Common use of Aircraft Allowance Clause in Contracts

Aircraft Allowance. For each of the Aircraft referenced and delivered to Airline under the Aircraft Delivery Schedule, CFM will provide Airline with a per-Aircraft allowance of […***…]. Allegiant 5B GTA No. 1-▇▇▇▇▇▇▇▇▇▇ CFM Proprietary Information Page 2 of 15 Such per Aircraft Allowance is stated in January 2016 US Dollars (CPI=216.64), and shall be adjusted for escalation to the date of delivery of each Aircraft to Airline in accordance with the escalation formula set forth in Attachment D hereto. If due to fault or negligence of Airline, there is a delay in delivery of Aircraft, such escalation shall stop at the original (scheduled delivery date in effect at the time of delay due to fault or negligence of Airline) scheduled delivery date of the Aircraft. Each per Aircraft Allowance will be earned by Airline upon delivery of each shipset of Installed Engines to Airframer, and paid as follows: Each per Aircraft Allowance will be made available and paid to Airline within (3) business days following receipt of written notice from Airline that it has taken delivery of each Aircraft. If requested in writing by Airline at least 30 days prior to scheduled Aircraft delivery date, CFM will pay the Aircraft Allowance directly to the Airframer. Notwithstanding the foregoing, CFM will not initiate the actual payment of the Aircraft Allowance to the Airframer until it receives further written direction by Airline at the time Airline takes delivery of each Aircraft. Airline will keep CFM informed of any Aircraft delivery date changes. For the avoidance of doubt, CFM agrees it shall not provide the Aircraft Allowance to the Airframer without the Airline’s further written direction under the foregoing and Airline agrees that it shall not issue such further written direction earlier than the date of Aircraft delivery to Airline. If, after such further written direction from Airline, CFM actually provides the Aircraft Allowance to the Airframer and the actual delivery date is delayed (not due to acts or failure to act by CFM) more than 2 days from the date CFM provides such allowance, Airline will pay to CFM interest on such amount, calculated from the date of payment to the Airframer to the date of actual Aircraft delivery. Interest will be computed at […***…]. Such payment to the Airframer may be offset against any amounts due and owing CFM.

Appears in 1 contract

Sources: General Terms Agreement (Allegiant Travel CO)

Aircraft Allowance. For each of the Aircraft referenced and delivered to Airline under the Aircraft Delivery Schedule[***], CFM GE will provide Airline with a per-per aircraft allowance for each such Aircraft allowance of in the amount of: [***…]. Allegiant 5B GTA No. 1-▇▇▇▇▇▇▇▇▇▇ CFM Proprietary Information Page 2 ] for each shipset of 15 GEnx-1B67 Engines purchased [***] for each shipset of GEnx-1B70 Engines purchased [***] for each shipset of GEnx-1B74/75 Engines purchased (“Aircraft Allowance”) Such per Aircraft Allowance is stated in January 2016 US Dollars (CPI=216.64), [***] and shall be adjusted subject to adjustment for escalation to the date of the scheduled Aircraft delivery of each Aircraft to Airline in accordance with [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission. the escalation formula set forth in Attachment D hereto. If due and subject to fault or negligence of Airline, there is a delay the Escalation Cap set forth in delivery of Aircraft, such escalation shall stop at the original (scheduled delivery date in effect at the time of delay due to fault or negligence of Airline) scheduled delivery date of the Aircraftparagraph 4 below. Each per Aircraft Allowance will be earned by Airline upon delivery of each shipset Aircraft to Airline. If Airline provides the Aircraft delivery date at least fifteen (15) business days prior to scheduled Aircraft delivery date for the first Aircraft delivery and at least five (5) business days for subsequent Aircraft, GE will provide the Aircraft Allowance directly to the Airframer. Airline shall continue to advise GE of Installed Engines to Airframerany delivery date changes. Otherwise, and paid as follows: Each per Aircraft Allowance will be made available and paid to Airline within five (35) business days following receipt of written notice from Airline that it has taken delivery of each AircraftAircraft in accordance with its purchase agreement with Airframer. If requested in writing by Airline at least 30 days prior to scheduled Aircraft delivery date, CFM will pay the Aircraft Allowance directly to the Airframer. Notwithstanding the foregoing, CFM will not initiate the actual payment of the Aircraft Allowance to the Airframer until it receives further written direction by Airline at the time Airline takes delivery of each Aircraft. Airline will keep CFM informed of any Aircraft delivery date changes. For the avoidance of doubt, CFM agrees it shall not provide the Aircraft Allowance to the Airframer without the Airline’s further written direction under the foregoing and Airline agrees that it shall not issue such further written direction earlier than the date of Aircraft delivery to Airline. If, after such further written direction from Airline, CFM actually GE provides the Aircraft Allowance to the Airframer and the actual delivery date is delayed (not due to acts or failure to act by CFM) more than 2 business days from the date CFM provides scheduled delivery date, and Airline has notified GE that it has requested Airframer to refund the Aircraft Allowance, and during such allowancetime GE has not received refund of the Aircraft Allowance from the Airframer and so notified Airline, then Airline will pay to CFM GE interest on such amount, unless the delay is caused by GE. Interest will be calculated from the date of payment scheduled delivery to the Airframer to the actual delivery date of actual Aircraft deliverythe Aircraft. Interest will be computed at [***]. Such payment to the Airframer may be offset against any amounts due and owing CFM.

