Exhibit 10.1
Supplemental Agreement No. 51
to
Purchase Agreement No. 1810
between
THE BOEING COMPANY
and
SOUTHWEST AIRLINES CO.
Relating to Boeing Model 737-7H4 Aircraft (the Aircraft)
     THIS SUPPLEMENTAL AGREEMENT, entered into as of November 30, 2006, by and
between THE BOEING COMPANY, a Delaware corporation with principal offices in
Seattle, Washington, (Boeing) and SOUTHWEST AIRLINES CO., a Texas corporation
with principal offices in Dallas, Texas (Buyer);
     WHEREAS, the parties hereto entered into Purchase Agreement No. 1810 dated
January 19, 1994, relating to Boeing Model 737-7H4 aircraft (the Agreement) and;
     WHEREAS, Buyer has agreed to exercise one (1) March 2008 Option Aircraft as
Block T-W-2 Aircraft and;
     NOW THEREFORE, in consideration of the mutual covenants herein contained,
the parties agree to amend the Agreement as follows:
1. The Table of Contents of the Agreement is deleted in its entirety and a new
Table of Contents is attached hereto and incorporated into the Agreement by this
reference.
2. Table 1 is deleted in its entirety and replaced by a new Table 1 which is
attached hereto and is incorporated into the Agreement by this reference.
***Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and
has been filed separately with the Securities and Exchange Commission pursuant
to a Confidential Treatment Application filed with the Commission.

         
P.A. No. 1810
K/SWA
  SA-51-1    

 

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3. Table 2 is deleted in its entirety and replaced by a new Table 2 which is
attached hereto and is incorporated into the Agreement by this reference.
4. Attachment A to Letter Agreement No. 6-1162-JMG-669R7 entitled “Special
Matters” is deleted in its entirety and replaced with new Attachment A to
Agreement No. 6-1162-JMG-669R7 entitled “Special Matters” attached hereto and is
hereby incorporated into the Agreement by this reference.
5. All references in the Letter Agreements associated with Purchase Agreement
No. 1810 shall be deemed to refer to the purchase by Buyer of three hundred
seventy-two (372) Model 737-7H4 Aircraft, one hundred fourteen (114) Model
737-7H4 Option Aircraft and fifty-four (54) Model 737-7H4 Purchase Right
Aircraft, to the extent such reference is not specifically addressed herein.
6. The Advance Payment due upon signing assuming execution of this Supplemental
Agreement on or before November 30, 2006 is:
     ***for one (1) March 2008 Block T-W-2 Aircraft
Buyer will pay the *** directly to Boeing on or before November 30, 2006.
The Agreement will be 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 COMPANY   SOUTHWEST AIRLINES CO.    
By:
  /s/ Shinko Wiles   By:   /s/ Scott Topping
 
           

  Its: Attorney-In-Fact     Its: VP Treasurer

         
P.A. No. 1810
K/SWA
  SA-51-2    

 

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TABLE OF CONTENTS

                      Page   SA         Number   Number ARTICLES        
 
           
1.
  Subject Matter of Sale   1-1   SA-13
 
           
2.
  Delivery, Title and Risk of Loss   2-1   SA-28
 
           
3.
  Price of Aircraft   3-1   SA-47
 
           
4.
  Taxes   4-1    
 
           
5.
  Payment   5-1    
 
           
6.
  Excusable Delay   6-1    
 
           
7.
  Changes to the Detail Specification   7-1   SA-1
 
           
8.
  Federal Aviation Requirements and Certificates and Export License   8-1    
 
           
9.
  Representatives, Inspection, Flights and Test Data   9-1    
 
           
10.
  Assignment, Resale or Lease   10-1    
 
           
11.
  Termination for Certain Events   11-1    
 
           
12.
  Product Assurance; Disclaimer and Release; Exclusion of Liabilities; Customer
Support;        
 
  Indemnification and Insurance   12-1    
 
           
13.
  Buyer Furnished Equipment and Spare Parts   13-1    
 
           
14.
  Contractual Notices and Requests   14-1    
 
           
15.
  Miscellaneous   15-1    

         
P.A. No. 1810
K/SWA
  i   SA-51

 

