Document:

ALK 10-K 12/31/12 EX 10.7

Supplemental Agreement No. 29

to

Purchase Agreement No. 2497

between

The Boeing Company

and

Alaska Airlines, Inc.

Relating to Boeing Models 737-800 and 737-900ER Aircraft

THIS SUPPLEMENTAL AGREEMENT, entered into as of October 10, 2012, by and between THE BOEING COMPANY (Boeing) and ALASKA AIRLINES, INC. (Customer).
WHEREAS, the parties hereto entered into Purchase Agreement No. 2497 dated June 15, 2005 (Purchase Agreement), as amended and supplemented, relating to Boeing Model 737-800 aircraft (737-890 Aircraft) and 737-900ER aircraft (737-990ER Aircraft) (collectively referred to as Aircraft); and
WHEREAS, Boeing offered and Customer agrees to [***] Boeing Model 737-900ER aircraft as set forth below (Incremental Aircraft):

	
		
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	[***]

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the    Securities and Exchange Commission.  Confidential treatment has been requested with respect to    the omitted portions.

    
	
			
	P.A. 2497
	 
	 

	ASA
	SA-29-1
	 

Supplemental Agreement No. 29 to
Purchase Agreement No. 2497

; and
WHEREAS, Customer agrees to exercise its option to [***] Option Aircraft described in Letter Agreement 2497-1R18 and concurrently substitute as 737-990ER Aircraft (Exercised Option Aircraft):
	
		
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 ; and
WHEREAS, Customer and Boeing agree to amend the Purchase Agreement to substitute 737-990ER Aircraft in lieu of 737-890 Aircraft for the [***] delivery positions listed as follows (Subject Aircraft):

	
		
	[***]
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	[***]
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; and
WHEREAS, Buyer and Boeing agree to update Letter Agreement 2497-1R18 and Letter Agreement 2497-2R2 to clarify the language relating to airframe price for Option Aircraft and Substitute Aircraft.

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the    Securities and Exchange Commission.  Confidential treatment has been requested with respect to    the omitted portions.

    
	
			
	P.A. 2497
	 
	 

	ASA
	SA-29-2
	 

Supplemental Agreement No. 29 to
Purchase Agreement No. 2497

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:
		
	1.
	Purchase Agreement Table of Contents and Tables:

1.1 Remove and replace, in its entirety, the “Table of Contents” with the Table of Contents, attached hereto, to reflect the changes made in this Supplemental Agreement.  To aid in the administration of the Purchase Agreement, the new Table of Contents includes a section for Tables, Exhibits and Letter Agreements to the Purchase Agreement that Boeing and Customer agree are inactive or have been deleted from the Purchase Agreement.
1.2 “Table 1 to Purchase Agreement 2497” page 13 is hereby deleted in its entirety as a result of the Subject Aircraft being substituted to 737-990ER Aircraft in lieu of 737-890 Aircraft in this Supplemental Agreement.
1.3 “Table 1 to Purchase Agreement 2497” pages 15 and 16 are hereby deleted in their entirety and replaced with Table 1A, attached hereto, to reflect 737-990ER Aircraft associated with Exhibit A3 as of this Supplemental Agreement.
1.4 “Table 1 to Purchase Agreement 2497” page 17 is hereby deleted in its entirety and replaced with Table 1B, attached hereto, to reflect 737-990ER Aircraft associated with Exhibit A5 as of this Supplemental Agreement.  Table 1B reflects the incorporation of the Incremental Aircraft, Exercised of Option Aircraft, and Subject Aircraft.
		
	2.
	Exhibits

2.1 Exhibit A3, “Aircraft Configuration – 737-990ER Aircraft,” cover page is hereby deleted in its entirety and replaced with a revised Exhibit A3 cover page, attached hereto.  Exhibit A3 applies to the 737-990ER Aircraft listed on Table 1A.
2.2 Exhibit A5, “Aircraft Configuration – 737-990ER Aircraft,” is hereby deleted in its entirety and replaced with a revised Exhibit A5, attached hereto. Such revised Exhibit A5 applies to the 737-990ER Aircraft listed on Table 1B.
		
	3.
	Supplemental Exhibits

Supplemental Exhibit BFE1, entitled “Buyer Furnished Equipment Variables,” is deleted in its entirety and replaced with a revised Supplemental Exhibit BFE1, attached hereto, to reflect the deletion of the BFE on-dock dates for the 737-890 Aircraft and the incorporation of the BFE on-dock dates related to the Incremental Aircraft, Exercised Option Aircraft, and Subject Aircraft.
		
	4.
	Letter Agreements.

4.1 Letter Agreement 2497-1R18, entitled “Option Aircraft,” is hereby deleted in its entirety and replaced with a revised Letter Agreement 2497-1R19 to reflect the deletion of the Exercised Option Aircraft pursuant to this Supplemental Agreement.  In addition, such Letter Agreement clarifies the language of paragraph 2.2, “Price Adjustments”.

    
	
			
	P.A. 2497
	 
	 

	ASA
	SA-29-3
	 

Supplemental Agreement No. 29 to
Purchase Agreement No. 2497

4.2    Letter Agreement 2497-2R2, entitled “Aircraft Model Substitution,” is hereby deleted in its entirety and replaced with a revised Letter Agreement 2497-2R3, attached hereto, to clarify the language of  paragraph 4, “Price, Escalation Adjustments and Advance Payments”.
4.3    Letter Agreement 6-1162-MSA-597R22, entitled “Special Matters,” is hereby deleted in its entirety and replaced with a revised Letter Agreement 6-1162-MSA-597R23, attached hereto, to reflect that such letter agreement does not apply to the 737-990ER Aircraft [***].
4.4    Letter Agreement 6-1162-SCR-124R2, entitled “[***]” is hereby deleted in its entirety and replaced with a revised Letter Agreement 6-1162-SCR-124R3, attached hereto, to reflect the removal of the Subject Aircraft. The parties acknowledge that such Letter Agreement is an Order pursuant to the CSGTA and is described herein for informational purposes.
4.5    Letter Agreement ASA-PA-2497-LA-1208492, entitled “Aircraft Performance Guarantees,” is hereby deleted in its entirety and replaced with a revised Letter Agreement ASA-PA-2497-LA-1208492R1, attached hereto, to identify the applicable 737-990ER Aircraft.
4.6    Letter Agreement ASA-2497-LA-1209641, entitled “Special Matters,” attached hereto, is hereby added to the Purchase Agreement and is applicable to all Aircraft with contract delivery months after December 31, 2012.  Notwithstanding the preceding sentence, such Letter Agreement does apply to the 737-990ER Aircraft delivering in [***].
4.7    Letter Agreement ASA-PA-2497-LA-1209478, entitled “737 Production Adjustments,” attached hereto, is hereby added to the Purchase Agreement.

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the    Securities and Exchange Commission.  Confidential treatment has been requested with respect to    the omitted portions.

    
	
			
	P.A. 2497
	 
	 

	ASA
	SA-29-4
	 

Supplemental Agreement No. 29 to
Purchase Agreement No. 2497

		
	5.
	Advance Payments.

As a result of this Supplemental Agreement, Customer will owe Boeing [***] in advance payments and Boeing will owe Customer a credit memorandum in amount of [***].  Such credit memorandum will reduce the amount of advance payments owed to Boeing upon execution of this Supplemental Agreement and the excess amount of [***] will be applied to Purchase Agreement 3866 between Boeing and Customer dated October 10, 2012.  An invoice providing details of the aforementioned advance payments will be provided separately to Customer by Boeing.
The Purchase Agreement will be deemed to be supplemented to the extent herein provided as of the date hereof and as so supplemented will continue in full force and effect.
EXECUTED IN DUPLICATE as of the day and year first written above.

THE BOEING COMPANY        ALASKA AIRLINES, INC.

By:_/s/ Lanine Lange        By:/s/ Mark Eliasen        

Its:  Attorney‐In‐Fact        Its: VP/Finance & Treasurer    

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the    Securities and Exchange Commission.  Confidential treatment has been requested with respect to    the omitted portions.

    
	
			
	P.A. 2497
	 
	 

	ASA
	SA-29-5
	 

TABLE OF CONTENTS

	
				
	ARTICLES
	 
	SA 
NUMBER

	1.
	Quantity, Model and Description
	23
	

	2.
	Delivery Schedule
	 

	3.
	Price
	 

	4.
	Payment
	 

	5.
	Miscellaneous
	 

	 
	 
	 

	TABLE
	 
	 

	1A
	Aircraft Information Table – 737-990ER Aircraft
	29
	

	1B
	Aircraft Information Table – 737-990ER Aircraft
	29
	

	 
	 
	 

	EXHIBIT
	 
	 

	A3.
	Aircraft Configuration – 737-990ER Aircraft
	29
	

	A4.
	Aircraft Configuration – 737-890 Aircraft (BSI)
	27
	

	A5.
	Aircraft Configuration – 737-990ER Aircraft
	29
	

	B.
	Aircraft Delivery Requirements and Responsibilities
	23
	

	 
	 
	 

	SUPPLEMENTAL EXHIBITS
	 

	AE1.
	Escalation Adjustment/Airframe and Optional Features 
	23
	

	BFE1.
	BFE Variables
	29
	

	CS1.
	Customer Support Variables: 737-890 Aircraft
	23
	

	CS2.
	Customer Support Variables: 737-890 Aircraft
	23
	

	EE1.
	Engine Escalation/Engine Warranty and Patent Indemnity
	23
	

	SLP1.
	Service Life Policy Components
	 

	
			
	P.A. No. 2497
	i.
	SA-29

	 
	BOEING PROPRIETARY
	 

	
				
	LETTER AGREEMENT
	SA 
NUMBER

	2497-1R19
	Option Aircraft
	29
	

	 
	Attachment 1
	29
	

	 
	Attachment 2
	29
	

	2497-2R3
	Aircraft Model Substitution
	29
	

	2497-3R1
	2497-3R1
	23
	

	2497-4R1
	Demonstration Flight Waiver
	23
	

	2497-5R1
	Customer Software
	23
	

	 
	 
	 

	RESTRICTED LETTER AGREEMENT
	 

	6-1162-MSA-588
	Aircraft Performance Guarantees -
	 

	 
	Model 737-800
	 

	6-1162-MSA-589
	[***]
	 

	 
	[***]
	 

	6-1162-MSA-592R1
	Special Purchase Agreement Provisions
	23
	

	6-1162-MSA-597R23
	Special Matters
	29
	

	6-1162-SCR-112R1
	Aircraft Performance Guarantees
	28
	

	 
	Model 737-990ER
	 

	6-1162-SCR-111R1
	[***]
	[***]
	

	 
	[***]
	 

	6-1162-SCR-124R3
	[***]
	29
	

	 
	Attachment A
	28
	

	 
	Attachment B
	29
	

	ASA-PA-2497-LA-1106553
	Promotional Support – 737-990ER Aircraft
	26
	

	ASA-PA-2497-LA-1208492R1
	Aircraft Performance Guarantees
	29
	

	Model 737-990ER
	 
	 

	ASA-PA-2497-LA-1209641
	Special Matters
	29
	

	ASA-PA-2497-LA-1209478
	737 Production Adjustments
	29
	

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	ii.
	SA-29

	 
	BOEING PROPRIETARY
	 

	
		
	SUPPLEMENTAL AGREEMENTS
	DATED AS OF:

	 
	 

	Supplemental Agreement No. 1
	December 20, 2005

	Supplemental Agreement No. 2
	January 31, 2006

	Supplemental Agreement No. 3
	February 28, 2006

	Supplemental Agreement No. 4
	March 31, 2006

	Supplemental Agreement No. 5
	May 31, 2006

	Supplemental Agreement No. 6
	June 30, 2006

	Supplemental Agreement No. 7
	July 31, 2006

	Supplemental Agreement No. 8
	October 31, 2006

	Supplemental Agreement No. 9
	November 30, 2006

	Supplemental Agreement No. 10
	December 20, 2006

	Supplemental Agreement No. 11
	January 31, 2007

	Supplemental Agreement No. 12
	April 26, 2007

	Supplemental Agreement No. 13
	July 31, 2007

	Supplemental Agreement No. 14
	September 24, 2007

	Supplemental Agreement No. 15
	October 31, 2007

	Supplemental Agreement No. 16
	January 5, 2009

	Supplemental Agreement No. 17
	February 11, 2009

	Supplemental Agreement No.  18
	February 11, 2009

	Supplemental Agreement No.  19
	December 9, 2009

	Supplemental Agreement No.  20
	March 15, 2010

	Supplemental Agreement No.  21
	June 18, 2010

	Supplemental Agreement No. 22
	June 30, 2010

	Supplemental Agreement No. 23
	January 24, 2011

	Supplemental Agreement No. 24
	July 27, 2011

	Supplemental Agreement No. 25
	October 7, 2011

	Supplemental Agreement No. 26
	November 30, 2011

	Supplemental Agreement No. 27
	December 23, 2011

	Supplemental Agreement No. 28
	June 11, 2012

	Supplemental Agreement No. 29
	October 10, 2012

	
			
	P.A. No. 2497
	iii.
	SA-29

	 
	BOEING PROPRIETARY
	 

INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

TABLE
	
				
	Table
	Title
	Last Updated under SA
	Current Status

	1, pages 1 through 12 and 14
	Table 1 to Purchase Agreement No. PA-02497
	Various SAs
	Inactive

	1, page 13
	Table 1 to Purchase Agreement No. PA-02497
	SA 27
	Deleted under SA 29

	1, pages 15.1 through 17
	Table 1 to Purchase Agreement No. PA-02497
	SA 28
	Deleted under SA 29

EXHIBITS
	
				
	Exhibit
	Title
	Last Updated under SA
	Current Status

	A
	Aircraft Configuration – 737-890 Aircraft
	SA-6
	Inactive

	A-1
	Aircraft Configuration – 737-890 Aircraft
	SA-20
	Deleted under SA-20

	A-2
	Aircraft Configuration – 737-890 Aircraft
	SA-20
	Inactive

	
			
	P.A. No. 2497
	iv.
	SA-29

	 
	BOEING PROPRIETARY
	 

LETTER AGREEMENTS
	
				
	Letter Agreement
	Title
	Last Updated under SA
	Current Status

	6-1162-IRS-118
	Special Matters - Economic Impact
	SA-18
	Deleted under SA-19

	6-1162-SCR-025R2
	“Special Matters” – Economic Impact Aircraft - Rescheduled delivery dates
	SA-22
	Inactive

	6-1162-SCR-028
	Notice of Exercise by Boeing of its Right to Reschedule Economic Impact Aircraft
	SA-19
	Inactive

	2497-6R6
	Promotion Support (737-890 Aircraft)
	SA-16
	Inactive

	6-1162-SCR-027
	Promotion Support - [***] (737-890 Aircraft)
	SA 19
	Inactive

	6-1162-LLL-004
	Promotion Support [***] (737-890 Aircraft)
	SA 28
	Inactive

	6-1162-SCR-106R1
	737-990ER Model Open Configuration Matters
	SA 24
	Inactive

	6-1162-MSA-691R5
	Process for Fixing Escalation Factor
	SA-23
	Inactive

	Attachment A of 6-1162-MSA-691R5
	Process for Fixing Escalation Factor – Attachment A
	SA-25
	Inactive

	Attachments 1A, 1B, and 2 of 6-1162-MSA-597
	   [***] Escalation Factor and Delivery Pricing Information
	SA 17
	Deleted under SA 25

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	v.
	SA-29

	 
	BOEING PROPRIETARY
	 

Table 1A To  
Purchase Agreement No. PA-02497 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-02497 APRs 58814 and 58812
	Boeing Proprietary
	Page 1 of 2

	 
	 
	SA 29

  

Table 1A To Purchase Agreement No. PA-02497 
737-900ER
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-02497 APRs 58814 and 58812
	Boeing Proprietary
	Page 2 of 2

	 
	 
	SA 29

Table 1B To  
Purchase Agreement No. PA-02497 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-02497 APRs: 61453, 61534, and 61493
	Boeing Proprietary
	Page 1 of 2

	 
	 
	SA 29

Table 1B To  
Purchase Agreement No. PA-02497 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-02497 APRs: 61453, 61534, and 61493
	Boeing Proprietary
	Page 2 of 2

	 
	 
	SA 29

AIRCRAFT CONFIGURATION

between

THE BOEING COMPANY

and

Alaska Airlines, Inc.

Exhibit A3 to Purchase Agreement Number PA-2497

Applicable for 737-990ER Aircraft listed on Table 1A

	
			
	ASA-PA-2497-EXA3
	 
	EXA3 Page 1

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

AIRCRAFT CONFIGURATION

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Exhibit A5 to Purchase Agreement Number PA-2497

Applicable for 737-990ER Aircraft listed on Table 1B

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 1

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

Exhibit A5

AIRCRAFT CONFIGURATION

Dated: October 10, 2012

relating to

BOEING MODEL 737-990ER AIRCRAFT

The Detail Specification is Boeing document number D019A001ASA39E-1, Revision New, to be released on or about October 1, 2012.  The Detail Specification provides further description of Customer’s configuration set forth in this Exhibit A5.  Such Detail Specification will be comprised of Boeing configuration specification D019A001,revision N, dated January 29, 2010, as amended to incorporate the optional features (Options) listed below, including the effects on Manufacturer's Empty Weight (MEW) and Operating Empty Weight (OEW).  As soon as practicable, Boeing will furnish to Customer copies of the Detail Specification, which copies will reflect such Options.  The Aircraft Basic Price reflects and includes all effects of such Options, except such Aircraft Basic Price does not include the price effects of any Buyer Furnished Equipment or Seller Purchased Equipment. 

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 2

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 3

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 4

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 5

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 6

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 7

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 8

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 9

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 10

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	ASA-PA-2497-EXA5
	 
	EXA5 Page 11

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

BUYER FURNISHED EQUIPMENT VARIABLES

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Supplemental Exhibit BFE1 to Purchase Agreement Number 2497

    	
			
	ASA P.A. No. 2497
	 
	BFE1

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

BUYER FURNISHED EQUIPMENT VARIABLES

relating to

BOEING MODEL 737-990ER AIRCRAFT

This Supplemental Exhibit BFE1 contains vendor selection dates, on-dock dates and other variables applicable to the 737-990ER Aircraft.

1.    Supplier Selection.

Customer will:

1.1     For 737-990ER Aircraft, select and notify Boeing of the suppliers and part numbers of the following BFE items by the following dates:

	
		
	Galley System
	[***]

	 
	 

	Galley Inserts
	[***]

	 
	 

	Seats (passenger)
	[***]

	 
	 

	Overhead & Audio System
	[***]

	 
	 

	In-Seat Video System
	[***]

	 
	 

	Miscellaneous Emergency Equipment
	[***]

	 
	 

	Cargo Handling Systems
	[***]

         
2.     On-dock Dates
On or before January 2012, Boeing will provide to Customer the BFE Requirements electronically in My Boeing Fleet (MBF), through My Boeing Configuration (MBC).  These requirements may be periodically revised, setting forth the items, quantities, on-dock dates and shipping instructions and other requirements relating to the in-sequence installation of BFE.  

For planning purposes, preliminary BFE on-dock dates are set forth below for 737-990ER Aircraft:
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	BFE1-1

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

	
					
	Item
	Preliminary On-Dock Dates

	Delivery Date
	Oct 2012
	Nov 2012
	Dec 2012
	Feb 2013

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	Item
	Preliminary On-Dock Dates

	Delivery Date
	Mar 2013
	Apr 2013
	May 2013
	Oct 2013

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	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	BFE1-2

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

	
					
	Item
	Preliminary On-Dock Dates

	Delivery Date
	Nov 2013
	Dec 2013
	Jan 2014
	Feb 2014

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	Item
	Preliminary On-Dock Dates

	Delivery Date
	March 2014
	April 2014
	May 2014
	Aug 2014

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	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	BFE1-3

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

	
					
	Item
	Preliminary On-Dock Dates

	Delivery Date
	Oct 2014
	June 2015
	July 2015
	Aug2015

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	Item
	Preliminary On-Dock Dates

	Delivery Date
	Sep 2015
	Oct 2015
	Nov 2015
	Dec 2015

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	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	BFE1-4

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

	
					
	Item
	Preliminary On-Dock Dates

	Delivery Date
	Jan 2016
	Mar 2016
	Apr 2016
	May 2016

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	Item
	Preliminary On-Dock Dates

	Delivery Date
	Mar 2017
	Apr 2017
	Sep 2017
	 

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	[***]
	 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	BFE1-5

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

3.    Additional Delivery Requirements - Import.
Customer will be the “importer of record” (as defined by the U.S. Customs and Border Protection) for all BFE imported into the United States, and as such, it has the responsibility to ensure all of Customer’s BFE shipments comply with U.S. Customs Service regulations.  In the event Customer requests Boeing, in writing, to act as importer of record for Customer’s BFE, and Boeing agrees to such request,  Customer is responsible for ensuring Boeing can comply with all U.S. Customs Import Regulations by making certain that, at the time of shipment, all BFE shipments comply with the requirements in the “International Shipment Routing Instructions”, including the Customs Trade Partnership Against Terrorism (C-TPAT), as set out on the Boeing website referenced below.  Customer agrees to include the International Shipment Routing Instructions, including C-TPAT requirements, in each contract between Customer and BFE supplier.

http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html

	
			
	ASA P.A. No. 2497
	 
	BFE1-6

	 
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

2497-1R19

Alaska Airlines, Inc.
19300 International Blvd.
Seattle, Washington  98188

Subject:    Option Aircraft

		
	Reference:
	Purchase Agreement 2497 (the Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Model 737-890 and 737-990ER aircraft (the Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 2497-1R18 dated July 27, 2011.  All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.
Boeing agrees to manufacture and sell to Customer additional Model 737-890 aircraft as the Option Aircraft.  The delivery months, number of aircraft, Advance Payment Base Price per aircraft and advance payment schedule are listed in Attachment 1 and Attachment 2 to this Letter Agreement.  The Airframe Price shown includes the Engine Price.
1.    Aircraft Description and Changes
1.1     Aircraft Description:  The Option Aircraft are described by the Detail Specification listed in the Attachments.
1.2    Changes:  The Detail Specification will be revised to include:
		
	(i) 
	Changes applicable to the basic Model 737 aircraft that are developed by Boeing between the date of the Detail Specification and the signing of the definitive agreement to purchase the Option Aircraft;

		
	(ii) 
	Changes required to obtain required regulatory certificates; and

		
	(iii) 
	Changes mutually agreed upon.

