Supplemental Agreement No. 15, dated as of March 16, 2020, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company

Contract Categories: Business Finance - Purchase Agreements
EX-10.2 4 ex102q12010q.htm EXHIBIT 10.2 Q1'20 04.30.20 Exhibit

Exhibit 10.2

Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

SUPPLEMENTAL AGREEMENT NO. 15

to

Purchase Agreement No. 3219

between

THE BOEING COMPANY

and
AMERICAN AIRLINES, INC.

Relating to Boeing Model 787 Aircraft


THIS SUPPLEMENTAL AGREEMENT No. 15 (SA-15) is made between THE BOEING COMPANY, a Delaware corporation with offices in Seattle, Washington (Boeing), and AMERICAN AIRLINES, INC, a Delaware corporation with offices in Fort Worth, Texas, together with its successors and permitted assigns (Customer);
WHEREAS, Boeing and Customer entered into Purchase Agreement No. 3219 dated October 15, 2008, relating to Boeing Model 787 aircraft, as amended and supplemented (Purchase Agreement) and capitalized terms used herein without definitions shall have the meanings specified in such Purchase Agreement;
WHEREAS, Letter Agreement AAL-PA-3219-LA ###-###-#### entitled “[****]” is being entered into in order provide for [****] for the 787-8 Aircraft identified in Table 6 and, if applicable, any [****] (as defined in Letter Agreement AAL-PA-03219-LA-1804779) [****] by Customer where Customer has [****] (as defined in Letter Agreement AAL-PA-03219-LA-1802262); and
NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set forth below and otherwise agree as follows:

PA 3219     SA-15         Page 1
BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]



1.
Table of Contents.
The Table of Contents referencing SA-13 in the footer is deleted in its entirety and is replaced with the new Table of Contents (attached hereto) referencing SA-15 in the footer. Such new Table of Contents is hereby incorporated into the Purchase Agreement in replacement of its predecessor.

2.
Letter Agreements.
Letter Agreement AAL-PA-3219-LA ###-###-#### entitled “[****]” (attached hereto) referencing SA-15 in its footer, is hereby incorporated into the Purchase Agreement.

3.
Effect on Purchase Agreement
Except as expressly set forth herein, all terms and provisions contained in the Purchase Agreement shall remain in full force and effect. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous proposals, and agreements, understandings, commitments or representations whatsoever, oral or written, with respect to the subject matter hereof and may be changed only in writing signed by authorized representatives of the parties.


The rest of this page is left intentionally blank.


PA 3219     SA-15         Page 2
BOEING PROPRIETARY
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AGREED AND ACCEPTED
 
 
 
March 16, 2020
 
 
Date
 
 
 
 
 
THE BOEING COMPANY
 
AMERICAN AIRLINES, INC.
 
 
 
/s/ The Boeing Company
 
/s/ American Airlines, Inc.
Signature
 
Signature
 
 
 
The Boeing Company
 
American Airlines, Inc.
Printed name
 
Printed name
 
 
 
Attorney-in-Fact
 
VP, Treasurer
Title
 
Title


PA 3219     SA-15         Page 3
BOEING PROPRIETARY




TABLE OF CONTENTS
ARTICLES
 
SA
NUMBER
1.
Quantity, Model and Description
SA-3
2.
Delivery Schedule
SA-3
3.
Price
SA-3
4.
Payment
SA-3
5.
Miscellaneous
SA-3
6.
Confidential Treatment
 
 
 
 
TABLE
 
 
1.
Aircraft Information Table – TRENT WITHDRAWN
SA-2
1(R7)
787-9 Aircraft Information Table – GENX
 
2(R1)
787-8 Aircraft Information Table – GENX
([****] (12) 787-8 Aircraft)
SA-5
3(R1)
787-8 Aircraft Information Table – GENX
([****] Eight (8) 787-8 Aircraft, yielding Twenty (20) 787-8 Aircraft)
SA-5
4
WITHDRAWN
SA-6
5
 6(R1)
2018 787-9 [****]Aircraft Information Table – GENX
2018 787-8 [****] Aircraft Information Table-GENX
SA-11
SA-12
 
 
 
