Application of Advance Payments Agreement between The Boeing Company and Southwest Airlines Co.

Contract Categories: Business Finance › Purchase Agreements
Summary

The Boeing Company and Southwest Airlines Co. entered into this agreement regarding the application of advance payments made by Southwest under their existing purchase agreement for Boeing 737-8 and 737-7 aircraft. Due to the FAA grounding of the 737 MAX and resulting delivery delays, the parties have agreed on how these advance payments will be applied. The agreement does not change the terms of a related letter agreement and is confidential, to be shared only with employees who need to know.

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EX-10.1 2 exhibit101boeingapplic.htm EX-10.1 BOEING APPLICATION OF ADVANCE PAYMENT Document
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207


April 9, 2020

SWA-PA-03729-MISC ###-###-####

Southwest Airlines Co.
PO Box 37611 – Love Field
Dallas, Texas 75235

Subject: Application of Advance Payments

Reference: Purchase Agreement No. 3729 (Purchase Agreement) between The Boeing Company (“Boeing”) and Southwest Airlines Co. (“Customer”) relating to Model 737-8 aircraft and 737-7 aircraft

Boeing / Customer meeting in Dallas on February 27th, draft delivery schedule shared by Boeing titled “SWA Delivery Scenario Con 2-26-20” (“Delivery Scenario”)
         
Customer has continued to pay advance payments pursuant to its Purchase Agreement obligations. As a result of the FAA grounding of the 737 MAX aircraft and delay in aircraft deliveries, [***]

Boeing and Customer agree that [***]

For the avoidance of doubt, the application of advance payments described in this letter does not alter terms contained in Letter Agreement No.1106476R2 titled [***] under the Purchase Agreement.

The foregoing is confidential information, therefore please limit the disclosure of its contents to Customer’s employees with a need to know the contents and who understand they are not to disclose its contents to any other person or entity.

Sincerely,

/s/ Carson J May

Carson J. May
Regional Director – Contracts
Boeing Commercial Airplanes

[***] = Certain identified information has been excluded from the exhibit because it is both not material and would likely cause competitive harm to the registrant if publicly disclosed.









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