1
PURCHASE AGREEMENT NUMBER 2022
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Relating to Boeing Model 737-632/-732/-832 Aircraft
P.A. No. 2022
2
TABLE OF CONTENTS
SA
ARTICLES NUMBER
- -------- ------
1. Quantity, Model and Description
2. Delivery Schedule
3. Price
4. Payment
5. Miscellaneous
TABLE
- -----
1. Aircraft Information Table
2. Option Aircraft Information Table
3. *
EXHIBIT
- -------
A. Aircraft Configuration
SUPPLEMENTAL EXHIBITS
- ---------------------
BFE/CDSPE/SPE/CSE. Buyer Furnished Equipment, Customer Directed Seller
Purchased Equipment, Seller Purchased Equipment and Cabin
Systems Equipment Variables
CS1. Customer Support Variables
EE1. Engine Escalation
*
SLP1. Service Life Policy Components
*This confidential information has been omitted and filed separately with the
Commission.
i
P.A. No. 2022
3
SA
LETTER AGREEMENTS NUMBER
----------------- ------
6-1162-RLL-2147 Airframe Maintenance Cost Protection Program
6-1162-RLL-2191 Multiple Aircraft Operating Weights
6-1162-RLL-2198 Delivery Price Adjustment
6-1162-RLL-2233 Aircraft Performance Guarantees
6-1162-RLL-2234 Special Matters
6-1162-RLL-2240 *
6-1162-RLL-2241 Promotion Support
6-1162-RLL-2242 1997 and 1998 Escalation Sharing
6-1162-RLL-2243 *
6-1162-RLL-2244 Performance Retention Commitment
6-1162-RLL-2245 Certain Contractual Matters
6-1162-RLL-2247 *
6-1162-RLL-2251 Total Cost Team
6-1162-RLL-2400 Open Configuration Matters
6-1162-RLL-2424R1 Engine Matters SA1
*This confidential information has been omitted and filed separately with the
Commission.
ii
P.A. No. 2022
4
Purchase Agreement No. 2022
between
The Boeing Company
and
DELTA AIR LINES, INC.
------------------------------
This Purchase Agreement No. 2022 dated as of October 21, 1997
between The Boeing Company (Boeing) and DELTA AIR LINES, INC. (Customer)
relating to the purchase and sale of Model 737-832 aircraft incorporates the
terms and conditions of the Aircraft General Terms Agreement dated as of October
21, 1997 between the parties, identified as AGTA-DAL (AGTA).
Article 1. Quantity, Model and Description.
The aircraft to be delivered to Customer will be designated as
Model 737-832 aircraft (the Aircraft). Boeing will manufacture and sell to
Customer Seventy (70) Aircraft to conform to the configuration described in
Exhibit A, which is part of this Purchase Agreement.
Article 2. Delivery Schedule.
The scheduled months of delivery of the Aircraft are listed in
the attached Table 1, which is part of this Purchase Agreement.
Article 3. Price.
3.1 Aircraft Basic Price. The Aircraft Basic Price for each
Aircraft is subject to escalation, as listed in Table 1.
3.2 Advance Payment Base Prices. The Advance Payment Base
Price and the Advance Payment Schedule for each Aircraft is listed in Table 1.
Article 4. Payment.
Advance Payments and payments at Delivery by Customer will be in
accordance with Article 2 of the AGTA.
P.A. No. 2022 1
5
Article 5. Miscellaneous.
5.1 Aircraft Information Table. Table 1 consolidates
information contained in Articles 1, 2, 3 and 4 with respect to (i) quantity of
Aircraft, (ii) applicable Detail Specification, (iii) month and year of
scheduled deliveries, (iv) Aircraft Basic Price, (v) applicable escalation
factors and (vi) Advance Payment Base Prices and advance payments and their
schedules.
5.2 Buyer Furnished Equipment Variables. Supplemental Exhibit
BFE/CDSPE/SPE/CSE contains vendor selection dates, on dock dates and other
variables applicable to the Aircraft.
5.3 Customer Support Variables. Supplemental Exhibit CS1
contains the variable information applicable to information, training services
and other things furnished by Boeing in support of the Aircraft.
5.4 Engine Escalation Variables. Supplemental Exhibit EE1
contains the applicable engine escalation formula, the engine warranty and the
engine patent indemnity for the Aircraft.
5.5 *This confidential information has been omitted and filed
separately with the Commission.
5.6 Service Life Policy Component Variables. Supplemental
Exhibit SLP1 lists the airframe and landing gear components covered by the
Service Life Policy for the Aircraft.
2
P.A. No. 2022
6
5.7 Negotiated Agreement; Entire Agreement. This Purchase
Agreement, including the provisions of Article 11.2 of the AGTA relating to
insurance, and Article 12 of Part 2 of Exhibit C of the AGTA relating to
DISCLAIMER AND RELEASE and EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES, has
been the subject of discussion and negotiation and is understood by the parties;
the Aircraft Price and other agreements of the parties stated in this Purchase
Agreement were arrived at in consideration of such provisions. This Purchase
Agreement, including the AGTA, contains the entire agreement between the parties
and supersedes all previous proposals, understandings, commitments or
representations whatsoever, oral or written, and may be changed only in writing
signed by authorized representatives of the parties.
