
|
Delivery Schedule | |||
6-1162-AKP-118R2
|
Confidentiality | SA-20 | ||
6-1162-AKP-204
|
Multiple Operating Weight Program Model 777-200IGW Aircraft |
SA-6 | ||
AAL-PA-1980-LA-1003536R1
|
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
SA-21 |
P.A. No. 1980 | SA-22 | |||
Table of Contents, Page v |
PA or SA | ||||
LETTER AGREEMENTS | NUMBER | |||
AAL-PA-1980-LA-1003344
|
Open Configuration Matters -777-323ER | SA-20 |
P.A. No. 1980 | SA-22 | |||
Table of Contents, Page vi |
AAL-PA-01980 | ||||
SA-20 APR 55725 | SA-22 | |||
SA-22 APR 56305 | Page 1 |
P.A. No. 1980 | BFE1-2 | SA-22 | ||
Page 1 | ||||
BOEING PROPRIETARY |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
||||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
||||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
N/A | |||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
||||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
||||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
||||
P.A. No. 1980 | BFE1-2 | SA-22 | ||
Page 2 | ||||
BOEING PROPRIETARY |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
*** | |||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
||||
** | [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. | |
*** | [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. |
P.A. No. 1980 | BFE1-2 | SA-22 | ||
Page 3 | ||||
BOEING PROPRIETARY |
2. | On-dock Dates and Other Information. |
Preliminary On-Dock Dates | ||||
[CONFIDENTIAL PORTION | ||||
OMITTED AND FILED SEPARATELY | ||||
WITH THE COMMISSION PURSUANT | ||||
TO A REQUEST FOR CONFIDENTIAL | ||||
TREATMENT]2012 | ||||
[CONFIDENTIAL PORTION OMITTED | ||||
AND FILED SEPARATELY WITH THE | ||||
COMMISSION PURSUANT TO A | ||||
REQUEST FOR CONFIDENTIAL | ||||
TREATMENT]2012 | ||||
Item | Aircraft | Aircraft | ||
Seats
|
[CONFIDENTIAL | PORTION | ||
Galleys/Furnishings
|
OMITTED | AND FILED | ||
Antennas & Mounting Equipment
|
SEPARATELY | WITH | ||
Avionics
|
THE | COMMISSION | ||
Cabin Systems Equipment
|
PURSUANT | TO A | ||
Miscellaneous Emergency Equipment
|
REQUEST | FOR | ||
Textiles/Raw Material
|
CONFIDENTIAL | TREATMENT] |
Preliminary On-Dock Dates | ||||
[CONFIDENTIAL PORTION | ||||
OMITTED AND FILED SEPARATELY | ||||
WITH THE COMMISSION PURSUANT | ||||
TO A REQUEST FOR CONFIDENTIAL | ||||
TREATMENT]2013 | ||||
Item | Aircraft | Aircraft | ||
Seats
|
[CONFIDENTIAL | PORTION | ||
Galleys/Furnishings
|
OMITTED | AND FILED | ||
Antennas & Mounting Equipment
|
SEPARATELY | WITH | ||
Avionics
|
THE | COMMISSION | ||
Cabin Systems Equipment
|
PURSUANT | TO A | ||
Miscellaneous Emergency Equipment
|
REQUEST | FOR | ||
Textiles/Raw Material
|
CONFIDENTIAL | TREATMENT] |
P.A. No. 1980 | BFE1-2 | SA-22 | ||
Page 4 | ||||
BOEING PROPRIETARY |
3. | Additional Delivery Requirements Import. |
P.A. No. 1980 | BFE1-2 | SA-22 | ||
Page 5 | ||||
BOEING PROPRIETARY |
PA No. 1980 | SA No. 22 | Page 1 of 1 |
The Boeing Company P.O. Box 3707 Seattle, WA 98124-2207 |
Subject:
|
Aircraft Performance Guarantees 777-323ER | |
Reference:
|
Purchase Agreement No. PA-1980 (Purchase Agreement) between The Boeing Company (Boeing) and American Airlines, Inc. (Customer) relating to Model 777-323ER aircraft (Aircraft) |
AAL-PA-1980-LA-04205 | SA-22 | |
Performance Guarantees 777-323ER | Page 1 |
THE BOEING COMPANY | ||||
By
|
|
|||
Its
|
Attorney-In-Fact | |||
ACCEPTED AND AGREED TO this | ||||
Date:
|
|
|||
American Airlines, Inc. | ||||
By
|
|
|||
Its
|
|
AAL-PA-1980-LA-04205 | SA-22 | |
Performance Guarantees 777-323ER | Page 2 |
SECTION | CONTENTS | ||||
1 | AIRCRAFT MODEL APPLICABILITY |
||||
2 | FLIGHT PERFORMANCE |
||||
3 | MANUFACTURERS EMPTY WEIGHT |
||||
4 | SOUND LEVELS |
||||
5 | AIRCRAFT CONFIGURATION |
||||
6 | GUARANTEE CONDITIONS |
||||
7 | GUARANTEE COMPLIANCE |
||||
8 | EXCLUSIVE GUARANTEES |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
1 | AIRCRAFT MODEL APPLICABILITY | |
The guarantees contained in this Attachment (the Performance Guarantees) are applicable to [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. | ||
2 | FLIGHT PERFORMANCE | |
2.1 | Takeoff | |
