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Southwest Airlines Co. – ‘10-Q’ for 6/30/21 – ‘EX-10.3’

On:  Tuesday, 7/27/21, at 2:34pm ET   ·   For:  6/30/21   ·   Accession #:  92380-21-143   ·   File #:  1-07259

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  As Of               Filer                 Filing    For·On·As Docs:Size

 7/27/21  Southwest Airlines Co.            10-Q        6/30/21   78:17M

Quarterly Report   —   Form 10-Q

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        2nd Quarter 2021 Form 10-Q                          HTML   1.29M 
 2: EX-10.1     EX-10.1 Boeing Supplemental Agreement No. 13        HTML    284K 
 3: EX-10.2     EX-10.2 Boeing Supplemental Agreement No. 14        HTML    808K 
 4: EX-10.3     EX-10.3 Boeing Supplemental Agreement No. 15        HTML    499K 
 5: EX-31.1     EX-31.1 Certification of Chief Executive Officer    HTML     26K 
 6: EX-31.2     EX-31.2 Certification of Chief Financial Officer    HTML     26K 
 7: EX-32.1     EX-32.1 Certification of CEO and CFO                HTML     24K 
14: R1          Cover                                               HTML     75K 
15: R2          Condensed Consolidated Balance Sheet                HTML    136K 
16: R3          Condensed Consolidated Statement of Comprehensive   HTML    112K 
                Income (Loss)                                                    
17: R4          Condensed Consolidated Statement of Stockholders'   HTML     70K 
                Equity                                                           
18: R5          Condensed Consolidated Statement of Stockholders'   HTML     24K 
                Equity (Parenthetical)                                           
19: R6          Condensed Consolidated Statement of Cash Flows      HTML    138K 
20: R7          Basis of Presentation                               HTML     28K 
21: R8          Worldwide Pandemic                                  HTML     88K 
22: R9          New Accounting Pronouncements                       HTML     38K 
23: R10         Financial Derivative Instruments                    HTML    266K 
24: R11         Comprehensive Income (Loss)                         HTML    104K 
25: R12         Revenue                                             HTML     77K 
26: R13         Net Income (Loss) Per Share                         HTML     51K 
27: R14         Fair Value Measurements                             HTML    167K 
28: R15         Supplemental Financial Information                  HTML     76K 
29: R16         Commitments and Contingencies                       HTML     62K 
30: R17         Boeing 737 Max Aircraft Grounding                   HTML     88K 
31: R18         New Accounting Pronouncements (Policies)            HTML     55K 
32: R19         Worldwide Pandemic (Tables)                         HTML     68K 
33: R20         Financial Derivative Instruments (Tables)           HTML    269K 
34: R21         Comprehensive Income (Loss) (Tables)                HTML    107K 
35: R22         Revenue (Tables)                                    HTML     69K 
36: R23         Net Income (Loss) Per Share (Tables)                HTML     51K 
37: R24         Fair Value Measurements (Tables)                    HTML    165K 
38: R25         Supplemental Financial Information (Tables)         HTML     82K 
39: R26         Commitments and Contingencies (Tables)              HTML     54K 
40: R27         Basis of Presentation (Details)                     HTML     58K 
41: R28         WORLDWIDE PANDEMIC - Narrative (Details)            HTML    177K 
42: R29         WORLDWIDE PANDEMIC - Payroll Support Program        HTML     63K 
                (Details)                                                        
43: R30         Financial Derivative Instruments - Fuel Hedging     HTML     31K 
                (Details)                                                        
44: R31         Financial Derivative Instruments - Fair Values by   HTML     60K 
                Balance Sheet Location (Details)                                 
45: R32         Financial Derivative Instruments - Narrative        HTML     44K 
                (Details)                                                        
46: R33         Financial Derivative Instruments - Offsetting of    HTML     40K 
                Derivative Assets (Details)                                      
47: R34         Financial Derivative Instruments - Offsetting       HTML     42K 
                Derivative Liabilities (Details)                                 
48: R35         Financial Derivative Instruments - Location and     HTML     70K 
                Amount Recognized in Income by Hedging                           
                Relationship (Details)                                           
49: R36         Financial Derivative Instruments - (Gain) Loss by   HTML     40K 
                Hedging Relationship (Details)                                   
50: R37         Financial Derivative Instruments - Premiums for     HTML     31K 
                Fuel Derivative Contracts (Details)                              
51: R38         Financial Derivative Instruments - Fair Values of   HTML     71K 
                Fuel Derivatives Amounts Posted as Collateral                    
                (Details)                                                        
52: R39         Comprehensive Income (Loss) - Differences between   HTML     56K 
                Net Income and Comprehensive Income (Loss)                       
                (Details)                                                        
53: R40         Comprehensive Income (Loss) - Schedule of AOCI      HTML     79K 
                Components (Details)                                             
54: R41         Comprehensive Income (Loss) - Reclassifications     HTML     61K 
                (Details)                                                        
55: R42         Revenue - Passenger Revenue Breakout (Details)      HTML     37K 
56: R43         Revenue - Air Traffic Liability Breakout (Details)  HTML     29K 
57: R44         Revenue - Air Traffic Liability - Loyalty Program   HTML     33K 
                Rollforward (Details)                                            
58: R45         Revenue - Air Traffic Liability Rollforward         HTML     31K 
                (Details)                                                        
59: R46         Revenue - Narrative (Details)                       HTML     37K 
60: R47         Net Income (Loss) Per Share (Details)               HTML     67K 
61: R48         Fair Value Measurements - Measured on Recurring     HTML     97K 
                Basis (Details)                                                  
62: R49         Fair Value Measurement - Fair Value Assets and      HTML     41K 
                Liabilities Measured on Recurring Basis with                     
                Unobservable Inputs (Details)                                    
63: R50         Fair Value Measurements - Quantitative Information  HTML     51K 
                about Level 3 Fair Value (Details)                               
64: R51         Fair Value Measurements - Narrative (Details)       HTML     59K 
65: R52         Fair Value Instruments - Carrying and Estimated     HTML     97K 
                Fair Value of Debt (Details)                                     
66: R53         Fair Value Instruments - Convertible Debt           HTML     34K 
                (Details)                                                        
67: R54         Supplemental Financial Information - Accounts and   HTML     37K 
                Other Receivables (Details)                                      
68: R55         Supplemental Financial Information - Other Assets   HTML     30K 
                (Details)                                                        
69: R56         Supplemental Financial Information - Accounts       HTML     38K 
                Payable (Details)                                                
70: R57         Supplemental Financial Information - Accrued        HTML     51K 
                Liabilities (Details)                                            
71: R58         Supplemental Financial Information - Other          HTML     44K 
                Non-Current Liabilities (Details)                                
72: R59         Commitments and contingencies - Narrative           HTML     73K 
                (Details)                                                        
73: R60         Commitment and Contingencies - Long Term Purchase   HTML     76K 
                Commitments (Details)                                            
74: R61         Boeing 737 Max Aircraft Grounding (Details)         HTML     39K 
76: XML         IDEA XML File -- Filing Summary                      XML    136K 
13: XML         XBRL Instance -- luv-20210630_htm                    XML   3.50M 
75: EXCEL       IDEA Workbook of Financial Reports                  XLSX    117K 
 9: EX-101.CAL  XBRL Calculations -- luv-20210630_cal                XML    231K 
10: EX-101.DEF  XBRL Definitions -- luv-20210630_def                 XML    841K 
11: EX-101.LAB  XBRL Labels -- luv-20210630_lab                      XML   1.88M 
12: EX-101.PRE  XBRL Presentations -- luv-20210630_pre               XML   1.16M 
 8: EX-101.SCH  XBRL Schema -- luv-20210630                          XSD    209K 
77: JSON        XBRL Instance as JSON Data -- MetaLinks              429±   610K 
78: ZIP         XBRL Zipped Folder -- 0000092380-21-000143-xbrl      Zip    570K