2.    Price
2.1    The pricing elements of the Option Aircraft are listed in the Attachments 1 and 2 attached hereto.

             	
			
	P.A. 2497, 2497-1R19
	BOEING PROPRIETARY
	SA-29

	Option Aircraft
	 
	Page 1

2.1.1    The [***] New Option Aircraft added to the Purchase Agreement by Supplemental Agreement No. 23 listed in Attachment 2 include escalation factors based on the 2Q 2010 escalation forecast and the resulting advance payment base price and advance payments listed are based on such escalation.
2.1.2    The remaining Option Aircraft listed in Attachment 1 include escalation factors based on the [***] and the resulting advance payment base price and advance payments are based on such escalation. 
2.2    Price Adjustments
2.2.1    Optional Features.  The price for Optional Features selected for the Option Aircraft will be adjusted to Boeing's [***] as of the date of execution of the definitive agreement for the Option Aircraft.  The existing Optional Features amounts shown on Attachments 1 and 2 do not include changes to the Exhibit A incorporated in Supplemental Agreement No. 20 nor do the amounts include Boeing Sky Interior (BSI).  
2.2.2    Escalation Adjustments.  The Airframe Price and the price of Optional Features for Option Aircraft will be escalated using 1) Boeing’s standard escalation provisions (ECI-W formula) or alternate escalation provisions (ECI-MFG/CPI formula) to be selected by Customer at the date of execution of the definitive agreement for the Option Aircraft, or 2) a mutually agreed different Boeing then current escalation provision should such exist at the date of execution of the definitive agreement for the Option Aircraft.  Attachments 1and 2 are shown with the alternate escalation provisions (ECI-MFG/CPI formula).  [***].
2.2.3    Base Price Adjustments.  The Airframe Price of the Option Aircraft will be adjusted to Boeing’s current price as of the date of execution of the definitive agreement for the Option Aircraft.
2.2.4    [***]
3.    Payment.
3.1    Customer will pay a deposit to Boeing in the amount specified in an Attachment for each Option Aircraft (Deposit), on the date of this Letter Agreement when the particular Option Aircraft was not previously included in an Attachment to an earlier version of this letter and previously paid.  If Customer exercises an option the Deposit will be credited against the first advance payment due.  If Customer does not exercise an option Boeing will retain the Deposit for that Option Aircraft.
3.2    Following option exercise, advance payments in the amounts and at the times listed in an Attachment will be payable for the Option Aircraft.  The remainder of the Aircraft Price for the Option Aircraft will be paid as advance payments and at the time of delivery as provided in the Purchase Agreement.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

             	
			
	P.A. 2497, 2497-1R19
	BOEING PROPRIETARY
	SA-29

	Option Aircraft
	 
	Page 2

4.    Option Exercise.
4.1    Customer may exercise an option by giving written notice to Boeing prior to the delivery dates listed in Attachments 1 and 2 (Option Exercise Date) as described in paragraphs 4.3 and 4.4 below.
4.2    If Boeing must make production decisions which are dependent on Customer's exercising an option earlier than the Option Exercise Date, Boeing may accelerate the Option Exercise Date subject to Customer's agreement.  If Boeing and Customer fail to agree to a revised Option Exercise Date, either party may terminate the option and Boeing will refund to Customer, without interest, any Deposit and advance payments received by Boeing with respect to the terminated Option Aircraft.
4.3    For Option Aircraft listed on Attachment 1, Customer may (i) exercise its Option, or (ii) exercise its Option and convert an Option Aircraft by providing written notice of its intention to purchase the Option Aircraft, and if applicable, state that it intends to purchase a 737-990ER Substitute Aircraft in substitution for an Option Aircraft: 
(a)no later than the first day of the month that is [***] months prior to the scheduled month of delivery of the Option Aircraft set forth in Attachment 1; 
(b)any substitution into a Boeing Model 737-990ER aircraft with auxiliary fuel tanks will result in a [***] month slide to delivery; and 
(c)any substitution into a Boeing Model 737-990ER aircraft may not later be substituted to any other Boeing Model.
4.4    For Option Aircraft on Attachment 2, Customer may (i) exercise its Option, or (ii) exercise its Option and convert an Option Aircraft by providing written notice of its intention to purchase a 737-990ER Substitute Aircraft in substitution for an Option Aircraft:
(a)no later than the first day of the month that is [***] months prior to the scheduled month of delivery of the Option Aircraft set forth in Attachment 2.
(b)any substitution into a Boeing Model 737-990ER aircraft may not later be substituted to any other Boeing Model.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

             	
			
	P.A. 2497, 2497-1R19
	BOEING PROPRIETARY
	SA-29

	Option Aircraft
	 
	Page 3

5.    Contract Terms.
Boeing and Customer will use their best efforts to reach a definitive agreement for the purchase of an Option Aircraft, including the terms and conditions contained in this Letter Agreement, in the Purchase Agreement, and other terms and conditions as may be agreed upon.  In the event the parties have not entered into a definitive agreement within 30 days following option exercise, other than as a result of Boeing’s failure to timely provide an agreement to Customer for review and execution, either party may terminate the purchase of such Option Aircraft by giving written notice to the other within 5 days.  If Customer and Boeing fail to enter into a definitive agreement containing terms consistent with Purchase Agreement No. 2497 that was delivered to Customer within 20 days following Option exercise due to Customer’s failure or refusal, Boeing will retain the Deposit for that Option Aircraft.

Sincerely,
	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

Attachments

             	
			
	P.A. 2497, 2497-1R19
	BOEING PROPRIETARY
	SA-29

	Option Aircraft
	 
	Page 4

Attachment 1 to Option Aircraft Letter Agreement 2497-1R19 
737-800 Options 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*           Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.

	
			
	ASA    
	 
	Page 1

	51058-1O.TXT
	Boeing Proprietary
	SA29

Attachment 1 to Option Aircraft Letter Agreement 2497-1R19 
737-800 Options 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*           Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.

	
			
	ASA    
	 
	Page 2

	51058-1O.TXT
	Boeing Proprietary
	SA29

Attachment 2 to Option Aircraft Letter Agreement 2497-1R19 
737-800 Options 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*           Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.

	
			
	P.A. 2497, 2497-1R19
	 
	Page 1

	51058-1O.TXT
	Boeing Proprietary
	SA29

Attachment 2 to Option Aircraft Letter Agreement 2497-1R19 
737-800 Options 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
	
	*           Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.

	
			
	P.A. 2497, 2497-1R19
	 
	Page 2

	51058-1O.TXT
	Boeing Proprietary
	SA29

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

2497-2R3

Alaska Airlines, Inc.
19300 International Blvd.
Seattle, Washington  98188

Subject:    Aircraft Model Substitution

		
	Reference:
	Purchase Agreement No. 2497 (the Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Model 737-800 aircraft (737-890 Aircraft) and 737-900ER aircraft, collectively (the Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 2497-2R2 dated July 27, 2011.  All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement. 
Customer may substitute the purchase of Boeing Model 737-900ER aircraft (Substitute Aircraft) in lieu of any of the 737-890 Aircraft or the [***] Option Aircraft (defined below), subject to the following terms and conditions:
1.    Customer’s Written Notice.
Customer will provide written notice of its intention to substitute the purchase of a Substitute Aircraft in lieu of a 737-890 Aircraft or an [***] Option Aircraft: 
(a)     no later than the first day of the month that is  [***] months prior to the scheduled month of delivery for the Option Aircraft as reflected (i) on Attachment 1 ([***] Option Aircraft) of Letter Agreement 2497-1, as amended, provide written notice to Boeing of its election to exercise its [***] Option Aircraft and substitute a Substitute Aircraft for the exercised [***] Option Aircraft, or (ii) on Attachment 2 ([***] Option Aircraft) of Letter Agreement 2497-1, as amended, provided that Customer has exercised the [***] Option Aircraft; and
(b)     any substitution into a Boeing Model 737-900ER aircraft with auxiliary tanks may result in a [***] month slide to delivery; and 
(c)     any substitution into a Boeing Model 737-900ER aircraft may not later be substituted to any other Boeing Model aircraft. 
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	SA-29

	Aircraft Model Substitution
	BOEING PROPRIETARY
	Page 1

2.    Boeing’s Production Capability.
Customer’s substitution right is conditioned upon Boeing’s having production capability and the availability for the Substitute Aircraft in the scheduled delivery month of the 737-890 Aircraft or [***] Option Aircraft for which it will be substituted.
If offerable, Boeing will tentatively quote delivery positions for the Substitute Aircraft to allow Customer to secure quotes from Buyer Furnished Equipment vendors, and Boeing to secure quotes from Seller Furnished Equipment vendors which supports the required on-dock dates.  If Boeing is unable to manufacture the Substitute Aircraft in the scheduled delivery month of the 737-890 Aircraft or [***] Option Aircraft for which it will be substituted, then Boeing shall promptly make a written offer of an alternate delivery month for Customer’s consideration and written acceptance within thirty (30) days of such offer.
3.    Definitive Agreement.
Customer’s substitution right and Boeing’s obligation in this Letter Agreement are further conditioned upon Customer’s and Boeing’s executing a definitive agreement for the purchase of the Substitute Aircraft within thirty (30) days of (i) Customer’s substitution notice to Boeing or, (ii) if required pursuant to paragraph 2,  Customer’s acceptance of an alternate delivery month in accordance with paragraph 2 above.  
4.    Price, Escalation Adjustments and Advance Payments.
4.1    Base Price Adjustments.  [***]  
4.2    Escalation Adjustments.  The Airframe Price and the price of Optional Features for Substitute Aircraft will be escalated using 1) Boeing’s standard escalation provisions (ECI-W formula) or alternate escalation provisions (ECI-MFG/CPI formula) to be selected by Customer at the date of execution of the definitive agreement for the Substitution Aircraft, or 2) a different Boeing then current escalation provisions should such exist at the date of execution of the definitive agreement for the Substitution Aircraft.  The representative escalation indices and methodology will be used to estimate the Advance Payment Base Prices for Substitution Aircraft.
4.3    [***]
[***]
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	SA-29

	Aircraft Model Substitution
	BOEING PROPRIETARY
	Page 2

4.4    Advance Payment Base Price. If the Advance Payment Base Price for any Substitute Aircraft is higher than that of the 737-890 Aircraft or the [***] Option Aircraft, Customer will pay to Boeing the amount of the difference as of the date of execution of the definitive agreement for the Substitute Aircraft.  If the Advance Payment Base Price of the Substitute Aircraft is lower than that of the Aircraft, Boeing will retain any excess amounts previously paid by Customer until the next payment is due from Customer, at which point Customer may reduce the amount of such payment by the amount of the excess.  In no case will Boeing refund or pay interest on any excess amounts created by virtue of Customer’s exercise of the rights of substitution described in this agreement.
5.    Confidential Treatment.
Customer understands that certain commercial and financial information contained in this Letter Agreement are considered by Boeing as confidential.  Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity. 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA P.A. No. 2497
	 
	SA-29

	Aircraft Model Substitution
	BOEING PROPRIETARY
	Page 3

Sincerely,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA P.A. No. 2497
	 
	SA-29

	Aircraft Model Substitution
	BOEING PROPRIETARY
	Page 4

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

6-1162-MSA-597R23

Alaska Airlines, Inc.
19300 International Blvd.
Seattle, Washington  98188

Subject:    Special Matters

		
	Reference:
	Purchase Agreement No. 2497 (the Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Model 737-890 aircraft (737-890 Aircraft) and 737-990ER aircraft (737-990ER Aircraft), collectively the (Aircraft).

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 6-1162-MSA-597R22 dated November 11, 2011.  All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

This Letter Agreement does not apply to the 737-990ER Aircraft delivering in December 2012 bearing  Manufacturer Serial Number (MSN) 41732 or any other Aircraft or Option Aircraft with a contract delivery month after December 31, 2012.

1.    Basic Credit Memorandum.

Concurrent with the delivery of each Aircraft, Boeing will provide a credit memorandum equal to [***] of the escalated Airframe Price.  Customer may apply such credit memorandum to the balance of the Purchase Price due at the time of delivery for such Aircraft, or in payment for Boeing goods and services, but not for advance payment on the Aircraft.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-MSA-597R23
	 
	SA-29

	Special Matters Letter
	BOEING PROPRIETARY
	Page 1

2.    Special Credit Memorandum.

Concurrent with the delivery of each Aircraft, Boeing will provide a credit memorandum equal to [***] of the escalated Airframe Price.  Customer may apply such credit memorandum to the balance of the Purchase Price due at the time of delivery for such Aircraft, or in payment for Boeing goods and services, but not for advance payment on the Aircraft.

		
	3.
	[***] Credit Memorandum.

3.1    Concurrent with the delivery of each of the [***] Aircraft, Boeing will provide a credit memorandum equal to [***] of the escalated Airframe Price.  Customer may apply such credit memorandum to the balance of the Purchase Price due at the time of delivery for such Aircraft, or in payment for Boeing goods and services, but not for advance payment on the Aircraft.  For subsequent Aircraft [***], this [***] Credit Memorandum shall increase to [***], to be applied as described above.

3.2    Boeing provides this [***] Credit Memorandum, in addition to the other Credit Memoranda of this Letter Agreement, as a financial accommodation to Customer in consideration of Customer becoming the operator of the Aircraft.

3.3    [***]

4.    [***] Credit Memorandum.

Concurrent with the delivery of the [***] 737-990ER Aircraft listed below, Boeing will provide a credit memorandum equal to [***] of the escalated Airframe Price.  Customer may apply such credit memorandum to the balance of the Purchase Price due at the time of delivery for such 737-990ER Aircraft, or in payment for Boeing goods and services, but not for advance payment on other 737-990ER Aircraft. 

	
		
	Delivery Date
	Serial Number

	[***]
	[***]

	[***]
	[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-MSA-597R23
	 
	SA-29

	Special Matters Letter
	BOEING PROPRIETARY
	Page 2

5.    [***] Escalation Factors.

5.1    Table 1 to the Purchase Agreement identifies the delivery positions and the estimated escalation for the Aircraft.  The parties agree that escalation factors shall be [***] ([***] Factor) for certain Aircraft ([***] Factor Aircraft).  The [***] Factor will be used to determine the escalation adjustment component of the Aircraft Price for each [***] Factor Aircraft notwithstanding any other provisions of the Purchase Agreement to the contrary, including without limitation the provisions of Supplemental Exhibit AE1 to the Purchase Agreement.  The applicable [***] Factor Aircraft with the corresponding [***] Factor are as listed in Table 1.  

5.2    The Aircraft Price, Basic Credit Memorandum, Special Credit Memorandum and [***] Credit Memorandum for [***] Factor Aircraft entitled to [***] Factor escalation are subject to adjustment per Article 5.3 below.  To confirm, [***] Factor is not applicable to Buyer Furnished Equipment and Seller Purchased Equipment. 

5.3    In addition, the escalation adjustment for any other sum which is identified in the Purchase Agreement as subject to escalation and which pertains to [***] Factor Aircraft, including but not limited to changes as described in AGTA-ASA Article 3 and Article 4 shall be calculated using the applicable [***] Factor notwithstanding any other provisions of the Purchase Agreement to the contrary, including without limitation the provisions of Supplemental Exhibit AE1 to the Purchase Agreement.

5.4    The process for determining eligibility and adding Aircraft is specified in Letter Agreement 6-1162-MSA-691, as amended, titled Process for Fixing Escalation Factors.

6.    [***] Credit Memorandum.

Concurrent with signing of the Purchase Agreement, Boeing will provide a credit memorandum equal to [***].

7.    July 2005 Delivered Aircraft [***].

Concurrent with delivery of the [***].

8.    [DELETED]

9.    [DELETED] 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-MSA-597R23
	 
	SA-29

	Special Matters Letter
	BOEING PROPRIETARY
	Page 3

10.    [***].

Customer and Boeing agree that the commitment [***].

11.    [***].

Customer has previously entered certain 737-890 Aircraft in its fleet into [***] described in detail in letter agreement 6-1162-SCR-124 dated May 2, 2011, as amended.  As described in paragraph 6.2 of the aforementioned letter agreement, [***].  

12.    [DELETED]

13.    Option Aircraft.

Further to Option Aircraft Letter Agreement 2497-1, as amended, of the Purchase Agreement, Boeing provides the following additional terms for 737-890 option aircraft (Option Aircraft):

13.1    [***]

[***]

13.2    [DELETED]

13.3    Applicable Credit Memorandums.

The Basic, Special and [***] Credit Memorandums described in Articles 1, 2 and 3, above, shall be applicable to the [***].  To confirm, should an Option Aircraft be exercised (whether or not for a Substitute Aircraft), which becomes an Aircraft delivery within the first [***] Aircraft, the [***] will be [***].  For Option Aircraft exercised as Aircraft with delivery after the [***] Aircraft delivery, the [***] will be [***].

13.4    [DELETED]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-MSA-597R23
	 
	SA-29

	Special Matters Letter
	BOEING PROPRIETARY
	Page 4

14.    737 Next Generation Manuals in the SGML Format

In consideration of Customer electing to receive Task Cards for Customer’s fleet of Boeing Model 737-400 aircraft in the SGML format in lieu of the Print File format that Customer currently receives, Boeing will provide the Aircraft Maintenance Manual (AMM) and Fault Isolation/Fault Reporting Manual (FIM/FRM) for Customer’s fleet of Boeing Model 737-700, 737-800 and 737-900 aircraft (the 737 NG aircraft) in the SGML format [***].  Should Customer continue to receive the AMM and FIM/FRM for 737 NG aircraft in the SGML format beyond the date of [***], Customer shall upon such date pay Boeing its [***] for such on-going manuals service.

In recognition that Customer [***] of the AMM and FIM/FRM for its 737 NG aircraft fleet, Boeing, following execution of Revision 15 of this Letter Agreement, [***] in the [***].

15.     INTENTIONALLY LEFT BLANK

16.     737-700 Aircraft.

Customer does not have substitution rights from 737-890 Aircraft to 737-790 aircraft. 
	
				
	[***]
	 
	 
	 

	 
	[***]
	 
	[***]

	 
	[***]
	 
	[***]

	 
	[***]
	[***]
	 

17.    [***] Credit Memorandum.  

[***] Customer’s purchase of the Aircraft identified in Supplemental Agreement 29 of the Purchase Agreement [***], upon execution of Supplemental Agreement 29 of the Purchase Agreement. [***].

18.    Assignment.

Unless otherwise described herein, the Credit Memoranda described in this Letter Agreement are provided as a financial accommodation to Customer in consideration of Customer’s becoming the operator of the Aircraft, and cannot be assigned, in whole or in part, without the prior written consent of Boeing.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-MSA-597R23
	 
	SA-29

	Special Matters Letter
	BOEING PROPRIETARY
	Page 5

19.    Confidential Treatment.    

Customer understands that certain commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential.  Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity. 