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TABLE OF CONTENTS CON’T

                  SA         Number
 
        TABLE    
 
       
1.
  Aircraft Information Table   SA-51
 
       
2.
  Option Aircraft Information Table   SA-51
 
        EXHIBITS    
 
       
A
  Aircraft Configuration   SA-47
 
       
B
  Product Assurance Document   SA-1
 
       
C
  Customer Support Document    
 
       
D
  Price Adjustments Due to Economic Fluctuations — Aircraft    
 
       
E
  Buyer Furnished Equipment Provisions Document    
 
       
F
  Defined Terms Document    
 
        LETTER AGREEMENTS    
 
       
1810-1
  Waiver of Aircraft Demonstration Flight    

         
P.A. No. 1810
K/SWA
  ii   SA-51

 

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TABLE OF CONTENTS CON’T

                  SA         Number
 
        RESTRICTED LETTER AGREEMENTS    
 
       
6-1162-RLL-932R2
  Promotional Support   SA-13
 
       
6-1162-RLL-933R20
  ***   SA-47
 
       
6-1162-RLL-934R3
  Disclosure of Confidential Information   SA-14
 
       
6-1162-RLL-935R1
  Performance Guarantees   SA-1
 
       
6-1162-NIW-890
  ***-   SA-39
 
       
6-1162-RLL-936R4
  Certain Contractual Matters   SA-4
 
       
6-1162-RLL-937
  Alternate Advance Payment Schedule    
 
       
6-1162-RLL-938
  ***    
 
       
6-1162-RLL-939R1
  Certification Flight Test Aircraft   SA-1
 
       
6-1162-RLL-940R1
  Training Matters   SA-1
 
       
6-1162-RLL-941R2
  Other Matters   SA-13
 
       
6-1162-RLL-942
  Open Configuration Matters    
 
       
6-1162-RLL-943R1
  Substitution Rights   SA-6
 
       
6-1162-RLL-944
  Airframe Maintenance Material Cost Protection Program    
 
       
6-1162-RLL-945
  Comparison of 737-7H4 and 737-3H4 Block Fuel Burn    
 
       
6-1162-RLL-1855R3
  Additional Contractual Matters   SA-4
 
       
6-1162-RLL-1856
  ***   SA-1
 
       
6-1162-RLL-1857
  Service Ready Validation Program Field Test   SA-1
 
       
6-1162-RLL-1858R1
  Escalation Matters   SA-4

         
P.A. No. 1810
K/SWA
  iii   SA-51

 

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TABLE OF CONTENTS CON’T

                  SA         Number
 
        RESTRICTED LETTER AGREEMENTS    
 
       
6-1162-RLL-2036
  Amortization of Costs for Customer Unique Changes   SA-1
 
       
6-1162-RLL-2037
  Reconciliation of the Aircraft Basic Price   SA-1
 
       
6-1162-RLL-2073
  Maintenance Training Matters   SA-1
 
       
6-1162-KJJ-054R1
  Business Matters    
 
       
6-1162-KJJ-055R1
  Structural Matters   SA-25
 
       
6-1162-KJJ-056
  Noise and Emission Matters   SA-13
 
       
6-1162-KJJ-057
  Product Development Matters   SA-13
 
       
6-1162-KJJ-058
  Additional Substitution Rights   SA-13
 
       
6-1162-KJJ-150
  Flight Control Computer & Mode Control Panel Spares Matter   SA-14
 
       
6-1162-MSA-185R3
  Delivery Change Contractual Matters   SA-21
 
       
6-1162-JMG-669R7
  ***   SA-47
 
       
 
  ***   SA-51
 
       
6-1162-JMG-747R1
  ***   SA-36
 
       
6-1162-CHL-217
  Rescheduled Flight Test Aircraft   SA-32
 
       
6-1162-NIW-606R1
  ***   SA-36
 
       
6-1162-NIW-640
  Early Delivery of Two April 2004 Aircraft   SA-35
 
       
6-1162-NIW-889
  Warranty — Exterior Color Schemes and Markings for YA143 and on   SA-39
 