‘EX-10.3’   —   EX-10.3 Boeing Supplemental Agreement No. 15

This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

 <!   C:   C: 
  Document  

SUPPLEMENTAL AGREEMENT NO. 15
to
Purchase Agreement No. 03729
between
THE BOEING COMPANY
and
SOUTHWEST AIRLINES CO.
Relating to Boeing Model 737-8 and 737-7 Aircraft
THIS SUPPLEMENTAL AGREEMENT No. 15 (SA-15), entered into as of June 14, 2021, is made between THE BOEING COMPANY, a Delaware corporation (Boeing), and SOUTHWEST AIRLINES CO., a Texas corporation (Customer).
RECITALS:
WHEREAS, Customer and Boeing entered into Purchase Agreement Number PA-03729 dated December 13, 2011, as amended and supplemented, (Purchase Agreement) relating to the purchase and sale of Boeing Model 737-8 (737-8 Aircraft) and Model 737-7 aircraft (737-7 Aircraft); collectively the “Aircraft”. This SA15 is an amendment to and is incorporated into the Purchase Agreement. Capitalized terms used herein but not otherwise defined will have the meaning set forth in the Purchase Agreement;
WHEREAS, Customer requests and Boeing agrees to the acceleration of ten (10) Original Option Aircraft positions from 2023 into 2022, and revise the scheduled delivery stream as applicable;
WHEREAS, Customer requests and Boeing agrees to the slide of six (6) 737-7 MAX Aircraft from June 2022 into July, September, November and December 2022, and revise the scheduled delivery stream as applicable;
WHEREAS, Customer requests and Boeing agrees to the acceleration of one (1) 737-7 MAX Aircraft from August 2023 to July 2023, and revise the scheduled delivery stream as applicable;

    WHEREAS, Boeing and Customer agree to amend the Purchase Agreement to make certain changes to the Letter Agreements as a result of the respective changes in this SA-15.

NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set forth below and otherwise agree as follows:
[***] = Certain identified information has been excluded from the exhibit because it is both not material and is of the type that the registrant treats as private or confidential.
SWA-PA-03729
1
SA-15
BOEING PROPRIETARY



1.TABLE OF CONTENTS.

The Table of Contents of the Purchase Agreement is deleted in its entirety and replaced with a new Table of Contents (attached), which lists the Tables, Exhibits, and Letter Agreements revised by this SA15 and is identified by “SA15”. Such revised Table of Contents is incorporated into the Purchase Agreement by this reference.

2.TABLES.

Table 1B, Aircraft Delivery, Description, Price and Advance Payments – 737-7 Aircraft, is deleted in its entirety and replaced by a new Table 1B (identified by "SA-15") attached hereto and incorporated into the Purchase Agreement by this reference.

3.LETTER AGREEMENTS.

3.1.Letter Agreement SWA-PA-03729-LA-1106474R5, Option Aircraft, and its Attachment 1 are deleted in their entirety and are replaced with the attached revised Letter Agreement SWA-PA-03729-LA-1106474R6 and its Attachment 1.

3.2.Letter Agreement SWA-PA-03729-LA-2100814, [***], and its Attachments A, B-1, and B-2 are deleted in their entirety and are replaced with the attached revised Letter Agreement SWA-PA-03729-LA-2100814R1 and its Attachments A, B-1, and B-2.

4.SA-15 ADVANCE PAYMENT IMPACT.

4.1.Due to the acceleration of ten (10) Original Option Aircraft Positions contemplated hereunder, Customer [***]




4.2.Due to the deferral of six (6) 737-7 MAX Aircraft contemplated hereunder, Customer [***]




4.3.Due to the acceleration of one (1) 737-7 MAX Aircraft contemplated hereunder, Customer [***]
SWA-PA-03729
2
SA-15
BOEING PROPRIETARY





The Purchase Agreement is deemed to be supplemented to the extent herein provided and as so supplemented will continue in full force and effect.


EXECUTED IN DUPLICATE as of the day and year first above written.