Sincerely,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

    	
			
	P.A. 2497, 6-1162-MSA-597R23
	 
	SA-29

	Special Matters Letter
	BOEING PROPRIETARY
	Page 6

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

6-1162-SCR-124R3

October 10, 2012

Alaska Airlines, Inc.
19300 Pacific Highway South
Seattle, Washington, 98188

Subject:    Multiple Operating Weight Program – 737-800

		
	References:
	1. Customer Services General Terms Agreement No. 90-2 (the CSGTA) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer); and 

2. Letter agreement 6-1162-SCR-119R1 dated May 2, 2011 regarding 737-800 Multiple Operating Weight Program Credit Memorandum (MOW Credit Memo Letter); and

3. Purchase Agreement No. 2497 (the Purchase Agreement) between Boeing and Customer relating to Models 737-890 (737-890 Aircraft) and 737-990ER (737-990ER Aircraft)

This letter agreement (Letter Agreement) replaces and supersedes in its entirety letter agreement 6-1162-SCR-124R2 dated June 11, 2012.

This Order incorporates the terms and conditions of the CSGTA.  All terms used but not defined in this Order have the same meaning as in the CSGTA.  This Order consists of this Letter Agreement and Attachments A and B.

In this Order, the term “Aircraft” means the Model 737-800 aircraft that are listed in Attachment B to this Letter Agreement.  

1.    Description of Agreement.

This Order represents the agreement of the parties to the terms and conditions under which Boeing will provide, for the Aircraft, a “Service” as defined in Article 2.22 of the CSGTA.  This Service is a [***] Program designed specifically for Customer, as described below (the Program).
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 1

2.    Background.

Customer and Boeing previously agreed to enter 737-800 aircraft that were introduced into Customer’s fleet during the five (5) year period commencing in February 2005 into an [***] as documented in paragraph 11 of Special Matters Letter Agreement 6-1162-MSA-597, as amended (Special Matters Letter Agreement).  Boeing and Customer acknowledge that fifty-one (51) 737-800 aircraft entered Customer’s fleet between February 2005 and February 2010 (Affected Aircraft), inclusive of leased aircraft.  As of May 2, 2011, none of the Affected Aircraft were entered into an MOW program.  In order to meet the intent of the Special Matters Letter Agreement, (i) Boeing and Customer agree to enter the Aircraft into the Program and (ii) Boeing agrees to provide Customer a credit memorandum in the amount set forth in paragraph 3 of the MOW Credit Memo Letter relating to the Affected Aircraft.  For business reasons, the Aircraft are not identical to the Affected Aircraft in its entirety.  

As of revision 1 to this Letter Agreement 6-1162-SCR-124 dated May 24, 2011, the Aircraft included the addition of nine (9) Aircraft that were scheduled to deliver in 2012 through 2015 and reflected the removal of fifteen (15) Affected Aircraft that were previously delivered to Customer, resulting in a total of forty-five (45) Aircraft in the Program that were listed in Attachment B.  

As of  revision 2 to this Letter Agreement 6-1162-SCR-124, Customer and Boeing acknowledge that three (3) Aircraft of the original forty-five (45) Aircraft were substituted to 737-990ER Aircraft in Supplemental Agreement No. 26 of the Purchase Agreement resulting in a reduction of Aircraft in the Program to forty-two (42) Aircraft as listed in Attachment B.      

Through this revision 3 to Letter Agreement 6-112-SCR-124, Customer and Boeing acknowledge that [***] Aircraft are substituted to 737-900ER Aircraft in Supplemental Agreement No. 29 of the Purchase Agreement resulting in a reduction of the Aircraft in the Program to [***] Aircraft as listed in Attachment B, a copy of which is attached hereto.

3.    [***].

Customer has selected the three (3) notional placard [***] for the Program.  The highest [***] selected by the Customer is [***] pounds which will be set forth in the Airplane Flight Manual (AFM)* of all [***] Aircraft listed in Attachment B.  The two (2) alternative [***] selected for the purposes of the Program are [***] pounds and [***] pounds. 

The [***] (defined in Attachment A) for the first year of utilization of the Program is [***] pounds and will be reconciled annually as set forth in Article 7 below.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 2

In addition to the AFM, Boeing will furnish to Customer the necessary changes to the [***] in the AFM.  

4.    Administrative Fee.

Boeing will charge the administrative fee relating to the Program in the amount of [***]in July 2004 dollars.  [***]. 

5.    Delivery of Airplane Flight Manuals.

Shipment of the revised AFM, if applicable, will occur within sixty (60) days of the date of this Order.
  
6.    Aircraft Included in the Program.

6.1    Included Aircraft.

Attachment B specifies all of the Aircraft included in the Program. Boeing and Customer agree that no additional 737-800 aircraft in Customer’s fleet will be added to the Program.  The configuration of the [***] Aircraft set forth in Exhibit A to the purchase agreement for the Aircraft to be delivered to Customer after the date of this Letter Agreement will reflect the highest of the three selected [***] in the AFM.  Accordingly, the Basic Price and the Advance Payment Base Price of each [***] Aircraft will be based upon the highest of the three selected [***] in the AFM.  

6.2    Invoice for [***] Aircraft. 

For the avoidance of doubt, Customer agrees to [***] pounds for all the Aircraft scheduled for delivery in [***] and Customer acknowledges that the credit amount provided in the [***] is based on such [***].  In the event Customer does not purchase [***] pounds for the [***] Aircraft deliveries, then Customer and Boeing agree to work together in good faith to reach an equitable adjustment for the difference between the [***] Aircraft when such actual [***].   

By accepting the [***] Credit Memo, Customer agrees that it has received full credit / price adjustment for the difference between the [***] relating to the Affected Aircraft.  Therefore, Customer acknowledges that it will not receive an incremental credit memorandum at delivery of the [***] Aircraft, for the difference between [***] of such Aircraft. 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 3

7.    [***]

The [***] and actual [***] - defined in Attachment A) will be jointly analyzed by the assigned Boeing Regional Director, Marketing and Customer.  The [***] will be determined by the percent distribution of [***] calculated as a function of revenue flight frequencies and weighted by block hours.  

One year after the date of this Letter Agreement, and thereafter on an annual basis, Customer, through a knowledgeable representative, will furnish to Boeing an [***] report of Customer which reports the actual [***] Aircraft, to determine the basis of any additional billing. The criteria for billing are as follows:

For each [***] Aircraft where [***], Customer will pay Boeing’s then current price per [***] for the difference between [***].

Except as otherwise provided in this Letter Agreement, no refund or credit will be given to Customer for [***] purchased or leased pursuant to this Letter Agreement. 

After the initial 12 month period the previous [***] for the prior year may become the new [***] for the next year unless Customer is expected to have significant changes in the operation of the Aircraft in which case, a new [***] will be calculated.  [***] is decided by the mutual agreement of the Customer and the Regional Director, Marketing based upon the best data available.  If the new [***] is significantly greater ([***] or greater on a per aircraft basis), Customer will purchase or lease the additional increment of [***], as the case may be.  

At the time of reconciliation of the [***] report, Customer may elect to have the selected [***] in the AFM changed for all [***] Aircraft.  In which case, the Customer would be [***].  

8.    Protection of Residual Value.

As long as the Aircraft are in the legal possession of Customer and Customer has made all requisite payments or is not otherwise in default under the Program, the Aircraft may be operated by Customer with the AFM provided by Boeing pursuant to this Program.  In other words, Customer may sell and lease-back an Aircraft without affecting its inclusion in the Program.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 4

In the event Customer intends to sell or lease to a third party, or otherwise dispose of an  Aircraft owned by Customer (Disposed Aircraft), Customer will give written notice to Boeing of such intent as soon as practicable but in any event at least [***] prior to its disposal.  For all such Aircraft the AFM will be changed by Boeing to a [***] which will be the [***] paid for at delivery or, for Aircraft in the Program through execution of this letter, the then current [***].  However, if an Aircraft which was in the Program at one time returns to Customer’s fleet after being leased to a third party, such  Aircraft may be reinstated in the Program at Customer’s election.  

If Customer desires to sell or lease a Disposed Aircraft certified to [***], then Customer may purchase, at Boeing’s then current price for [***], the difference in [***] above what the Customer has previously paid for [***] desired for a Disposed Aircraft.  The AFM will be furnished in the single higher [***].  

It is understood that a minimum of [***] will be required for Boeing to make the change to the FAA approved AFM elected by Customer.  If the Customer requires the AFM to be prepared in a different format required by the cognizant aviation regulatory authority of the proposed third party purchaser or lessee, prior coordination with Boeing will be required to determine price and offerability.  

9.    Default.

Failure of Customer to furnish the [***] report as required or failure to pay any additional billing made as a consequence of an annual reconciliation within 30 calendar days of receipt are each Events of Default under the Program.  Upon the occurrence of any Event of Default and at any time thereafter as long as the Event of Default is continuing, Boeing may exercise one or more of the following remedies.  Boeing may apply any outstanding credit memoranda against billings due but unpaid for more than 30 days and may terminate the Program by notice given to Customer in accordance with Article 12 below.  

In the event of termination by Boeing as a consequence of an Event of Default, Boeing will furnish to Customer the same AFM as that provided for a Disposed Aircraft as discussed in paragraph 8 above.  Boeing will also notify the cognizant aviation regulatory authorities of the revised AFM and [***].

10.    Term of  the Program.

This Program will continue, unless terminated by Boeing under Article 9 above or by the mutual agreement of the parties, for as long as Customer remains in legal possession of the Aircraft subject to this Program.  The Aircraft in the Program are identified in Attachment B to this Letter Agreement.  	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 5

11.    Amendments to Order.

This Order will be amended by the parties to document (i) the deletion of Aircraft to this Program, (ii) changes to any of the [***] in the AFM and the corresponding Placards, (iii) the purchase or lease of any additional [***] as a consequence of an annual reconciliation, (iv) the resetting of [***] if required as a consequence of annual reconciliation, or (v) termination of the Program.  

12.    Notices.

The [***] reported annually and the notices related to the sale, lease or other disposition of Aircraft subject to this Program will be addressed as follows:
        
	
		
	Boeing Commercial Airplane Group

	P.O. Box 3707

	Seattle, Washington 98124-2207

	U.S.A.
	 

	 
	 

	Attention:
	Director

	 
	Aircraft Contracts

	 
	M/S 21-43

	 
	 

	Attention:
	Director

	 
	Airline Analysis Marketing

	 
	M/S 21-46

        
13.    Performance Guarantees.

Boeing will not be required to furnish multiple performance guarantees for the Aircraft.    

14.    Exclusivity.

This Program is designed exclusively for Customer and may not be assigned without the prior written consent of Boeing.  

15.    Confidentiality.

The terms and conditions of this Order and the reports required hereunder shall be considered to be confidential and shall not be disclosed by either party (except as reasonably necessary to its respective employees, insurers, auditors or professional advisors) without the prior written consent of the other party.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 6

Please indicate your acceptance of this Order by returning one (1) executed copy to the attention of the undersigned. 

Very Truly Yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

Customer’s Purchase Order Number:

        P.A. 2497       

Attachments

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

    	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 7

Attachment A to 6-1162-SCR-124R3 
Page 1

Definitions

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 1

Attachment A to 6-1162-SCR-124R3 
Page 2

[***]

Sampling of Required Data:

In order to keep the reported data to a manageable volume, a flight sampling scheme will be utilized.  The reported data will be limited to only those flights departing on the first day (local time) of each calendar month for each 12 month period.  Both the Customer and the Boeing Marketing Regional Director must agree that this provides a statistically valid sample of the entire set of covered flights.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 2

Attachment A to 6-1162-SCR-124R3 
Page 3

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 3

Attachment A to 6-1162-SCR-124R3 
Page 4

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. 2497, 6-1162-SCR-124R3
	 
	SA-29

	[***]
	BOEING PROPRIETARY
	Page 4

Attachment B to 6-1162-SCR-124R3

[***]
	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the    Securities and Exchange Commission.     Confidential treatment has been requested with respect to the omitted portions.

    	
		
	P.A. No. 2497
	SA 29

Attachment B to 6-1162-SCR-124R3

[***]

	
	
	*   Indicates that certain information contained herein has been omitted and filed separately with the    Securities and Exchange Commission.     Confidential treatment has been requested with respect to the omitted portions.

    	
		
	P.A. No. 2497
	SA 29

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

ASA-PA-2497-LA-1208492R1

Alaska Airlines, Inc.
19300 International Blvd.
Seattle, Washington, 98188

		
	Subject:
	Aircraft Performance Guarantees

		
	Reference:
	Purchase Agreement No. PA-2497 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Model 737-990ER 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.
For the purposes of this Letter Agreement, Aircraft is defined to be the following:

	
		
	Delivery Date
	Manufacturer Serial Number

	[***]
	[***]

	[***]
	[***]

Boeing agrees to provide Customer with the performance guarantees in the Attachment.  These guarantees are exclusive and expire upon delivery of the Aircraft (as defined below) to Customer.  Customer agrees to limit the remedy for non-compliance of any performance guarantee to the terms in Letter Agreement No. 6-1162-SCR-111R1, as amended. 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1208492R1
	 
	Page 1

	Performance Guarantees
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

1.    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 Aircraft and cannot be assigned in whole or, in part.

2.    Confidential Treatment.
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.

Very truly yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-2497-LA-1208492R1
	 
	Page 2

	Performance Guarantees
	 
	SA-29

	 
	BOEING PROPRIETARY
	 

Attachment to Letter Agreement 
No. ASA-PA-2497-LA-1208492R1 
CFM56-7B27E Engines 
Page 1

MODEL 737-900ER WITH WINGLETS PERFORMANCE GUARANTEES

FOR ALASKA AIRLINES, INC.

	
				
	SECTION
	CONTENTS
	 

	[***]
	 
	[***]
	 

	[***]
	 
	[***]
	 

	3
	 
	MANUFACTURER’S EMPTY WEIGHT

	[***]
	 
	[***]
	 

	5
	 
	AIRCRAFT CONFIGURATION

	[***]
	 
	[***]
	 

	[***]
	 
	[***]
	 

	8
	 
	EXCLUSIVE GUARANTEES

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 2

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 3

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 4

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 5

[***]

2.3.2    Operational Empty Weight Basis

The Operational Empty Weight (OEW) derived in Paragraph 2.3.3 is the basis for the mission guarantee of Paragraph 2.3.1.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 6

2.3.3    737-900ER Weight Summary - Alaska Airlines	
					
	 
	 
	 
	 
	Pounds

	Standard Model Specification MEW
	[***]

	Configuration Specification     D019A001, Rev. N, Dated January 29, 2010  
[***] Tourist Class Passengers 
CFM56-7 Engines 
[***] lb ([***] kg) Maximum Taxi Weight 
[***] U.S. Gallons ([***] liters) Fuel Capacity

	Changes for Alaska Airlines
	 

	Interior Change to [***] Passengers ([***] FC / [***] EC)
	[***]

	(Ref: LOPA - 379-0595 Rev. K) Boeing Sky Interior
	 

	[***] lb ([***] kg) Maximum Taxi Weight
	[***]

	Mid-Cabin Exit Door Plug With Full-Sized Passenger Window
	[***]

	Extended Operations (ETOPS)
	[***]

	Heads-Up Display (HUD)
	[***]

	Standby Power - [***]-Minute Capability
	[***]

	Heavy Duty Cargo Compartment Linings/Panels
	[***]

	Centerline Overhead Stowage Compartments (5)
	[***]

	Winglets
	[***]

	Customer Options Allowance
	[***]

	 
	 
	 
	 
	 

	Alaska Airlines Manufacturer’s Empty Weight (MEW)

	[***]

	Standard and Operational Items Allowance 
(Paragraph 2.3.4)

	[***]

	Alaska Airlines Operational Empty Weight (OEW)
	[***]

	 
	 
	 
	 
	 

	 
	Quantity
	Pounds
	Pounds
	 

	* Seat Weight Included:
	 
	 
	[***]
	 

	First Class Double
	[***]
	[***]
	 
	 

	Economy Class Triple w/3 In-Arm Food Trays
	[***]
	[***]
	 
	 

	Economy Class Triple
	[***]
	[***]
	 
	 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 7

2.3.4 Standard and Operational Items Allowance
	
					
	 
	Qty
	Pounds
	Pounds
	Pounds

	Standard Items Allowance
	 
	 
	 
	[***]

	 
	 
	 
	 
	 

	Unusable Fuel
	 
	 
	[***]
	 

	Oil
	 
	 
	[***]
	 

	Oxygen Equipment
	 
	 
	[***]
	 

	Passenger Portable
	[***]
	[***]
	 
	 

	Crew Masks
	[***]
	[***]
	 
	 

	Miscellaneous Equipment
	 
	 
	[***]
	 

	Crash Axe
	[***]
	[***]
	 
	 

	Megaphones
	[***]
	[***]
	 
	 

	Flashlights
	[***]
	[***]
	 
	 

	Smoke Hoods
	[***]
	[***]
	 
	 

	Seat Belt Extensions
	[***]
	[***]
	 
	 

	Galley Structure & Fixed Inserts
	 
	 
	[***]
	 

	 
	 
	 
	 
	 

	Operational Items Allowance
	 
	 
	 
	[***]

	 
	 
	 
	 
	 

	Crew and Crew Baggage
	 
	 
	[***]
	 

	Flight Crew
	[***]
	[***]
	 
	 

	Cabin Crew
	[***]
	[***]
	 
	 

	Baggage
	[***]
	[***]
	 
	 

	Catering Allowance & Removable Inserts
	 
	 
	[***]
	 

	First Class
	[***]
	[***]
	 
	 

	Economy Class
	[***]
	[***]
	 
	 

	Passenger Service Equipment
	[***]
	 
	 
	[***]

	Potable Water - 60 USG
	 
	 
	 
	[***]

	Waste Tank Disinfectant
	 
	 
	 
	[***]

	Emergency Equipment
	 
	 
	 
	[***]

	Escape Slides - Forward
	[***]
	[***]
	 
	 

	Escape Slides - Aft
	[***]
	[***]
	 
	 

	Life Vests - Crew and Passengers
	[***]
	[***]
	 
	 

	Life Rafts
	[***]
	[***]
	 
	 

	Auto Radio Beacon (ELT)
	[***]
	[***]
	 
	 

	 
	 
	 
	 
	 

	Total Standard and Operational Items Allowance
	 
	 
	 
	[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 8

3    MANUFACTURER’S EMPTY WEIGHT

The Manufacturer’s Empty Weight (MEW) is guaranteed not to exceed the value in Section 03-60-00 of Detail Specification D019A001ASA39E-1 [***].

[***]

5    AIRCRAFT CONFIGURATION

		
	5.1
	The guarantees contained in this Attachment are based on the Aircraft configuration as defined in the original release of Detail Specification D019A001ASA39E-1 (hereinafter referred to as the Detail Specification). Appropriate adjustment shall be made for changes in such Detail Specification approved by the Customer and Boeing or otherwise allowed by the Purchase Agreement which cause changes to the flight performance, sound levels, and/or weight and balance of the Aircraft. Such adjustment shall be accounted for by Boeing in its evidence of compliance with the guarantees.

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 9

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 10

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

Attachment to Letter Agreement
No. ASA-PA-2497-LA-1208492R1
CFM56-7B27E Enginees
Page 11

[***]

8    EXCLUSIVE GUARANTEES

The only performance guarantees applicable to the Aircraft are those set forth in this Attachment.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. No. 2497
	 
	 

	AERO-B-BBA4-M12-0475B
	BOEING PROPRIETARY
	SS12-0231

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

ASA-PA-2497-LA-1209641

Alaska Airlines, Inc.
P.O. Box 68900
Seattle, WA 98168-0900

		
	Subject:
	Special Matters

		
	Reference:
	Purchase Agreement No. 2497 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Boeing Models 737-800 aircraft (737-890 Aircraft) and 737-900ER aircraft (737-990ER Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement.  This Letter Agreement applies to the 737-990ER Aircraft delivering in [***] (collectively Aircraft), unless otherwise specified in this Letter Agreement.  All terms used but not defined in this Letter Agreement shall have the same meaning as in the Purchase Agreement.

1.    Credit Memoranda 
1.1    Basic Credit Memorandum. Concurrent with the delivery of each Aircraft, Boeing will provide a Basic Credit Memorandum in an amount determined by multiplying the Airframe Price by a factor of [***].
1.2    Special Credit Memorandum. Concurrent with the delivery of each Aircraft, Boeing will provide a Special Credit Memorandum in an amount determined by multiplying the Airframe Price by a factor of [***].
1.3    [***] 
1.3.1    [***] Credit Memorandum #1. Concurrent with the delivery of each Aircraft, Boeing will provide a [***] Credit Memorandum #1 in an amount determined by multiplying the Airframe Price by a factor of [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1209641
	 
	October 10, 2012

	Special Matters
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

1.3.2    [***] Credit Memorandum #2. Concurrent with the delivery of each 737-890 Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #2 in an amount of [***]. 
1.3.3    [***] Credit Memorandum #2. Concurrent with the delivery of each 737-990ER Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #2 in an amount of [***].
1.3.4    [***] Credit Memorandum #3. Concurrent with the delivery of each 737-890 Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #3 in an amount of [***]. 
1.3.5    [***] Credit Memorandum #3. Concurrent with the delivery of each 737-990ER Aircraft, Boeing will issue to Customer a [***] Memorandum #3 in an amount of [***].
1.3.6    The [***] credit memoranda in paragraph 1.3 ([***] Credit Memoranda), cannot be assigned to a third party.  Should assignment of the Purchase Agreement with respect to an Aircraft occur for the purpose of Customer choosing to have a third party finance the Aircraft at delivery, Customer may apply [***] Credit Memoranda to the balance of the Purchase Price due at delivery of a subsequent Aircraft, or in payment for Boeing goods and services, but not for advance payment on the Aircraft.  For avoidance of doubt, should there be no remaining subsequent Aircraft, the concerned [***] Credit Memoranda shall be applied in payment for Boeing goods and services, but not for advance payment on the Aircraft.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1209641
	 
	October 10, 2012

	Special Matters
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

1.4    [***] Credit Memorandum. 
Concurrent with the delivery of each of the [***] 737-990ER Aircraft listed below, Boeing will issue to Customer a credit memorandum in an amount determined by multiplying the Airframe Price by a factor of [***] of the Airframe Price.
	