* * * * * * * * * * * * * * * *
DATED AS OF October 21, 1997
----------------
DELTA AIR LINES, INC. THE BOEING COMPANY
By /s/ Leo F. Mullin By /s/ R.B. Woodard
------------------------- --------------------
Its President and CEO Its President
------------------------- --------------------
3
P.A. No. 2022
7
TABLE 1 TO AGTA AND
PURCHASE AGREEMENT NO. 2022
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
AIRFRAME MODEL/MTGW: 737-832 * DETAIL SPECIFICATION: D6-38808-G (4/29/97)
ENGINE MODEL/THRUST LEVEL: CFM56-7B24 * PRICE BASE YEAR: *
AIRFRAME PRICE: *
OPTIONAL FEATURES: *
AIRFRAME AND ENGINE ESCALATION DATA:
SUB-TOTAL OF AIRFRAME AND FEATURES: * BASE YEAR INDEX (ECI): *
ENGINE PRICE (PER AIRCRAFT): * BASE YEAR INDEX (ICI): *
BUYER FURNISHED EQUIPMENT (BFE) ESTIMATE: *
SELLER PURCHASED EQUIPMENT (SPE) ESTIMATE: *
AIRCRAFT BASIC PRICE (EXCLUDING BFE/SPE): *
REFUNDABLE DEPOSIT PER AIRCRAFT AT PROPOSAL ACCEPTANCE: *
- ------------------------------------------------------------------------------------------------------
* * * *
- ------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- ------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- ------------------------------------------------------------------------------------------------------
1998
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
1999
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
2001
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 1
P.A. No. 2022
8
TABLE 1 TO AGTA AND
PURCHASE AGREEMENT NO. 2022
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- -----------------------------------------------------------------------------------------------------------------------
* * * *
- -----------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
2002
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
2003
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
2004
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 2
P.A. No. 2022
9
TABLE 1 TO AGTA AND
PURCHASE AGREEMENT NO. 2022
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
* * * *
- ---------------------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
2005
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
2006
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 3
P.A. No. 2022
10
TABLE 1 TO AGTA AND
PURCHASE AGREEMENT NO. 2022
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- ----------------------------------------------------------------------------------------------------------------------------------
* * * *
- ----------------------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
ANNUAL
- ----------------------------------------------------------------------------------------------------------------------------------
1998 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
1999 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
2001 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
2002 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
2003 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
2004 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
2005 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
2006 * * * * * * * *
- ----------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 4
P.A. No. 2022
11
TABLE 2
TO
THE AGTA AND PURCHASE AGREEMENT NO. 2022
737-832 OPTION AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
AIRFRAME MODEL/MTGW: 737-832 * DETAIL SPECIFICATION: D6-38808-G (4/29/97)
ENGINE MODEL/THRUST LEVEL: CFM56-7B24 * PRICE BASE YEAR: *
AIRFRAME BASE PRICE: *
OPTIONAL FEATURES: * AIRFRAME AND ENGINE ESCALATION DATA:
SUB-TOTAL OF AIRFRAME AND FEATURES: * BASE YEAR INDEX (ECI): *
ENGINE PRICE (PER AIRCRAFT): * BASE YEAR INDEX (ICI): *
BUYER FURNISHED EQUIPMENT (BFE) ESTIMATE: *
SELLER PURCHASED EQUIPMENT (SPE) ESTIMATE: *
AIRCRAFT BASIC PRICE (EXCLUDING BFE/SPE): *
NON-REFUNDABLE DEPOSIT PER AIRCRAFT AT DEFINITIVE AGREEMENT: *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * *
- -----------------------------------------------------------------------------------------------------------------------------------
DELIVERY NUMBER OF * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
DATE AIRCRAFT * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 1
P.A. No. 2022
12
TABLE 2
TO
THE AGTA AND PURCHASE AGREEMENT NO. 2022
737-832 OPTION AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
* * * *
- -----------------------------------------------------------------------------------------------------------------------------------
DELIVERY NUMBER OF * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
DATE AIRCRAFT * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
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* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -----------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 2
P.A. No. 2022
13
TABLE 2
THE AGTA AND PURCHASE AGREEMENT NO. 2022
737-832 OPTION AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- ------------------------------------------------------------------------------------------------------------------------------
* * * *
- ------------------------------------------------------------------------------------------------------------------------------
DELIVERY NUMBER OF * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
DATE AIRCRAFT * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 3
P.A. No. 2022
14
TABLE 2
TO
THE AGTA AND PURCHASE AGREEMENT NO. 2022
737-632/-732/-832 ROLLLING OPTION AIRCRAFT DELIVERY
- ----------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012
- ----------------------------------------------------------------------------------
* * * * * * *
- ----------------------------------------------------------------------------------
* * * * * * *
- ----------------------------------------------------------------------------------
* * * * * * *
- ----------------------------------------------------------------------------------
* * * * * * *
- ----------------------------------------------------------------------------------
* * * * * * *
- ----------------------------------------------------------------------------------
* * * * * * *
- ----------------------------------------------------------------------------------
* * * * * *
- ----------------------------------------------------------------------------------
* * * * * *
- ----------------------------------------------------------------------------------
* * * * * *
- ----------------------------------------------------------------------------------
* * * * * *
- ----------------------------------------------------------------------------------
* * * * * *
- ----------------------------------------------------------------------------------
* * * * * *
- ----------------------------------------------------------------------------------
- ------------------------------------------------------
2013 2014 2015 2016 2017
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
* * * * *
- ------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
P.A. No. 2022
15
TABLE 3
TO THE AGTA AND PURCHASE AGREEMENT NO. 2022
*
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
AIRFRAME MODEL/MTGW: 737-832 * DETAIL SPECIFICATION: D6-38808-G (4/29/97)
ENGINE MODEL/THRUST LEVEL: CFM56-7B24 * PRICE BASE YEAR: *
AIRFRAME PRICE: *
