SA-86 to PA-18101 redacted






                                                         Exhibit 10.1


	
	
	Supplemental Agreement No. 86

	 

	to

	 

	Purchase Agreement No. 1810

	 

	between

	 

	THE BOEING COMPANY

	 

	and

	 

	SOUTHWEST AIRLINES CO.

	 

	Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft






THIS SUPPLEMENTAL AGREEMENT is entered into as of March 11, 2014, 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).


Buyer and Boeing entered into Purchase Agreement No. 1810 dated January 19, 1994, as amended and supplemented (Purchase Agreement), relating to the purchase and sale of Boeing Model 737-7H4 aircraft (737-7H4 Aircraft) and 737-8H4 aircraft (737-8H4 Aircraft); and this Supplemental Agreement is an amendment to and is incorporated into the Purchase Agreement.


WHEREAS, Boeing and Buyer agree to amend the Purchase Agreement by revising the delivery month of one (1) Block 800LUV Aircraft identified by MSN 36896 from April 2014 to March 2014.


NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:


1.     The Table of Contents of the Purchase Agreement is deleted in its entirety and a new Table of Contents is attached hereto and incorporated into the Purchase Agreement by this reference.  


2.    Table 1c, “Aircraft Information Table - Block 800LUV Aircraft (non-ETOPS Configuration),” to the Purchase Agreement is deleted in its entirety and a new Table 1c is attached hereto and incorporated into the Purchase Agreement by this reference.  The new Table 1c reflects the revised delivery month of MSN 36896 and corrects typographical errors regarding the Escalation Factor and Advance Payment Base Price and standard Advance Payment data with respect to MSNs 42929 and 42530. 
***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
	SA-86-1
	 










The Purchase 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/ Jeff Solomon
	By: /s/ Chris Monroe

	 
	               Chris Monroe

	Its:    Attorney‐In‐Fact   
	Its:    VP, Treasurer









	
			
	P.A. No. 1810
	SA-86-2
	 






	
				
	 
	TABLE OF CONTENTS
	 
	 

	 
	 
	Page
	SA

	 
	 
	Number
	Number






ARTICLES




	
			
	1.
	Subject Matter of Sale ........................................................................................ 1-1
	SA-82

	 
	 
	 

	2.
	Delivery, Title and Risk                                                                                           of Loss ................................................................................................................ 2-1
	SA-28

	 
	 
	 

	3.
	Price of Aircraft ................................................................................................. 3-1
	SA-82

	 
	 
	 

	4.
	Taxes .................................................................................................................. 4-1
	 

	 
	 
	 

	5.
	Payment ............................................................................................................. 5-1
	 

	 
	 
	 

	6.
	Excusable Delay ................................................................................................ 6-1
	 

	 
	 
	 

	7.
	Changes to the Detail             Specification ...................................................................................................... 7-1
	SA-73

	 
	 
	 

	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
	i
	 

	K/SWA
	 
	SA-86






	
			
	 
	TABLE OF CONTENTS
	 

	 
	 
	SA

	 
	 
	Number








	
			
	TABLE
	 
	 

	 
	 
	 

	1a
	Aircraft Information Table - Block 700LUV Aircraft
	SA-85

	 
	 
	 

	1b
	Aircraft Information Table - Block 800LUV Aircraft
	SA-82

	 
	 
	 

	1c
	Aircraft Information Table - Block 800LUV Aircraft
	SA-86

	 
	 (non-ETOPS Configuration)                        
	 




             
	
			
	EXHIBITS
	 
	 

	 
	 
	 

	A-5
	Aircraft Configuration - Block 700LUV Aircraft
	SA-75

	 
	 
	 

	A-6
	Aircraft Configuration - Block 800LUV Aircraft
	SA-75

	 
	 
	 

	A-7
	Aircraft Configuration - Block 800LUV Aircraft
	SA-84

	 
	 (non-ETOPS Configuration)
	 






	
			
	B
	***
	SA-75

	 
	 
	 

	C
	Customer Support Document
	 

	 
	 
	 

	C-2
	737-800 Customer Support Document
	SA-75

	 
	 
	 

	D-2
	Economic Price Adjustment
	SA-75

	 
	ECI-MFG/CPI (July 2011 Base Price)
	 

	 
	 
	 

	E
	Buyer Furnished Equipment
Provisions Document
	SA-75

	 
	Attachment A - 737-7H4 Aircraft (through 2012)
	 

	 
	Attachment B - 737-8H4 Aircraft (2012-2018)
	SA-75

	 
	 
	 

	F
	Defined Terms Document
	 






	
			
	LETTER AGREEMENTS

	 
	 