				
	Delivery Date
	Serial Number
	Delivery Date
	Serial Number

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

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

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

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

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

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

	[***]
	[***]
	 
	 

1.5    [***] Credit Memorandum. 
1.5.1    737-890 [***] Credit Memorandum. Concurrent with the delivery of each 737-890 Aircraft, Boeing will provide a [***] Credit Memorandum in an amount [***].
1.5.2    737-990ER [***] Credit Memorandum. Concurrent with the delivery of each 737-990ER Aircraft, Boeing will provide a [***] Credit Memorandum in an amount [***].

2.    Escalation of Credit Memoranda.
Unless otherwise noted, the amounts of the Credit Memoranda stated in paragraphs 1.1 through 1.5 are in [***] for 737-890 Aircraft and [***] for 737-990ER Aircraft.  The Credit Memoranda will be escalated to the scheduled month of the respective Aircraft delivery pursuant to the Airframe Escalation formula set forth in the Purchase Agreement applicable to the Aircraft.  [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1209641
	 
	October 10, 2012

	Special Matters
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

3.    Option Aircraft.
Pursuant to the Option Aircraft Letter Agreement 2497-1, as amended, of the Purchase Agreement (Option Aircraft Letter Agreement), Customer may exercise its rights to purchase certain Option Aircraft.  In addition to the terms set forth in the Option Aircraft Letter Agreement, Boeing will provide [***].

4.    Substitute Aircraft.
Pursuant to the Aircraft Model Substitution Letter Agreement 2497-2 of the Purchase Agreement, as amended (Substitute Aircraft Letter Agreement), Customer may substitute the purchase of Boeing Model 737-900ER aircraft in lieu of 737-890 Aircraft.  In addition to the terms set forth in the Substitute Aircraft Letter Agreement, Boeing will provide the [***].

5.    Assignment
Unless otherwise noted herein, the Credit Memoranda described in this Letter Agreement are provided as a financial accommodation to Customer and in consideration of Customer’s taking title to the Aircraft at time of delivery and becoming the operator of the Aircraft.  This Letter Agreement cannot be assigned, in whole or in part, without the prior written consent of Boeing.

6.    Confidentiality
Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties.  Customer agrees to 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.  

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1209641
	 
	October 10, 2012

	Special Matters
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

Very truly yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-2497-LA-1209641
	 
	October 10, 2012

	Special Matters
	 
	Page 5

	 
	BOEING PROPRIETARY
	 

	
			
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

ASA-PA-2497-LA-1209478

Alaska Airlines, Inc.
P.O. Box 68900
Seattle, WA 98168-0900

		
	Subject:
	737 Production Adjustment

		
	Reference:
	a) Purchase Agreement No. PA-2497 (NG Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-890 and 737-990 aircraft (737NG Aircraft)

b) Purchase Agreement No. PA-3866 (MAX Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (737MAX Aircraft)
This letter agreement (Letter Agreement) amends and supplements the NG Purchase Agreement.  All terms used but not defined in this Letter Agreement shall have the same meaning as in the NG Purchase Agreement.
1.    737 Production Adjustment.
From [***], Boeing may reduce 737NG aircraft production to facilitate production of the 737MAX family of aircraft (737 Production Adjustment).  If Boeing elects to take such action and it affects Boeing’s obligations under PA-2497, for those 737NG Aircraft affected by a 737 Production Adjustment, [***] Aircraft).  
2.    Notice and Purchase Agreement Amendment.
2.1    [***] Notice.    If Boeing elects to implement the 737 Production Adjustment, no later than [***] prior to the first day of the scheduled delivery month of the affected 737NG Aircraft, Boeing will provide Customer written notice of its intent to [***] Notice).  [***] which shall be delivered to Boeing within [***] Notice, the [***] Notice will [***] and [***] to the MAX Purchase Agreement to [***] Aircraft in accordance with the terms and conditions set forth herein (Amendment).  [***] 
[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1209478
	 
	October 10, 2012

	Special Matters
	 
	 Page 1

	 
	BOEING PROPRIETARY
	 

2.2    Delivery Schedule.    Boeing will make reasonable efforts, within its then-current production capacity, to maintain the same scheduled delivery month for the [***] Aircraft as the scheduled delivery month of the [***] Aircraft.  If Boeing is unable to maintain the same scheduled delivery month for the [***] Aircraft and Customer and Boeing do not agree upon the delivery schedule for the [***].  
2.3    Advance Payments. If the Advanced Payment Base Price (APBP) for any [***] is higher than the APBP of the applicable 737NG Aircraft, within thirty (30) business days of the Amendment, Customer will pay Boeing the amount of such difference. If the APBP for any [***] is lower than the APBP of the applicable 737NG Aircraft, Boeing will retain any excess amounts previously paid by Customer until the next advance payment is due, at which time Customer may reduce the amount of such payment by the amount of the excess.  
2.4    Other Terms and Conditions.    All other terms and conditions of the MAX Purchase Agreement, including but not limited to Aircraft Basic Price, Escalation Adjustment and Detail Specification, shall apply to the [***].    
3.    Confidential Treatment.
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 NG Purchase Agreement and the MAX 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.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-2497-LA-1209478
	 
	October 10, 2012

	Special Matters
	 
	 Page 2

	 
	BOEING PROPRIETARY
	 

Very truly yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-2497-LA-1209478
	 
	October 10, 2012

	Special Matters
	 
	 Page 3

	 
	BOEING PROPRIETARYALK 10-K 12/31/12 EX 10.8

PURCHASE AGREEMENT NUMBER 3866

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Relating to Boeing Models 737-8 and 737-9 Aircraft

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 1

TABLE OF CONTENTS

	
		
	ARTICLES

	Article 1.
	Quantity, Model and Description

	Article 2.
	Delivery Schedule   

	Article 3.
	Price   

	Article 4.
	Payment   

	Article 5.
	Additional Terms   

	
		
	TABLE

	1.
	Aircraft Information Table   

	
		
	EXHIBIT

	A-1.
	Aircraft Configuration – 737-8   

	A-2.
	Aircraft Configuration – 737-9   

	B.
	Aircraft Delivery Requirements and Responsibilities   

	
		
	SUPPLEMENTAL EXHIBITS

	AE1.
	Escalation Adjustment/Airframe and Optional Features   

	BFE1.
	BFE Variables   

	CS1.
	Customer Support Variables   

	EE1.
	Engine Escalation, Engine Warranty and Patent Indemnity   

	SLP1.
	Service Life Policy Components   

    

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 2

LETTER AGREEMENTS

	
		
	ASA-PA-3866-LA-09433
	Open Matters   

	ASA-PA-3866-LA-09434
	Seller Purchased Equipment   

	ASA-PA-3866-LA-09435
	Spare Parts Initial Provisioning   

	ASA-PA-3866-LA-09436
	Demonstration Flight Waiver   

	ASA-PA-3866-LA-09437
	AGTA Matters   

	ASA-PA-3866-LA-09438
	Promotion Support   

	ASA-PA-3866-LA-09439
	Special Matters- 737-8 and 737-9   

	ASA-PA-3866-LA-09440
	[***] Aircraft   

	ASA-PA-3866-LA-09441
	Substitute Aircraft   

	ASA-PA-3866-LA-09442
	Right to [***]   

	ASA-PA-3866-LA-09443
	Agreement for [***]   

	ASA-PA-3866-LA-09444
	[***]   

	ASA-PA-3866-LA-09445
	Special Matters – [***]   

	ASA-PA-3866-LA-09446
	Special Matters – [***]   

	ASA-PA-3866-LA-09447
	[***] Matters   

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 3

Purchase Agreement No. 3866 
 
between 
 
The Boeing Company 
 
and 
 
Alaska Airlines, Inc.
This Purchase Agreement No. 3866 between The Boeing Company, a Delaware corporation, (Boeing) and Alaska Airlines, Inc., a Alaska corporation, (Customer) relating to the purchase and sale of Models 737-8 and 737-9 aircraft together with all tables, exhibits, supplemental exhibits, letter agreements and other attachments thereto, if any, (Purchase Agreement) incorporates the terms and conditions (except as specifically set forth below) of the Aircraft General Terms Agreement dated as of June 15, 2005 between the parties, identified as AGTA-ASA (AGTA). 
		
	1.
	Quantity, Model and Description.

The aircraft to be delivered to Customer will be designated as Models 737-8 aircraft (737-8 Aircraft) and 737-9 aircraft (737-9 Aircraft) (collectively referenced as Aircraft).  Boeing will manufacture and sell to Customer Aircraft conforming to the configuration described in Exhibits A1 and A2 in the quantities listed in Table 1 to the Purchase Agreement.
		
	2.
	Delivery Schedule.

The scheduled months of delivery of the Aircraft are listed in the attached Table 1.  Exhibit B describes certain responsibilities for both Customer and Boeing in order to accomplish the delivery of the Aircraft.
		
	3.
	Price.

3.1    Aircraft Basic Price.  The Aircraft Basic Price is listed in Table 1 and is subject to escalation in accordance with the terms of this Purchase Agreement.
3.2    Advance Payment Base Prices.  The Advance Payment Base Prices listed in Table 1 were calculated utilizing the latest escalation factors available to Boeing on the date of this Purchase Agreement projected to the month of scheduled delivery.
		
	4.
	Payment.

4.1    Boeing acknowledges receipt of a deposit in the amount shown in Table 1 for each Aircraft (Deposit).

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 4

4.2    The standard advance payment schedule for the Aircraft requires Customer to make certain advance payments, expressed in a percentage of the Advance Payment Base Price of each Aircraft beginning with a payment of [***], less the Deposit, on the effective date of the Purchase Agreement for the Aircraft.  Additional advance payments for each Aircraft are due as specified in and on the first business day of the months listed in the attached Table 1.
4.3    For any Aircraft whose scheduled month of delivery is less than twenty‐four (24) from the date of this Purchase Agreement, the total amount of advance payments due for payment upon signing of this Purchase Agreement will include all advance payments which are past due in accordance with the standard advance payment schedule set forth in paragraph 4.2 above.
4.4    Customer will pay the balance of the Aircraft Price of each Aircraft at delivery.
		
	5.
	Additional Terms.

5.1    Aircraft Information Table.  Table 1 consolidates information contained in Articles 1, 2, 3 and 4 with respect to (i) quantity of Aircraft, (ii) applicable Detail Specification, (iii) month and year of scheduled deliveries, (iv) Aircraft Basic Price, (v) applicable escalation factors and (vi) Advance Payment Base Prices and advance payments and their schedules.
5.2    Escalation Adjustment/Airframe and Optional Features.  Supplemental Exhibit AE1 contains the applicable airframe and optional features escalation formula.
5.3    Buyer Furnished Equipment Variables.  Supplemental Exhibit BFE1 contains supplier selection dates, on dock dates and other variables applicable to the Aircraft.
5.4    Customer Support Variables.  Information, training, services and other things furnished by Boeing in support of introduction of the Aircraft into Customer’s fleet are described in Supplemental Exhibit CS1. The level of support to be provided under Supplemental Exhibit CS1 (Entitlements) assumes that at the time of delivery of Customer’s first Aircraft under the Purchase Agreement, Customer has not taken possession of a 737-8 or 737-9 aircraft whether such 737-8 or 737-9 aircraft was purchased, leased or otherwise obtained by Customer from Boeing or another party.  If prior to the delivery of Customer’s first Aircraft, Customer has taken possession of a 737-8 or 737-9 aircraft, Boeing will revise the Entitlements to reflect the level of support normally provided by Boeing to operators already operating such aircraft.  Under no circumstances under the Purchase Agreement or any other agreement will Boeing provide the Entitlements more than once to support Customer’s operation of 737-8 or 737-9 aircraft.
5.5    Engine Escalation Variables.  Supplemental Exhibit EE1 describes the applicable engine escalation formula and contains the engine warranty and the engine patent indemnity for the Aircraft.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 5

5.6    Service Life Policy Component Variables.  Supplemental Exhibit SLP1 lists the SLP Components covered by the Service Life Policy for the Aircraft.
5.7    Public Announcement.  Boeing reserves the right to make a public announcement regarding Customer’s purchase of the Aircraft upon approval of Boeing’s press release by Customer’s public relations department or other authorized representative.
5.8    Negotiated Agreement; Entire Agreement.  This Purchase Agreement, including the provisions of Article 8.2 of the AGTA relating to insurance, and Article 11 of Part 2 of Exhibit C of the AGTA relating to DISCLAIMER AND RELEASE and EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES, has been the subject of discussion and negotiation and is understood by the parties; the Aircraft Price and other agreements of the parties stated in this Purchase Agreement were arrived at in consideration of such provisions.  This Purchase Agreement, including the AGTA, contains the entire agreement between the parties and supersedes all previous proposals, understandings, commitments or representations whatsoever, oral or written, and may be changed only in writing signed by authorized representatives of the parties.

	
			
	AGREED AND ACCEPTED this
	 
	 

	 
	 
	 

	October 10, 2012
	 
	 

	Date
	 
	 

	 
	 
	 

	THE BOEING COMPANY
	 
	ALASKA AIRLINES, INC.

	 
	 
	 

	/s/ Lanine Lange
	 
	/s/ Mark Eliasen

	Signature
	 
	Signature

	 
	 
	 

	Lanine Lange
	 
	Mark Eliasen

	Printed name
	 
	Printed name

	 
	 
	 

	Attorney-in-Fact
	 
	VP/Finance & Treasurer

	Title
	 
	Title

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 6

Table 1A To 
Purchase Agreement No. PA-03866 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866 61996-1F.TXT
	Boeing Propriety
	Page 1

Table 1A To 
Purchase Agreement No. PA-03866 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866 61996-1F.TXT
	Boeing Propriety
	Page 2

Table 1A To 
Purchase Agreement No. PA-03866 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866 61996-1F.TXT
	Boeing Propriety
	Page 3

Table 1B To 
Purchase Agreement No. PA-03866 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866 60691-1F.TXT
	Boeing Propriety
	Page 1

Table 1B To 
Purchase Agreement No. PA-03866 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866 60691-1F.TXT
	Boeing Propriety
	Page 2

Table 1B To 
Purchase Agreement No. PA-03866 
Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866 60691-1F.TXT
	Boeing Propriety
	Page 3

AIRCRAFT CONFIGURATION

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Exhibit A-1 to Purchase Agreement Number 3866

BOEING MODEL 737-8 AIRCRAFT

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 1

Exhibit A-1

AIRCRAFT CONFIGURATION

Dated TBD

relating to

BOEING MODEL 737-8 AIRCRAFT

The initial configuration of Customer’s Model 737-8 Aircraft has been defined by Boeing 737-8 Airplane Description Document No. D019A007 Rev “B” dated as of May 18, 2012 and is more fully discussed in Letter Agreement ASA-PA-3866-LA-09433 to the Purchase Agreement, entitled “Open Matters”.

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 2

AIRCRAFT CONFIGURATION

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Exhibit A-2 to Purchase Agreement Number 3866

BOEING MODEL 737-9 AIRCRAFT

	
			
	P.A.3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 1

Exhibit A-2

AIRCRAFT CONFIGURATION

Dated TBD

relating to

BOEING MODEL 737-9 AIRCRAFT

The initial configuration of Customer’s Model 737-9 Aircraft has been defined by Boeing 737-9 Airplane Description Document No. D019A007 Rev “B” dated as of May 18, 2012 and is more fully discussed in Letter Agreement ASA-PA-3866-LA-09433 to the Purchase Agreement, entitled “Open Matters”.

	
			
	P.A.3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 2

AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Exhibit B to Purchase Agreement Number 3866

	
			
	P.A. 3866
	 
	October 10, 2012

	 
	BOEING PROPRIETARY
	Page 1

Exhibit B

AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES

relating to

BOEING MODELS 737-8 and 737-9 AIRCRAFT

Both Boeing and Customer have certain documentation and approval responsibilities at various times during the construction cycle of Customer’s Aircraft that are critical to making the delivery of each Aircraft a positive experience for both parties.  This Exhibit B documents those responsibilities and indicates recommended completion deadlines for the actions to be accomplished.
		
	1.
	GOVERNMENT DOCUMENTATION REQUIREMENTS.

Certain actions are required to be taken by Customer in advance of the scheduled delivery month of each Aircraft with respect to obtaining certain government issued documentation.
1.1.    Airworthiness and Registration Documents.  Not later than six (6) months prior to delivery of each Aircraft, Customer will notify Boeing of the registration number to be painted on the side of the Aircraft.  In addition, and not later than three (3) months prior to delivery of each Aircraft, Customer will, by letter to the regulatory authority having jurisdiction, authorize the temporary use of such registration numbers by Boeing during the pre-delivery testing of the Aircraft.
Customer is responsible for furnishing any Temporary or Permanent Registration Certificates required by any governmental authority having jurisdiction to be displayed aboard the Aircraft after delivery.
1.2.    Certificate of Sanitary Construction.
1.2.1.    U.S. Registered Aircraft.  Boeing will obtain from the United States Public Health Service, a United States Certificate of Sanitary Construction to be displayed aboard each Aircraft after delivery to Customer.  The above Boeing obligation only applies to commercial passenger-configured aircraft.
1.2.2.    Non-U.S. Registered Aircraft.  If Customer requires a United States Certificate of Sanitary Construction at the time of delivery of the Aircraft, Customer will give written notice thereof to Boeing at least three (3) months prior to delivery.  Boeing will then use commercially reasonable efforts to obtain the Certificate from the United States Public Health Service and present it to Customer at the time of Aircraft delivery.  The above Boeing obligation only applies to commercial passenger-configured aircraft.
1.3.    Customs Documentation.
1.3.1.    Import Documentation.  If the Aircraft is intended to be exported from the United States, Customer must notify Boeing not later than three (3) months prior to 

	
			
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delivery of each Aircraft of any documentation required by the customs authorities or by any other agency of the country of import.
1.3.2.    General Declaration ‐ U.S.  If the Aircraft is intended to be exported from the United States, Boeing will prepare Customs Form 7507, General Declaration, for execution by U.S. Customs immediately prior to the ferry flight of the Aircraft. For this purpose, Customer will furnish to Boeing not later than twenty (20) days prior to delivery all information required by U.S. Customs and Border Protection, including without limitation (i) a complete crew and passenger list identifying the names, birth dates, passport numbers and passport expiration dates of all crew and passengers and (ii) a complete ferry flight itinerary, including point of exit from the United States for the Aircraft.
If Customer intends, during the ferry flight of an Aircraft, to land at a U.S. airport after clearing Customs at delivery, Customer must notify Boeing not later than twenty (20) days prior to delivery of such intention.  If Boeing receives such notification, Boeing will provide to Customer the documents constituting a Customs permit to proceed, allowing such Aircraft to depart after any such landing.  Sufficient copies of completed Form 7507, along with passenger manifest, will be furnished to Customer to cover U.S. stops scheduled for the ferry flight.
1.3.3.    Export Declaration ‐ U.S.  If the Aircraft is intended to be exported from the United States following delivery, and (i) Customer is a non-U.S. customer, Boeing will file an export declaration electronically with U.S. Customs and Border Protection (CBP), or (ii) Customer is a U.S. customer, it is the responsibility of the U.S. customer, as the exporter of record, to file the export declaration with CBP.
		
	2.
	Insurance Certificates.

Unless provided earlier, Customer will provide to Boeing not later than thirty (30) days prior to delivery of the first Aircraft, a copy of the requisite annual insurance certificate in accordance with the requirements of Article 8 of the AGTA.
		