THE BOEING COMPANYSOUTHWEST AIRLINES CO.
By: /s/ Carson J May
By: /s/ Chris Monroe
Name: Carson J. May
Name: Chris Monroe
Its: Attorney-In-Fact
Its: SVP Finance and Treasurer
SWA-PA-03729
3
SA-15
BOEING PROPRIETARY




TABLE OF CONTENTS
ARTICLESTITLES
Article 1Quantity, Model and DescriptionSA-2
Article 2Delivery Schedule
Article 3Price
Article 4PaymentSA-2
Article 5Additional Terms
TABLETITLE
1A737-8 Aircraft Information TableSA-14
1B737-7 Aircraft Information TableSA-15
EXHIBIT
A1737-8 Aircraft ConfigurationSA-11
A2737-7 Aircraft ConfigurationSA-8
A-3737-8 Remarket Aircraft ConfigurationSA-12
B*Aircraft Delivery Requirements and Responsibilities
B-1Remarket Aircraft TechnicalSA-12
Acceptance and Delivery Requirements and Responsibilities
SUPPLEMENTAL EXHIBITSTITLES
AE1*Escalation Adjustment/Airframe and Optional Features
BFE1BFE Variables for 737-8SA-7
BFE2BFE Variables for 737-7SA-8
CS1Customer Support Variables
CS1-7MAXCustomer Support VariablesSA-2
EE1*Engine Escalation/Engine Warranty and Patent Indemnity
SWA-PA-03729SA-15
Page 1
BOEING PROPRIETARY




SLP1*Service Life Policy Components

LETTER AGREEMENTSTITLES
SWA-PA-03729-LA-1106463R3Open MattersSA-8
SWA-PA-03729-LA-1106464*[***]
SWA-PA-03729-LA-1106465*[***]
SWA-PA-03729-LA-1106466[***]
SWA-PA-03729-LA-1106467R2[***]SA-8
SWA-PA-03729-LA-1106468*[***]
SWA-PA-03729-LA-1106469R1[***]SA-2
SWA-PA-03729-LA-1106470R1[***]SA-2
SWA-PA-03729-LA-1106471R2Substitute AircraftSA-12
SWA-PA-03729-LA-1106473R2
[***]
    
SA-12
SWA-PA-03729-LA-1106474R6Option AircraftSA-15
SWA-PA-03729-LA-1106475R5[***]SA-14
SWA-PA-03729-LA-1106476R2[***]SA-8
SWA-PA-03729-LA-1106477*[***]
SWA-PA-03729-LA-1106478[***]
SWA-PA-03729-LA-1106479R1[***]SA-2
SWA-PA-03729-LA-1106480R1[***]SA-2
SWA-PA-03729-LA-1106481R2[***]SA-2
SWA-PA-03729-LA-1106482*[***]
SWA-PA-03729-LA-1106483*[***]
SWA-PA-03729-LA-1106484R2[***]SA-12
SWA-PA-03729-LA-1106485*[***]
SWA-PA-03729SA-15
Page 2
BOEING PROPRIETARY




LETTER AGREEMENTSTITLES
SWA-PA-03729-LA-1209080[***]SA-1
SWA-PA-03729-LA-1210419[***]SA-1
SWA-PA-03729-LA-1300943[***]SA-2
SWA-PA-03729-LA-1301168R3[***]SA-6
SWA-PA-03729-LA-1301170R3[***]SA-12
SWA-PA-03729-LA-1400371[***]SA-7
SWA-PA-03729-LA-1503792Service Ready Operational ValidationSA-6
SWA-PA-03729-LA-1500831[***]SA-7
SWA-PA-03729-LA-1602486R1[***]SA-12
SWA-PA-03729-LA-2100594737-8 Remarket Production AircraftSA-12
SWA-PA-03729-LA-2100700737-8 Open Configuration Matters –SA-12
Remarket Production Aircraft
SWA-PA-03729-LA-2100811[***]SA-12
SWA-PA-03729-LA-2100812[***]SA-12
SWA-PA-03729-LA-2100813[***]SA-12
SWA-PA-03729-LA-2100814R1[***]SA-15
SWA-PA-03729-LA-2100819[***]SA-12
SWA-PA-03729-LA-2100825[***]SA-12
SWA-PA-03729-LA-2100841[***]SA-12
SWA-PA-03729SA-15
Page 3
BOEING PROPRIETARY




LETTER AGREEMENTSTITLES
SWA-PA-03729-LA-2100984[***]SA-12
* Denotes revision to Page 1 or Page 2 only to reference 737-7 (SA-2)
SWA-PA-03729SA-15
Page 4
BOEING PROPRIETARY





INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

RESTRICTED LETTER AGREEMENTS

Letter AgreementTitleLast Updated under SACurrent Status
SWA-PA-03729-LA-1106472R1[***]SA-2Deleted under SA-4
SWA-PA-01810/03729-LA-1301169[***]SA-2Deleted under SA-4

SWA-PA-03729SA-15
Page 5
BOEING PROPRIETARY

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft


Airframe Model/MTOW:

Engine Model/Thrust:
737-7    77,000 pounds
CFMLEAP-1B27C(1)26,400 pounds
Detail Specification:

Airframe Price Base Year/Escalation Formula:
D019A008SWA17P-1

Jul-11


ECI-MFG/CPI
Airframe Price:
[***]
Engine Price Base Year/Escalation Formula:
N/A
N/A
Optional Features:
[***]
Sub-Total of Airframe and Features:
[***]
Airframe Escalation Data:
Engine Price (Per Aircraft):
[***]
Base Year Index (ECI):
[***]
Aircraft Basic Price (Excluding BFE/SPE):
  [***]
Base Year Index (CPI):
[***]
Buyer Furnished Equipment (BFE) Estimate: [***]

Seller Purchased Equipment (SPE) Estimate:    [***]



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
Jan-2022
Apr-2019
1
[***]42586[***][***][***][***][***][***][***]
Jan-2022
Apr-2019
1
[***]42587[***][***][***][***][***][***][***]
Jan-2022
Apr-2019
1
[***]42588[***][***][***][***][***][***][***]
Jan-2022
May-2019
1
[***]42589[***][***][***][***][***][***][***]
Feb-2022
May-2019
1
[***]42590[***][***][***][***][***][***][***]
Feb-2022
Aug-2019
1
[***]42561[***][***][***][***][***][***][***]
Feb-2022
Aug-2019
1
[***]42569[***][***][***][***][***][***][***]
May-2022
Oct-2023
1
[***]42614[***][***][***][***][***][***][***]
May-2022
Feb-2024
1
[***]42620[***][***][***][***][***][***][***]
May-2022
Mar-2024
1
[***]42621[***][***][***][***][***][***][***]
May-2022
Apr-2024
1
[***]42623[***][***][***][***][***][***][***]
May-2022
May-2024
1
[***]42627[***][***][***][***][***][***][***]
May-2022
Jun-2024
1
[***]42629[***][***][***][***][***][***][***]
May-2022
Jul-2024
1
[***]42631[***][***][***][***][***][***][***]
Jul-2022
Jun-2023
1
[***]42602[***][***][***][***][***][***][***]
Jul-2022
Jul-2023
1
[***]42603[***][***][***][***][***][***][***]
Jul-2022
Aug-2023
1
[***]42604[***][***][***][***][***][***][***]
Jul-2022
Sep-2023
1
[***]42609[***][***][***][***][***][***][***]
Jul-2022
Sep-2024
1
[***]42635[***][***][***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 1