OPTIONAL FEATURES: * AIRFRAME AND ENGINE ESCALATION DATA:
SUB-TOTAL OF AIRFRAME AND FEATURES: * BASE YEAR INDEX (ECI): *
ENGINE PRICE (PER AIRCRAFT): * BASE YEAR INDEX (ICI): *
BUYER FURNISHED EQUIPMENT (BFE) ESTIMATE: *
SELLER PURCHASED EQUIPMENT (SPE) ESTIMATE: *
AIRCRAFT BASIC PRICE (EXCLUDING BFE/SPE): *
REFUNDABLE DEPOSIT PER AIRCRAFT AT PROPOSAL ACCEPTANCE: *
- -------------------------------------------------------------------------------------------------------------------------------
* * * *
- -------------------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
1998
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
1999
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
2001
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 1
P.A. No. 2022
16
TABLE 3
TO THE AGTA AND PURCHASE AGREEMENT NO. 2022
*
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
* * * *
- ---------------------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
2002
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
2003
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
2004
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 2
P.A. No. 2022
17
TABLE 3
TO THE AGTA AND PURCHASE AGREEMENT NO. 2022
*
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- -------------------------------------------------------------------------------------------------------------------------------
* * * *
- -------------------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
2005
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
2006
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
* * * * * * * * *
- -------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 3
P.A. No. 2022
18
TABLE 3
TO THE AGTA AND PURCHASE AGREEMENT NO. 2022
*
AIRCRAFT DELIVERY, DESCRIPTION, PRICE AND ADVANCE PAYMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
* * * *
- ---------------------------------------------------------------------------------------------------------------------------------
DELIVERY O NUMBER OF * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
DATE P AIRCRAFT * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
ANNUAL
- ---------------------------------------------------------------------------------------------------------------------------------
1998 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
1999 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
2001 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
2002 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
2003 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
2004 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
2005 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
2006 * * * * * * * *
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
*This confidential information has been omitted and filed separately with the
Commission.
Page 4
P.A. No. 2022
19
AIRCRAFT CONFIGURATION
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Exhibit A to Purchase Agreement Number 2022
A
P.A. No. 2022
20
AIRCRAFT CONFIGURATION
Dated October 21, 1997
relating to
BOEING MODEL 737-832 AIRCRAFT
The Detail Specification is Boeing Document D6-38808-94, dated as of
even date herewith. Such Detail Specification will be comprised of Configuration
Specification D6-38808, September 7, 1993, revised by Revision G dated April 29,
1997, as amended to incorporate the Optional Features listed below, including
the effects on Manufacturer's Empty Weight (MEW) and Operating Empty Weight
(OEW). Such Optional Features are set forth in Boeing Document D6-39113. As soon
as practicable, Boeing will furnish to Buyer copies of the Detail Specification,
which copies will reflect such Optional Features. The Aircraft Basic Price
reflects and includes all effects of such Optional Features, except such
Aircraft Basic Price does not include the price effects of any Buyer Furnished
Equipment or Seller Purchased Equipment.
A-1
P.A. No. 2022
21
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 2
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-2
P.A. No. 2022
22
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 3
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-3
P.A. No. 2022
23
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 4
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-4
P.A. No. 2022
24
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 5
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-5
P.A. No. 2022
25
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 6
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-6
P.A. No. 2022
26
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 7
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-7
P.A. No. 2022
27
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 8
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-8
P.A. No. 2022
28
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 9
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-9
P.A. No. 2022
29
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 10
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-10
P.A. No. 2022
30
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 11
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-11
P.A. No. 2022
31
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 12
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-12
P.A. No. 2022
32
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 13
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-13
P.A. No. 2022
33
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 14
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-14
P.A. No. 2022
34
EXHIBIT A TO
PURCHASE AGREEMENT NO. 2022
PAGE 15
PRICE
PER A/P
DAL3801
CR / TITLE 70 APS 95$
================================================================== ==========
*This confidential information
has been omitted and filed
separately with the Commission.
A-15
P.A. No. 2022
35
BUYER FURNISHED EQUIPMENT, CUSTOMER DIRECTED SELLER
PURCHASED EQUIPMENT, SELLER PURCHASED EQUIPMENT AND
CABIN SYSTEMS EQUIPMENT VARIABLES
relating to
BOEING MODEL 737-632/-732/-832 AIRCRAFT
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Supplemental Exhibit BFE/CDSPE/SPE/CSE
to
Purchase Agreement Number 2022
P.A. No. 2022
36
This Supplemental Exhibit BFE/CDSPE/SPE/CSE contains supplier selection dates,
on-dock dates and terms and conditions for Buyer Furnished Equipment, Customer
Directed Seller Purchased Equipment, Seller Purchased Equipment, Cabin Systems
Equipment and other variables applicable to the Aircraft.
1. Definition of Terms:
Buyer Furnished Equipment (BFE) is defined as equipment purchased and provided
by Customer, which Boeing will receive, inspect, store and install in the
Aircraft before Delivery in accordance with this Supplemental Exhibit
BFE/CDSPE/SPE/CSE.
Seller Purchased Equipment (SPE) is Buyer Furnished Equipment (BFE) that Boeing
purchases for Customer.
Customer Directed Seller Purchased Equipment (CDSPE) is SPE for which Customer
is to solicit proposals from suppliers, select the supplier, and negotiate
commercial terms.
References to SPE in this letter will be inclusive of CDSPE unless otherwise
specified.
Developmental Buyer Furnished Equipment (DBFE) is BFE not previously certified
for installation on the same model aircraft.
This Exhibit does not include developmental avionics.