       
6-1162-NIW-1142
  ***   SA-43
 
       
6-1162-NIW-1369
  ***   SA-46

         
P.A. No. 1810
K/SWA
  iv   SA-51

 

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Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

                                      Base Aircraft   Special   Aircraft   Base
Year     Price   Features   Basic Price   Dollars
Block A, B, C, D & E Aircraft
    ***       ***       ***     July 1992
Block F & G Aircraft
    ***       ***       ***     July 1992
Block H Aircraft
    ***       ***       ***     July 1992
Block I Aircraft
    ***       ***       ***     July 1992
Block J Aircraft
    ***       ***       ***     July 1992
Block K Aircraft
    ***       ***       ***     July 1992
Block K-W Aircraft
    ***       ***       ***     July 1992
Block L Aircraft
    ***       ***       ***     July 1992
Block T Aircraft
    ***       ***       ***     July 1999
Block T-W Aircraft
    ***       ***       ***     July 1999
Block T-W-1 / T-W-1a Aircraft
    ***       ***       ***     July 1999
Block T-W-2 / T-W-2a Aircraft
    ***       ***       ***     July 1999

Block K-W Aircraft: Block K airplanes with production winglets installation
Block T-W Aircraft: Block T airplanes with production winglets installation
Block T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from May 1,
2006 through June 2008 at the signing of SA-47 — (T-W-1a Aircraft — Advance
Payment Schedule per LA 6-1162-JGM-669)
Block T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which becomes Firm Aircraft
after signing of SA-47 and Firm Aircaft contracted to deliver in July 2008 and
on at the signing of SA47 — (T-W-2a Aircraft — Advance Payment Schedule per LA
6-1162-JGM-669)

                                      Escalation Estimate     Delivery   Number
of   Aircraft   Adv Payment Base     Date   Aircraft   Block   Price Per A/P  
Serial Number
Dec-2000
    2     E   ***    
Jan-2001
    1     E   ***    
Feb-2001
    1     E   ***    
Mar-2001
    2     E   ***    
Jun-2001
    3     E   ***    
Sep-2001
    3     E   ***    
Oct-1998
    1     F   ***    
Nov-1998
    2     F   ***    
Dec-1998
    2     F   ***    
Mar-1999
    2     G   ***    

         
SWA
  Page 1   SA-51

 

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                                      Escalation Estimate     Delivery   Number
of   Aircraft   Adv Payment Base     Date   Aircraft   Block   Price Per A/P  
Serial Number
Jun-1999
    2     H   ***    
Jul-1999
    1     H   ***    
Aug-1999
    1     H   ***    
Sep-1999
    2     H   ***    
Oct-1999
    1     H   ***    
Mar-2000
    1     H   ***    
Apr-2000
    2     H   ***    
Sep-2000
    1     H   ***    
Oct-2000
    2     H   ***    
Mar-2001
    2     H   ***    
Apr-2001
    1     H   ***    
Oct-2001
    3     H   ***    
Nov-2001
    2     I   ***    
Dec-2001
    1     I   ***    
Jan-2002
    1     I   ***    
Mar-2002
    4     I   ***    
Apr-2002
    2     I   ***    
Dec-2002
    2     I   ***    
May-2003
    1     I   ***    
Jun-2003
    2     I   ***    
Jul-2003
    1     I   ***    
Aug-2003
    1     I   ***    
Sep-2003
    3     I   ***    
Nov-2002
    1     J   ***    
Dec-2002
    1     J   ***    
Nov-2003
    2     J   ***    
Dec-2003
    2     J   ***    
Mar-2004
    1     J   ***    
Mar-2004
    1     K   ***    
Apr-2004
    3     K   ***    
May-2004
    1     K   ***    
Jun-2004
    2     K   ***    
Jul-2004
    2     K   ***    
Sep-2004
    1     K-W   ***    
Oct-2004
    4     K-W   ***    
Oct-1999
    1     L   ***    
Nov-1999
    2     L   ***    
Dec-1999
    1     L   ***    
Jun-2000
    3     L   ***    
Jul-2000
    3     L   ***    
Sep-2000
    1     L   ***    
Oct-2000
    1     L   ***    
Nov-2000
    4     L   ***    
Dec-2000
    1     L   ***    
Jan-2001
    1     L   ***    
Feb-2001
    1     L   ***    
Jul-2001
    1     L   ***    
Sep-2001
    1     L   ***    
Oct-2001
    1     L   ***    
Mar-2003
    2     L   ***    
Jul-2003
    1     L   ***    
Aug-2003
    2     L   ***    