	3.
	NOTICE OF FLYAWAY CONFIGURATION.

Not later than twenty (20) days prior to delivery of the Aircraft, Customer will provide to Boeing a configuration letter stating the requested "flyaway configuration" of the Aircraft for its ferry flight.  This configuration letter should include:
		
	(i)
	the name of the company which is to furnish fuel for the ferry flight and any scheduled post-delivery flight training, the method of payment for such fuel, and fuel load for the ferry flight;

		
	(ii)
	the cargo to be loaded and where it is to be stowed on board the Aircraft, the address where cargo is to be shipped after flyaway and notification of any hazardous materials requiring special handling;

		
	(iii)
	any BFE equipment to be removed prior to flyaway and returned to Boeing BFE stores for installation on Customer's subsequent Aircraft;

	
			
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	(iv)
	a complete list of names and citizenship of each crew member and non-revenue passenger who will be aboard the ferry flight; and

		
	(v)
	a complete ferry flight itinerary.

		
	4.
	DELIVERY ACTIONS BY BOEING.

4.1.    Schedule of Inspections.  All FAA, Boeing, Customer and, if required, U.S. Customs Bureau inspections will be scheduled by Boeing for completion prior to delivery or departure of the Aircraft.  Customer will be informed of such schedules.
4.2.    Schedule of Demonstration Flights.  All FAA and Customer demonstration flights will be scheduled by Boeing for completion prior to delivery of the Aircraft.  
4.3.    Schedule for Customer's Flight Crew.  Boeing will inform Customer of the date that a flight crew is required for acceptance routines associated with delivery of the Aircraft.
4.4.    Fuel Provided by Boeing.  Boeing will provide to Customer, without charge, the amount of fuel shown in U.S. gallons in the table below for the model of Aircraft being delivered and full capacity of engine oil at the time of delivery or prior to the ferry flight of the Aircraft.
	
		
	Aircraft Model
	Fuel Provided

	737
	[***]

4.5.    Flight Crew and Passenger Consumables.  Boeing will provide reasonable quantities of food, coat hangers, towels, toilet tissue, drinking cups and soap for the first segment of the ferry flight for the Aircraft.
4.6.    Delivery Papers, Documents and Data.  Boeing will have available at the time of delivery of the Aircraft certain delivery papers, documents and data for execution and delivery.  If title for the Aircraft will be transferred to Customer through a Boeing sales subsidiary and if the Aircraft will be registered with the FAA, Boeing will pre‐position in Oklahoma City, Oklahoma, for filing with the FAA at the time of delivery of the Aircraft an executed original Form 8050‐2, Aircraft Bill of Sale, indicating transfer of title to the Aircraft from Boeing's sales subsidiary to Customer.
4.7.    Delegation of Authority.  Boeing will present a certified copy of a Resolution of Boeing's Board of Directors, designating and authorizing certain persons to act on its behalf in connection with delivery of the Aircraft.
		
	5.
	DELIVERY ACTIONS BY CUSTOMER.

5.1.    Aircraft Radio Station License.  At delivery Customer will provide its Aircraft Radio Station License to be placed on board the Aircraft following delivery.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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5.2.    Aircraft Flight Log.  At delivery Customer will provide the Aircraft Flight Log for the Aircraft.
5.3.    Delegation of Authority.  Customer will present to Boeing at delivery of the Aircraft an original or certified copy of Customer's Delegation of Authority designating and authorizing certain persons to act on its behalf in connection with delivery of the specified Aircraft.
5.4.    TSA Waiver Approval.  Customer may be required to have an approved Transportation Security Administration (TSA) waiver for the ferry flight depending upon the Customer’s en-route stop(s) and destination unless the Customer already has a TSA approved security program in place.  Customer is responsible for application for the TSA waiver and obtaining TSA approval.  Customer will provide a copy of the approved TSA waiver to Boeing upon arrival at the Boeing delivery center.
5.5.    Electronic Advance Passenger Information System.  Should the ferry flight of an Aircraft leave the United States, the Department of Homeland Security office requires Customer to comply with the Electronic Advance Passenger Information System (eAPIS).  Customer needs to establish their own account with US Customs and Border Protection in order to file for departure.  A copy of the eAPIS forms is to be provided by Customer to Boeing upon arrival of Customer’s acceptance team at the Boeing delivery center.

	
			
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ESCALATION ADJUSTMENT
AIRFRAME AND OPTIONAL FEATURES

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Supplemental Exhibit AE1
to Purchase Agreement Number 3866

	
			
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	Page 1

	 
	BOEING PROPRIETARY
	 

ESCALATION ADJUSTMENT
AIRFRAME AND OPTIONAL FEATURES

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Page 3

	 
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[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	BOEING PROPRIETARY
	 

BUYER FURNISHED EQUIPMENT VARIABLES

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Supplemental Exhibit BFE1
to Purchase Agreement Number 3866

	
			
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	BOEING PROPRIETARY
	 

BUYER FURNISHED EQUIPMENT VARIABLES

relating to

BOEING MODELS 737-8 and 737-9 AIRCRAFT

This Supplemental Exhibit BFE1 contains supplier selection dates, on-dock dates and other requirements applicable to the Aircraft.
		
	1.
	Supplier Selection.

Customer will:
Select and notify Boeing of the suppliers and part numbers of the following BFE items by the following dates:
	
		
	Galley System
	[***]

	 
	 

	Galley Inserts
	[***]

	 
	 

	Seats (passenger)
	[***]

	 
	 

	Overhead & Audio System
	[***]

	 
	 

	In-Seat Video System
	[***]

	 
	 

	Miscellaneous Emergency Equipment
	[***]

	 
	 

	Cargo Handling Systems*
(Single Aisle Programs only)
	[***]

*For a new certification, supplier requires notification ten (10) months prior to Cargo Handling System on-dock date.

**Actual Supplier Selection dates will be provided when monthly delivery positions are available to customer.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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Customer will enter into initial agreements with the selected Galley System, Galley Inserts, Seats, and In-Seat Video System suppliers on or before ten (10) calendar days after the above supplier selection dates to actively participate with Customer and Boeing in coordination actions including the Initial Technical Coordination Meeting (ITCM).
2.On-dock Dates and Other Information.
On or before nine months prior to each Aircraft delivery, Boeing will provide to Customer the BFE Requirements electronically through My Boeing Fleet (MBF in My Boeing Configuration (MBC)).  These requirements may be periodically revised, setting forth the items, quantities, on-dock dates and shipping instructions and other requirements relating to the in-sequence installation of BFE.  For planning purposes, preliminary BFE on-dock dates are set forth below:
[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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3.Additional Delivery Requirements - Import.
Customer will be the “importer of record” (as defined by the U.S. Customs and Border Protection) for all BFE imported into the United States, and as such, it has the responsibility to ensure all of Customer’s BFE shipments comply with U.S. Customs Service regulations.  In the event Customer requests Boeing, in writing, to act as importer of record for Customer’s BFE, and Boeing agrees to such request,  Customer is responsible for ensuring Boeing can comply with all U.S. Customs Import Regulations by making certain that, at the time of shipment, all BFE shipments comply with the requirements in the “International Shipment Routing Instructions”, including the Customs Trade Partnership Against Terrorism (C-TPAT), as set out on the Boeing website referenced below.  Customer agrees to include the International Shipment Routing Instructions, including C-TPAT requirements, in each contract between Customer and BFE supplier.

http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html

	
			
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	BOEING PROPRIETARY
	 

CUSTOMER SUPPORT VARIABLES

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Supplemental Exhibit CS1
to Purchase Agreement Number 3866

	
			
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	Page 1

	 
	BOEING PROPRIETARY
	 

CUSTOMER SUPPORT VARIABLES

relating to

BOEING MODELS 737-8 and 737-9 AIRCRAFT

Customer and Boeing will conduct planning conferences approximately twelve (12) months prior to delivery of the first Aircraft, or as mutually agreed, in order to develop and schedule a customized Customer Support Program to be furnished by Boeing in support of the Aircraft.
The customized Customer Services Program will be based upon and equivalent to the entitlements summarized below.
		
	1.
	Maintenance Training.

		
	1.1
	Mechanical/Power Plant Course; [***];

1.2    Electrical Systems Course; [***];
1.3    Avionics Systems Course; [***];
1.4    Aircraft Rigging Course; [***];
1.5    Advanced Composite Repair Course; [***].
1.6    Training materials will be provided to each student.  In addition, one set of training materials as used in Boeing's training program, including visual aids, Computer Based Training Courseware, instrument panel wall charts, text/graphics, video programs, etc. will be provided for use in Customer's own training program.
		
	2.
	Flight Training.

2.1    Boeing will provide one classroom course to acquaint up to [***] with operational, systems and performance differences between Customer's newly-purchased Aircraft and an aircraft of the same model currently operated by Customer.
2.2    Training materials will be provided to each student.  In addition, one set of training materials as used in Boeing's training program, including Computer Based Training Courseware, instrument panel wall charts, Flight Attendant Manuals, etc. will be provided for use in Customer's own training program.
		
	3.
	Planning Assistance.

3.1    Maintenance Engineering.  Notwithstanding anything in Exhibit B to the AGTA seemingly to the contrary, Boeing will provide the following Maintenance Engineering support:
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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3.1.1    Maintenance Planning Assistance.  Upon request, Boeing will provide [***] to Customer’s main base to assist with maintenance program development and to provide consulting related to maintenance planning.  Consultation with Customer will be based on ground rules and requirements information provided in advance by Customer. 
3.1.2    ETOPS Maintenance Planning Assistance.  Upon request, Boeing will provide [***] to Customer's main base to assist with the development of their ETOPS maintenance program and to provide consultation related to ETOPS maintenance planning. Consultation with Customer will be based on ground rules and requirements information provided in advance by the Customer.
3.1.3    GSE/Shops/Tooling Consulting.  Upon request, Boeing will provide consulting and data for ground support equipment, maintenance tooling and requirements for maintenance shops.  Consultation with Customer will be based on ground rules and requirements information provided in advance by Customer.
3.1.4    Maintenance Engineering Evaluation.  Upon request, Boeing will provide [***] to Customer’s main base to evaluate Customer’s maintenance and engineering organization for conformance with industry best practices. The result of which will be documented by Boeing in a maintenance engineering evaluation presentation.  Customer will be provided with a copy of the maintenance engineering evaluation presentation. Consultation with Customer will be based on ground rules and requirements information provided in advance by Customer.
3.2    Spares.
		
	(i)
	Recommended Spares Parts List (RSPL).  A customized RSPL, data and documents will be provided to identify spare parts required for Customer's support program.

		
	(ii)
	Illustrated Parts Catalog (IPC).  A customized IPC in accordance with ATA 100 will be provided.

		
	(iii)
	Provisioning Training.  Provisioning training will be provided for Customer's personnel at Boeing's facilities, where documentation and technical expertise are available.  Training is focused on the initial provisioning process and calculations reflected in the Boeing RSPL.

		
	(iv)
	Spares Provisioning Conference.  A provisioning conference will be conducted, normally at Boeing's facilities where technical data and personnel are available.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	4.
	Technical Data and Documents.

The following will be provided in mutually agreed formats and quantities:
4.1    Flight Operations.
	
	
	Airplane Flight Manual

	Operations Manual

	Quick Reference Handbook

	Weight and Balance Manual

	Dispatch Deviation Procedures Guide

	Flight Crew Training Manual
Flight Planning and Performance Manual

	Performance Engineer's Manual

	Fault Reporting Manual

	FMC Supplemental Data Document

	Operational Performance Software

	ETOPS Guide Vol. III

4.2    Maintenance.
	
	
	Aircraft Maintenance Manual

	Wiring Diagram Manual

	Systems Schematics Manual

	Fault Isolation Manual

	Structural Repair Manual

	Overhaul/Component Maintenance Manual

	Standard Overhaul Practices Manual

	Standard Wiring Practices Manual

	Non-Destructive Test Manual

	Service Bulletins and Index

	Corrosion Prevention Manual

	Fuel Measuring Stick Calibration Document

	Power Plant Buildup Manual

	Combined Index

	Significant Service Item Summary

	All Operators Letters

	Structural Item Interim Advisory and Index

	Service Letters and Index

	Maintenance Tips

	Production Management Data Base (PMDB)

	Electrical Connectors Options Document

4.3    Maintenance Planning.
	
	
	Maintenance Planning Data Document

	Maintenance Task Cards and Index

	Maintenance Inspection Intervals Report

	
			
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4.4    Spares.
	
	
	Illustrated Parts Catalog

	Standards Books

4.5    Facilities and Equipment Planning.
	
	
	Facilities and Equipment Planning Document

	Special Tool & Ground Handling Equipment Drawings & Index

	Supplementary Tooling Documentation

	Illustrated Tool and Equipment Manual

	Aircraft Recovery Document

	Airplane Characteristics for Airport Planning Document

	Aircraft Rescue and Firefighting Document

	Engine Handling Document

	Configuration, Maintenance and Procedures for ETOPS

	ETOPS Guide Vols. I & II

4.6    Supplier Technical Data.
	
	
	Service Bulletins

	Ground Support Equipment Data

	Provisioning Information

	Component Maintenance/Overhaul Manuals and Index

	Publications Index

	Product Support Supplier Directory

4.7    Fleet Statistical Data and Reporting
	
	
	Fleet reliability views, charts, and reports

		
	5.
	Aircraft Information.

5.1    Aircraft Information is defined as that data provided by Customer to Boeing which falls into one of the following categories:  (i) aircraft operational information (including, but not limited to, flight hours, departures, schedule reliability, engine hours, number of aircraft, aircraft registries, landings, and daily utilization and schedule interruptions for Boeing model aircraft); (ii) summary and detailed shop findings data; (iii) line maintenance data; (iv) airplane message data, (v) scheduled maintenance data; (vi) service bulletin incorporation; and (vii) aircraft data generated or received by equipment installed on Customer’s aircraft in analog or digital form including but not limited to information regarding the state, condition, performance, location, setting, or path of the aircraft and associated systems, sub-systems and components.

	
			
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5.2    License Grant.    To the extent Customer has or obtains rights to Aircraft Information and is not bound by a contractual confidentiality provision or other considerations relating to the disclosure of particular Aircraft Information, Customer grants to Boeing a perpetual, world-wide, non-exclusive license to use and disclose Aircraft Information and create derivatives thereof in Boeing data and information and products and services provided Customer identification information as originating from Customer is removed.  Customer identification information may be retained as necessary for Boeing to provide products and services Customer has requested from Boeing or for Boeing to inform Customer of additional Boeing products and services.  This grant is in addition to any other grants of rights in the agreements governing provision of such information to Boeing regardless of whether that information is identified as Aircraft Information in such agreement including any information submitted under the In Service Data Program (ISDP).
For purposes of this article, Boeing is defined as The Boeing Company and its wholly owned subsidiaries.
5.3    Customer will provide Aircraft Information to Boeing through an automated software feed necessary to support Fleet Statistical Analysis. Boeing will provide assistance to Customer under a separate agreement for mapping services to enable the automated software feed.  

	
			
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ENGINE ESCALATION,
ENGINE WARRANTY AND PATENT INDEMNITY

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Supplemental Exhibit EE1
to Purchase Agreement Number 3866

	
			
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	Page 1

	 
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ENGINE ESCALATION
ENGINE WARRANTY AND PATENT INDEMNITY

relating to

BOEING MODELS 737-8 and 737-9 AIRCRAFT

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Page 2

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Page 3

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Supplemental Ex. EE1
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Page 5

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Page 6

	 
	BOEING PROPRIETARY
	 

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	Page 7

	 
	BOEING PROPRIETARY
	 

SERVICE LIFE POLICY COMPONENTS

between

THE BOEING COMPANY

and

ALASKA AIRLINES, INC.

Supplemental Exhibit SLP1
to Purchase Agreement Number 3866

	
			
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	Page 1

	 
	BOEING PROPRIETARY
	 

SERVICE LIFE POLICY COMPONENTS

relating to

BOEING MODELS 737-8 and 737-9 AIRCRAFT

This is the listing of SLP Components for the Aircraft which relate to Part 3, Boeing Service Life Policy of Exhibit C, Product Assurance Document to the AGTA and is a part of Purchase Agreement No. 3866.
		
	1.
	Wing.

		
	(i)
	Upper and lower wing skins and stiffeners between the forward and rear wing spars.

		
	(ii)
	Wing spar webs, chords and stiffeners.

		
	(iii)
	Inspar wing ribs.

		
	(iv)
	Inspar splice plates and fittings.

		
	(v)
	Main landing gear support structure.

		
	(vi)
	Wing center section lower beams, spanwise beams and floor beams, but not the seat tracks attached to floor beams.

		
	(vii)
	Wing‐to‐body structural attachments.

		
	(viii)
	Engine strut support fittings attached directly to wing primary structure.

		
	(ix)
	Support structure in the wing for spoilers and spoiler actuators; for aileron hinges and reaction links; and for leading edge devices and trailing edge flaps.

		
	(x)
	Trailing edge flap tracks and carriages.

		
	(xi)
	Aileron leading edge device and trailing edge flap internal, fixed attachment and actuator support structure.

		
	2.
	Body.

		
	(i)
	External surface skins and doublers, longitudinal stiffeners, longerons and circumferential rings and frames between the forward pressure bulkhead and the vertical stabilizer rear spar bulkhead and structural support and enclosure for the APU but excluding all system components and related installation and connecting devices, insulation, lining, and decorative panels and related installation and connecting devices.

	
			
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	(ii)
	Window and windshield structure but excluding the windows and windshields.

		
	(iii)
	Fixed attachment structure of the passenger doors, cargo doors and emergency exits, excluding door mechanisms and movable hinge components.  Sills and frames around the body openings for the passenger doors, cargo doors and emergency exits, excluding scuff plates and pressure seals.

		
	(iv)
	Nose wheel well structure, including the wheel well walls, pressure deck, bulkheads, and gear support structure.

		
	(v)
	Main gear wheel well structure including pressure deck and landing gear beam support structure.

		
	(vi)
	Floor beams and support posts in the control cab and passenger cabin area, but excluding seat tracks.

		
	(vii)
	Forward and aft pressure bulkheads.

		
	(viii)
	Keel structure between the wing front spar bulkhead and the main gear wheel well aft bulkhead including splices.

		
	(ix)
	Wing front and rear spar support bulkheads, and vertical and horizontal stabilizer front and rear spar support bulkheads including terminal fittings but excluding all system components and related installation and connecting devices, insulation, lining, and decorative panels and related installation and connecting devices.

		
	(x)
	Support structure in the body for the stabilizer pivot and stabilizer screw.

		
	3.
	Vertical Stabilizer.

		
	(i)
	External skins between front and rear spars.

		
	(ii)
	Front, rear and auxiliary spar chords, webs and stiffeners and attachment fittings.

		
	(iii)
	Inspar ribs.

		
	(iv)
	Rudder hinges and supporting ribs, excluding bearings.

		
	(v)
	Support structure in the vertical stabilizer for rudder hinges, reaction links and actuators.

		
	(vi)
	Rudder internal, fixed attachment and actuator support structure.

	
			
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	4.
	Horizontal Stabilizer.

		
	(i)
	External skins between front and rear spars.

		
	(ii)
	Front and rear spar chords, webs and stiffeners.

		
	(iii)
	Inspar ribs.

		
	(iv)
	Stabilizer center section including hinge and screw support structure.

		
	(v)
	Support structure in the horizontal stabilizer for the elevator hinges, reaction links and actuators.

		
	(vi)
	Elevator internal, fixed attachment and actuator support structure.

		
	5.
	Engine Strut.

		
	(i)
	Strut external surface skin and doublers and stiffeners.

		
	(ii)
	Internal strut chords, frames and bulkheads.

		
	(iii)
	Strut to wing fittings and diagonal brace.

		
	(iv)
	Engine mount support fittings attached directly to strut structure and including the engine‐mounted support fittings.

		
	6.
	Main Landing Gear.

		
	(i)
	Outer cylinder.

		
	(ii)
	Inner cylinder, including axles.

		
	(iii)
	Upper and lower side struts, including spindles, universals and reaction links.

		
	(iv)
	Drag strut.

		
	(v)
	Orifice support tube.

		
	(vi)
	Downlock links including spindles and universals.

		
	(vii)
	Torsion links.

		
	(viii)
	Bell crank.

		
	(ix)
	Trunnion link.

		
	(x)
	Actuator beam, support link and beam arm.

		
	7.
	Nose Landing Gear.

		
	(i)
	Outer cylinder.

		
	(ii)
	Inner cylinder, including axles.

		
	(iii)
	Orifice support tube.

	
			
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	(iv)
	Upper and lower drag strut, including lock links.

		
	(v)
	Steering plates and steering collars.

		
	(vi)
	Torsion links.

NOTE:    The Service Life Policy does not cover any bearings, bolts, bushings, clamps, brackets, actuating mechanisms or latching mechanisms used in or on the SLP Components.

