Transactions with Related Parties

12 Months Ended

Dec. 31, 2016

15. Transactions with Related Parties

The following represents the net receivables (payables) to related parties (in millions):


	December 31,
	2016			2015
AAG ⁽¹⁾	$	8,981		$	4,489
AAG’s wholly-owned subsidiaries ⁽²⁾		(2,171	)		(2,508	)

Total	$	6,810		$	1,981

⁽¹⁾	The increase in American’s net related party receivable from AAG is primarily due to American providing the cash funding for AAG’s share repurchase and dividend programs.

⁽²⁾	The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle.

Pursuant to a capacity purchase agreement between American and AAG’s wholly-owned regional airlines operating as American Eagle, American purchases all of the capacity from these carriers and recognizes passenger revenue from flights operated by American Eagle. In 2016, 2015 and 2014, American recognized expense of approximately $1.5 billion, $1.2 billion and $1.2 billion, respectively, related to wholly-owned regional airline capacity purchase agreements.