Inflight entertainment, cabin communications systems and cabin management
systems (IFE/CCS/CMS) are collectively referred to as Cabin Systems Equipment
(CSE).
2. BFE Variables:
2.1. Supplier Selection for BFE.
Customer will:
2.1.1 Select and notify Boeing of the suppliers of the following BFE
items by the following dates:
Seats (passenger) Weber - Selected on
July 2, 1997
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37
2.2 On-dock Dates for BFE.
On or before November 30, 1997, Boeing will provide to Customer a BFE
Requirements On-Dock/Inventory Document (BFE Document) or an electronically
transmitted BFE Report which may be periodically revised, setting forth the
items, quantities, on-dock dates and shipping instructions relating to the
in-sequence installation of BFE. For planning purposes, a preliminary BFE
on-dock schedule is set forth in Attachment A.
3.0 SPE Variables:
3.1 Customer has requested that Boeing purchase as SPE the BFE which
has been changed to SPE by Optional Feature Number 0253CH3114. Accordingly,
Articles 3.2, 3.3, 3.4, 3.5, 3.6, 3.7 and 4.8 below are applicable to SPE. *This
confidential information has been omitted and filed separately with the
Commission.
3.2. Price Effect of SPE on Aircraft Price and Advance Payments.
3.2.1 Advance Payments. An estimated SPE price will be included in the
Advance Payment Base Price for the purpose of establishing the advance payments
for the Aircraft. The estimated price of this SPE for each of the Aircraft is:
737-632 - *This confidential information has been omitted and filed
separately with the Commission.
737-732 - *This confidential information has been omitted and filed
separately with the Commission.
737-832 - *This confidential information has been omitted and filed
separately with the Commission.
3.2.2 Aircraft Price. The Aircraft Price will be adjusted to reflect
(i) the actual costs charged Boeing by the SPE suppliers, and (ii)
transportation charges.
3.3. Responsibilities for SPE.
3.3.1 Customer is responsible for:
(i) selecting the supplier in accordance with
paragraph 3.4 below;
(ii) selecting a FAA certifiable part;
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P.A. No. 2022
38
(iii) providing to Boeing the SPE part
specification/Customer requirements;
(iv) providing notice to CDSPE supplier that the
Boeing purchase order terms and conditions
will apply;
(v) advising CDSPE suppliers to provide part
number pricing, as agreed to between
Supplier and Customer to Boeing in a timely
manner to support lead times and purchase
order placement by Boeing;
(vi) obtaining the supplier's warranty and
agreement to provide customer support
commitments for the CDSPE in accordance
with paragraphs 3.5 of Exhibit A of the
AGTA. CDSPE is deemed BFE for the purposes
of Exhibit B and C of the AGTA; and
(vii) advising Boeing which commodities will be
SPE and which will be CDSPE on or before
June 20, 1997, which was not done for some
commodities, therefore, such commodities
will be CDSPE.
3.3.2. Boeing is responsible for:
(i) placing and managing the purchase order
with the supplier;
(ii) coordinating with the suppliers on
technical issues;
(iii) ensuring that the delivered SPE complies
with the part specification;
(iv) obtaining certification of the Aircraft
with the SPE installed; and
(v) for SPE other than CDSPE, obtaining for
Customer the supplier's standard warranty
for the SPE. SPE is deemed to be BFE for
purposes of Exhibit B and C of the AGTA.
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P.A. No. 2022
39
3.4 Supplier/Equipment Selection for SPE.
3.4.1 In addition to those responsibilities described above, for
galleys and seats the following provisions apply with respect to Customer's
selection of suppliers:
Galley Requirements. Customer will provide Boeing the definitive
galley configuration requirements for the CDSPE galley by August 22, 1997.
3.4.2 Boeing shall retain the right to approve Customer's selected
supplier's and/or part numbers, for each item of SPE.
3.5 Changes to SPE.
After the Purchase Agreement is signed, changes to SPE may only be made
by and between Boeing and the suppliers. Customer's contacts with SPE suppliers
relating to design (including selection of materials and colors), weights,
prices or schedules are for informational purposes only. If Customer wants any
changes made, requests must be made directly to Boeing for coordination with the
supplier.
3.6 Proprietary Rights for SPE.
Boeing's obligation to purchase SPE will not impose upon Boeing any
obligation to compensate Customer or any supplier for any proprietary rights
Customer may have in the design of the SPE.
3.7 Remedies for SPE.
If Customer does not comply with the obligations above, Boeing may:
(i) delay delivery of the Aircraft;
(ii) deliver the Aircraft without installing the SPE;
(iii) substitute a comparable part and invoice Customer for the
cost;
(iv) increase the Aircraft Price by the amount of Boeing's
additional costs attributable to such noncompliance.
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40
4.0 CSE Variables:
4.1 Customer has requested that Boeing install in the Aircraft the CSE
described in Attachment C to this Exhibit. Change Request 0253CH3115 converts
SPE to CSE and has been accepted by Customer. Accordingly, Articles 4.0, 4.1,
4.2, 4.3, 4.5, 4.6, 4.7 and 4.8 below are applicable to CSE.
Because of the complexity of the CSE, special attention and additional resources
will be required during the development, integration, certification, and
manufacture of the Aircraft to achieve proper operation of the CSE at the time
of delivery of the Aircraft. To assist Customer, Boeing will perform the
functions of project manager (the Project Manager) as set forth in Attachment D
and according to the requirements of Exhibit C to the AGTA.