	 

	1810-1R1
	Waiver of Aircraft Demonstration Flight
	SA-75









	
			
	P.A. No. 1810
	ii
	 

	K/SWA
	 
	SA-86






	
			
	 
	TABLE OF CONTENTS
	 

	 
	 
	SA

	 
	 
	Number






	
			
	RESTRICTED LETTER AGREEMENTS

	 
	 
	 

	6-1162-RLL-932R3
	***
	SA-75

	 
	 
	 

	6-1162-RLL-934R5
	Disclosure of Confidential
Information
	SA-75

	 
	 
	 

	 
	 
	 

	6-1162-RLL-941R3
	Other Matters
	SA-75

	 
	 
	 

	 
	 
	 

	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






	
			
	SWA-PA-1810-LA-1001315R3
	***
	SA-85

	 
	Attachment A
	SA-85




        
	
			
	SWA-PA-1810-LA-1003498 R1
	***
	SA-75

	 
	 
	 

	SWA-PA-1810-LA-1003490R2
	***
	SA-82

	 
	 
	 

	SWA-PA-1810-LA-1003367R1
	***
	SA-75

	 
	 
	 

	SWA-PA-1810-LA-1105883
	Aircraft Model Substitution
	SA-75

	 
	 
	 

	SWA-PA-1810-LA-1105884
	Option Aircraft
	SA-75

	 
	Attachment B - Option Aircraft Information Table
	SA-83






	
			
	SWA-PA-1810-LA-1105885R2
	***
	SA-84

	 
	 
	 

	SWA-PA-1810-LA-1105886R1
	***
	SA-82

	 
	         
	 

	 
	 
	 

	SWA-PA-1810-LA-1105887
	***
	SA-75

	 
	  
	 







	
			
	P.A. No. 1810
	iii
	 

	K/SWA
	 
	SA-86






	
			
	 
	TABLE OF CONTENTS
	 

	 
	 
	SA

	 
	 
	Number






	
			
	SWA-PA-1810-LA-1105888R4
	***
	SA-85

	 
	 
	 

	SWA-PA-1810-LA-1105889
	***
	SA-75

	 
	 
	 

	SWA-PA-1810/03729-LA-1301169
	***
	SA-83

	 
	 
	 

	SWA-PA-1810-LA-1303010
	***
	SA-85








	
		
	ADDITIONAL LETTERS (FOR REFERENCE) - INACTIVE (as of SA-82)

	6-1162-MSA-288
	Business Offer - Enhanced Ground Proximity

	 
	Warning System (EGPWS) - Activiation - Peaks 

	 
	and Obstacles Feature

	 
	(Not applicable to Block 700LUV & Block 800LUV Aircraft)

	 
	 

	6-1162-JMG-501R2
	Business Offer - ACARS package

	 
	(Not applicable to Block 700LUV & Block 800LUV Aircraft)








        INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS


        TABLE


	
				
	Table
	Title
	Last Updated    under SA
	Current Status

	1
	Aircraft Information Table
	SA-75
	Inactive

	2
	Option Aircraft Information             Table
	SA-74
	Deleted under     SA-75




        EXHIBITS


	
				
	Exhibits
	Title
	Last Updated   under SA
	Current Status

	A
	Aircraft Configuration - 737-            700
	SA-36
	Inactive

	A-Winglet
	Aircraft Configuration
	SA-36
	Inactive

	A-1-Winglet
	Aircraft Configuration
	SA-36
	Inactive

	A-1A
	Aircraft Configuration - 737-      700 Block T-W-2c
	SA-36
	Inactive

	A-2
	Aircraft Configuration - 737-      700 Block T-W-2 / T-W-2a
	SA-47
	Inactive

	A-3
	Aircraft Configuration - 737-      700 Block T-W-2 / T-W-2a
	SA-61
	Inactive









	
			
	P.A. No. 1810
	iv
	 

	K/SWA
	 
	SA-86






	
			
	 
	TABLE OF CONTENTS
	 






	
				
	A-4
	Aircraft Configuration - 737-      700 Block T-W-2b Aircraft
	SA-66
	Inactive

	C.2
	737-800 Customer Support Variables
	SA-71
	Deleted under SA-75

	D
	Price Adjustment Due to
Economic Fluctuations -       Aircraft Price Adjustment
(July 1992 Base Price)
	 
	Inactive

	D-1
	Price Adjustment Due to   Economic Fluctuations -       Aircraft Price Adjustment
(July 1999 Base Price)
	SA-13
	Inactive

	E.2
	737-800 Buyer Furnished Equipment Provisions       Document
	SA-73
	Deleted under SA-75