EXHIBIT
 
 
A(R3).
Aircraft Configuration for [****] Aircraft
SA-11
A2(R5)
Aircraft Configuration for [****] Aircraft
SA-12
B(R1).
Aircraft Delivery Requirements and Responsibilities
SA-3
C(R1).
Defined Terms
SA-3
 
 
 
 
 
 
SUPPLEMENTAL EXHIBITS
 
 
AE1.
[****]
 
BFE1(R1).
Buyer Furnished Equipment Variables 787-9
SA-3
BFE2.
Buyer Furnished Equipment Variables 787-8
SA-3
CS1.
787 Customer Support Document
 
EE1.
[****]
 
EE1.
[****]-WITHDRAWN
SA-2
EE2.
[****]
SA-4
SLP1.
Service Life Policy Components
 
 
 

P.A. No. 3219     SA-15
Table of Contents         Page 1
BOEING PROPRIETARY
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TABLE OF CONTENTS, continued

LETTER AGREEMENTS
 
SA
NUMBER
3219-01
[****]
 
3219-02
Special Terms – Seats and In-Flight Entertainment
 
3219-04
[****]
 
3219-05R1
Spare Parts Commitments
SA-3
3219-06R1
Spare Parts Initial Provisioning
SA-3
3219-08R2
Open Configuration Matters WITHDRAWN
SA-8
6-1162-AKP-071R1
[****]
Terminated per AAL-PA-1977-LA-1105595
 
6-1162-AKP-072R2
[****]
Terminated per AAL-PA-1977-LA-1105595
 
6-1162-AKP-073R1
Accident Claims and Litigation
 
6-1162-CLO-1031R1
[****] WITHDRAWN
SA-2
SA-3
6-1162-CLO-1032R1
[****]
Terminated
SA-3
6-1162-CLO-1039
[****]
 
6-1162-CLO-1042
[****]
 
6-1162-CLO-1043R1
787 Inspection Process
SA-3
6-1162-CLO-1045R1
[****]
SA-2
6-1162-CLO-1046
SA-eE, COTS Software and End User License Matters
WITHDRAWN
SA-3
6-1162-CLO-1047R4
[****]
SA-11
6-1162-CLO-1048
Final Matters   WITHDRAWN
SA-2
6-1162-CLO-1049R2
CS1 Matters
SA-6
6-1162-TRW-0664R2
Aircraft Purchase Rights and Substitution Rights
SA-11
 
Attachment A(R2) – MADP Exercise Dates
WITHDRAWN
SA-11
 
Attachment B(R2) – QADP Exercise Dates
WITHDRAWN
SA-11
 
Attachment C(R3) – MADP & QADP Rights Aircraft:
Description/Price Data   Attachment C(R4)
SA-11

P.A. No. 3219     SA-15
Table of Contents         Page 2
BOEING PROPRIETARY
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TABLE OF CONTENTS, continued

 
Attachment D – Form of Purchase Agreement
Supplement
SA-11


 
Attachment E – Letter Agreements To Be Included In Purchase Agreement Supplement
SA-6
6-1162-TRW-0665
[****] WITHDRAWN
SA-3
6-1162-TRW-0666
[****] WITHDRAWN
SA-3
6-1162-TRW-0667R3
[****]
SA-11
6-1162-TRW-0668R1
Special Matters Relating to COTS Software and End
       User License Agreements
SA-3
6-1162-TRW-0670R1
Miscellaneous Commitments for Model 787
Aircraft
SA-3
6-1162-TRW-0671
[****]
WITHDRAWN
SA-3
6-1162-TRW-0672R1
Promotional Support Agreement
SA-3
6-1162-TRW-0673R1
Confidentiality
SA-3
6-1162-TRW-0674R4
Business Considerations
SA-11
AAL-PA-3219-LA-08836R2
[****]
SA-11
AAL-PA-3219-LA-08837R1
[****]
SA-6
AAL-PA-3219-LA-08838
[****]
SA-3
AAL-LA-1106678
Assignment Matters
SA-3
AAL-PA-3219-LA-1302236R2
[****]
SA-13
AAL-PA-3219-LA-1604503R1
787 [****] Matters
SA-8
AAL-PA-03219-LA-1701988
[****]
SA-10
AAL-PA-03219_LA-1804779
[****]
SA-11
AAL-PA-03219-LA-1802262R1
[****]
SA-12
AAL-PA-03219-LA-1802492
Open Configuration Matters
SA-11
AAL-PA-3219-LA ###-###-####
[****]
SA-15