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft




Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
Jul-2022
Oct-2024
1
[***]42638[***][***][***][***][***][***][***]
Jul-2022
Nov-2024
1
[***]42642[***][***][***][***][***][***][***]
Jul-2022
Jan-2023
1
[***]42591[***][***][***][***][***][***][***]
Jul-2022
Feb-2023
1
[***]42592[***][***][***][***][***][***][***]
Jul-2022
Mar-2023
1
[***]42595[***][***][***][***][***][***][***]
Aug-2022
Nov-2023
1
[***]42613[***][***][***][***][***][***][***]
Aug-2022
Dec-2023
1
[***]42616[***][***][***][***][***][***][***]
Aug-2022
Jan-2024
1
[***]42618[***][***][***][***][***][***][***]
Aug-2022
Jan-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Aug-2022
Jan-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Aug-2022
Jan-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Aug-2022
Feb-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Aug-2022
Feb-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Aug-2022
Feb-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Aug-2022
Mar-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Mar-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Mar-2024
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Sep-2022
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Sep-2022
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Apr-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Apr-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
May-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
May-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Sep-2022
Apr-2023
1
[***]42598[***][***][***][***][***][***][***]
Sep-2022
May-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Oct-2022
Jun-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Oct-2022
Jun-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Oct-2022
Jul-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Oct-2022
Jul-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 2

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft




Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
Oct-2022
Aug-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Oct-2022
Aug-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Oct-2022
Sep-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
Sep-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
Sep-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
Oct-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
Oct-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
Oct-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
Nov-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Nov-2022
May-2023
1
[***]42600[***][***][***][***][***][***][***]
Dec-2022
Nov-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Dec-2022
Nov-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Dec-2022
Dec-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Dec-2022
Dec-2028
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Dec-2022
Jan-2029
1
[***][***][***]
(*) 737-8 Sub
[***][***][***][***][***]
Dec-2022
Aug-2024
1
[***]42632[***][***][***][***][***][***][***]
Jan-2023
Jul-21
1
[***]42657[***][***]
***737-8 Sub
[***][***][***][***][***]
Jan-2023
Jul-21
1
[***]42671[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2023
Mar-22
1
[***]42679[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2023
Mar-22
1
[***]42678[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2023
Apr-22
1
[***]42688[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2023
Apr-22
1
[***]42681[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2023
Apr-22
1
[***]42680[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2023
May-22
1
[***]42684[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2023
May-22
1
[***]42683[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2023
May-22
1
[***]42682[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2023
Jun-22
1
[***]42687[***][***]
***737-8 Sub
[***][***][***][***][***]
May-2023
Jun-22
1
[***]42686[***][***]
***737-8 Sub
[***][***][***][***][***]
May-2023
Jun-22
1
[***]42685[***][***]
***737-8 Sub
[***][***][***][***][***]

SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 3

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
May-2023
Jul-22
1
[***]42690[***][***]
***737-8 Sub
[***][***][***][***][***]
Jun-2023
Jul-22
1
[***]42689[***][***]
***737-8 Sub
[***][***][***][***][***]
Jun-2023
Aug-22
1
[***]42693[***][***]
***737-8 Sub
[***][***][***][***][***]
Jul-2023
Aug-22
1
[***]42695[***][***]
***737-8 Sub
[***][***][***][***][***]
Jul-2023
Jan-23
1
[***]42565[***][***]
***737-8 Sub
[***][***][***][***][***]
Jul-2023
Jan-23
1
[***]42565[***][***]
***737-8 Sub
[***][***][***][***][***]
Aug-2023
Feb-23
1
[***]42562[***][***]
***737-8 Sub
[***][***][***][***][***]
Aug-2023
Feb-23
1
[***]42564[***][***]
***737-8 Sub
[***][***][***][***][***]
Sep-2023
Mar-23
1
[***]42557[***][***]
***737-8 Sub
[***][***][***][***][***]
Sep-2023
Apr-23
1
[***]42555[***][***]
***737-8 Sub
[***][***][***][***][***]
Oct-2023
May-23
1
[***]42594[***][***]
***737-8 Sub
[***][***][***][***][***]
Oct-2023
May-23
1
[***]42568[***][***]
***737-8 Sub
[***][***][***][***][***]
Oct-2023
Jun-23
1
[***]42581[***][***]
***737-8 Sub
[***][***][***][***][***]
Nov-2023
Jul-23
1
[***]42582[***][***]
***737-8 Sub
[***][***][***][***][***]
Nov-2023
Jul-23
1
[***]42597[***][***]
***737-8 Sub
[***][***][***][***][***]
Dec-2023
Aug-23
1
[***]42593[***][***]
***737-8 Sub
[***][***][***][***][***]
Dec-2023
Sep-23
1
[***]42578[***][***]
***737-8 Sub
[***][***][***][***][***]
Jan-2024
Sep-23
1
[***]42601[***][***]
***737-8 Sub
[***][***][***][***][***]
Jan-2024
Oct-23
1
[***]42605[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2024
Dec-23
1
[***]42583[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2024
Jan-24
1
[***]42584[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2024
Jan-24
1
[***]42585[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2024
Jan-24
1
[***]42611[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2024
Feb-24
1
[***]42596[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2024
Feb-24
1
[***]42599[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2024
Feb-24
1
[***]42612[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2024
Apr-24
1
[***]42606[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2024
Apr-24
1
[***]42617[***][***]
***737-8 Sub
[***][***][***][***][***]
May-2024
May-24
1
[***]42608[***][***]
***737-8 Sub
[***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 4

