Exhibit 10.12

 

AirTran Airways, Inc.

9955 Airtran Boulevard

Orlando, Florida 32827

 

AirTran Airways, Inc. (Buyer) and McDonnell Douglas Corporation a wholly-owned
subsidiary of The Boeing Company (Seller) have previously entered into Purchase
Agreement No. DAC 95-40-D (the Agreement), which includes Letter Agreements No.
1 through No. 46 and C1-220-95-4007, as amended, which Agreement covers the
manufacture and sale by Seller and the purchase by Buyer of Boeing model 717-200
aircraft (the Aircraft). It is agreed that upon execution by both parties
hereto, Amendment No. 5 to Letter Agreement No. 1 shall be canceled in its
entirety and replaced by this Amendment No. 6 to Letter Agreement No. 1 which
shall constitute a part of said Agreement. Amendment No. 6 adds four aircraft as
Option Aircraft numbers 29, 30, 31 and 32, with scheduled months of delivery in
2005 of, August, September, August and September. Offerability of Option
Aircraft numbers 29 through 32 is subject to availability and contingent upon
the concurrent signing of Amendment No. 11 to the Agreement for purchase of
Buyer’s Aircraft numbers 61 through 66.

 

OPTION AIRCRAFT

 

Buyer shall have the option to purchase four additional Boeing 717-200 aircraft,
noted as Option Aircraft Numbers 29 through 32, (the Option Aircraft) under the
same terms and conditions as set forth in the Agreement except as modified by
the following:

 

1. Delivery

 

The Option Aircraft shall be scheduled for delivery to Buyer as follows:

 

   

Scheduled Month

of Delivery

--------------------------------------------------------------------------------

 

Exercised Options

--------------------------------------------------------------------------------

Option Aircraft

Number

--------------------------------------------------------------------------------

   

Purchase

Agreement

Amendment

--------------------------------------------------------------------------------

 

Buyer’s Aircraft

Number

--------------------------------------------------------------------------------

1

  February      2003   No. 5   53

2

  Not exercised   —     —  

3

  April            2002   No. 7   54

4

  May             2002   No. 7   55

5

  June             2002   No. 7   56

6

  June             2002   No. 7   57

7

  December     2001   No. 6   51

--------------------------------------------------------------------------------

           

Exercised Options

--------------------------------------------------------------------------------

Option Aircraft

Number

--------------------------------------------------------------------------------

 

Scheduled Month

of Delivery

--------------------------------------------------------------------------------

 

Purchase

Agreement

Amendment

--------------------------------------------------------------------------------

 

Buyer’s Aircraft

Number

--------------------------------------------------------------------------------

8

              December   2001   No. 4   52

9

              July   2002   No. 7   58

10

              August   2002   No. 7   59

11

              August   2002   No. 7   60

12

              Canceled            

13

              Canceled            

14

              Canceled            

15

              Canceled            

16

              Canceled            

17

              Canceled            

18

              Canceled            

19

              Canceled            

20

              Canceled            

29

              May   2005        

30

              June   2005        

26

              Canceled           64

31

              August   2005        

21

              Canceled            

27

              Canceled           65

32

              September   2005        

22

              Canceled            

28

              Canceled           66

23

              Canceled           61

24

              Canceled           62

25

              Canceled           63

 

2. Option Deposit

 

In consideration for the option to purchase the Option Aircraft, Buyer has paid
a refundable deposit of $50,000 per Option Aircraft concurrent with the
execution of the Agreement. Upon the exercise of an option, Seller shall apply
the respective deposit to the progress payment due at option exercise for such
Option Aircraft and such deposit shall be deemed nonrefundable. In the event
Buyer does not exercise an Option Aircraft, Seller shall promptly refund the
$50,000 deposit without interest.