P.A. No. 3219     SA-15
Table of Contents         Page 3
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TABLE OF CONTENTS, continued

ATTACHMENTS
 
 
Attachment 1
Schedule for [****] of 787-9 MADP Rights
SA-11
Attachment 2
Schedule for [****] of 787-9 QADP Rights
SA-11
Attachment 3
787-9 Purchase Rights Aircraft [****] Schedule
SA-11

P.A. No. 3219     SA-15
Table of Contents         Page 4
BOEING PROPRIETARY
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The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207
________________________________________________________________________________________________________________________________________________________________

AAL‑PA‑3219‑LA‑ ###-###-####
American Airlines, Inc.
P.O. Box 619616
Dallas‑Fort Worth Airport, Texas 75261‑9616

Subject:
[****]

Reference:
Purchase Agreement No. PA‑3219 (Purchase Agreement) between The Boeing Company (Boeing) and American Airlines, Inc. (Customer) relating to Model 787aircraft


This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement shall have the same meaning as in the Purchase Agreement.
For the aircraft set forth on Table 6 and any [****] Aircraft (as defined in Letter Agreement AAL-PA-03219-LA-1804779) [****] by Customer where Customer [****] (as defined in Letter Agreement AAL-PA-03219-LA-1802262) (collectively, Aircraft), Boeing agrees to provide Customer with the [****] in Attachment A. [****].
1.
Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations described in this Letter Agreement are provided to Customer in consideration of Customer’s becoming the operator of the Aircraft and cannot be assigned in whole or, in part.

2.
Confidential Treatment.
The information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. Customer will limit the disclosure of its contents to employees of Customer with a need to know the contents for purposes of helping Customer perform its obligations under the Purchase Agreement and who understand they are not to disclose its contents to any other person or entity without the prior written consent of Boeing.

P.A. No. 3219                    SA-15             AAL-PA-3219-LA ###-###-####
[****]         Page 1
BOEING PROPRIETARY
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Very truly yours,

THE BOEING COMPANY

By: /s/ The Boing Company          

Its:          Attorney‑In‑Fact         

ACCEPTED AND AGREED TO this
Date:    March 16, 2020__ 
AMERICAN AIRLINES, INC.

By:   /s/ American Airlines, Inc.

Its:    VP, Treasurer                   


P.A. No. 3219                    SA-15             AAL-PA-3219-LA ###-###-####
[****]         Page 2
BOEING PROPRIETARY
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 1


[****]
FOR American Airlines, Inc.

SECTION CONTENTS
1
AIRCRAFT MODEL APPLICABILITY
2
FLIGHT PERFORMANCE
3
[****]
4
[****]
5
AIRCRAFT CONFIGURATION
6
GUARANTEE CONDITIONS
7
GUARANTEE COMPLIANCE
8
EXCLUSIVE GUARANTEES

P.A. No. 3219
AERO-B-BBA4-M20-0008     SS20-0014
BOEING PROPRIETARY
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 2


1        AIRCRAFT MODEL APPLICABILITY
The guarantees contained in this Attachment (the "[****]") are applicable to the [****].
2        FLIGHT PERFORMANCE
2.1        [****]
2.1.1
The FAA-approved [****]:
[****]
2.1.2
The FAA-approved [****]:
[****]
2.1.3
The FAA-approved [****]:
[****]
2.1.4
The FAA-approved [****]:
[****]

2.2 [****]
The FAA-approved [****]:
[****]
2.3        Mission
2.3.1        Mission Payload
The payload for a stage length of [****] nautical miles in still air (representative of a Dallas to Tokyo route) using the conditions and operating rules defined below, will not be less than the following guarantee value:
[****]
[****]
[****]

P.A. No. 3219
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BOEING PROPRIETARY
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 3



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:
[****]
 
[****]
 
[****]
 
[****]
 
[****]
 
The takeoff gross weight will conform to FAA Regulations.
Climbout Maneuver:
[****]
Climb:
[****]
 