The FAA approved takeoff field length at a gross weight at the start of the ground roll of 775,000 pounds, at a temperature of 30°C, at a sea level altitude, with an alternate forward center of gravity limit of 20 percent of the mean aerodynamic chord, and using maximum takeoff thrust, shall not be more than the following guarantee value: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
2.2 | Landing | |
The FAA approved landing field length at a gross weight of 554,000 pounds and at a sea level altitude, shall not be more than the following guarantee value: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
2.3 | Mission | |
2.3.1 | Mission Payload | |
The payload for a stage length of 7,458 nautical miles in still air (representative of a Chicago to Hong Kong route) using the conditions and operating rules defined below, shall not be less than the following guarantee value: |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
Conditions and operating rules: | ||
Stage Length: |
The stage length is defined as the sum of the distances for the climbout maneuver, climb, cruise, and descent. | |
Takeoff:
|
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. | |
The takeoff gross weight is not limited by the airport conditions. | ||
Maximum takeoff thrust is used for the takeoff. | ||
The takeoff gross weight shall conform to FAA Regulations. | ||
Climbout Maneuver:
|
Following the takeoff to 35 feet, the Aircraft accelerates to 262 KCAS while climbing to 1,500 feet above the departure airport altitude and retracting flaps and landing gear. | |
Climb:
|
The Aircraft climbs from 1,500 feet above the departure airport altitude to 10,000 feet altitude at 262 KCAS. | |
The Aircraft then accelerates at a rate of climb of 500 feet per minute to the recommended climb speed for minimum block fuel. | ||
The climb continues at the recommended climb speed for minimum block fuel to the initial cruise altitude. | ||
The temperature is standard day during climb. | ||
Maximum climb thrust is used during climb. |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
Cruise:
|
The Aircraft cruises at 0.84 Mach number. | |
The initial cruise altitude is 28,000 feet. | ||
A step climb or multiple step climbs of 2,000 feet altitude may be used when beneficial to minimize fuel burn. | ||
The temperature is standard day during cruise. | ||
The cruise thrust is not to exceed maximum cruise thrust except during a step climb when maximum climb thrust may be used. | ||
Descent:
|
The Aircraft descends from the final cruise altitude at 250 KCAS to an altitude of 1,500 feet above the destination airport altitude. | |
Throughout the descent, the cabin pressure will be controlled to a maximum rate of descent equivalent to 300 feet per minute at sea level. | ||
The temperature is standard day during descent. | ||
Approach
and Landing Maneuver:
|
The Aircraft decelerates to the final approach speed while extending landing gear and flaps, then descends and lands. | |
The destination airport altitude is 28 feet. | ||
Fixed Allowances:
|
For the purpose of this guarantee and for the purpose of establishing compliance with this guarantee, the following shall be used as fixed quantities and allowances: | |
Taxi-Out: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
Takeoff and Climbout Maneuver: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
Approach and Landing Maneuver: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
Taxi-In (shall be consumed from the reserve |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
Usable reserve fuel remaining upon completion of the approach and landing maneuver: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] | ||
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
2.3.2 | Mission Block Fuel | |
The block fuel for a stage length of 7,458 nautical miles in still air (representative of a Chicago to Hong Kong route) with a 69,360 pound payload using the conditions and operating rules defined below, shall not be more than the following guarantee value: |
NOMINAL: [CONFIDENTIAL PORTION TOLERANCE: OMITTED AND FILED GUARANTEE: SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
Conditions and operating rules are the same as Paragraph 2.3.1 except as follows: | ||
Block Fuel:
|