4.2 Responsibilities for CSE.
4.2.1 Customer will:
4.2.1.1 Provide Customer's CSE system requirements to Boeing;
4.2.1.2 Select the CSE suppliers (Suppliers) from among those
suppliers identified in the Change Requests listed in Attachment C to this
Exhibit, on or before July 25, 1997. Such selections were completed by Customer
on July 25, 1997.
4.2.1.3 Promptly after selecting Suppliers, participate with
Boeing in meetings with Suppliers to ensure that Supplier's functional system
specifications meet Customer's and Boeing's respective requirements;
4.2.1.4 Select Supplier part numbers and provide to Boeing by
July 25, 1997.
4.2.1.5 Negotiate and obtain agreements on product assurance,
product support following Aircraft delivery (including spares support),
supplier's pricing and any other special business arrangements directly with
Suppliers;
4.2.1.6 Provide pricing information for part numbers selected
above to Boeing by July 25, 1997.
4.2.1.7 Negotiate and obtain agreements with any required
service providers;
Page 5
P.A. No. 2022
41
4.2.1.8 Include in Customer's contract with any seat supplier
a condition obligating such seat supplier to enter into and comply with a
Boeing approved bonded stores agreement. This bonded stores agreement will set
forth the procedures concerning the use, handling and storage for the Boeing
owned CSE equipment during the time such equipment is under the seat supplier's
control.
4.2.1.9 Authorize Boeing to obtain production CSE spares for
test and or rejection replacement as follows: 5% overage for in-seat LCD
monitors, in-seat cables, handsets, cord reels, and remote jacks; 15% overage
for seat boxes; and, one each of the head-end equipment. Unused parts will be
returned to the Customer with the aircraft delivery and any parts returned to
the supplier for repair will be returned to the Customer, at no further cost,
after aircraft delivery.
4.2.2 Boeing will:
4.2.2.1 Perform the Project Manager functions stated in
Attachment D;
4.2.2.2 Provide Aircraft interface requirements to Suppliers
as specified in Boeing Document D6-36440, Standard Cabin Systems Requirements
Document (SCSRD) and as specified in Attachment B, paragraph 3 A Seat
integration.
4.2.2.3 Assist Suppliers in the development of their CSE
system specifications and approve such specifications;
4.2.2.4 Negotiate terms and conditions (except for price,
product assurance, product support following Aircraft delivery and any other
special business arrangements) and enter into contracts with Suppliers and
manage such contracts for the CSE;
4.2.2.5 Coordinate the resolution of technical issues with
Suppliers;
4.2.2.6 Ensure that at time of Aircraft delivery the CSE
configuration and functionality meets the requirements of the Change Requests
contained in Attachment C to this Exhibit as such Attachment C may be amended
from time to time; and
4.2.2.7 Obtain FAA certification of the Aircraft with the CSE
installed therein.
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4.3 Software for CSE.
CSE systems may contain software of the following two types.
4.3.1 Systems Software. The software required to operate and certify
the CSE systems on the Aircraft is the Systems Software and is part of the CSE.
4.3.2 Customer's Software. The software accessible to the Aircraft
passengers which controls Customer's specified optional features is Customer's
Software and is not part of the CSE.
4.3.2.1 Customer is solely responsible for specifying
Customer's Software functional and performance requirements and ensuring that
Customer's Software meets such requirements. Customer and Customer's Software
supplier will have total responsibility for the writing, certification,
modification, revision, or correction of any of Customer's Software. Boeing
will not perform the functions and obligations described in paragraph 11.2
above, nor the Project Manager's functions described in Attachment D, for
Customer's Software.
4.3.2.2 The omission of any Customer's Software or the lack
of any functionality of Customer's Software will not be a valid condition for
Customer's rejection of the Aircraft at the time of Aircraft delivery.
4.3.2.3 Boeing has no obligation to approve any documentation
to support Customer's Software certification. Boeing will only review and
operate Customer's Software if in Boeing's reasonable opinion such review and
operation is necessary to certify the CSE system on the Aircraft.
4.3.2.4 Boeing will not be responsible for obtaining FAA
certification for Customer's Software.
4.4. Changes to CSE.
4.4.1 After Boeing and Supplier have entered into a contract for the
purchase of the CSE, changes to such contract may only be made by Boeing. Any
Customer request for changes to the CSE specification after the Boeing/Supplier
contract has been signed must be made in writing directly to Boeing. Boeing
shall respond to such request by Customer in a timely manner. If such change is
technically feasible and Boeing has the resources and time to incorporate such
change, then Boeing shall negotiate with the Supplier to incorporate such
change into the contract for the CSE. Any Supplier price increase resulting
from such a change will be negotiated between Customer and Supplier.
Page 7
P.A. No. 2022
43
4.4.2 Boeing and Customer recognize that the developmental nature of
the CSE may require changes to the CSE or the Aircraft in order to ensure (i)
compatibility of the CSE with the Aircraft and all other Aircraft systems, and
(ii) FAA certification of the Aircraft with the CSE installed therein. In such
event Boeing will notify Customer and recommend to Customer the most practical
means for incorporating any such change. If within 15 days after such
notification Customer and Boeing through negotiations cannot mutually agree on
the incorporation of any such change or alternate course of action, then the
remedies available to Boeing in Article 15 shall apply.
4.4.3 The incorporation into the Aircraft of any mutually agreed
change to the CSE may result in Boeing adjusting the price of the Change
Request contained in Attachment C to this Letter Agreement.
4.4.4 Boeing's obligation to obtain FAA certification of the Aircraft
with the CSE installed is limited to the CSE as described in Attachment C, as
Attachment C may be amended from time to time.