         
SWA
  Page 2   SA-51

 

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                                          Escalation Estimate     Delivery  
Number of   Aircraft   Adv Payment Base     Date   Aircraft   Block   Price Per
A/P   Serial Number
Nov-2001
    1     T   ***        
Feb-2002
    1     T   ***        
Jan-2004
    2     T   ***        
Feb-2004
    1     T   ***        
Apr-2004
    3     T   ***        
May-2004
    1     T   ***        
Jun-2004
    6     T   ***        
Jul-2004
    2     T   ***        
Aug-2004
    6     T-W   ***        
Sep-2004
    4     T-W   ***        
Oct-2004
    0     T-W   ***        
Nov-2004
    3     T-W   ***        
Dec-2004
    3     T-W   ***        
Jan-2005
    5     T-W   ***        
Feb-2005
    3     T-W   ***        
Mar-2005
    4     T-W   ***        
Apr-2005
    4     T-W   ***        
May-2005
    2     T-W   ***        
Jun-2005
    4     T-W   ***        
Jul-2005
    2     T-W   ***        
Aug-2005
    2     T-W   ***        
Sep-2005
    3     T-W   ***        
Oct-2005
    2     T-W   ***        
Nov-2005
    2     T-W   ***        
Dec-2005
    1     T-W   ***        
Jan-2006
    1     T-W   ***        
Feb-2006
    4     T-W   ***        
Mar-2006
    3     T-W   ***        
Apr-2006
    2     T-W   ***        
May-2006
    5     T-W-1   ***        
Jun-2006
    5     T-W-1   ***        
Jul-2006
    3     T-W-1   ***        
Aug-2006
    3     T-W-1   ***        
Sep-2006
    3     T-W-1   ***        
Oct-2006
    1     T-W-1   ***        
Nov-2006
    2     T-W-1   ***        
Dec-2006
    2     T-W-1   ***        
Jan-2007
    2     T-W-1   ***        
Feb-2007
    3     T-W-1   ***        
Mar-2007
    2     T-W-1   ***        
Apr-2007
    3     T-W-1   ***        
May-2007
    3     T-W-1   ***        
Jun-2007
    2     T-W-1   ***        
Jun-2007
    1     T-W-1a   ***   36528    
Jul-2007
    2     T-W-1   ***        
Jul-2007
    1     T-W-1a   ***   36610    
Aug-2007
    2     T-W-1   ***        
Aug-2007
    3     T-W-1a   ***   36611, 36632 & 36633    
Sep-2007
    2     T-W-1   ***        
Sep-2007
    1     T-W-1a   ***   36612    
Oct-2007
    2     T-W-1   ***        
Oct-2007
    1     T-W-1a   ***   36613    

         
SWA
  Page 3   SA-51

 