The block fuel is defined as the sum of the fuel used for taxi-out, takeoff and climbout maneuver, climb, cruise, descent, approach and landing maneuver, and taxi-in. | |
Takeoff:
|
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. | |
The takeoff gross weight is not limited by the airport conditions. | ||
Climb:
|
The Aircraft climbs from 1,500 feet above the departure airport altitude to 10,000 feet altitude at 262 KCAS. | |
The Aircraft then accelerates at a rate of climb of 500 feet per minute to the recommended climb speed for minimum block fuel. | ||
The climb continues at the recommended climb speed for minimum block fuel to the initial cruise altitude. | ||
Cruise:
|
The initial cruise altitude is 30,000 feet. | |
A step climb or multiple step climbs of 2,000 feet altitude may be used when beneficial to minimize fuel burn. | ||
Fixed Allowances:
|
For the purpose of this guarantee and for the purpose of establishing compliance with this guarantee, the following shall be used as fixed quantities and allowances: | |
Operational Empty Weight, OEW (Paragraph 2.3.4): [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
Taxi-Out: |
Fuel 1,050 Pounds |
Takeoff and Climbout Maneuver: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
Approach and Landing Maneuver: |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
Taxi-In (shall be consumed from the reserve fuel): |
Fuel 350 Pounds |
Usable reserve fuel remaining upon completion of the approach and landing maneuver: [CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] |
2.3.3 | Operational Empty Weight Basis | |
The Manufacturers Empty Weight (MEW) derived in Paragraph 2.3.4 is the basis for the mission guarantees of Paragraphs 2.3.1 and 2.3.2. |
P.A. No. 1980 | ||
AERO-B-BBA4-M11-0157 | SS10-0587 |
2.3.4 | 777-300ER Weight Summary American Airlines |
Quantity | Pounds | Pounds | ||||
[CONFIDENTIAL PORTION
OMITTED AND FILED
SEPARATELY WITH THE
COMMISSION PURSUANT
TO A
REQUEST FOR
CONFIDENTIAL
TREATMENT] |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
2.3.5 | Standard and Operational Items Allowance |
Qty | Pounds | Pounds | Pounds | |||||||||||||
Standard Items Allowance |
||||||||||||||||
Unusable Fuel |
||||||||||||||||
Oil |
||||||||||||||||
Oxygen Equipment |
||||||||||||||||
Passenger Portable |
||||||||||||||||
Miscellaneous Equipment |
||||||||||||||||
First Aid Kits |
||||||||||||||||
Crash Axe |
||||||||||||||||
Megaphones |
||||||||||||||||
Flashlights |
||||||||||||||||
Smoke Goggles |
||||||||||||||||
Smoke Hoods |
||||||||||||||||
Fire Gloves |
||||||||||||||||
Galley Structure & Fixed Inserts |
||||||||||||||||
[CONFIDENTIAL PORTION OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT] |
||||||||||||||||
Operational Items Allowance |
||||||||||||||||
Crew and Crew Baggage |
||||||||||||||||
Flight Crew (Inc. Baggage) |
||||||||||||||||
Cabin Crew (Inc. Baggage) |
||||||||||||||||
Flight Crew Briefcase |
||||||||||||||||
Catering Allowance: Pacific Meal Service |
||||||||||||||||
First Class |
||||||||||||||||
Business Class |
||||||||||||||||
Economy Class |
||||||||||||||||
Passenger Service Equipment |
||||||||||||||||
Potable Water . |
||||||||||||||||
Waste Tank Disinfectant |
||||||||||||||||
Emergency Equipment (Incl. Overwater Equip.) |
||||||||||||||||
Slide Rafts |
||||||||||||||||
Life Vests |
||||||||||||||||
Locator Transmitter |
||||||||||||||||
Cargo System |
||||||||||||||||
Containers |
||||||||||||||||
Total Standard and Operational Items Allowance |
P.A. No. 1980 |
||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
3 | MANUFACTURERS EMPTY WEIGHT | |
The Manufacturers Empty Weight (MEW) is guaranteed not to exceed the value in Section 03-60-00 of Detail Specification TBD plus one percent. | ||
4 | SOUND LEVELS | |
4.1 | Community Sound Levels | |
4.1.1 | Certification | |
The Aircraft shall be certified in accordance with the requirements of 14CFR Part 36, Stage 4 and ICAO Annex 16, Volume 1, Chapter 4. | ||
4.2 | Interior Sound Levels in Flight |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
4.3 | Ramp Sound Levels | |
[CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]: | ||
5 | AIRCRAFT CONFIGURATION | |