4.4.5 Boeing shall notify Customer in a timely manner in the event of
a default by a Supplier under the Supplier's contract with Boeing. Within 15
days of Customer's receipt of such notification, Boeing and Customer shall
agree through negotiations on an alternative Supplier or other course of
action. If Boeing and Customer are unable to agree on an alternative Supplier
or course of action within such time, the remedies available to Boeing in
Article 15 shall apply. In the event of a BFE/SPE Seat Supplier default, Boeing
and Customer mutually agree to the contingency plan as described in Exhibit C
to the AGTA.
4.5 Exhibits B and C to the AGTA for CSE.
CSE is deemed to be BFE for the purposes of Exhibit B, Customer
Support Document, and Exhibit C, the Product Assurance Document, of the AGTA.
4.6 Boeing's Remedies for CSE.
If Customer does not comply with any of its obligations set forth
herein, Boeing may:
4.6.1 delay delivery of the Aircraft pursuant to the provisions of
Article 7, Excusable Delay, of the AGTA; or
4.6.2 deliver the Aircraft without part or all of the CSE installed,
or with part or all of the CSE inoperative; or
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P.A. No. 2022
44
4.6.3 increase the Aircraft Price by the amount of Boeing's additional
costs attributable to such noncompliance.
4.7 Price Effect of CSE on Aircraft Price and Advance Payments.
4.7.1 Advance Payments. An estimated CSE price will be included in the
Aircraft Advance Payment Base Price for the purpose of establishing the advance
payments for the Aircraft. The estimated price for the Boeing purchased CSE
installed on each Aircraft by Change Requests identified in Attachment C is One
Million Dollars expressed in 1995 dollars.
4.7.2 Aircraft Price. The Aircraft Price will include the actual CSE
prices and any associated transportation costs charged Boeing by Suppliers.
4.8 Customer's Indemnification of Boeing for SPE and CSE.
Customer will indemnify and hold harmless Boeing from and against all
claims and liabilities, including costs and expenses (including attorneys' fees)
incident thereto or incident to successfully establishing the right to
indemnification, for injury to or death of any person or persons, including
employees of Customer but not employees of Boeing, or for loss of or damage to
any property, including Aircraft, arising out of or in any way connected with
any nonconformance or defect in any SPE and CSE or in the installation thereof
or in the provision of services hereunder, and whether or not arising in tort or
occasioned in whole or in part by the negligence of Boeing. This indemnity will
not apply with respect to any nonconformance or defect caused solely by Boeing's
installation of the SPE and CSE.
Page 9
P.A. No. 2022
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ATTACHMENT A
PRELIMINARY ON-DOCK DATES
Items Preliminary On-Dock Dates
- ----- -------------------------
* *
* *
Seats * *
Galleys * *
Electronics * *
Furnishings * *
Items *
* *
* *
Seats * *
Galleys * *
Electronics * *
Furnishings * *
Items *
* *
* *
Seats * *
Galleys * *
Electronics * *
Furnishings * *
*This confidential information has been omitted and filed separately with the
Commission.
Page 1
P.A. No. 2022
46
ATTACHMENT B
CABIN SYSTEMS EQUIPMENT
The following Optional Features describe the items of equipment that
under the terms and conditions of this Letter Agreement are considered to be
CSE. Each such Optional Feature is fully described in the Optional Feature
Document.
Optional Feature Number and Title
*This confidential information has been omitted and filed separately with the
Commission.
Page 1
P.A. No. 2022
47
*This confidential information has been omitted and filed separately with the
Commission.
Page 2
P.A. No. 2022
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ATTACHMENT C
PROJECT MANAGER
This Attachment D describes the functions that Boeing will perform as Project
Manager to support (i) the development and integration of the CSE and (ii) the
FAA certification of the CSE when installed on the Aircraft.
1. Project Management
Boeing will perform the following functions for the CSE. Boeing will
have authority to make day-to-day management decisions, and decisions on
technical details which in Boeing's reasonable opinion do not significantly
affect form, fit, function, cost or aesthetics.
Boeing will be responsible for:
A. Managing the development of all program schedules;
B. Evaluating and approving Supplier's program management and
developmental plans;
C. Defining program metrics and status requirements;
D. Scheduling and conducting program status reviews;
E. Scheduling and conducting design and schedule reviews with
Customer and Suppliers;
F. Monitoring compliance with schedules;
G. Evaluating and approving any recovery plans or plan revisions
which may be required of either Suppliers or Customer;
H. Leading the development of a joint CSE project management
plan (the Program Plan); and
I. Managing the joint development of the System Specification
2. System Integration
Boeing's performance as Project Manager will include the functions of
systems integrator (Systems Integrator). As Systems Integrator Boeing will
perform the following functions:
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P.A. No. 2022
49
A. As required, assist Suppliers in defining their system
specifications for the CSE, approve such specifications and
develop an overall system functional specification;
B. Coordinate Boeing, Customer and Supplier teams to ensure
sufficient Supplier and Supplier 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 Suppliers to review responsibilities,
functionality, Aircraft installation requirements and overall
program schedule, direction and progress.
3. Seat Integration
A. Boeing will coordinate the interface requirements between
seat suppliers and Suppliers. 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 Suppliers 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 Suppliers will assist the seat suppliers in the
preparation of seat assembly functional test plans.
Page 2
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ATTACHMENT D
737-632/-732/-832
CRITICAL PATH EVENTS
The contingency plan is the alternate course of action which will be implemented
if the critical decision date is not met or other course of action is not agreed
to by Boeing and Customer. The critical impact events listed below are
milestones which must be met by the BFE/SPE and CSE Suppliers to achieve the
in-sequence installation of the CSE. The Required Due Dates in such tables are
the dates on which Boeing begins to incur disruption costs. The Critical
Decision Dates are the dates after which the critical impact event cannot be
accomplished to maintain the delivery schedule and/or full system functionality.