	
			
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	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09433

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Open Matters

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.
Given the long period of time between Purchase Agreement signing and delivery of the first Aircraft and the continued development of the 737MAX program, certain elements have not yet been defined.  In consideration, Boeing and Customer agree to work together as the 737MAX program develops as follows:   
1.Aircraft Delivery Schedule.
1.1    The scheduled delivery position of the Aircraft, as of the date of this Letter Agreement is listed in Table 1 of the Purchase Agreement and provides the delivery schedule in three month delivery windows (Three Month Delivery Window) consisting of a nominal delivery month (Nominal Delivery Month) plus and minus one month.    No later than twenty-four (24) months prior to the Nominal Delivery Month of Customer’s first Aircraft in each calendar year, Boeing will provide written notice with a revised Table 1 of the scheduled delivery month for each Aircraft with a Nominal Delivery Month in such calendar year.  
1.2    Prior to providing such notice described in Article 1.1, Boeing will consider and make reasonable efforts to accommodate Customer requests regarding Aircraft quantities in certain periods.  Such notice provided by Boeing will constitute an amendment to the Table 1 of the Purchase Agreement.  The amended Table 1 shall be the scheduled delivery positions for the purposes of applying all provisions of the Purchase Agreements, including without limitation the BFE on-dock dates, and the calculation of Escalation Adjustment.  Such amended Table 1 may revise or change the Advance Payment Base Price for the Aircraft.  
2.Aircraft Configuration.
2.1    The initial configuration of Customer's Aircraft has been defined by Boeing Models 737-8 and 737-9 basic specification as described in Article 1 and Exhibits A-1 and A-2 of the Purchase Agreement (Initial Configuration).  Final configuration of the Aircraft 

	
			
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(Final Configuration) will be completed using the then-current Boeing configuration documentation in accordance with the following schedule:
2.1.1    No later than twenty-four (24) months prior to the first Aircraft's scheduled delivery, Boeing and Customer will discuss potential optional features.
2.1.2    Within sixty (60) days after that meeting, Boeing will provide Customer with a proposal for those optional features that can be incorporated into the Aircraft during production.
2.1.3    Customer will then have sixty (60) days to accept or reject the optional features.
2.1.4    Within thirty (30) days following Final Configuration, Boeing and Customer will execute a written amendment to the Purchase Agreement which will reflect the following:
2.1.4.1    Changes applicable to the basic Models 737-8 and 737-9 aircraft which are developed by Boeing between the date of signing of the Purchase Agreement and date of Final Configuration;
2.1.4.2    Incorporation into Exhibits A-1 and A-2 of the Purchase Agreement, by written amendment, those optional features which have been agreed to by Customer and Boeing (Customer Configuration Changes);
2.1.4.3    Revisions to the Supplemental Exhibit BFE1 to reflect the selection dates and on-dock dates of BFE;
2.1.4.4    Changes to the Optional Features Prices, Aircraft Basic Price, and Advance Payment Base Price of the Aircraft to adjust for the difference, if any, between the prices estimated in Table 1 of the Purchase Agreement for optional features reflected in the Aircraft Basic Price and the actual prices of the optional features reflected in the Customer Configuration Changes; and
2.1.4.5    Changes to the Advance Payment Base Price of the Aircraft to adjust for the difference between the estimated amount included in Table 1 of the Purchase Agreement for Seller Purchased Equipment (SPE) and the price of the SPE reflected in the Customer Configuration Changes.
3.Customer Support Variables.
3.1    The initial customer support package contained in Supplemental Exhibit CS1 to the Purchase Agreement is predicated upon the 737NG customer support package.  Boeing intends to further refine the post delivery support package for the 737MAX and will provide this revised package to Customer no later than twenty-four (24) months prior to the first month of the scheduled delivery quarter of the first Aircraft.  The provision of such revised Supplemental Exhibit CS1 will constitute an amendment to the Purchase Agreement and will provide the Customer in aggregate an overall Boeing post delivery support package for the introduction of the 737MAX to Customer’s fleet that is equivalent 

	
			
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to, or better than, the Supplemental Exhibit CS1 included in the Purchase Agreement as of the date of this Letter Agreement.
3.2    Additionally, Boeing will engage in discussions with Customer in conjunction with the providing of the updated Supplemental Exhibit CS1 to offer to Customer additional uniquely tailored post delivery support services beyond the scope of the Supplemental Exhibit CS1 that will further enhance the maintainability and operational efficiency of the Aircraft.
4.Other Letter Agreements.
Boeing and Customer acknowledge that as they work together to develop the 737MAX program and as Boeing refines the definition of the Aircraft and associated production processes, there may be a need to execute additional letter agreements or amend letter agreements addressing one or more of the following:
4.1    Software.  Additional provisions relating to software and software loading.
4.2    Seller Purchased Equipment (SPE). Provisions relating to the terms under which Boeing may offer or install SPE in the Aircraft.
4.3    Buyer Furnished Equipment (BFE).  Provisions relating to the terms under which Boeing may install and certify Customer’s BFE in the Aircraft.

Very truly yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
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	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09434

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Seller Purchased Equipment

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.
	General

Seller Purchased Equipment (SPE) is BFE that Boeing purchases for Customer and that is identified as SPE in the Detail Specification for the Aircraft. 
2.Customer Responsibilities.
2.1    Supplier Selection.  Customer will select SPE suppliers from a list provided by Boeing for the commodities identified on such list and notify Boeing of the SPE suppliers in accordance with the supplier selection date(s) as set forth in Attachment A of this Letter Agreement.  If Customer selects a seat, galley or galley insert supplier that is not on the Boeing offerable supplier list, such seat, galley or galley insert will, subject to Boeing approval, become BFE and the provisions of Exhibit A, Buyer Furnished Equipment Provisions Document, of the AGTA will apply.  
2.2    Supplier Agreements.  Customer will enter into initial agreements with the selected suppliers within ten (10) days of the selection date(s) for the supplier to actively participate with Customer and Boeing in coordination actions including the Initial Technical Coordination Meeting (ITCM).  Customer will enter into final agreements with selected suppliers that address the following additional provisions within thirty (30) days of the ITCM or as otherwise identified by Boeing:  
		
	(i)
	for emergency/miscellaneous equipment, providing standard supplier pricing, product support, warranty, spares, training and any additional support defined by Customer as a direct pass through to Customer at time of Aircraft delivery; and

	
			
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	(ii)
	for seats, galleys, galley inserts, and in-flight entertainment and cabin communications systems (IFE/CCS), providing pricing that was negotiated directly with the suppliers, product support including spares support, warranty, training and any additional support defined by the Customer.  Customer shall provide suppliers’ pricing to Boeing and shall obtain suppliers’ agreement to accept Boeing’s purchase orders reflecting the Customer negotiated pricing.

2.3    Configuration Requirements.  Customer is responsible for selecting equipment which is FAA certifiable at time of Aircraft delivery, or for obtaining waivers from the applicable regulatory agency for non-FAA certifiable equipment.  Customer will meet with Boeing and the  selected SPE suppliers in the ITCM and any other scheduled meetings in order to: 
		
	(i)
	for emergency/miscellaneous equipment, provide to Boeing the selected part specification/Customer requirements;

		
	(ii)
	for IFE/CCS, participate with Boeing in meetings with such suppliers to ensure that suppliers’ functional system specifications meet Customer’s and Boeing’s respective requirements;

		
	(iii)
	for galleys, provide to Boeing the definitive galley configuration requirements, including identification of refrigeration requirements and fixed and removable insert equipment by quantity, manufacturer and part number not later than eight (8) weeks prior to galley supplier selection dates in Attachment A.

		
	(iv)
	for seats,  provide to Boeing the definitive seat configuration requirements not later than eight (8) weeks prior to seat supplier selection dates in Attachment A.

3.Boeing Responsibilities.
3.1    Supplier Selection (for seats and galleys only)
3.1.1    Bidder's List.  For information purposes, Boeing will submit to Customer a bidder's list of existing suppliers of seats and galleys one hundred twenty (120) days prior to the supplier selection date(s) referred to in paragraph  2.1 above.
3.1.2    Request for Quotation (RFQ).  Approximately ninety (90) days prior to the supplier selection date(s), Boeing will issue its RFQ inviting potential 

	
			
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bidders to submit bids for the galleys and seats within thirty (30) days of the selection date.
3.1.3    Bidders Summary.  Not later than fifteen (15) days prior to the supplier selection date(s), Boeing will submit to Customer a summary of the bidders from which to choose a supplier for the galleys and seats.  The summary is based on an evaluation of the bids submitted using price, weight, warranty and schedule as the criteria.
3.2    Additional Boeing responsibilities:
		
	(i)
	placing and managing the purchase orders with the suppliers;

		
	(ii)
	coordinating with the suppliers on technical issues; 

		
	(iii)
	for seats, galleys, galley inserts and IFE/CCS confirming the agreed to pricing with both the Customer and supplier;

		
	(iv)
	for IFE/CCS providing Aircraft interface requirements to suppliers and assisting suppliers in the development of their IFE/CCS system specifications and approving such specifications;

		
	(v)
	ensuring that the delivered SPE complies with the part specification;

		
	(vi)
	obtaining certification of the Aircraft with the SPE installed;

		
	(vii)
	for miscellaneous/emergency equipment, obtaining standard supplier pricing, and obtaining for Customer copies of product support, warranty, spares, training, and any additional support documentation defined by the Customer which shall be provided to Customer prior to delivery of the Aircraft.

4.IFE/CCS Software.
IFE/CCS may contain software of the following two types:
4.1    Systems Software.  The software required to operate and certify the IFE/CCS systems on the Aircraft is the Systems Software and is part of the IFE/CCS.

	
			
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4.2    Customer’s Software.  The software accessible to the Aircraft passengers which controls Customer’s specified optional features is Customer’s Software and is not part of the IFE/CCS.
4.2.1    Customer is solely responsible for specifying Customer’s Software functional and performance requirements and ensuring that Customer’s Software meets such requirements.  Customer and Customer’s Software supplier will have total responsibility for the writing, certification, modification, revision, or correction of any of Customer’s Software.  Customer shall be responsible for and assumes all liability with respect to Customer’s Software.
4.2.2    The omission of any Customer’s Software or the lack of any functionality of Customer’s Software will not be a valid condition for Customer’s rejection of the Aircraft at the time of Aircraft delivery.
4.2.3    Boeing has no obligation to approve any documentation to support Customer’s Software certification.  Boeing will only review and operate Customer’s Software if in Boeing’s reasonable opinion such review and operation is necessary to certify the IFE/CCS system on the Aircraft.
4.2.4    Boeing shall not be responsible for obtaining FAA certification for Customer’s Software.
5.Price.
5.1    Advance Payments.  An estimated SPE price is included in the Advance Payment Base Prices shown in Table 1 for the purpose of establishing the advance payments for the Aircraft.
5.2    Aircraft Price.  The Aircraft Price will be adjusted to reflect the actual costs charged to Boeing by the SPE suppliers and transportation charges, if applicable.
6.Changes.
After Customer’s entry into agreements with suppliers pursuant to paragraph 2.2, any changes to SPE may only be made by and between Boeing and the SPE suppliers.  Customer requested changes to the SPE after execution of supplier agreements shall be made by Customer in writing directly to Boeing for approval and for coordination by Boeing with the SPE supplier.  Any such change to the configuration of the Aircraft shall be subject to price and offerability through Boeing’s master change or other process for amendment of the Purchase Agreement.

	
			
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7.Proprietary Rights.
Boeing's obligation to purchase SPE will not impose upon Boeing any obligation to compensate Customer or any supplier for any proprietary rights Customer may have in the design of the SPE.
8.Remedies.
8.1    If Customer does not perform its obligations as provided in this Letter Agreement or if supplier fails (for any reason other than a default by Boeing under the purchase order terms) to deliver conforming SPE per the schedule set forth in the purchase order, then, in addition to any other remedies which Boeing may have by contract or under law, Boeing may:
8.1.1    revise the schedule delivery month of the Aircraft to accommodate the delay in delivery of the conforming SPE and base the calculation of the Escalation Adjustment on such revised delivery month;
8.1.2    deliver the Aircraft without installing the SPE;
8.1.3    substitute a comparable part and invoice Customer for the cost if the Aircraft cannot be delivered without installing the SPE; and
8.1.4    increase the Aircraft Price by the amount of Boeing's additional costs attributable to such noncompliance, including but not limited to, disruption costs associated with out of sequence work by Boeing, any charges due to a supplier’s failure to perform in accordance with an SPE program milestones as established by Boeing and agreed to by the supplier and particularly with respect to late delivery of such SPE.
8.2    Additionally, if delivery of SPE seats does not support the delivery of the Aircraft in its scheduled delivery month, Customer agrees that:
8.2.1    Boeing may elect to deliver the Aircraft and Customer will accept delivery of the Aircraft in the scheduled delivery month in a zero occupancy configuration: 
8.2.1.1    if Boeing elects to deliver in a zero occupancy configuration,  Boeing will provide Customer with a retrofit offer, including price and schedule, for a service bulletin and remote certification in support of the post delivery installation of the seats; and 

	
			
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8.2.2    Boeing may charge Customer for Boeing's additional costs attributable to, but not limited to, disruption costs associated with out of sequence work by Boeing and any charges due to late delivery of such seats.
9.Title and Risk of Loss.
Title and risk of loss of the SPE will remain with Boeing until the Aircraft is delivered to Customer.
10.Customer's Indemnification of Boeing.
Customer will indemnify and hold harmless Boeing from and against all claims and liabilities, including costs and expenses (including attorneys' fees) incident thereto or incident to successfully establishing the right to indemnification, for injury to or death of any person or persons, including employees of Customer but not employees of Boeing, or for loss of or damage to any property, including Aircraft, arising out of or in any way connected with any nonconformance or defect in any SPE and whether or not arising in tort or occasioned in whole or in part by the negligence of Boeing.  This indemnity will not apply with respect to any nonconformance or defect caused solely by Boeing's installation of the SPE.
11.Definition.
For purposes of the above indemnity, the term Boeing includes The Boeing Company, its divisions, subsidiaries and affiliates, the assignees of each, and their directors, officers, employees and agents.
Very truly yours,
	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

Attachment

	
			
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Attachment A
		
	1.
	Supplier Selection.

Customer will:
		
	1.1.
	Select and notify Boeing of the suppliers and part numbers of the following SPE items by the following dates:

	
		
	Galley System
	[***]

	 
	 

	Galley Inserts
	[***]

	 
	 

	Seats (passenger)
	[***]

	 
	 

	Overhead & Audio System
	[***]

	 
	 

	In-Seat Video System
	[***]

	 
	 

	Miscellaneous Emergency Equipment
	[***]

	 
	 

	Cargo Handling Systems*
(Single Aisle Programs only)
	[***]

*For a new certification, Customer will need to provide Supplier Selections two (2) months earlier than stated above.
**Actual Supplier Selection dates will be provided when monthly delivery positions are available to customer.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09434 – Attachment A
	 
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	Seller Purchased Equipment
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09435

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Spare Parts Initial Provisioning

		
	Reference:
	a)     Purchase Agreement No3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airline, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (Aircraft)

		
	b) 
	Customer Services General Terms Agreement No. 90-2 (CSGTA) between Boeing and Customer

This letter agreement (Letter Agreement) is entered into on the date below and amends and supplements the CSGTA.  All capitalized terms used but not defined in this Letter Agreement have the same meaning as in the CSGTA, except for “Aircraft” which will have the meaning as defined in the Purchase Agreement.
In order to define the process by which Boeing and Customer will i) identify those Spare Parts and Standards critical to Customer’s successful introduction of the Aircraft into service and its continued operation, ii) place Orders under the provisions of the CSGTA as supplemented by the provisions of this Letter Agreement for those Spare Parts and Standards, and iii) manage the return of certain of those Spare Parts which Customer does not use, the parties agree as follows. 
		
	1.
	Definitions.

1.1.    Provisioning Data means the documentation provided by Boeing to Customer, including but not limited to the Recommended Spare Parts List (RSPL), identifying all Boeing initial provisioning requirements for the Aircraft.
1.2.    Provisioning Items means the Spare Parts and Standards identified by Boeing as initial provisioning requirements in support of the Aircraft, excluding special tools, ground support equipment (GSE), engines and engine parts.
1.3.    Provisioning Products Guide means the Boeing Manual D6-81834 entitled “Spares Provisioning Products Guide”.

	
			
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	2.
	Phased Provisioning.

2.1.    Provisioning Products Guide.  Prior to the initial provisioning meeting Boeing will furnish to Customer a copy of the Provisioning Products Guide.
2.2.    Initial Provisioning Meeting.  On or about twelve (12) months prior to delivery of the first Aircraft the parties will conduct an initial provisioning meeting where the procedures, schedules, and requirements for training will be established to accomplish phased provisioning of Spare Parts and Standards for the Aircraft in accordance with the Provisioning Products Guide.  
2.3.    Provisioning Data.  During the initial provisioning meeting Customer will provide to Boeing the operational parameter information described in Chapter 6 of the Provisioning Products Guide.  After review and acceptance by Boeing of such Customer information, Boeing will prepare the Provisioning Data.  Such Provisioning Data will be furnished to Customer on or about ninety (90) days after Boeing finalizes the engineering drawings for the Aircraft.  The Provisioning Data will be as complete as possible and will cover Provisioning Items selected by Boeing for review by Customer for initial provisioning of Spare Parts and Standards for the Aircraft.  Boeing will furnish to Customer revisions to the Provisioning Data until approximately ninety (90) days following delivery of the last Aircraft or until the delivery configuration of each of the Aircraft is reflected in the Provisioning Data, whichever is later.
2.4.    Buyer Furnished Equipment (BFE) Provisioning Data.  Unless otherwise advised by Boeing, Customer will provide or insure its BFE suppliers provide to Boeing the BFE data in scope and format acceptable to Boeing, in accordance with the schedule established during the initial provisioning meeting.
3.Purchase from Boeing of Spare Parts and Standards as Initial Provisioning for the Aircraft.
3.1.    Schedule.  In accordance with schedules established during the initial provisioning meeting, Customer may place Orders for Provisioning Items and any GSE, special tools or engine spare parts which Customer determines it will initially require for maintenance, overhaul and servicing of the Aircraft and/or engines.
3.2.    Prices of Initial Provisioning Spare Parts.  
3.2.1.    Boeing Spare Parts.  The Provisioning Data will set forth the prices for those Provisioning Items other than items listed in Article 3.3, below, that are Boeing Spare Parts, and such prices will be firm and remain in effect for ninety (90) days from the date the price is first quoted to Customer in the Provisioning Data.

	
			
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3.2.2.    Supplier Spare Parts.  Boeing will provide estimated prices in the Provisioning Data for Provisioning Items other than items listed in Article 3.3, below, that are Supplier Spare Parts.  The price to Customer for any Supplier Spare Parts that are 
Provisioning Items or for any items ordered for initial provisioning of GSE, special tools manufactured by suppliers, or engine spare parts will be [***] of the supplier's list price for such items.
3.3.    QEC Kits, Standards Kits, Raw Material Kits, Bulk Materials Kits and Service Bulletin Kits.  In accordance with schedules established during the initial provisioning meeting, Boeing will furnish to Customer a listing of all components which could be included in the quick engine change (QEC) kits, Standards kits, raw material kits, bulk materials kits and service bulletin kits which may be purchased by Customer from Boeing.  Customer will select, and provide to Boeing its desired content for the kits.  Boeing will furnish to Customer as soon as practicable thereafter a statement setting forth a firm price for such kits.  Customer will place Orders with Boeing for the kits in accordance with schedules established during the initial provisioning meeting.
		
	4.
	Delivery.

For Spare Parts and Standards ordered by Customer in accordance with Article 3 of this Letter Agreement, Boeing will, insofar as reasonably possible, deliver to Customer such Spare Parts and Standards on dates reasonably calculated to conform to Customer's anticipated needs in view of the scheduled deliveries of the Aircraft.  Customer and Boeing will agree upon the date to begin delivery of the provisioning Spare Parts and Standards ordered in accordance with this Letter Agreement.  Where appropriate, Boeing will arrange for shipment of such Spare Parts and Standards which are manufactured by suppliers directly to Customer from the applicable supplier's facility.  The routing and method of shipment for initial deliveries and all subsequent deliveries of such Spare Parts and Standards will be as established at the initial provisioning meeting and thereafter by mutual agreement.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	5.
	Substitution for Obsolete Spare Parts.

5.1.    Obligation to Substitute Pre-Delivery.  In the event that, prior to delivery of the first Aircraft, any Spare Part purchased by Customer from Boeing in accordance with this Letter Agreement as initial provisioning for the Aircraft is rendered obsolete or unusable due to the redesign of the Aircraft or of any accessory, equipment or part thereof (other than a redesign at Customer's request) Boeing will deliver to Customer at no charge new and usable Spare Parts in substitution for such obsolete or unusable Spare Parts and, upon such delivery, Customer will return the obsolete or unusable Spare Parts to Boeing.
5.2.    Delivery of Obsolete Spare Parts and Substitutes.  Obsolete or unusable Spare Parts returned by Customer pursuant to this Article 5 will be delivered to Boeing at its Seattle Distribution Center or such other destination as Boeing may reasonably designate.  Spare Parts substituted for such returned obsolete or unusable Spare Parts will be delivered to Customer in accordance with the CSGTA.  Boeing will pay the freight charges for the shipment from Customer to Boeing of any such obsolete or unusable Spare Part and for the shipment from Boeing to Customer of any such substitute Spare Part.
		