5.1 | The guarantees contained in this Attachment are based on the Aircraft configuration as defined in the original release of Detail Specification TBD (hereinafter referred to as the Detail Specification). Appropriate adjustment shall be made for changes in such Detail Specification approved by the Customer and Boeing or otherwise allowed by the Purchase Agreement which cause changes to the flight performance, sound levels, and/or weight and balance of the Aircraft. Such adjustment shall be accounted for by Boeing in its evidence of compliance with the guarantees. | |
5.2 | The guarantee payload of Paragraph 2.3.1 will be adjusted by Boeing for the effect of the following on OEW and the Manufacturers Empty Weight guarantee of Section 3 will be adjusted by Boeing for the following in its evidence of compliance with the guarantees: |
6 | GUARANTEE CONDITIONS | |
6.1 | All guaranteed performance data are based on the International Standard Atmosphere (ISA) and specified variations therefrom; altitudes are pressure altitudes. | |
6.2 | The Federal Aviation Administration (FAA) regulations referred to in this Attachment are, unless otherwise specified, the 777-300ER Certification Basis regulations specified in the Type Certificate Data Sheet T00001SE, dated March 16, 2004. | |
6.3 | In the event a change is made to any law, governmental regulation or requirement, or in the interpretation of any such law, |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
governmental regulation or requirement that affects the certification basis for the Aircraft as described in Paragraphs 4.1 or 6.2, and as a result thereof, a change is made to the configuration and/or the performance of the Aircraft in order to obtain certification, the guarantees set forth in this Attachment shall be appropriately modified to reflect any such change. | ||
6.4 | The takeoff and landing guarantees, and the takeoff portion of the mission guarantee are based on hard surface, level and dry runways with no wind or obstacles, no clearway or stopway, 235 mph tires, with anti-skid operative, and with the Aircraft center of gravity at the most forward limit unless otherwise specified. The takeoff performance is based on no engine bleed for air conditioning or thermal anti-icing and the Auxiliary Power Unit (APU) turned off unless otherwise specified. Unbalanced field length calculations and the improved climb performance procedure will be used for takeoff as required. The landing performance is based on the use of automatic spoilers. | |
6.5 | The climb, cruise and descent portions of the mission guarantee include allowances for normal power extraction and engine bleed for normal operation of the air conditioning system. Normal electrical power extraction shall be defined as not less than a 212 kilowatts total electrical load. Normal operation of the air conditioning system shall be defined as pack switches in the Auto position, the temperature control switches in the Auto position that results in a nominal cabin temperature of 75°F, and all air conditioning systems operating normally. This operation allows a maximum cabin pressure differential of 8.6 pounds per square inch at higher altitudes, with a nominal Aircraft cabin ventilation rate of 10,300 cubic feet per minute including passenger cabin recirculation (nominal recirculation is 50 percent). The APU is turned off unless otherwise specified. | |
6.6 | The climb, cruise and descent portions of the mission guarantee are based on an Aircraft center of gravity location of 30 percent of the mean aerodynamic chord. | |
6.7 | Performance, where applicable, is based on a fuel Lower Heating Value (LHV) of 18,580 BTU per pound and a fuel density of 6.7 pounds per U.S. gallon. | |
6.8 | Sound pressure levels are measured in decibels (dB) referred to the standard reference pressure of 20 micro Pascals per ISO 1683- |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