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
May-2024
May-24
1
[***]42619[***][***]
***737-8 Sub
[***][***][***][***][***]
May-2024
May-24
1
[***]42622[***][***]
***737-8 Sub
[***][***][***][***][***]
Jun-2024
Jun-24
1
[***]42610[***][***]
***737-8 Sub
[***][***][***][***][***]
Jun-2024
Aug-24
1
[***]42626[***][***]
***737-8 Sub
[***][***][***][***][***]
Jul-2024
Aug-24
1
[***]42624[***][***]
***737-8 Sub
[***][***][***][***][***]
Jul-2024
Sep-24
1
[***]42630[***][***]
***737-8 Sub
[***][***][***][***][***]
Aug-2024
Oct-24
1
[***]42625[***][***]
***737-8 Sub
[***][***][***][***][***]
Aug-2024
Oct-24
1
[***]42636[***][***]
***737-8 Sub
[***][***][***][***][***]
Aug-2024
Nov-24
1
[***]42639[***][***]
***737-8 Sub
[***][***][***][***][***]
Sep-2024
Dec-24
1
[***]42640[***][***]
***737-8 Sub
[***][***][***][***][***]
Sep-2024
Dec-24
1
[***]42628[***][***]
***737-8 Sub
[***][***][***][***][***]
Oct-2024
Feb-25
1
[***]42643[***][***]
***737-8 Sub
[***][***][***][***][***]
Oct-2024
Mar-25
1
[***]42645[***][***]
***737-8 Sub
[***][***][***][***][***]
Oct-2024
Mar-25
1
[***]42644[***][***]
***737-8 Sub
[***][***][***][***][***]
Nov-2024
Apr-25
1
[***]42659[***][***]
***737-8 Sub
[***][***][***][***][***]
Nov-2024
Apr-25
1
[***]42660[***][***]
***737-8 Sub
[***][***][***][***][***]
Dec-2024
May-25
1
[***]42663[***][***]
***737-8 Sub
[***][***][***][***][***]
Dec-2024
Jun-25
1
[***]42667[***][***]
***737-8 Sub
[***][***][***][***][***]
Jan-2025
Jul-25
1
[***]42668[***][***]
***737-8 Sub
[***][***][***][***][***]
Jan-2025
Aug-25
1
[***]42675[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2025
Sep-25
1
[***]42677[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2025
Sep-25
1
[***]42676[***][***]
***737-8 Sub
[***][***][***][***][***]
Feb-2025
Oct-25
1
[***]42692[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2025
Oct-25
1
[***]42696[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2025
Nov-25
1
[***]42698[***][***]
***737-8 Sub
[***][***][***][***][***]
Mar-2025
Nov-25
1
[***]42700[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2025
Dec-25
1
[***]42702[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2025
Dec-25
1
[***]42701[***][***]
***737-8 Sub
[***][***][***][***][***]
Apr-2025
1
[***]67319[***][***][***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 5

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
May-2025
1
[***]67321[***][***][***][***][***][***][***]
May-2025
1
[***]67320[***][***][***][***][***][***][***]
May-2025
1
[***]67322[***][***][***][***][***][***][***]
Jun-2025
1
[***]67323[***][***][***][***][***][***][***]
Jun-2025
1
[***]67324[***][***][***][***][***][***][***]
Jul-2025
1
[***]67325[***][***][***][***][***][***][***]
Jul-2025
1
[***]67326[***][***][***][***][***][***][***]
Aug-2025
1
[***]67328[***][***][***][***][***][***][***]
Aug-2025
1
[***]67327[***][***][***][***][***][***][***]
Sep-2025
1
[***]67330[***][***][***][***][***][***][***]
Sep-2025
1
[***]67329[***][***][***][***][***][***][***]
Oct-2025
1
[***]67333[***][***][***][***][***][***][***]
Oct-2025
1
[***]67332[***][***][***][***][***][***][***]
Oct-2025
1
[***]67331[***][***][***][***][***][***][***]
Nov-2025
1
[***]67335[***][***][***][***][***][***][***]
Nov-2025
1
[***]67334[***][***][***][***][***][***][***]
Dec-2025
1
[***]67338[***][***][***][***][***][***][***]
Dec-2025
1
[***]67337[***][***][***][***][***][***][***]
Dec-2025
1
[***]67336[***][***][***][***][***][***][***]
Jan-2026
1
[***]67339[***][***][***][***][***][***][***]
Feb-2026
1
[***]67340[***][***][***][***][***][***][***]
Mar-2026
1
[***]67342[***][***][***][***][***][***][***]
Mar-2026
1
[***]67341[***][***][***][***][***][***][***]
Apr-2026
1
[***]67343[***][***][***][***][***][***][***]
May-2026
1
[***]67345[***][***][***][***][***][***][***]
May-2026
1
[***]67344[***][***][***][***][***][***][***]
Jun-2026
1
[***]67346[***][***][***][***][***][***][***]
Jul-2026
1
[***]67347[***][***][***][***][***][***][***]
Aug-2026
1
[***]67348[***][***][***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 6

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
Sep-2026
1
[***]67349[***][***][***][***][***][***][***]
Oct-2026
1
[***]67351[***][***][***][***][***][***][***]
Oct-2026
1
[***]67350[***][***][***][***][***][***][***]
Nov-2026
1
[***]67352[***][***][***][***][***][***][***]
Dec-2026
1
[***]67353[***][***][***][***][***][***][***]
Jan-2027
1
[***]67354[***][***][***][***][***][***][***]
Feb-2027
1
[***]67355[***][***][***][***][***][***][***]
Mar-2027
1
[***]67357[***][***][***][***][***][***][***]
Mar-2027
1
[***]67356[***][***][***][***][***][***][***]
Apr-2027
1
[***]67358[***][***][***][***][***][***][***]
May-2027
1
[***]67360[***][***][***][***][***][***][***]
May-2027
1
[***]67359[***][***][***][***][***][***][***]
Jun-2027
1
[***]67361[***][***][***][***][***][***][***]
Jul-2027
1
[***]67362[***][***][***][***][***][***][***]
Aug-2027
1
[***]67363[***][***][***][***][***][***][***]
Sep-2027
1
[***]67364[***][***][***][***][***][***][***]
Oct-2027
1
[***]67366[***][***][***][***][***][***][***]
Oct-2027
1
[***]67365[***][***][***][***][***][***][***]
Nov-2027
1
[***]67367[***][***][***][***][***][***][***]
Dec-2027
1
[***]67368[***][***][***][***][***][***][***]
Jan-2028
1
[***]67369[***][***][***][***][***][***][***]
Feb-2028
1
[***]67370[***][***][***][***][***][***][***]
Mar-2028
1
[***]67372[***][***][***][***][***][***][***]
Mar-2028
1
[***]67371[***][***][***][***][***][***][***]
Apr-2028
1
[***]67373[***][***][***][***][***][***][***]
May-2028
1
[***]67375[***][***][***][***][***][***][***]
May-2028
1
[***]67374[***][***][***][***][***][***][***]
Jun-2028
1
[***]67376[***][***][***][***][***][***][***]
Jul-2028
1
[***]67377[***][***][***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 7