[****]
 
[****]
 
[****]
 
[****]
Cruise:
[****]
 
[****]
 
[****]
 
[****]
Descent:
[****]
 
 

P.A. No. 3219
AERO-B-BBA4-M20-0008     SS20-0014
BOEING PROPRIETARY
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 4


 
[****]
 
[****]
Approach
and Landing Maneuver:
[****]
 
[****]
Fixed
Allowances:
For the purpose of this guarantee and for the purpose of establishing compliance with this guarantee, the following will be used as fixed quantities and allowances:
 
Taxi-Out:
[****]
 
Takeoff and Climbout Maneuver:
[****]
[****]
 
Approach and Landing Maneuver:
[****]
 
Taxi-In (will be consumed from the reserve fuel):
[****]
 
Usable reserve fuel remaining upon completion of the approach and landing maneuver: [****]
 
[****]
2.3.2        Mission Block Fuel
The block fuel for a stage length of [****] pound payload using the conditions and operating rules defined below, will not be more than the following guarantee value:
[****]
[****]
[****]

P.A. No. 3219
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 5


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.
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:
[****]
 
The takeoff gross weight is not limited by the airport conditions.
 
Maximum takeoff thrust is used for the takeoff.
 
The takeoff gross weight will conform to FAA Regulations.
Climbout Maneuver:
[****]
Climb:
[****]
 
[****]
 
[****]
 
[****]
 
[****]
Cruise:
[****]
 
[****]
 
[****]
 
[****]
 
 

P.A. No. 3219
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BOEING PROPRIETARY
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 6


 
[****]
Descent:
[****]
 
[****]
 
[****]
 
[****]
Approach
and Landing Maneuver:
[****]
 
[****]
Fixed
Allowances:
For the purpose of this guarantee and for the purpose of establishing compliance with this guarantee, the following will be used as fixed quantities and allowances:
 
Taxi-Out:
[****]
 
Takeoff and Climbout Maneuver:
[****]
[****]
 
Approach and Landing Maneuver:
[****]
 
Taxi-In (will be consumed from the reserve fuel):
[****]
 
Usable reserve fuel remaining upon completion of the approach and landing maneuver: [****]
 
[****]

2.3.3    Operational Empty Weight Basis

P.A. No. 3219
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 7


The Operational Empty Weight (OEW) derived in paragraph 2.3.4 is the basis for the mission guarantees of paragraphs 2.3.1 through 2.3.2.

P.A. No. 3219
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 8


2.3.4        [****] Weight Summary - American Airlines
 
pounds
 
 
Standard Model Specification MEW
[****]
[****]
 
[****]
 
 
 
      [****]
 
      [****]
 
      [****]
 
      [****]
 
 
 
   [****]
 
      [****]
[****]
      [****]
 
      [****]
[****]
      [****]
[****]
      [****]
[****]
      [****]
[****]
American Airlines [****]
[****]
 
 
   Standard and Operational Items Allowance (Paragraph 2.3.5)
[****]
 
 
American Airlines [****]
[****]
 
 
 
 
 
[****]
[****]
[****]
 
 
 
 
[****]
 
 
[****]
 
 
 
 
[****]
[****]
[****]
 
[****]
[****]
[****]
 
 
 
 
 
[****]
[****]
[****]
 
[****]
[****]
[****]
 
 
 
 
 
[****]
[****]
[****]
 

P.A. No. 3219
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 9


[****]
[****]
[****]
 
2.3.5
Standard and Operational Items Allowance
 
quantity
pounds
pounds
pounds
 
 
 
 
 
Standard Items Allowance
 
 
 
[****]
 
 
 
 
 
   Unusable Fuel
 
 
[****]
 
   Oil
 
 
[****]
 
   Oxygen Equipment
 
 
[****]
 
   Miscellaneous Equipment
 
 
[****]
 
   Galley Structure and Fixed Inserts
 
 
[****]
 
 
 
 
 
 
Operational Items Allowance
 
 
 
[****]
 
 
 
 
 
   Crew and Crew Baggage
 
 
[****]
 
      Flight Crew (Inc. Baggage)
[****]
[****]
 
 
      Cabin Crew (Inc. Baggage)
[****]
[****]
 
 
      Flight Crew Briefcase
[****]
[****]
 
 
   Catering Allowance & Removable Inserts: Pacific Meal Service
[****]
 
      Business Class
[****]
[****]
 
 
      Premium Class
[****]
[****]
 
 
      Economy Class
[****]
[****]
 
 
   Passenger Service Equipment ([****] lb. ea.)
 