6.9 | The guarantee for interior sound levels in flight pertains to normal operation of an Aircraft in cruise during straight and level flight at an altitude of 35,000 feet and 0.84 Mach number. The Aircraft shall have a complete interior installation including standard thermal/acoustic insulation, all lining and partition panels, a full ship set of fabric upholstered seats and floor covering in the passenger cabin and flight deck consisting of a carpet. All BFE operable equipment, including in-flight entertainment systems, shall be turned off. All operable galley equipment shall be turned off. The interior configuration is defined in LOPA B7712788. The pilots inboard ear is defined as the captains (flight deck left seat) inboard ear. The procedures used for the measurement of sound levels shall be equivalent to those in ISO 5129. |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
6.10 | The guarantee for ramp sound levels pertains to a parked Aircraft during in-service turn around with the APU (with optional APU exhaust muffler installed), all environmental control system packs, environmental control system recirculation fans, electronic equipment cooling fans and vent fans operating, and with the main propulsion engines and BFE equipment not operating. The guarantee for ramp sound levels on the 20-meter perimeter pertains to sound levels measured on a rectangular perimeter 20 meters on either side of the Aircraft centerline, 20 meters forward of the nose of the fuselage and 20 meters aft of the tail of the fuselage. The guarantees pertain to APU and environmental control system pack operation at an outside ambient temperature of 25°C(77°F). The procedures used for the measurement of ramp sound levels shall be equivalent to those in ICAO Annex 16. | |
7 | GUARANTEE COMPLIANCE | |
7.1 | Compliance with the guarantees of Sections 2, 3 and 4 shall be based on the conditions specified in those sections, the Aircraft configuration of Section 5 and the guarantee conditions of Section 6. | |
7.2 | Compliance with the takeoff and landing guarantees, the takeoff portion of the mission guarantee, and the community sound level guarantees shall be based on the FAA approved Airplane Flight Manual for the Model 777-300ER. | |
7.3 | Compliance with the takeoff guarantee and the takeoff portion of the mission guarantee shall be shown using an alternate forward center of gravity limit of 20 percent of the mean aerodynamic chord. | |
7.4 | Compliance with the climb, cruise and descent portions of the mission guarantee shall be established by calculations based on flight test data obtained from an aircraft in a configuration similar to that defined by the Detail Specification. | |
7.5 | The OEW used for compliance with the mission guarantee shall be the actual MEW plus the Standard and Operational Items Allowance in Paragraph 03-60-00 of the Detail Specification. | |
7.6 | Compliance with the Manufacturers Empty Weight guarantee shall be based on information in the Weight and Balance Control and Loading Manual Aircraft Report. |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
7.7 | The data derived from tests shall be adjusted as required by conventional methods of correction, interpolation or extrapolation in accordance with established engineering practices to show compliance with these guarantees. | |
7.8 | Compliance with the guarantee for interior sound levels in flight shall be demonstrated by Boeing Document D047W263-01. This compliance documentation is based on sound level surveys on production 777-300ER aircraft acoustically similar to the Buyers Aircraft. Compliance with the guarantee for ramp sound levels shall be demonstrated by Boeing Document D047W227. This compliance documentation is based on a sound level survey on production 777 aircraft acoustically similar to the Buyers Aircraft. The measured data may be adjusted for sound level increases resulting from Buyer Furnished Equipment, Boeing Purchased Equipment, and from changes to the Detail Specification approved by the Customer and Boeing or otherwise allowed by the Purchase Agreement. | |
7.9 | Compliance shall be based on the performance of the airframe and engines in combination, and shall not be contingent on the engine meeting its manufacturers performance specification. | |
8 | EXCLUSIVE GUARANTEES | |
The only performance guarantees applicable to the Aircraft are those set forth in this Attachment. |
P.A. No. 1980 | ||||