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                                          Escalation Estimate     Delivery  
Number of   Aircraft   Adv Payment Base     Date   Aircraft   Block   Price Per
A/P   Serial Number
Nov-2007
    2     T-W-1   ***        
Nov-2007
    1     T-W-1a   ***   36614    
Dec-2007
    2     T-W-1   ***        
Dec-2007
    1     T-W-1a   ***   36615    
Jan-2008
    1     T-W-1   ***        
Jan-2008
    2     T-W-1a   ***   36616 & 36617    
Jan-2008
    1     T-W-2   ***   36887    
Feb-2008
    1     T-W-1   ***        
Feb-2008
    3     T-W-1a   ***   36618, 36619 & 36620    
Mar-2008
    1     T-W-1   ***        
Mar-2008
    2     T-W-1a   ***   36621 & 36622    
Mar-2008
    1     T-W-2   ***   36888    
Apr-2008
    1     T-W-1   ***        
Apr-2008
    2     T-W-1a   ***   36623 & 36624    
May-2008
    1     T-W-1   ***        
May-2008
    2     T-W-1a   ***   36625 & 36626    
Jun-2008
    1     T-W-1   ***        
Jun-2008
    2     T-W-1a   ***   36627 & 36628    
Jul-2008
    2     T-W-2a   ***        
Aug-2008
    1     T-W-2a   ***        
Sep-2008
    1     T-W-2a   ***        
Oct-2008
    2     T-W-2a   ***        
Nov-2008
    2     T-W-2a   ***        
Dec-2008
    1     T-W-2a   ***        
Jan-2009
    1     T-W-2a   ***        
Feb-2009
    2     T-W-2a   ***        
Mar-2009
    2     T-W-2a   ***        
Apr-2009
    2     T-W-2a   ***        
May-2009
    2     T-W-2a   ***        
Jun-2009
    2     T-W-2a   ***        
Jul-2009
    2     T-W-2a   ***        
Aug-2009
    1     T-W-2a   ***        
Sep-2009
    1     T-W-2a   ***        
Oct-2009
    1     T-W-2a   ***        
Nov-2009
    1     T-W-2a   ***        
Dec-2009
    1     T-W-2a   ***        
Jan-2010
    1     T-W-2a   ***        
Feb-2010
    1     T-W-2a   ***        
Mar-2010
    1     T-W-2a   ***        
Apr-2010
    1     T-W-2a   ***        
May-2010
    1     T-W-2a   ***        
Jun-2010
    1     T-W-2a   ***        
Jul-2010
    1     T-W-2a   ***        
Aug-2010
    1     T-W-2a   ***        
Sep-2010
    1     T-W-2a   ***        
Oct-2010
    1     T-W-2a   ***        
Jan-2011
    1     T-W-2a   ***        
Feb-2011
    1     T-W-2a   ***        
Mar-2011
    1     T-W-2a   ***        
Apr-2011
    1     T-W-2a   ***        
May-2011
    1     T-W-2a   ***        
Jun-2011
    1     T-W-2a   ***        

         
SWA
  Page 4   SA-51

 

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                                      Escalation Estimate     Delivery   Number
of   Aircraft   Adv Payment Base     Date   Aircraft   Block   Price Per A/P  
Serial Number
Jul-2011
    1     T-W-2a   ***    
Aug-2011
    1     T-W-2a   ***    
Sep-2011
    1     T-W-2a   ***    
Oct-2011
    1     T-W-2a   ***    
Jan-2012
    1     T-W-2a   ***    
Feb-2012
    1     T-W-2a   ***    
Mar-2012
    1     T-W-2a   ***    
Apr-2012
    1     T-W-2a   ***    
May-2012
    1     T-W-2a   ***    
Jun-2012
    1     T-W-2a   ***    
Jul-2012
    1     T-W-2a   ***    
Aug-2012
    1     T-W-2a   ***    
Sep-2012
    1     T-W-2a   ***    
Oct-2012
    1     T-W-2a   ***    

         
SWA
  Page 5   SA-51

 

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Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R19)
Option Aircraft Information Table
Price Description of Option Aircraft:

                              Base Aircraft
Price     Special
Features     Aircraft
Basic Price  
 
                       
Block U Option Aircraft
  ***     ***     ***  
 
                       
(without Winglets)
                       
Block U-W Option Aircraft
  ***     ***     ***  
 
                       
(with Winglets)
                       
Block U-W-1 Option Aircraft
  ***     ***     ***  

     
Delivery of Purchase Right Aircraft:
  Quantity    54
Delivery Period of Purchase Right Aircraft:
  Complete delivery not later than Dec. 31, 2014
Condition of Offer for Purchase Right Aircraft:
  Subject to Available Position
 