          RESTRICTED LETTER AGREEMENTS 


	
				
	Letter Agreement
	Title
	Last Updated under SA
	Current Status

	6‐1162‐RLL‐933R21
	Option Aircraft
	SA-60
	Deleted under SA-75

	6‐1162‐RLL‐935R1  
	Performance Guarantees
	SA-1
	Inactive

	6‐1162‐RLL‐936R4
	Certain Contractual Matters
	SA-4
	Inactive

	6‐1162‐RLL‐937
	Alternate Advance Payment Schedule
	 
	Inactive

	6‐1162‐RLL‐938
	***
	 
	Inactive

	6‐1162‐RLL‐939R1
	Certification Flight Test   Aircraft
	SA-1
	Inactive

	6‐1162‐RLL‐940R1
	Training Matters
	SA-1
	Inactive

	6‐1162‐RLL‐942
	Open Configuration Matters
	 
	Inactive

	6‐1162‐RLL‐943R1
	Substitution Rights
	SA-6
	Deleted under SA 75

	6‐1162‐RLL‐944
	***
	 
	Inactive

	6-1162-RLL-945
	Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
	 
	Inactive

	6-1162-RLL-1855R3
	Additional Contractual     Matters
	SA-4
	Inactive

	6-1162-RLL-1856
	***
	SA-1
	Inactive

	6-1162-RLL-1857
	Service Ready Validation Program Field Test
	SA-1
	Inactive

	6-1162-RLL-1858R1
	Escalation Matters
	SA-4
	Inactive

	6-1162-RLL-2036
	Amortization of Costs for 
	SA-1
	Inactive





	
			
	P.A. No. 1810
	v
	 

	K/SWA
	 
	SA-86






	
			
	 
	TABLE OF CONTENTS
	 






	
				
	Letter Agreement
	Title
	Last Updated under SA
	Current Status

	 
	Customer Unique Changes
	 
	 

	6-1162-RLL-2037
	Reconciliation of the Aircraft Basic Price
	SA-1
	Inactive

	6-1162-RLL-2073
	Maintenance Training       Matters
	SA-1
	Inactive

	6-1162-KJJ-058R1
	Additional Substitution      Rights
	SA-71
	Deleted under SA-75

	6-1162-KJJ-150
	Flight Control Computer & Mode Control Panel Spares Matter
	SA-14
	Inactive

	6-1162-MSA-185R3
	Delivery Change Contractual Matters
	SA-21
	Inactive

	6-1162-JMG-747R1
	***
	SA-36
	Inactive

	6-1162-CHL-217
	Rescheduled Flight Test   Aircraft
	SA-32
	Inactive

	6-1162-NIW-606R1
	*** 
     
	SA-36
	Inactive

	6-1162-NIW-640
	Early Delivery of Two April 2004  Aircraft
	SA-35
	Inactive

	6-1162-NIW-889
	Warranty - Exterior Color Schemes and Markings for YA143 and on 
	SA-39
	Inactive

	6-1162-NIW-1142
	***
	SA-43
	Inactive

	6-1162-NIW-1369
	***
	SA-46
	Inactive

	6-1162-NIW-1983
	***
	SA-62
	Inactive

	SWA-PA-1810-LA- 1000419
	***
	SA-64
	Inactive

	6-1162-NIW-890R1
	***
	SA-75


SA-39
	Inactive

	6-1162-KJJ-054R2
	Business Matters
	SA-75
	Inactive

	6-1162-JMG-669R9
	***
	SA-75


SA-75
SA-54
	Inactive

	SWA-PA-1810-LA- 02710R1
	***
	SA-72
	Inactive







	
			
	P.A. No. 1810
	vi
	 

	K/SWA
	 
	SA-86






	
			
	Table 1c to

	Purchase Agreement No. PA-01810

	Aircraft Delivery, Description, Price and Advance Payments

	 Block 800LUV Aircraft (non-ETOPS Configuration)






	
												
	Airframe Model/MTOW:
	737-800
	174200 pounds
	 
	 
	Detail Specification:
	 
	D019A001SWA38P-1 Rev C (3/29/2013)
	 

	Engine Model/Thrust:
	CFM56-7B27
	27300 pounds
	Note 1
	 
	Base Aircraft Price Base Year/Escalation Formula:
	Jul-11
	ECI-MFG/CPI

	Base Aircraft Price:
	 
	***
	 
	 
	Engine Price Base Year/Escalation Formula:
	N/A
	N/A

	Special Features:
	***
	 
	 
	 
	 
	 
	 
	 
	 

	Add'l Features/Changes
	***
	 
	 
	 
	 
	 