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
Aug-2028
1
[***]67378[***][***][***][***][***][***][***]
Sep-2028
1
[***]67379[***][***][***][***][***][***][***]
Oct-2028
1
[***]67381[***][***][***][***][***][***][***]
Oct-2028
1
[***]67380[***][***][***][***][***][***][***]
Nov-2028
1
[***]67382[***][***][***][***][***][***][***]
Dec-2028
1
[***]67383[***][***][***][***][***][***][***]
Jan-2029
1
[***]67385[***][***][***][***][***][***][***]
Jan-2029
1
[***]67384[***][***][***][***][***][***][***]
Feb-2029
1
[***]67386[***][***][***][***][***][***][***]
Mar-2029
1
[***]67388[***][***][***][***][***][***][***]
Mar-2029
1
[***]67387[***][***][***][***][***][***][***]
Apr-2029
1
[***]67389[***][***][***][***][***][***][***]
May-2029
1
[***]67391[***][***][***][***][***][***][***]
May-2029
1
[***]67390[***][***][***][***][***][***][***]
Jun-2029
1
[***]67393[***][***][***][***][***][***][***]
Jun-2029
1
[***]67392[***][***][***][***][***][***][***]
Jul-2029
1
[***]67395[***][***][***][***][***][***][***]
Jul-2029
1
[***]67394[***][***][***][***][***][***][***]
Aug-2029
1
[***]67397[***][***][***][***][***][***][***]
Aug-2029
1
[***]67396[***][***][***][***][***][***][***]
Sep-2029
1
[***]67399[***][***][***][***][***][***][***]
Sep-2029
1
[***]67398[***][***][***][***][***][***][***]
Oct-2029
1
[***]67400[***][***][***][***][***][***][***]
Nov-2029
1
[***]67401[***][***][***][***][***][***][***]
Dec-2029
1
[***]67403[***][***][***][***][***][***][***]
Dec-2029
1
[***]67402[***][***][***][***][***][***][***]
Jan-2030
1
[***]67404[***][***][***][***][***][***][***]
Feb-2030
1
[***]67405[***][***][***][***][***][***][***]
Mar-2030
1
[***]67407[***][***][***][***][***][***][***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 8

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft



Delivery

Date*
Original Delivery Date*


Number of

Aircraft
Escalation Factor (Airframe)
Manufacturer
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

Serial

Number**

Escalation

Factor

[***]1


Note
At Signing

[***]
24 Mos.

[***]
21/18/12/9/6 Mos.

[***]
Total

[***]
Mar-2030
1
[***]67406[***][***][***][***][***][***][***]
Apr-2030
1
[***]67408[***][***][***][***][***][***][***]
May-2030
1
[***]67409[***][***][***][***][***][***][***]
May-2030
1
[***]67410[***][***][***][***][***][***][***]
Jun-2030
1
[***]67411[***][***][***][***][***][***][***]
Jul-2030
1
[***]67412[***][***][***][***][***][***][***]
Aug-2030
1
[***]67413[***][***][***][***][***][***][***]
Sep-2030
1
[***]67414[***][***][***][***][***][***][***]
Oct-2030
1
[***]67416[***][***][***][***][***][***][***]
Oct-2030
1
[***]67415[***][***][***][***][***][***][***]
Nov-2030
1
[***]67417[***][***][***][***][***][***][***]
Dec-2030
1
[***]67418[***][***][***][***][***][***][***]

Total:
234

* [***]
** Manufacturer Serial Numbers (MSN) are for reference only and are subject to change.
*** [***]
Notes:
(1) [***]
SA-15
SWA-PA-03729 107953-1F 116795-1F 116953-1F
Boeing Proprietary
Page 9

image_1.jpg
The Boeing Company
P.O. Box 3707
Seattle, WA 981242207

SWA-PA-03729-LA-1106474R6
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:    Option Aircraft
Reference:    Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 aircraft and Model 737-7 aircraft
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.
1.Right to Purchase Option Aircraft.
Subject to the terms and conditions contained in this Letter Agreement, in addition to the Aircraft described in Table 1 to the Purchase Agreement as of the date of execution of this Letter Agreement, Customer will have the option to purchase additional Boeing Model 7378 aircraft as option aircraft (Option Aircraft).
2.Delivery.
The number of Option Aircraft and delivery dates are listed in the Attachment 1-A, 1-B, and 1-C (collectively Attachment 1) to this Letter Agreement. The Attachment 1-A Aircraft are the Original Option Aircraft (Original Option Aircraft), the Attachment 1-B Aircraft are the 2020 Option Aircraft (2020 Option Aircraft) and the Attachment 1-C Aircraft are the 2021 Option Aircraft (2021 Option Aircraft).
3.Configuration.
3.1.Subject to the provisions of Article 3.2, below, the configuration for the Option Aircraft will be the Detail Specification for Boeing Model 7378 aircraft at the revision level in effect at the time of Definitive Agreement (as defined in Article 8). Such Detail Specification will be revised to include (i) changes applicable to the Detail Specification that are developed by Boeing between the Option Exercise Date (as defined below) and the signing of the Definitive Agreement, (ii) changes required to obtain required regulatory certificates, and (iii) other changes as mutually agreed.
SWA-PA-03729-LA-1106474R6
SA-15
Option Aircraft
Page 1
BOEING PROPRIETARY

image_1.jpg

3.2     Boeing reserves the right to configure the Option Aircraft starting from a different configuration specification, provided that it can achieve the same configuration which would result pursuant to the provisions of Article 3.1.
4.[***]







5.[***]







SWA-PA-03729-LA-1106474R6
SA-15
Option Aircraft
Page 2
BOEING PROPRIETARY

image_1.jpg

6.[***]






7.[***]




8.[***]