   
Remaining Option
   
Aircraft:
  114

                      Aircraft   Number of   Option   Adv Payment Base    
Delivery   Option   Aircraft   Price Per     Mo. & Yr.   Aircraft   Block  
Option Aircraft   Option Exercise
Jul-2008
    2     U-W-1   ***   March 1, 2007
Aug-2008
    1     U-W-1   ***   April 2, 2007
Dec-2008
    1     U-W-1   ***   August 1, 2007
Jan-2009
    3     U-W-1   ***   September 3, 2007
Mar-2009
    3     U-W-1   ***   November 1, 2007
Apr-2009
    2     U-W-1   ***   December 3, 2007
May-2009
    1     U-W-1   ***   January 1, 2008
Jun-2009
    1     U-W-1   ***   February 1, 2008
Jul-2009
    2     U-W-1   ***   March 3, 2008
Aug-2009
    2     U-W-1   ***   April 1, 2008
Sep-2009
    1     U-W-1   ***   May 1, 2008
Oct-2009
    1     U-W-1   ***   June 2, 2008
Nov-2009
    1     U-W-1   ***   July 1, 2008

          SWA   Page 1   SA-51

 

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Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R19)
Option Aircraft Information Table

                      Aircraft   Number of   Option   Adv Payment Base    
Delivery   Option   Aircraft   Price Per     Mo. & Yr.   Aircraft   Block  
Option Aircraft   Option Exercise
Dec-2009
    1     U-W-1   ***   August 1, 2008
Jan-2010
    3     U-W-1   ***   September 1, 2008
Feb-2010
    3     U-W-1   ***   October 1, 2008
Mar-2010
    2     U-W-1   ***   November 3, 2008
Apr-2010
    3     U-W-1   ***   December 1, 2008
May-2010
    3     U-W-1   ***   January 1, 2009
Jun-2010
    3     U-W-1   ***   February 2, 2009
Jul-2010
    2     U-W-1   ***   March 2, 2009
Aug-2010
    2     U-W-1   ***   April 1, 2009
Sep-2010
    2     U-W-1   ***   May 1, 2009
Oct-2010
    3     U-W-1   ***   June 1, 2009
Nov-2010
    3     U-W-1   ***   July 1, 2009
Dec-2010
    3     U-W-1   ***   August 3, 2009
Jan-2011
    3     U-W-1   ***   September 1, 2009
Feb-2011
    3     U-W-1   ***   October 1, 2009
Mar-2011
    2     U-W-1   ***   November 2, 2009
Apr-2011
    3     U-W-1   ***   December 1, 2009
May-2011
    3     U-W-1   ***   January 1, 2010
Jun-2011
    3     U-W-1   ***   February 1, 2010
Jul-2011
    2     U-W-1   ***   March 1, 2010
Aug-2011
    2     U-W-1   ***   April 1, 2010
Sep-2011
    2     U-W-1   ***   May 3, 2010
Oct-2011
    2     U-W-1   ***   June 1, 2010
Nov-2011
    3     U-W-1   ***   July 1, 2010
Dec-2011
    2     U-W-1   ***   August 2, 2010
Jan-2012
    3     U-W-1   ***   September 1, 2010
Feb-2012
    3     U-W-1   ***   October 1, 2010
Mar-2012
    2     U-W-1   ***   November 1, 2010
Apr-2012
    3     U-W-1   ***   December 1, 2010
May-2012
    3     U-W-1   ***   January 3, 2011
Jun-2012
    3     U-W-1   ***   February 1, 2011
Jul-2012
    2     U-W-1   ***   March 1, 2011
Aug-2012
    2     U-W-1   ***   April 1, 2011
Sep-2012
    2     U-W-1   ***   May 2, 2011
Oct-2012
    2     U-W-1   ***   June 1, 2011
Nov-2012
    3     U-W-1   ***   July 1, 2011
Dec-2012
    2     U-W-1   ***   August 1, 2011

          SWA   Page 2   SA-51

 

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Southwest Airlines Co.
Attachment A to 6-1162-JMG-669R7
***

          SA51