 

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3. Payment

 

Buyer shall make an initial progress payment (less any deposit referred to above
or any other advance payment) in the amount of ***% of the Advance Payment Price
upon each option exercise. ***

 

4. Option Exercise

 

Buyer must exercise all four Option Aircraft at the same time. Buyer’s option to
purchase the four Option Aircraft may be exercised only by notice in writing to
Seller received on or before the date set forth below:

 

Option Aircraft

Number

--------------------------------------------------------------------------------

  

Scheduled Month

of Delivery

--------------------------------------------------------------------------------

  

Option Exercise
Month

--------------------------------------------------------------------------------

1

               February    2003    Exercised

2

               June    2003    Not exercised

3

               November    2003    Exercised

4

               December    2003    Exercised

5

               January    2004    Exercised

6

               February    2004    Exercised

7

               March    2004    Exercised

8

               April    2004    Exercised

9

               May    2004    Exercised

10

               June    2004    Exercised

11

               July    2004    Exercised

12

               Canceled          

13

               Canceled          

14

               Canceled          

15

               Canceled          

16

               Canceled          

17

               Canceled          

18

               Canceled          

19

               Canceled          

20

               Canceled          

29

               May    2005    May 1, 2004

30

               June    2005    May 1, 2004

26

               Canceled          

31

               August    2005    May 1, 2004

21

               Canceled          

27

               Canceled          

--------------------------------------------------------------------------------

*** Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

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--------------------------------------------------------------------------------

 

Option Aircraft

Number

--------------------------------------------------------------------------------

  

Scheduled Month
of Delivery

--------------------------------------------------------------------------------

  

Option Exercise
Month

--------------------------------------------------------------------------------

32

   September                         2005    May 1, 2004

22

   Canceled     

28

   Canceled     

23

   Canceled     

24

   Canceled     

25

   Canceled     

 

Any such Option Aircraft exercised by Buyer shall be redefined as Aircraft at
time of option exercise and shall be thereafter governed by the terms of the
Agreement.

 

5. Option Aircraft Flexibility

 

Option Aircraft are offered subject to availability or other disposition. Seller
reserves the right to offer the Option Aircraft delivery positions to potential
buyers. In the event Seller determines that one or more of the positions is
desired by another buyer, Seller shall provide written notice to Buyer of such
determination. Upon such notification from Seller, Buyer shall have the option
to either: a) exercise its option, in accordance with paragraph 4. above and
convert the Option Aircraft to an Aircraft operated by Buyer, b) reschedule the
position as mutually agreed by Buyer and Seller, or c) have its Option Aircraft
refundable deposit returned in the form of a cash payment. Buyer shall advise
Seller in writing of its determination with respect to such Option Aircraft
within thirty days of receipt of notification from Seller. Buyer shall have the
right to convert Option Aircraft to Boeing 717-TBD aircraft subject to mutual
agreement on price, leadtime and launch of the Boeing 717-TBD.

 

In the event Buyer exercises an option prior to twenty-four months from the
scheduled month of delivery, Buyer shall make a progress payment in the amount
of ***% of the Advance Payment Price less any refundable deposit or any advance
payment at option exercise, a progress payment of ***% at 24 months and
additional progress payments in accordance with paragraph 3. above.

--------------------------------------------------------------------------------

*** Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

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6. Aircraft Assignment

 

The Option Aircraft terms as set forth above shall not be assignable by Buyer.
Upon option exercise, Option Aircraft shall be subject to the assignment
provisions set forth in the Agreement.

 

If the foregoing correctly sets forth our understanding, please execute this
Amendment No. 6 to Letter Agreement No. 1 in the space provided below.

 

AIRTRAN AIRWAYS, INC.

Signature

 

/s/ Richard P. Magurno

Printed Name

 

    Richard P. Magurno

Title

 

                Sr. V.P.

MCDONNELL DOUGLAS CORPORATION

a wholly-owned subsidiary of

THE BOEING COMPANY

Signature

 

/s/ Scott S. Massey

Printed Name

 

    Scott S. Massey

Title

 

      Attorney-In-Fact

Date

 

          July 3, 2003

 

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