9.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 Option Aircraft and cannot be assigned in whole or in part.
SWA-PA-03729-LA-1106474R6
SA-15
Option Aircraft
Page 3
BOEING PROPRIETARY

image_1.jpg

10.Confidentiality
Customer understands that certain commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential and has value precisely because it is not available generally to other parties. Customer agrees to limit the disclosure of the contents of this Letter Agreement to (a) its directors and officers, (b) employees of Customer with a need to know the contents for performing its obligations (including, without limitation, those employees performing accounting, finance, administration and other functions necessary to finance and purchase, deliver or lease the Aircraft) and who understand they are not to disclose its contents to any other person or entity (other than those to whom disclosure is permitted by this Article) without the prior written consent of Boeing and (c) any auditors and attorneys of Customer who have a need to know such information and have signed a confidentiality agreement in the same form and substance similar to this Article, or are otherwise bound by a confidentiality obligation. Disclosure to other parties is not permitted without Boeing’s consent except as may be required by applicable law or governmental regulations. Customer shall be fully responsible to Boeing for compliance with such obligations.
SWA-PA-03729-LA-1106474R6
SA-15
Option Aircraft
Page 4
BOEING PROPRIETARY

image_1.jpg










Very truly yours,

THE BOEING COMPANY
By/s/ Carson J May
NameCarson J. May
ItsAttorney-In-Fact
ACCEPTED AND AGREED TO this
Date:June 14, 2021
SOUTHWEST AIRLINES CO.
By
/s/ Chris Monroe
Name
Chris Monroe
ItsSVP Finance and Treasurer






SWA-PA-03729-LA-1106474R6
SA-15
Option Aircraft
Page 5
BOEING PROPRIETARY

Attachment 1-A To
Letter Agreement No. 1106474
Aircraft Delivery, Description, Price and Advance Payments

Airframe Model/MTOW:    737-8
Engine Model/Thrust:    CFMLEAP-1B28(1)
181,200 pounds
28,800 pounds
Detail Specification:
Airframe Price Base Year/Escalation Formula:
D019A008-S (5/1/2017) Jul-11


ECI-MFG/CPI
Airframe Price:
[***]
Engine Price Base Year/Escalation Formula:
N/AN/A
Optional Features:
     [***]
Sub-Total of Airframe and Features:
[***]
Airframe Escalation Data:
Engine Price (Per Aircraft):
[***]
Base Year Index (ECI):
[***]
Aircraft Basic Price (Excluding BFE/SPE):
[***]
Base Year Index (CPI):
[***]
Buyer Furnished Equipment (BFE) Estimate:
[***]
Seller Purchased Equipment (SPE) Estimate:
[***]
Non-Refundable Deposit/Aircraft at Def Agreement:
[***]

Delivery
Date

Number of
Aircraft
Escalation Factor (Airframe)



Escalation Factor
Option Exercise Date Deadline


[***]



Note



MSN
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[***]
24 Mos.
[***]
21/18/12/9/6 Mos.
[***]
Total
[***]
Mar-2022
1
[***]
[***][***]
[***]1
Remarket Aircraft**
67206
[***]
[***][***][***][***]
Mar-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67205
[***][***][***][***][***]
Mar-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67207
[***][***][***][***][***]
Mar-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67208
[***][***][***][***][***]
Mar-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67209
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67210
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67211
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67212
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67213
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67214
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67216
[***][***][***][***][***]
Apr-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67215
[***][***][***][***][***]
May-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
May-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67218
[***][***][***][***][***]
May-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
67217
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
SA-15
SWA-PA-03729-LA-1106474 107813 116801-1F.txtBoeing Proprietary
Page 1

Attachment 1-A To
Letter Agreement No. 1106474
Aircraft Delivery, Description, Price and Advance Payments


Delivery
Date

Number of
Aircraft
Escalation Factor (Airframe)



Escalation Factor
Option Exercise Date Deadline

[***]



Note



MSN
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[***]
24 Mos.
[***]
21/18/12/9/6 Mos.
[***]
Total
[***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Aug-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Aug-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Aug-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Sep-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Oct-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Oct-2022
1
[***][***][***][***][***][***][***][***]
Oct-2022
1
[***][***][***][***][***][***][***][***]
Oct-2022
1
[***][***][***][***][***][***][***][***]
Nov-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Nov-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Nov-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Nov-2022
1
[***][***][***][***][***][***][***][***]
Nov-2022
1
[***][***][***][***][***][***][***][***]
Nov-2022
1
[***][***][***][***][***][***][***][***]
Dec-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Dec-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Dec-2022
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Dec-2022
1
[***][***][***][***][***][***][***][***]
Dec-2022
1
[***][***][***][***][***][***][***][***]
Jan-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jan-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jan-2023
1
[***][***][***][***][***][***][***][***]
Feb-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Feb-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Feb-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Mar-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Mar-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Mar-2023
1
[***][***][***][***][***][***][***][***]
Apr-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Apr-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
May-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
May-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
May-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
SA-15
SWA-PA-03729-LA-1106474 107813 116801-1F.txtBoeing Proprietary
Page 2

Attachment 1-A To
Letter Agreement No. 1106474
Aircraft Delivery, Description, Price and Advance Payments


Delivery
Date

Number of
Aircraft
Escalation Factor (Airframe)



Escalation Factor
Option Exercise Date Deadline

[***]