	6.
	Repurchase of Provisioning Items.

6.1.    Obligation to Repurchase.  During a period commencing one (1) year after delivery of the first Aircraft , and ending five (5) years after such delivery, Boeing will, upon receipt of Customer's written request and subject to the exceptions in Article 6.2, repurchase unused and undamaged Provisioning Items which (i) were recommended by Boeing in the Provisioning Data as initial provisioning for the Aircraft, (ii) were purchased by Customer from Boeing, and (iii) are surplus to Customer's needs.
6.2.    Exceptions.  Boeing will not be obligated under Article 6.1 to repurchase any of the following:  (i) quantities of Provisioning Items in excess of those quantities recommended by Boeing in the Provisioning Data for the Aircraft, (ii) QEC kits, bulk material kits, raw material kits, service bulletin kits, Standards kits and components thereof (except those components listed separately in the Provisioning Data), (iii) Provisioning Items for which an Order was received by Boeing more than five (5) months after delivery of the last Aircraft, (iv) Provisioning Items which have become obsolete or have been replaced by other Provisioning Items as a result of Customer's modification of the Aircraft, and (v) Provisioning Items which become excess as a result of a change in Customer's operating parameters, as provided to Boeing pursuant to the initial provisioning meeting and which were the basis of Boeing's initial provisioning recommendations for the Aircraft.
6.3.    Notification and Format.  Customer will notify Boeing, in writing when Customer desires to return Provisioning Items under the provisions of this Article 6.  Customer's notification will include a detailed summary, in part number sequence, of the Provisioning Items Customer desires to return.  Such summary will be in the form of listings, tapes, diskettes or other media as may be mutually agreed between Boeing and Customer 

	
			
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and will include part number, nomenclature, purchase order number, purchase order date and quantity to be returned.  Within five (5) business days after receipt of Customer's notification, Boeing will advise Customer in writing when Boeing's review of such summary will be completed.
6.4.    Review and Acceptance by Boeing.  Upon completion of Boeing's review of any detailed summary submitted by Customer pursuant to Article 6.3, Boeing will issue to Customer a Material Return Authorization (MRA) for those Provisioning Items Boeing agrees are eligible for repurchase in accordance with this Article 6.  Boeing will advise Customer of the reason that any Provisioning Item included in Customer's detailed summary is not eligible for return.  Boeing's MRA will state the date by which Provisioning Items listed in the MRA must be redelivered to Boeing, and Customer will arrange for shipment of such Provisioning Items accordingly.
6.5.    Price and Payment.  The price of each Provisioning Item repurchased by Boeing pursuant to this Article 6 will be an amount equal to one hundred percent (100%) of the original invoice price thereof except that the repurchase price of Provisioning Items purchased pursuant to Article 3.2.2 will not include Boeing's [***] handling charge.  Boeing will pay the repurchase price by issuing a credit memorandum in favor of Customer which may be applied against amounts due Boeing for the purchase of Spare Parts or Standards.
6.6.    Delivery of Repurchased Provisioning Items. Provisioning Items repurchased by Boeing pursuant to this Article 6 will be delivered to Boeing F.O.B. at its Seattle Distribution Center or such other destination as Boeing may reasonably designate.
		
	7.
	Title and Risk of Loss.

Title and risk of loss of any Spare Parts or Standards delivered to Customer by Boeing in accordance with this Letter Agreement will pass from Boeing to Customer in accordance with the applicable provisions of the CSGTA.  Title to and risk of loss of any Spare Parts or Standards returned to Boeing by Customer in accordance with this Letter Agreement will pass to Boeing upon delivery of such Spare Parts or Standards to Boeing in accordance with the provisions of Article 5.2 or Article 6.6, herein, as appropriate.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
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	8.
	Termination for Excusable Delay.

In the event of termination of the Purchase Agreement pursuant to Article 7 of the AGTA with respect to any Aircraft, such termination will, if Customer so requests by written notice received by Boeing within fifteen (15) days after such termination, also discharge and terminate all obligations and liabilities of the parties as to any Spare Parts or Standards which Customer had ordered pursuant to the provisions of this Letter Agreement as initial provisioning for such Aircraft and which are undelivered on the date Boeing receives such written notice.
		
	9.
	Order of Precedence.

In the event of any inconsistency between the terms of this Letter Agreement and the terms of any other provisions of the CSGTA, the terms of this Letter Agreement will control.

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09435
	 
	October 10, 2012

	Spare Parts Initial Provisioning
	 
	Page 6

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09436

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Demonstration Flight Waiver

		
	Reference:
	Purchase Agreement No. PA-3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.
Definition of Terms:

Correction Costs:  Customer's direct labor costs and the cost of any material required to correct a Flight Discrepancy where direct labor costs are equal to the Warranty Labor Rate in effect between the parties at the time such labor is expended.

Flight Discrepancy:  A failure or malfunction of an Aircraft, or the accessories, equipment or parts installed on the Aircraft which results from a defect in the Aircraft, Boeing Product, engine or Supplier Product or a nonconformance to the Detail Specification for the Aircraft.

The AGTA provides that each aircraft will be test flown prior to delivery for the purpose of demonstrating the functioning of such Aircraft and its equipment to Customer; however, Customer may elect to waive this test flight.  For each test flight waived, Boeing agrees to provide Customer an amount of jet fuel at delivery that, including the standard fuel entitlement, totals the following amount of fuel:
	
		
	Aircraft Model
	Total Fuel Entitlement 
(U.S. Gallons)

	737
	[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09436
	 
	October 10, 2012

	Demonstration Flight Waiver
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

Further, Boeing agrees to reimburse Customer for any Correction Costs incurred as a result of the discovery of a Flight Discrepancy during the first flight of the aircraft by Customer following delivery to the extent such Correction Costs are not covered under a warranty provided by Boeing, the engine manufacturer or any of Boeing’s suppliers.
Should a Flight Discrepancy be detected by Customer which requires the return of the Aircraft to Boeing's facilities at Seattle, Washington, so that Boeing may correct such Flight Discrepancy, Boeing and Customer agree that title to and risk of loss of such Aircraft will remain with Customer.  In addition, it is agreed that Boeing will have responsibility for the Aircraft while it is on the ground at Boeing's facilities in Seattle, Washington, as is chargeable by law to a bailee for mutual benefit, but Boeing shall not be liable for loss of use.
To be reimbursed for Correction Costs, Customer shall submit a written itemized statement describing any flight discrepancies and indicating the Correction Cost incurred by Customer for each discrepancy.  This request must be submitted to Boeing’s Contracts Regional Director at Renton, Washington, within ninety (90) days after the first flight by Customer.

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09436
	 
	October 10, 2012

	Demonstration Flight Waiver
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09437

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	AGTA Matters

		
	Reference:
	a)    Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (Aircraft)

		
	b)
	Aircraft General Terms Agreement No. AGTA-ASA (the AGTA) between Boeing and Customer dated June 15, 2005

		
	b)
	Letter Agreement 6-1162-MSA-591(AGTA Terms Revisions Letter Agreement) between Boeing and Customer dated June 15, 2005 

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement, the AGTA and the AGTA Terms Revisions Letter Agreement.  All terms used but not defined in this Letter Agreement shall have the same meaning as the Purchase Agreement.
		
	1.
	AGTA Basic Articles.

1.1.1.    Article 2.1.1, “Airframe Price,” of the basic articles of the AGTA is revised to read as follows:  Airframe Price is defined as the price of the airframe for a specific model of aircraft described in a purchase agreement.  (For Models 737-600, 737-700, 737-800, 737-900, 737-900ER, 737-7, 737-8, 737-9, 747-8, 777-200LR, and 777-300ER the Airframe Price includes the engine price at its basic thrust level.)
1.1.2.    Article 2.1.3, “Engine Price” of the basic articles of the AGTA is revised to read as follows:  Engine Price is defined as the price set by the engine manufacturer for a specific engine to be installed on the model of aircraft described in a purchase agreement (not applicable to Models 737-600, 737-700, 737-800, 737-900, 737-900ER, 737-7, 737-8, 737-9, 747-8, 777-200LR and 777-300ER).
1.1.3.    Article 2.1.5, “Escalation Adjustment” of the basic articles of the AGTA is revised to read as follows:  Escalation Adjustment is defined as the price adjustment to the Airframe Price (which includes the basic engine price for Models 737-600, 737-700 737-800, 737-900, 737-900ER, 737-7, 737-8, 737-9, 747-8, 777-200LR and 777-300ER) and the Optional Features Prices resulting from the calculation using the economic price formula contained in the Airframe and Optional Features Escalation Adjustment supplemental exhibit to the applicable purchase agreement.  The price adjustment to the Engine Price for all other models of aircraft will be calculated using the economic price 

	
			
	ASA-PA-3866-LA-09437
	 
	October 10, 2012

	AGTA Matters
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

formula in the Engine Escalation Adjustment supplemental exhibit to the applicable purchase agreement.
		
	2.
	Appendices to the AGTA.

2.1.    Appendix I “SAMPLE Insurance Certificate”, under “Combined Single Limit Bodily Injury and Property Damage: U.S.$ any one occurrence each Aircraft (with aggregates as applicable)” the following are added: (a) the 737-900ER in the amount of [***] and (b) the 737-7/8/9 in the amount of [***].  
		
	3.
	Exhibit C to the AGTA, “Product Assurance Document”.

3.1.    Part 2, Article 3.1, subsection (i), of Exhibit C of the AGTA is revised to read as follows: “for Boeing aircraft models 777F, 777-200, -300, 737-600, 737-700, 737-800, 737-900, 737-900ER, 737-7, 737-8, 737-9, 747-8, 787 or new aircraft models designed and manufactured with similar, new technology  the warranty period ends forty-eight (48) months after Delivery.”  

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09437
	 
	October 10, 2012

	AGTA Matters
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09438

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Promotional Support – 737-8 and 737-9

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.
Boeing and Customer wish to enter into an agreement pursuant to which each party will contribute equally to promotional programs in support of the entry into service of the Aircraft as more specifically provided below.
		
	1.
	Definitions.

1.1.    Commitment Limit shall have the meaning set forth in Article 2, below.
1.2.    Covered Aircraft shall mean those Aircraft identified on Table 1 to the Purchase Agreement as of the date of signing of this Letter Agreement.
1.3.    Performance Period shall mean the period beginning one (1) year before and ending one (1) year after the scheduled delivery month of the first Covered Aircraft.
1.4.    Promotional Support shall mean mutually agreed marketing and promotion programs that promote the entry into service of the Covered Aircraft such as marketing research, tourism development, corporate identity, direct marketing, videotape or still photography, planning, design and production of collateral materials, management of promotion programs, advertising campaigns or such other marketing and promotional activities as the parties may mutually agree.
1.5.    Qualifying Third Party Fees shall mean fees paid by Customer to third party providers for Promotional Support provided to Customer during the Performance Period.

	
			
	ASA-PA-3866-LA-09438
	 
	October 10, 2012

	Promotional Support
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

		
	2.
	Commitment Limit.

As more particularly set forth in this Letter Agreement, Boeing agrees to provide Promotional Support to Customer during the Performance Period in a value of [***] for the first Covered Aircraft delivered to Customer and [***] per Covered Aircraft for each Covered Aircraft delivered to Customer thereafter.
		
	3.
	Methods of Performance.

3.1.    Subject to the Commitment Limit, Boeing will reimburse [***] of Customer’s payments of Qualifying Third Party Fees provided that Customer provides Boeing copies of paid invoices for such Qualifying Third Party Fees no later than twenty-four (24) months after the delivery of the first Covered Aircraft.
3.2.    Notwithstanding the above, at Customer’s request and subject to a mutually agreed project, Boeing will provide certain Promotional Support during the Performance Period directly to Customer.  The full value of such Boeing provided Promotional Support will be accounted for as part of the Commitment Limit and will correspondingly reduce the amount of Qualifying Third Party Fees that are subject to reimbursement pursuant to Article 3.1 above.
3.3.    In the event Customer does not (i) utilize the full amount of the Commitment Limit within the Performance Period or (ii) submit its paid invoices for Qualifying Third Party Fees within the required time, as set forth in Article 3.1, Boeing shall have no further obligation to Customer for such unused Commitment Limit or to reimburse Customer for such Qualifying Third Party Fees, respectively.
		
	4.
	Project Approval.

Following the execution of this Letter Agreement, a Boeing Airline Marketing Services representative will meet with Customer’s designated representative to review and approve the extent, selection, scheduling, and funds disbursement process for the Promotional Support to be provided pursuant to this Letter Agreement.
		
	5.
	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 Aircraft and cannot be assigned in whole or, in part.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09438
	 
	October 10, 2012

	Promotional Support
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

		
	6.
	Confidential Treatment.

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.

Very truly yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:

	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09438
	 
	October 10, 2012

	Promotional Support
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09439

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Special Matters – Models 737-8 and 737-9

		
	Reference:
	1)     Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 aircraft (737-8 Aircraft) and 737-9 aircraft (737-9 Aircraft) (collectively the Aircraft)

2)    Letter Agreement ASA-PA-3866-LA-09441 entitled “Aircraft Model Substitution” (Substitute Aircraft Letter Agreement)

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.
	Credit Memoranda.

1.1.    [***] Credit Memorandum. At the time of delivery of each Aircraft, Boeing will issue to Customer a [***] Credit Memorandum in an amount determined by multiplying the Airframe Price by a factor of [***].
1.2.    [***] Credit Memorandum. At the time of delivery of each Aircraft, Boeing will issue to Customer a [***] Credit Memorandum in an amount determined by multiplying the Airframe Price by a factor of [***].
[***]
[***]
		
	2.
	Escalation of Credit Memoranda.

Unless otherwise noted, the amounts of the Credit Memoranda stated in Paragraphs 1.1 through 1.7 are in [***] set forth in the Purchase Agreement applicable to the Aircraft.  The Credit Memoranda may, at the election of Customer, [***].
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09439
	 
	October 10, 2012

	Special Matters – Models 737-8 and 737-9
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

		
	3.
	[***]  Customer’s purchase of the Aircraft [***], upon execution of Purchase Agreement for the Aircraft. [***].

		
	4.
	Substitute Aircraft.

4.1.    737-8 Substitute Aircraft. Pursuant to the Substitute Aircraft Letter Agreement, Customer may substitute the purchase of 737-8 aircraft in place of 737-9 Aircraft (737-8 Substitute Aircraft).  [***].
4.2.    737-9 Substitute Aircraft.  Pursuant to the Substitute Aircraft Letter Agreement, Customer may substitute the purchase of 737-9 aircraft in place of 737-8 Aircraft (737-9 Substitute Aircraft).  [***]. 
		
	5.
	[***]

		
	6.
	Assignment.

Unless otherwise noted herein, the Credit Memoranda described in this Letter Agreement are [***] and in consideration of Customer’s taking title to the Aircraft at time of delivery and becoming the operator of the Aircraft.  This Letter Agreement cannot be assigned, in whole or in part, without the prior written consent of Boeing.
		
	7.
	Confidentiality.

Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties.  Customer agrees to 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. 

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09439
	 
	October 10, 2012

	Special Matters – Models 737-8 and 737-9
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09439
	 
	October 10, 2012

	Special Matters – Models 737-8 and 737-9
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

Attachment A-1 To
Letter Agreement No. ASA-PA-3866-LA-09440
Option Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866-LA-09440 62010-1O.TXT
	Boeing Propriety
	Page 1

Attachment A-1 To
Letter Agreement No. ASA-PA-3866-LA-09440
Option Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866-LA-09440 62010-1O.TXT
	Boeing Propriety
	Page 2

Attachment A-1 To
Letter Agreement No. ASA-PA-3866-LA-09440
Option Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866-LA-09440 62010-1O.TXT
	Boeing Propriety
	Page 3

Attachment A-2 To
Letter Agreement No. ASA-PA-3866-LA-09440
Option Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866-LA-09440_60691-1O.TXT
	Boeing Propriety
	Page 1

Attachment A-2 To
Letter Agreement No. ASA-PA-3866-LA-09440
Option Aircraft Delivery, Description, Price and Advance Payments

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASP-PA-03866-LA-09440_60691-1O.TXT
	Boeing Propriety
	Page 2

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09440

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	[***] Aircraft

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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 [***].

Subject to the terms and conditions contained in this Letter Agreement, [***] to the Purchase Agreement as of the date of execution of this Letter Agreement, [***].
		
	2.
	Delivery.

The number of aircraft and delivery months are listed in the Attachments to this Letter Agreement.  The schedule delivery position of each [***] listed in the Attachments provide the delivery schedule in three month delivery windows consisting of a nominal delivery month (Nominal Delivery Month) plus and minus one month.  [***], Boeing will provide written notice with revised Attachments of the scheduled delivery month (Scheduled Delivery Month) for each [***] that has a Nominal Delivery Month in such calendar year.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09440
	 
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	[***] Aircraft
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

		
	3.
	Configuration.

3.1.    Subject to the provisions of Article 3.2, below, the configuration for the [***] will be the Detail Specification for models [***] at the revision level in effect at the time of Definitive Agreement (as defined below).  Such Detail Specification will be revised to include (i) changes applicable to the Detail Specification that are developed by Boeing between [***] (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.
3.2.    Boeing reserves the right to configure the [***] 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.
	Price.

4.1.    The Airframe Price that will be identified in the Definitive Agreement for the [***] will equal the sum of [***] between the date of execution of the Purchase Agreement for the Aircraft and the date of execution of the Definitive Agreement for the [***].  
4.2.    The Optional Features Price for each of the [***] shall be determined in accordance with the provisions of the Definitive Agreement for the [***] using Boeing’s [***] as of the date of execution of the Definitive Agreement.
4.3.    The Airframe Price, Optional Features Prices, and Aircraft Basic Price for each of the [***] shall be adjusted in accordance with the terms set forth in Article 2.1.5 (Escalation Adjustment) of the AGTA.
4.4.    The Advance Payment Base Price shall be developed in accordance with the terms of the Purchase Agreement and determined at the time of Definitive Agreement.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09440
	 
	October 10, 2012

	[***] Aircraft
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

		
	5.
	Payment.

5.1.    Customer will pay a [***], on the date of execution of this Letter Agreement.  If Customer [***].  If Customer does not [***].
5.2.    At Definitive Agreement for the [***], advance payments will be payable as specified in the Purchase Agreement.  The remainder of the Aircraft Price for the [***].
		
	6.
	[***]

6.1.    Customer may [***] by giving written notice to Boeing on or before the date [***] months prior to the earlier of the first day of either the Nominal Delivery Month or the Scheduled Delivery Month listed in the Attachments [***].
6.2.    If Boeing must [***], Boeing may [***] subject to Customer's agreement.  If Boeing and Customer fail to agree to a revised [***], if any, received by Boeing with respect to the [***].
		
	7.
	Definitive Agreement.

Following Customer’s [***] the parties will sign a definitive agreement for the purchase of such [***] (Definitive Agreement) within [***] calendar days of such [***].   The Definitive Agreement will include the provisions of the Purchase Agreement as modified to reflect the provisions of this Letter Agreement.  In the event the parties have not entered into a Definitive Agreement within [***] following [***], either party [***] by giving written notice to the other within [***].  If Customer and Boeing fail to enter into the Definitive Agreement, Boeing will retain the [***].
		
	8.
	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 Aircraft and cannot be assigned in whole or, in part.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09440
	 
	October 10, 2012

	[***] Aircraft
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

		
	9.
	Confidential Treatment.

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.

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

Attachments

	
			
	ASA-PA-3866-LA-09440
	 
	October 10, 2012

	[***] Aircraft
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09441

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Aircraft Model Substitution

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.
Customer may substitute the purchase of Boeing Model 737-8 aircraft (737-8 Substitute Aircraft) in place of 737-9 Aircraft and the purchase of Boeing Model 737-9 aircraft (737-9 Substitute Aircraft) in place of 737-8 Aircraft (collectively referred to as “Substitute Aircraft”), with the scheduled month of delivery twenty-four (24) months after delivery of the first 737-8 aircraft, subject to the following terms and conditions:

1.Customer’s Written Notice.
Customer shall provide written notice of its intention to substitute the purchase of an Aircraft with the purchase of a Substitute Aircraft,
		
	(i)
	no later than the first day of the month that is [***] prior to the scheduled month of delivery of the Aircraft for which it will be substituted, provided that a Substitute Aircraft has been previously certified and delivered to Customer, or;

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09441
	 
	October 10, 2012

	Aircraft Model Substitution
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

		
	(ii)
	no later than the first day of the month that is [***] prior to the scheduled month of delivery of the Aircraft for which it will be substituted, if a Substitute Aircraft has not been previously certified and delivered to Customer; and

		
	(ii)
	any substitution into a Boeing Model 737-8 or 737-9 may not later be substituted to any other Boeing Model aircraft.