A meeting to discuss a recovery plan cost impact and/or an alternate course of
action will be held within one week of knowledge of delinquency or impending
delinquency.
Critical
Required Decision Contingency
Event Due Date Date Plan
- ----- -------- -------- ----
CSE Test Hardware On- 8/15/97 9/2/97 CSE inoperative
Dock at Seat Supplier at Delivery
CSE Production 2/16/98 2/16/98 Assess
Hardware On-Dock at additional out-
Seat Supplier of sequence
charges for the
consequent late
seats
Seats-On-Dock 6/23/98 6/23/98 Assess
(Complete and In-Seat additional
CSE Hardware Functionality out-of-Sequence
Tested) at Boeing charges
Zone CSE Production 3/25/98 4/30/98 CSE inoperative
Hardware On-Dock at at Delivery
Boeing
Head End CSE Production 6/4/98 6/22/98 CSE inoperative
Hardware On-Dock at at Delivery
Boeing
Further Development of the contingency plan, including additional events, based
upon customer's final selected configuration is required. This Exhibit will be
amended as required when the contingency plans are finalized at the Initial
Technical Coordination Meeting (ITCM).
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P.A. No. 2022
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CUSTOMER SUPPORT VARIABLES
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Supplemental Exhibit CS1 to Purchase Agreement Number 2022
CS1
P.A. No. 2022
52
CUSTOMER SUPPORT VARIABLES
relating to
BOEING MODEL 737-632/-732/-832 AIRCRAFT
Customer and Boeing will conduct planning conferences approximately 12 months
before delivery of the first Aircraft, or as otherwise agreed, to develop and
schedule a customized Customer Support Program to be furnished by Boeing in
support of the Aircraft.
*This confidential information
has been omitted and filed
separately with the Commission.
CS1-1
P.A. No. 2022
53
*This confidential information
has been omitted and filed
separately with the Commission.
CS1-2
P.A. No. 2022
54
*This confidential information
has been omitted and filed
separately with the Commission.
CS1-3
P.A. No. 2022
55
*This confidential information
has been omitted and filed
separately with the Commission.
CS1-4
P.A. No. 2022
56
*This confidential information has been omitted and filed separately with the
Commission.
9: Technical Data, Documents and Manuals.
9.1. Manuals.
Boeing will provide to Customer manuals as identified below ninety (90)
days prior to delivery of first Aircraft, except for the following
manuals which will be provided at delivery of each Aircraft.
Airplane Flight Manual
Weight and Balance Manual (chapters 1 and 2)
Operations Manual and Quick Reference Handbook
Fault Reporting Manual
Manuals are subject to revision based upon engineering and
manufacturing changes not available at the time of delivery of
Customer's first Aircraft.
Boeing will provide manuals to Customer electronically as technology
makes manuals accessible, and manuals are incorporated into Boeing
Online Data System (BOLD).
9.2. Flight Operations.
Airplane Flight Manual
Operations Manual
Quick Reference Handbook
Weight and Balance Manual
Dispatch Deviation Procedures Guide
Flight Crew Training Manual
Baggage/Cargo Loading Manual
Performance Engineer's Manual
Jet Transport Performance Methods
FMC Supplemental Data Document
Operational Performance Software
9.3. Maintenance.
Aircraft Maintenance Manual
Wiring Diagram Manual
Systems Schematics Manual
Connector Part Number Options Document
Structural Repair Manual
CS1-5
P.A. No. 2022
57
Overhaul/Component Maintenance Manual
Standard Overhaul Practices Manual
Standard Wiring Practices Manual
Non-Destructive Test Manual
Service Bulletins and Index
Corrosion Prevention Manual
Fault Isolation Manual
Fuel Measuring Stick Calibration Document
Power Plant Buildup Manual
Built-In Test Equipment (BITE) Manual
Central Maintenance Computer System Reporting Table
In Service Activity Report
All Operator Letters
Service Letters
Structural Item Interim Advisory
Maintenance Tips
Combined Index
9.4. Maintenance Planning.
Maintenance Planning Data Document
Maintenance Planning Data Tasks Masterfile
Maintenance Task Cards and Index
Maintenance Inspection Intervals Report
9.5. Spares.
Illustrated Parts Catalog
Standards Books
9.6. Facilities and Equipment Planning.
Facilities and Equipment Planning Document
Special Tool and Ground Handling Equipment Drawings and Index
Supplementary Tooling Documentation
System Test Equipment Document
Illustrated Tool and Equipment List/Manual
Aircraft Recovery Document
Airplane Characteristics for Airport Planning Document
Airplane Rescue and Fire Fighting Document
Engine Handling Document
CS1-6
P.A. No. 2022
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9.7. Computer Software Index.
9.8. Supplier Technical Data.
Service Bulletins
Ground Support Equipment Data
Provisioning Information
Component Maintenance/Overhaul Manuals and Index
Publications Index
Product Support Supplier Directory
9.9. Third Party Maintenance Services.
Boeing will include Customer in the Boeing document "Contract
Maintenance Service Availability for Commercial Aircraft." This
document is provided upon request to airline operators pursuing third
party maintenance.
CS1-7
P.A. No. 2022
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At Customer's request, the engine warranty portion of this Supplemental Exhibit
EE1 has been deleted because Customer intends to enter into a warranty
agreement with CFM International Inc.