	 
	 
	 

	Total Special Features (Exhibit A-7)
	***
	 
	 
	 
	 
	 
	 
	 

	Sub-Total of Airframe and Features:
	***
	 
	 
	Aircraft Price 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:
	***
	 
	 
	 
	 
	 
	 
	 






	
																					
	 
	 
	Escalation
	Aircraft
	 
	 
	Escalation Estimate
	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

	Delivery
	Number of
	Factor
	Serial
	Escalation
	Sub-Block
	Adv Payment Base
	At Signing
	24 Mos.
	21/18/12/9/6 Mos.
	Total

	Date
	Aircraft
	(Airframe)
	Number
	Forecast
	Note 2
	Price Per A/P
	***
	***
	***
	***

	Sep-2013
	3
	***
	36933, 36912, 36914
	***
	 
	***
	***
	***
	***
	***

	Nov-2013
	3
	***
	36915, 33939, 42526
	***
	 
	***
	***
	***
	***
	***

	Dec-2013
	3
	***
	36917, 36919, 36731
	***
	 
	***
	***
	***
	***
	***

	Mar-2014
	2
	***
	37004, 36896
	***
	 
	***
	***
	***
	***
	***

	Apr-2014
	3
	***
	42384, 36894, 36895
	***
	 
	***
	***
	***
	***
	***

	May-2014
	3
	***
	36897, 42385, 42521
	***
	 
	***
	***
	***
	***
	***

	Jun-2014
	4
	***
	36898, 36905, 42522, 42523
	***
	 
	***
	***
	***
	***
	***

	Jun-2014
	2
	***
	tbd, tbd
	***
	OPEX
	***
	***
	***
	***
	***

	Jul-2014
	1
	***
	36,911
	***
	 
	***
	***
	***
	***
	***

	Jul-2014
	3
	***
	tbd, tbd, tbd
	***
	OPEX
	***
	***
	***
	***
	***

	Aug-2014
	6
	***
	36907, 42524,35973, 42525, 36935, 42528
	***
	 
	***
	***
	***
	***
	***

	Sep-2014
	2
	***
	42527, 42531
	***
	 
	***
	***
	***
	***
	***









	
			
	SWA-PA-01810
	 
	SA-86

	63879 / 63887 / 64110 / 64111 / 66379
	Boeing Proprietary
	Page 1






	
			
	Table 1c to

	Purchase Agreement No. PA-01810

	Aircraft Delivery, Description, Price and Advance Payments

	 Block 800LUV Aircraft (non-ETOPS Configuration)






	
																					
	 
	 
	Escalation
	Aircraft
	 
	 
	Escalation Estimate
	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): 

	Delivery
	Number of 
	Factor
	Serial
	Escalation
	Sub-Block
	Adv Payment Base
	At Signing
	24 Mos.
	21/18/12/9/6 Mos.
	Total

	Date
	Aircraft
	(Airframe)
	Number
	Forecast
	Note 2
	Price Per A/P
	***
	***
	***
	***

	Oct-2014
	2
	***
	36909, 36920
	***
	 
	***
	***
	***
	***
	***

	Nov-2014
	1
	***
	36971
	***
	 
	***
	***
	***
	***
	***

	Dec-2014
	2
	***
	37037, 37045
	***
	 
	***
	***
	***
	***
	***

	Dec-2014
	2
	***
	42529, 42530
	***
	 
	***
	***
	***
	***
	***

	Jan-2015
	2
	***
	36899, 42535
	***
	 
	***
	***
	***
	***
	***

	Feb-2015
	3
	***
	36901, 36654, 36906
	***
	 
	***
	***
	***
	***
	***

	Mar-2015
	3
	***
	36902, 36936, 36655
	***
	 
	***
	***
	***
	***
	***

	Apr-2015
	3
	***
	36649, 36652, 36656
	***
	 
	***
	***
	***
	***
	***

	May-2015
	2
	***
	36903, 36657
	***
	 
	***
	***
	***
	***
	***

	Nov-2015
	3
	***
	36937, 36715, 36940
	***
	 
	***
	***
	***
	***
	***

	Dec-2015
	3
	***
	36941, 36734, 35976
	***
	 
	***
	***
	***
	***
	***

	Total:
	61
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Notes:
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	1)  ***
	 

	 
	 

	2)  The sub-block identifier is used to denote applicability of certain business terms as referenced in Letter Agreement SWA-PA-1810-LA-1105888R4 to the Purchase Agreement.







	
			
	SWA-PA-01810
	 
	SA-86

	63879 / 63887 / 64110 / 64111 / 66379
	Boeing Proprietary
	Page 2