XML 46 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Service Agreements
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Service Agreements

3. Service Agreements

American Airlines, Inc.

In February 2005, the Company and US Airways, Inc. entered into a CPA under which the Company agreed to provide regional jet service through December 31, 2015, operating 70 CRJ-200 regional jet aircraft. American acquired US Airways, Inc. in 2015, and, in connection with the acquisition, American became party to the CPA. The CPA was amended in October 2008 and November 2009. The amendments, among other changes, granted the Company the right to extend the CPA under certain circumstances. The Company exercised its right under the amendments to extend the CPA beyond December 31, 2015 through mid-February 2018. The Company and AA amended the CPA on April 7, 2017, to allow for an orderly withdrawal of its aircraft from service with AA commencing in August 2017 and ending in February 2018. As aircraft were removed from AA, the amended CPA allowed the Company to place the aircraft into service with United.

Under the terms of the CPA, the Company was paid fees by AA for the number of aircraft in the fleet, completed block hours, completed departures, available seat miles (ASMs), and certain other amounts based on the Company’s performance measured against certain performance criteria.

United Airlines, Inc.

On February 26, 2017, the Company entered into a CPA with United Airlines, Inc. to operate up to 65 CRJ-200 regional jet aircraft. The initial term of the CPA is through February 28, 2023, with a two-year extension at UA’s election and a second two-year extension at UA’s election subject to mutual agreement by the Company and UA as to compensation.