2.Boeing’s Production Capability.
2.1    Customer’s substitution right is conditioned upon Boeing having production capability, taking into account commitments to other customers, for the Substitute Aircraft in the same scheduled delivery month as the Aircraft for which it will be substituted.  Boeing will provide a written response to Customer’s notice of intent indicating whether or not Boeing’s production capability will support the scheduled delivery month.
2.2    If Boeing is unable to manufacture the Substitute Aircraft in the same scheduled delivery month as the Aircraft for which it will be substituted, then Boeing shall promptly make a written offer of an alternate delivery month for Customer’s consideration and written acceptance within thirty (30) days of such offer.
2.3    All of Boeing’s quoted delivery positions for Substitute Aircraft shall be considered preliminary until such time as the parties enter into a definitive agreement in accordance with paragraph 4 below.
3.Auxiliary Fuel Tanks (for 737-9 Substitute Aircraft).
The right to substitute Model 737-9 aircraft under the terms of the Purchase Agreement excludes the installation of auxiliary fuel tanks, because such installation may delay delivery of the Aircraft up to three months.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09441
	 
	October 10, 2012

	Aircraft Model Substitution
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

4.Definitive Agreement.
Customer’s substitution right and Boeing obligation in this Letter Agreement are further conditioned upon Customer and Boeing’s executing a definitive agreement for the purchase of the Substitute Aircraft within thirty (30) days of Customer’s substitution notice to Boeing or of Customer’s acceptance of an alternate delivery month in accordance with paragraph 2 above.
5.Price and Advance Payments.
5.1    The Airframe Price and Optional Features Price, will be adjusted to Boeing’s then-current prices for such elements as of the date of execution of the definitive purchase agreement for the Substitute Aircraft [***] aircraft calculated between the date of execution of the Purchase Agreement for the Aircraft and the date of execution of the definitive purchase agreement for the Substitute Aircraft.  The resulting Airframe Price and Optional Features Prices for the Substitute Aircraft will escalate in accordance with Supplemental Exhibit AE1. The escalation indices and methodology used to estimate the Advance Payment Base Price (APBP) will be adjusted to Boeing’s then-current provisions for such elements as of the date of execution of the definitive purchase agreement for the Substitute Aircraft.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09441
	 
	October 10, 2012

	Aircraft Model Substitution
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

5.2    If the APBP for any Substitute Aircraft is higher than the APBP of the Aircraft, Customer will pay to Boeing the amount of the difference in Advance Payments as of the date of execution of the definitive agreement for the Substitute Aircraft.  If the APBP of the Substitute Aircraft is lower than the APBP of the Aircraft, Boeing will retain any excess amounts previously paid by Customer until the next payment is due, at which time Customer may reduce the amount of such payment by the amount of the excess.  [***].
6.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 Aircraft and cannot be assigned in whole or, in part.
7.Confidential Treatment.
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.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09441
	 
	October 10, 2012

	Aircraft Model Substitution
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09441
	 
	October 10, 2012

	Aircraft Model Substitution
	 
	Page 5

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09442

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Right to [***]

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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 [***]

Subject to the terms and conditions contained herein, 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 right to [***] Boeing Models 737-8 and/or 737-9 aircraft as [***].
		
	2.
	Delivery.

The [***] are offered subject to available position for delivery during the period [***] through [***] (Delivery Period).
		
	3.
	Configuration.

3.1    Subject to the provisions of Article 3.2, below, the configuration for the [***] will be the Detail Specification for Models 737-8 and/or 737-9 aircraft at the revision level in effect at the time of the Notice of Exercise.  Such Detail Specification will be revised to include (i) changes applicable to such Detail Specification that are developed by Boeing between the date of the Notice of Exercise (as defined below) and the signing of the Definitive Agreement (as defined below), (ii) changes required to obtain required regulatory certificates, and (iii) other changes as mutually agreed.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09442
	 
	October 10, 2012

	Right to [***]
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

3.2    Boeing reserves the right to configure the [***] 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.
	Price.

4.1    The Airframe Price, Optional Features Prices, and Aircraft Basic Price for the [***] will be determined in accordance with the provisions of the Purchase Agreement using Boeing’s [***] as of the date of execution of the Definitive Agreement except the Airframe Price that will be identified in the definitive purchase agreement for the [***] will equal the sum of [***] between the date of execution of the Purchase Agreement for the Aircraft and the date of execution of the definitive purchase agreement for the [***].  
4.2    The Airframe Price, Optional Features Prices, and Aircraft Basic Price for each of the [***] will be adjusted in accordance with the terms set forth in Article 2.1.5 (Escalation Adjustment) of the AGTA.
		
	5.
	Payment.

At Definitive Agreement, advance payments will be payable as set forth in Table 1 of the Purchase Agreement.  The remainder of the Aircraft Price for each [***] will be paid at the time of delivery.  The Advance Payment Base Price used to determine the advance payment amounts will be developed in accordance with the terms of the Purchase Agreement and determined at the time of Definitive Agreement.
		
	6.
	Notice of [***] and Payment of Deposit.

6.1    Customer [***] by giving written notice to Boeing on or before the first day of the month [***] prior to the desired delivery month within the Delivery Period, specifying the desired month(s) of delivery within the Delivery Period [***].  Such [***] shall be accompanied by payment, by electronic transfer to the account specified below, of Boeing’s then standard proposal deposit for models 737-8 and 737-9 aircraft (Deposit) for each [***] subject to the [***].  The Deposit will be applied against the first advance payment due for each such [***].  

[***]
At the time of its receipt of each [***] and related Deposit(s), Boeing will advise Customer as to the availability of the delivery month(s) requested.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	ASA-PA-3866-LA-09442
	 
	October 10, 2012

	Right to [***]
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

6.2    If Boeing must make production decisions which would affect the delivery of any or all [***] during the Delivery Period, Boeing shall provide written notification to Customer and the Delivery Period shall be adjusted accordingly.  If the new Delivery Period begins twenty-four (24) months or less from the date of Boeing’s notification, Customer shall have thirty (30) days from the date of Boeing’s notification in which to submit its [***] and Deposit for any eligible delivery month(s) that is twenty-four (24) months or less from Boeing’s notification.  Upon receipt, Boeing will advise Customer as to the availability of the delivery month(s) requested.
		
	7.
	Definitive Agreement.

7.1    Following Customer’s exercise of a [***] in accordance with the terms and conditions stated herein and Boeing’s identification of an available delivery position acceptable to Customer, the parties will sign a definitive agreement for the purchase of such [***] (Definitive Agreement) within thirty (30) calendar days of such exercise [***].  The Definitive Agreement will include the provisions then contained in the Purchase Agreement as modified to reflect the provisions of this Letter Agreement and any additional mutually agreed terms and conditions.
		
	8.
	General Expiration of Rights.

8.1    Each [***] shall expire at the time of execution of the Definitive Agreement for the applicable [***], or, if no such Definitive Agreement is executed, on [***].
		
	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 Aircraft and cannot be assigned in whole or, in part.
		
	10.
	Confidential Treatment.

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.
	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09442
	 
	October 10, 2012

	Right to [***]
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

Very truly yours,

	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09442
	 
	October 10, 2012

	Right to [***]
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09443

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Agreement for [***] 

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.
The efficiency from [***] of the Boeing Model 737-8 aircraft and 737-9 aircraft (737MAX Aircraft) over similarly-sized aircraft is a significant factor in determining the 737MAX Aircraft values.  [***].
Notwithstanding the [***], Boeing and Customer agree that the price of each respective Aircraft is based [***] compared to the [***] contained in Section 2 of Attachments A1 and A2 [***].  Boeing will use the method described below [***] to determine the actual [***] of the Aircraft.  In the event that the [***], the terms of this Letter Agreement [***]. 
		
	1.
	[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09443
	 
	October 10, 2012

	Agreement for [***]
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

[***] will be rounded to the nearest one thousandth.  [***].
2.Rights and Obligations in the Event of a [***] Greater Than Zero.
2.1    Aircraft Delivery.  In the event of a [***] greater than zero for any Aircraft, at the time Boeing tenders that Aircraft for delivery, Boeing will provide the applicable [***] set forth in paragraph 2.2. Customer cannot refuse to accept delivery of such Aircraft [***]. 
2.2    [***] the same factor as the airframe for the applicable Aircraft.  
2.2.1    [***].  [***] pursuant to this paragraph 2.2 will be [***] issued by Boeing and/or the engine manufacturer, provided that [***].  [***] will be made pursuant to this paragraph 2.2 for any Aircraft not delivered to, or operated by, Customer.
2.2.2    If [***], then Boeing and Customer will enter into a good faith discussions.  [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09443
	 
	October 10, 2012

	Agreement for [***]
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

3.Duplication of Benefits.
Boeing and Customer agree it is not the intent of the parties to provide benefits hereunder that duplicate benefits to be provided (a) by Boeing under the Purchase Agreement, or any other agreement between Boeing and Customer, or (b) by engine manufacturer under any agreement between engine manufacturer and Customer, due to the Aircraft [***].  
4.[***]

5.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 Aircraft and cannot be assigned in whole or, in part.
6.Confidential Treatment.
Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties.  Customer agrees to 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.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09443
	 
	October 10, 2012

	Agreement for [***]
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

Very truly yours,
	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09443
	 
	October 10, 2012

	Agreement for [***]
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

Attachment A1 To ASA-PA-3866-LA-09443 
Page 1

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 2

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 3

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 4

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 5

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 6

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 7

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A1 To ASA-PA-3866-LA-09443 
Page 8

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	AERO-B-BBA4-M12-0594
	BOEING PROPRIETARY
	SS12-0309

Attachment A2 to ASA-PA-3866-LA-09443 
Page 1

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 2

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 3

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 4

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 5

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 6

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 7

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 8

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 9

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 10

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 11

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 12

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 13

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 14

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

Attachment A2 to ASA-PA-3866-LA-09443 
Page 15

[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PBO-1208304R2
	 
	SS12-0309

	AERO-B-BBA4-M12-0595
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09444

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	[***] – Non-Excusable Delay

		
	Reference:
	Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.Definition of Terms:
Non-Excusable Delay:  Delay in delivery of any Aircraft beyond the last day of the delivery month (Scheduled Delivery Month) established in the Purchase Agreement by any cause that is not an Excusable Delay pursuant to Article 7 of the AGTA and for which Customer is otherwise entitled to a remedy from Boeing pursuant to applicable law.
[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09444
	 
	October 10, 2012

	[***]– Non-Excusable Delay
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

[***].  Within thirty (30) days of receipt of written notice from Boeing that delivery of an Aircraft will be [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09444
	 
	October 10, 2012

	[***]– Non-Excusable Delay
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

[***]  
If neither Party terminates the Purchase Agreement as to such Aircraft within the applicable thirty (30) day period the Purchase Agreement will remain in effect for that Aircraft.
[***]

8.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 Aircraft and cannot be assigned in whole or, in part.

9.Confidential Treatment.
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.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09444
	 
	October 10, 2012

	[***]– Non-Excusable Delay
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

Very truly yours,
	
		
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date: October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
			
	ASA-PA-3866-LA-09444
	 
	October 10, 2012

	[***]– Non-Excusable Delay
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09445

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Special Matters – [***]

		
	Reference:
	a)    Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (Aircraft)

		
	b)
	Letter Agreement ASA-PA-3866-LA-09440 entitled [***] of Models 737-8 aircraft [***] and 737-9 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.
Pursuant to the [***] Letter Agreement, Customer may [***].[***]:
		
	1.
	[***]

1.1    [***]. At the time of delivery of [***].
1.2    [***]. At the time of delivery of [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09445
	 
	October 10, 2012

	Special Matters – [***]
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

1.3    737-8 Partnership Credit Memorandum #1. At the time of delivery of each 737-8 Option Aircraft, Boeing will issue to Customer a 737-8 Partnership Credit Memorandum #1 in an amount determined by multiplying the Airframe Price by a factor of [***].
1.4    [***]. At the time of delivery [***].
1.5    [***]. At the time of delivery of [***].
1.6    [***]. At the time of delivery of [***].
1.7    [***]. At the time of delivery of each Option Aircraft, Boeing will issue to Customer a Partnership Credit Memorandum #3 in an amount determined by multiplying the Airframe Price by a factor of [***], so long as Customer continues to replace and grow its fleet exclusively with Boeing aircraft.
		
	2.
	[***]

Unless otherwise noted, the [***] stated in Paragraphs 1.1 through 1.7 [***] pursuant to the terms set forth in Article [***] of the AGTA. [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09445
	 
	October 10, 2012

	Special Matters – [***]
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

		
	3.
	Assignment.

Unless otherwise noted herein, the [***] described in this Letter Agreement are [***] in consideration of Customer’s taking title to the Option Aircraft at time of delivery and becoming the operator of the Option Aircraft.  This Letter Agreement cannot be assigned, in whole or in part, without the prior written consent of Boeing.
		
	4.
	Confidentiality.

Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties.  Customer agrees to 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.  

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09445
	 
	October 10, 2012

	Special Matters – [***]
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09446

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA  98168-0900

		
	Subject:
	Special Matters – [***]

		
	Reference:
	a)    Purchase Agreement No. 3866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 aircraft and 737-9 aircraft (Aircraft)

		
	b)
	Letter Agreement ASA-PA-3866-LA-09442 entitled [***] 

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.
Pursuant to the [***] Letter Agreement, Customer has the [***]. In addition to the terms set forth in the [***] Letter Agreement, Boeing will provide the following [***]:
		
	1.
	[***]

1.1    [***]. At the time of delivery of [***].
1.2    [***]. At the time of delivery of [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09446
	 
	October 10, 2012

	Special Matters – [***]
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

1.3    [***]. At the time of delivery of [***].
1.4    [***]. At the time of delivery of [***].
1.5    [***]. At the time of delivery of [***].
1.6    [***]. At the time of delivery of [***].
1.7    [***]. At the time of delivery of [***].
		
	2.
	[***]

Unless otherwise noted, the [***] stated in Paragraphs 1.1 through 1.7 [***] pursuant to the terms set forth in [***] of the AGTA.  [***].

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09446
	 
	October 10, 2012

	Special Matters – [***]
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

		
	3.
	Assignment.

Unless otherwise noted herein, [***] described in this Letter Agreement are [***] in consideration of Customer’s taking title to the Aircraft at time of delivery and becoming the operator of the Aircraft.  This Letter Agreement cannot be assigned, in whole or in part, without the prior written consent of Boeing.
		
	4.
	Confidentiality.

Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties.  Customer agrees to 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.  

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-3866-LA-09446
	 
	October 10, 2012

	Special Matters – [***]
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

ASA-PA-3866-LA-09447

Alaska Airlines, Inc.
PO Box 68900
Seattle, WA 98168-0900
		
	Subject:
	[***] Matters

		
	Reference:
	Purchase Agreement No. PA-03866 (Purchase Agreement) between The Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating to Models 737-8 and 737-9 aircraft (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.   
Customer has communicated to Boeing that a factor in its [***].  Boeing understands Customer’s desire to pursue airplane operations of twin-engine aircraft [***] Operational Standards similar to United States of America Federal Aviation Administration (FAA) 14 CFR 121 Operating Rules applicable at the time of Aircraft delivery [***].  
The design goal of the Boeing Models 737-8 and 737-9 aircraft (737MAX) is to [***].
Boeing is committed to working diligently with the FAA and Customer in support of [***].  

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-03866-LA-09447
	 
	 

	[***]
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

    

1.[***] Commitment.
Pursuant to this Letter Agreement, Boeing commits to [***] of each of the respective 737-8 and 737-9 model aircraft.
2.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 Aircraft and cannot be assigned in whole or, in part.
3.Confidentiality Treatment.  

Customer understands and agrees that 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.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-03866-LA-09447
	 
	 

	[***]
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

    

Very truly yours,

	
			
	THE BOEING COMPANY

	 

	By
	/s/ Lanine Lange

	 

	Its
	Attorney-In-Fact

	 

	ACCEPTED AND AGREED TO this

	 

	Date:
	October 10, 2012

	 

	ALASKA AIRLINES, INC.

	 

	By
	/s/ Mark Eliasen

	 

	Its
	VP/Finance & Treasurer

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	ASA-PA-03866-LA-09447
	 
	 

	[***]
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

    

	
				
	
	 
	The Boeing Company
P.O. Box 3707
Seattle, WA  98124‐2207

	 

October 10, 2012

6-1162-LLL-0021

Alaska Airlines, Inc.
P.O. Box 68900
Seattle, WA 98168-0900

		
	Subject:
	Proposal Related to [***]

		
	References:
	a)    Proposal No. ASA-PBO-1208304R2 dated August 17, 2012 and Proposal No. ASA-PBO-1208417R2 dated August 31, 2012 (collectively referred to as “Aircraft Proposals”)

In consideration of Customer’s purchase of the aircraft as offered by the Aircraft Proposals, The Boeing Company (Boeing) is pleased to offer to Alaska Airlines, Inc. (Customer) [***].  Boeing will provide proposals for the [***] to Customer following execution of the definitive agreements for the aircraft as offered by the Aircraft Proposals which will provide the detailed product descriptions and terms and conditions [***].  In addition to the terms and conditions set forth in the [***], Boeing is pleased to offer the terms and conditions described herein. 
All capitalized terms which are not otherwise defined herein shall have the definitions specified in Customer Services General Terms Agreement No. 90-2 between Boeing and Customer dated April 30, 1997 (CSGTA).

		
	1.
	[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	6-1162-LLL-0021
	 
	Page 1

	 
	BOEING PROPRIETARY
	 

1.1.1.    Boeing will offer [***] to Customer for [***] starting in [***] through [***].
1.1.2.    The [***] will be applicable to certain [***] and Customer will accrue [***] term and the [***] will accrue based on achieving the [***] described in Attachment A.
1.1.3.    Boeing will provide the [***] for each 737-8 aircraft and 737-9 aircraft (737MAX Aircraft) up to a [***] 737MAX Aircraft [***].  [***].
1.2.    [***]
1.2.1.    Boeing will offer Customer [***] for Customer’s 737-700, 737-800, 737-900 and 737-900ER aircraft (737NG Fleet) and the 737MAX Aircraft.
1.2.2.    [***] is conditioned on Customer’s aircraft being configured with an [***].
1.2.3.    The term for [***] for 737NG Fleet will be determined by mutual agreement of the parties and the term for 737MAX Aircraft will be for [***]starting on the date of Customer’s first 737MAX Aircraft delivery.
1.2.4.    Boeing offers Customer an [***] the 737NG Fleet.  Such [***] will continue until the date of delivery of Customer’s first 737MAX Aircraft.  Upon delivery of Customer’s first 737MAX Aircraft, such [***] of the [***] for the 737NG Fleet.
1.2.5.    Boeing offers Customer [***] for the 737MAX Aircraft [***] for the [***].  [***] will be at 737NG Fleet list price.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	6-1162-LLL-0021
	 
	Page 2

	 
	BOEING PROPRIETARY
	 

2.Expiration of Offer.
This offer will expire in accordance with the dates set forth below.
2.1.    [***]. The proposal for the [***] will expire if Customer and Boeing do not enter into a definitive agreement for the [***] within [***] from the date of definitive agreement for the purchase of the aircraft offered in the Aircraft Proposals.
2.2.    [***].  The proposal for the [***] will expire if Customer and Boeing do not enter into a definitive agreement for [***] from the date of definitive agreement for the purchase of the aircraft in the Aircraft Proposals.

3.    Assignment.
The offer set forth in this letter is provided to Customer for the benefit of Customer and is not assignable, in whole or in part, without the prior written consent of Boeing.
4.    Confidential Treatment.
The information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties.  By receiving this letter, Customer agrees to limit the disclosure of its contents to employees of Customer with a need to know the contents for purposes of helping Customer evaluate or respond to this letter and who understand they are not to disclose its contents to any other person or entity without the prior written consent of Boeing.  In addition to any equitable relief that may be available to Boeing in the event of a breach of this clause, Boeing may rescind any business concessions that are the subject of the unauthorized disclosure by Customer.
We would be pleased to discuss any questions you might have or provide any additional information you may require concerning this letter.

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	
			
	6-1162-LLL-0021
	 
	Page 3

	 
	BOEING PROPRIETARY
	 

Very truly yours,

	
	
	THE BOEING COMPANY

	 

	/s/ Lanine L. Lange

	Lanine L. Lange

	 

	Aircraft Contracts

	Boeing Commercial Airplanes

	 

	Attachment

	
			
	6-1162-LLL-0021
	 
	Page 4

	 
	BOEING PROPRIETARY
	 

Attachment A to
Boeing Proposal 6-1162-LLL-0021
[***]

	
		
	*
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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