ENGINE ESCALATION
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Supplemental Exhibit EE1 to Purchase Agreement Number 2022
EE1
P.A. No. 2022
60
ENGINE ESCALATION,
relating to
BOEING MODEL 737-632/-732/-832 AIRCRAFT
1. ENGINE ESCALATION. No separate engine escalation methodology is defined for
the 737-632/-732/-832 Aircraft. Pursuant to the AGTA, the engine prices for
these Aircraft are included in and will be escalated in the same manner as the
Airframe.
EE1-2
P.A. No. 2022
61
SERVICE LIFE POLICY COMPONENTS
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Supplemental Exhibit SLP1 to Purchase Agreement Number 2022
SLP1
P.A. No. 2022
62
SERVICE LIFE POLICY COMPONENTS
relating to
BOEING MODEL 737 AIRCRAFT
This is the listing of SLP Components for the Aircraft which relate to Part 3,
Boeing Service Life Policy of Exhibit C, Product Assurance Document to the AGTA
and is a part of Purchase Agreement No. 2022.
1. Wing.
(a) Upper and lower skins and stiffeners between the forward and
rear wing spars.
(b) Wing spar webs, chords and stiffeners.
(c) Inspar wing ribs.
(d) Inspar splice plates and fittings.
(e) Main landing gear support structure.
(f) Wing center section floor beams, lower beams and spanwise
beams, but not the seat tracks attached to floor beams.
(g) Engine strut support fittings attached directly to wing
primary structure.
(h) Wing-to-body structural attachments.
(i) Support structure in the wing for spoilers and spoiler
actuators; for aileron hinges and reaction links; and for
leading edge devices and trailing edge flaps.
(j) Trailing edge flap tracks and carriages.
(k) Aileron, leading edge device and trailing edge flap internal,
fixed attachment and actuator support structure.
SLP1-1
P.A. No. 2022
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2. Body.
(a) External surface skins and doublers, longitudinal stiffeners,
longerons and circumferential rings and frames between the
forward pressure bulkhead and the vertical stabilizer rear
spar bulkhead and structural support and enclosure for the
APU but excluding all system components and related
installation and connecting devices, insulation, lining, and
decorative panels and related installation and connecting
devices.
(b) Window and windshield structure but excluding the windows and
windshields.
(c) Fixed attachment structure of the passenger doors, cargo
doors and emergency exits, excluding door mechanisms and
movable hinge components. Sills and frames around the body
openings for the passenger doors, cargo doors and emergency
exits, excluding scuff plates and pressure seals.
(d) Nose wheel well structure, including the wheel well walls,
pressure deck, bulkheads, and gear support structure.
(e) Main gear wheel well structure including pressure deck and
landing gear beam support structure.
(f) Floor beams and support posts in the control cab and
passenger cabin area, but excluding seat tracks.
(g) Forward and aft pressure bulkheads.
(h) Keel structure between the wing front spar bulkhead and the
main gear wheel well aft bulkhead including splices.
(i) Wing front and rear spar support bulkheads, and vertical and
horizontal stabilizer front and rear spar support bulkheads
including terminal fittings but excluding all system
components and related installation and connecting devices,
insulation, lining, decorative panels and related
installation and connecting devices.
(j) Support structure in the body for the stabilizer pivot and
stabilizer screw.
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64
3. Vertical Stabilizer.
(a) External skins between front and rear spars.
(b) Front, rear and auxiliary spar chords, webs and stiffeners
and attachment fittings.
(c) Inspar ribs.
(d) Rudder hinges and supporting ribs, excluding bearings.
(e) Support structure in the vertical stabilizer for rudder
hinges, reaction links and actuators.
(f) Rudder internal, fixed attachment and actuator support
structure.
4. Horizontal Stabilizer.
(a) External skins between front and rear spars.
(b) Front and rear spar chords, webs and stiffeners.
(c) Inspar ribs.
(d) Stabilizer center section including hinge and screw support
structure.
(e) Support structure in the horizontal stabilizer for the
elevator hinges, reaction links and actuators.
(f) Elevator internal, fixed attachment and actuator support
structure.
5. Engine Strut.
(a) Strut external surface skin and doublers and stiffeners.
(b) Internal strut chords, frames and bulkheads.
(c) Strut to wing fittings and diagonal brace.
(d) Engine mount support fittings attached directly to strut
structure and including the engine-mounted support fittings.
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65
6. Main Landing Gear.
(a) Outer cylinder.
(b) Inner cylinder, including axles.
(c) Upper and lower side struts, including spindles, universals
and reaction links.
(d) Drag strut.
(e) Bell crank.
(f) Orifice support tube.
(g) Trunnion link.
(h) Downlock links including spindles and universals.
(i) Torsion links.
(j) Actuator beam, support link and beam arm.
7. Nose Landing Gear.
(a) Outer cylinder.
(b) Inner cylinder, including axles.
(c) Orifice support tube.
(d) Upper and lower drag strut, including lock links.
(e) Steering plates and steering collars.
(f) Torsion links.
NOTE: The Service Life Policy does not cover any bearings, bolts, bushings,
clamps, brackets, actuating mechanisms or latching mechanisms used in
or on the Covered Components.
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66
*
between
THE BOEING COMPANY
and
DELTA AIR LINES, INC.
Supplemental Exhibit * to Purchase Agreement Number 2022
*This confidential information has been omitted and filed separately with the
Commission.
P.A. No. 2022
67
*
relating to
BOEING MODEL 737-632/-732/-832
*This confidential information
has been omitted and filed
separately with the Commission.
P.A. No. 2022