[****]
 
   Potable Water - [****]
 
 
[****]
 
   Waste Tank Disinfectant
 
 
[****]
 
   Emergency Equipment (Includes Over Water Equip.)
 
[****]
 
   Cargo System
 
 
[****]
 
      Containers ([****] lb ea.)
 
[****]
 
 
Total Standard and Operational Items Allowance
 
 
[****]

P.A. No. 3219
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 10


3
[****]
[****]
4        [****]
4.1
[****]
[****]
4.2
[****]
[****]
[****]
4.3
[****]
[****]
[****]
4.4
[****]
[****]
[****]
[****]                    [****]
[****]
[****]

[****]                    [****]
[****]
[****]

[****]                    [****]
[****]
[****]
    
[****]                    [****]
[****]
[****]

P.A. No. 3219
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 11


[****]                    [****]
[****]
[****]

[****]                    [****]
[****]
[****]

4.5
[****]
[****]:
[****]                                [****]
[****]                    [****]
[****]
[****]

[****]                    [****]
[****]
[****]

[****]                    [****]
[****]
[****]

[****]                    [****]
[****]
[****]

P.A. No. 3219
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BOEING PROPRIETARY
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Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 12


5        AIRCRAFT CONFIGURATION
5.1
The guarantees contained in this Attachment [****], Model 787-8, 787-9, 787-10", dated [****] plus [****]. [****] will be made for [****] such Detail Specification approved by the Customer and Boeing or otherwise allowed by the Purchase Agreement [****].
5.2
[****]
(1)    Changes to the [****] or any other changes [****] or otherwise allowed by the Purchase Agreement.
(2)    The difference between [****] given in Appendix E of the Detail Specification [****].
6        GUARANTEE CONDITIONS
6.1
All guaranteed performance data [****] and specified variations therefrom; altitudes are pressure altitudes.
6.2
The Federal Aviation Administration (FAA) regulations referred to in this Attachment are, [****].
6.3
In the event a change is made to any law, governmental regulation or requirement, or in the interpretation of any such law, governmental regulation or requirement that affects the certification basis for the Aircraft [****].
6.4
The [****] guarantees and the [****] of the mission guarantees are based on the following, unless otherwise specified:
[****]
[****]
[****]
[****]
[****]
[****]
[****]
[****]
[****]
[****]
[****]


P.A. No. 3219
AERO-B-BBA4-M20-0008     SS20-0014
BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]



Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 13


6.5
The [****] guarantee and the [****] of the mission guarantees are based on the following, unless otherwise specified:
[****]
[****]
[****]
[****]
[****]
[****]
[****]

6.6
[****]
6.7
[****]
6.8
[****]
6.9
[****]
6.10
[****]
6.11
[****]
7        GUARANTEE COMPLIANCE
7.1
Compliance with the guarantees of Section 2, 3 and 4.2 and 4.3 will 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 following guarantees or portions of such guarantees will be based on the FAA-approved Airplane Flight Manual for the Model [****] aircraft:
Takeoff
Landing
The takeoff portion of the mission conditions
Community Sound Levels

7.3
[****]
7.4
[****]

P.A. No. 3219
AERO-B-BBA4-M20-0008     SS20-0014
BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]



Attachment A to Letter Agreement
No. AAL-PA-3219-LA ###-###-####
[****]
Page 14


7.5
[****]
7.6
[****]
7.7
The data derived from tests will 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 guarantees for [****]. Upon request, customer may review adjustment calculations.
7.9
Compliance will be based on the [****], and will not be [****] its manufacturer's performance specification.
8        EXCLUSIVE GUARANTEES
The only [****] applicable to the Aircraft are those set forth in this Attachment.

P.A. No. 3219
AERO-B-BBA4-M20-0008     SS20-0014
BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]