AERO-B-BBA4-M11-0157 | SS10-0587 | |||
BOEING PROPRIETARY |
Subject:
|
Installation of Cabin Systems Equipment | |
Reference:
|
Purchase Agreement No. 1980 between The Boeing Company and American Airlines, Inc. relating to Model 777-223IGW aircraft (Aircraft) |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
Very truly yours, | ||||
THE BOEING COMPANY | ||||
By |
||||
Its
|
Attorney-In-Fact | |||
ACCEPTED AND AGREED TO this | ||||
Date: , 2011 | ||||
AMERICAN AIRLINES, INC. | ||||
By |
||||
Its |
||||
Attachments |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
P.A. No. 1980 | SA-22 |
A. | Managing the development of all program schedules; | ||
B. | Evaluating and approving Vendors program management and developmental plans; | ||
C. | Defining program metrics and status requirements; | ||
D. | Scheduling and conducting (including notifying Customer of) (i) program status reviews and (ii) meetings to discuss any changes, at intervals mutually agreed to by Boeing and Customer. Customer will have the right to attend such status meetings between Boeing and Vendor regarding the Aircraft; | ||
E. | Scheduling and conducting design and schedule reviews with Customer and Vendors; | ||
F. | Monitoring compliance with schedules; | ||
G. | Evaluating and approving any recovery plans or plan revisions which may be required of either Vendors or Customer; | ||
H. | Leading the development of a joint IFE/CCS project management plan (the Program Plan) and; | ||
I. | Managing the joint development of the System Specification. |
P.A. No. 1980 | SA-22 |
A. | As required, assist Vendors in defining their system specifications for the IFE/CCS, approve such specifications and develop an overall system functional specification; | ||
B. | Coordinate Boeing, Customer and Vendor teams to ensure sufficient Vendor and Vendor sub system testing and an overall cabin system acceptance test are included in the Program Plan; and | ||
C. | Organize and conduct technical coordination meetings with Customer and Vendors to review responsibilities, functionality, Aircraft installation requirements and overall program schedule, direction and progress. |
A. | Boeing will coordinate the interface requirements between seat suppliers and Vendors. Interface requirements are defined in Boeing Document Nos. D6-36230, Passenger Seat Design and Installation; D6-36238, Passenger Seat Structural Design and Interface Criteria; D222W232, Seat Wiring and Control Requirements; and D222W013-4, Seat Assembly Functional Test Plan. | ||
B. | The Vendors will be required to coordinate integration testing and provide seat assembly functional test procedures for seat electronic parts to seat suppliers and Boeing, as determined by Boeing. | ||
C. | The Vendors will assist the seat suppliers in the preparation of seat assembly functional test plans. |
P.A. No. 1980 | SA-22 |
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Loss: |
||||||||
Loss before income taxes |
$ | (431 | ) | $ | (489 | ) | ||
Add: Total fixed charges (per below) |
419 | 397 | ||||||
Less: Interest capitalized |
7 | 9 | ||||||
Total earnings (loss) before income taxes |
$ | (19 | ) | $ | (101 | ) | ||
Fixed charges: |
||||||||
Interest |
$ | 162 | $ | 168 | ||||
Portion of rental expense representative of
the interest factor |
251 | 222 | ||||||
Amortization of debt expense |
6 | 7 | ||||||
Total fixed charges |
$ | 419 | $ | 397 | ||||
Ratio of earnings to fixed charges |
- | - | ||||||
Coverage deficiency |
$ | 438 | $ | 498 | ||||
1. | I have reviewed this quarterly report on Form 10-Q of American Airlines, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: April 20, 2011 | /s/ Gerard J. Arpey | |||
Gerard J. Arpey | ||||
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of American Airlines, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: April 20, 2011 | /s/ Isabella D. Goren | |||
Isabella D. Goren | ||||
Senior Vice President and Chief Financial Officer |
Date: April 20, 2011 | /s/ Gerard J. Arpey | ||||
Gerard J. Arpey | |||||
Chairman and Chief Executive Officer | |||||
Date: April 20, 2011 | /s/ Isabella D. Goren | ||||
Isabella D. Goren | |||||
Senior Vice President and Chief Financial Officer | |||||