Note



MSN
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[***]
24 Mos.
[***]
21/18/12/9/6 Mos.
[***]
Total
[***]
Jun-2023
1
[***]
[***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jun-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Jul-2023
1
[***][***][***][***][***][***][***][***]
Jul-2023
1
[***][***][***][***][***][***][***][***]
Aug-2023
1
[***][***][***]
[***]1
Remarket Aircraft**
[***][***][***][***][***]
Sep-2023
1
[***][***][***][***][***][***][***][***]
Sep-2023
1
[***][***][***][***][***][***][***][***]
Nov-2023
1
[***][***][***][***][***][***][***][***]
Nov-2023
1
[***][***][***][***][***][***][***][***]
Dec-2023
1
[***][***][***][***][***][***][***][***]
Dec-2023
1
[***][***][***][***][***][***][***][***]
Mar-2024
1
[***][***][***][***][***][***][***][***][***]
Apr-2024
1
[***][***][***][***][***][***][***][***][***]
Apr-2024
1
[***][***][***][***][***][***][***][***][***]
Apr-2024
1
[***][***][***][***][***][***][***][***][***]
Apr-2024
1
[***][***][***][***][***][***][***][***][***]
May-2024
1
[***][***][***][***][***][***][***][***][***]
May-2024
1
[***][***][***][***][***][***][***][***][***]
May-2024
1
[***][***][***][***][***][***][***][***][***]
Jun-2024
1
[***][***][***][***][***][***][***][***][***]
Jun-2024
1
[***][***][***][***][***][***][***][***][***]
Jun-2024
1
[***][***][***][***][***][***][***][***][***]
Jan-2025
1
[***][***][***][***][***][***][***][***][***]
Jan-2025
1
[***][***][***][***][***][***][***][***][***]
Jan-2025
1
[***][***][***][***][***][***][***][***][***]
Feb-2025
1
[***][***][***][***][***][***][***][***][***]
Feb-2025
1
[***][***][***][***][***][***][***][***][***]
Feb-2025
1
[***][***][***][***][***][***][***][***][***]
Mar-2025
1
[***][***][***][***][***][***][***][***][***]
Mar-2025
1
[***][***][***][***][***][***][***][***][***]
Mar-2025
1
[***][***][***][***][***][***][***][***][***]
Mar-2025
1
[***][***][***][***][***][***][***][***][***]
Apr-2025
1
[***][***][***][***][***][***][***][***][***]
Apr-2025
1
[***][***][***][***][***][***][***][***][***]
Apr-2025
1
[***][***][***][***][***][***][***][***][***]
SA-15
SWA-PA-03729-LA-1106474 107813 116801-1F.txtBoeing Proprietary
Page 3

Attachment 1-A To
Letter Agreement No. 1106474
Aircraft Delivery, Description, Price and Advance Payments


Delivery
Date

Number of
Aircraft
Escalation Factor (Airframe)



Escalation Factor
Option Exercise Date Deadline

[***]



Note



MSN
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[***]
24 Mos.
[***]
21/18/12/9/6 Mos.
[***]
Total
[***]
Apr-2025
1
[***][***][***][***][***][***][***][***][***]
May-2025
1
[***][***][***][***][***][***][***][***][***]
May-2025
1
[***][***][***][***]
Previously Earned
***[***][***][***][***][***]
May-2025
1
[***][***][***][***]
Previously Earned
***[***][***][***][***][***]
May-2025
1
[***][***][***][***]
Previously Earned
***[***][***][***][***][***]
Jun-2025
1
[***][***][***][***]
Previously Earned
***[***][***][***][***][***]
Jun-2025
1
[***][***][***][***]
Previously Earned
***[***][***][***][***][***]

Total:
109


* [***]
** [***]
*** [***]
Note:

(1[***].
SA-15
SWA-PA-03729-LA-1106474 107813 116801-1F.txtBoeing Proprietary
Page 4

image_1.jpg
The Boeing Company
P.O. Box 3707
Seattle, WA 981242207



SWA-PA-03729-LA-2100814R1


Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611

Subject:    [***]

References:    1)    Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7 aircraft (Aircraft)

    2)    Letter Agreement SWA PA 03729 LA-1106474R6 entitled “Option Aircraft” (Option Aircraft Letter Agreement)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement will have the same meaning as in the Purchase Agreement.
1.Definitions.
[***]

[***]



[***]

[***]

Option Aircraft will have the meaning specified in Letter Agreement Number LA-1106474R6 relating to Option Aircraft.
Original Option Aircraft will have the meaning specified in Letter Agreement Number LA-1106474R6 relating to Option Aircraft.
2020 Option Aircraft will have the meaning specified in Letter Agreement Number LA-1106474R6 relating to Option Aircraft.
Page 1
BOEING PROPRIETARY

image_1.jpg



2021 Option Aircraft will have the meaning specified in Letter Agreement Number LA-1106474R6 relating to Option Aircraft.
Program Aircraft means (i) each firm and exercised Option Aircraft in Table 1 of the Purchase Agreement as of the date of this Letter Agreement that are scheduled for delivery after January 1, 2024, (ii) each of the (100) 737-7 firm Aircraft, (iii) each exercised Original Option Aircraft, (iv) each exercised 2020 Option Aircraft and (v) each exercised 2021 Option Aircraft.
[***]


2.Applicability.
2.1.[***]
2.2.[***]


3.[***]



4.[***]




5.[***]
SWA-PA-03729-LA-2100814R1SA-15
BOEING PROPRIETARY
Page 2

image_1.jpg





6.[***]



7.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 becoming the operator of the Aircraft and cannot be assigned, in whole or in part, without the prior written consent of Boeing.
8.Confidentiality.
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.

ACCEPTED AND AGREED TO this
Date:
June 14, 2021
SOUTHWEST AIRLINES CO.THE BOEING COMPANY
By:/s/ Chris MonroeBy:/s/ Carson J May
Name:Chris MonroeName:Carson J. May
Title:SVP Finance and TreasurerTitle:Attorney-In-Fact
SWA-PA-03729-LA-2100814R1SA-15
BOEING PROPRIETARY
Page 3

image_1.jpg



ATTACHMENT A

[***]

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

SWA-PA-03729-LA-2100814R1SA-15
BOEING PROPRIETARY
Page 4

image_1.jpg


ATTACHMENT B-1 : [***]

[***]

[***]

[***]

[***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
SWA-PA-03729-LA-2100814R1SA-15
BOEING PROPRIETARY
Page 5

image_1.jpg


[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
SWA-PA-03729-LA-2100814R1SA-15
BOEING PROPRIETARY
Page 6

image_1.jpg


[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
[***][***]
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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
1/1/24
Filed on:7/27/21
For Period end:6/30/213
6/14/21
12/13/118-K
 List all Filings 

3 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/06/24  Southwest Airlines Co.            10-K       12/31/23  113:49M
 2/07/23  Southwest Airlines Co.            10-K       12/31/22  110:20M
 2/07/22  Southwest Airlines Co.            10-K       12/31/21  108:29M

2 Previous Filings that this Filing References

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

11/21/16  Southwest Airlines Co.            8-K:5,9    11/17/16    2:178K                                   Donnelley … Solutions/FA
 7/27/12  Southwest Airlines Co.            10-Q        6/30/12   48:13M
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