Appears in 1 contract

Sources: Letter Agreement (Hawaiian Holdings Inc)

Aircraft Allowance. For each The Engine Manufacturer hereby agrees for the benefit of Frontier, the Borrower and the Security Trustee that it will provide the entity taking delivery of the Aircraft referenced and delivered to Airline under an allowance for the Aircraft Delivery Schedule, CFM will provide Airline with a per-Aircraft allowance in an amount of [***…]] (the “Aircraft Allowance”). Allegiant 5B GTA No. 1-▇▇▇▇▇▇▇▇▇▇ CFM Proprietary Information Page 2 of 15 Such per The Aircraft Allowance is stated in January 2016 US Dollars (CPI=216.64)[***], and shall be adjusted subject to adjustment for escalation to the date of delivery of each Aircraft shipset of Engines to Airline Airbus in accordance with the escalation formula set forth in Attachment D B hereto. If due to fault or negligence of Airline, there is a delay in delivery of Aircraft, such escalation shall stop at the original (scheduled delivery date in effect at the time of delay due to fault or negligence of Airline) scheduled delivery date of the Aircraft. Each per Aircraft Allowance Such allowance will be earned by Airline upon delivery of each shipset of Installed Engines to Airframer, Airbus and paid as follows: Each per Aircraft Allowance will be made available and paid to Airline within (3) business days [***] following receipt of written notice from Airline the Borrower or Security Trustee (or a nominee taking delivery in accordance with the purchase agreement with Airbus) that it has taken delivery of each AircraftAircraft in accordance with the purchase agreement with Airbus. If requested in writing by Airline the Borrower at least 30 days [***] prior to scheduled Aircraft delivery date, CFM CFMI will pay provide the Aircraft Allowance directly to Airbus. The Borrower or the Airframer. Notwithstanding the foregoing, CFM will not initiate the actual payment of the Aircraft Allowance Security Trustee shall continue to the Airframer until it receives further written direction by Airline at the time Airline takes delivery of each Aircraft. Airline will keep CFM informed advise CFMI of any Aircraft delivery date changes. For the avoidance of doubt, CFM agrees it shall not provide the Aircraft Allowance to the Airframer without the Airline’s further written direction under the foregoing and Airline agrees that it shall not issue such further written direction earlier than the date of Aircraft delivery to Airline. If, after such further written direction from Airline, CFM If CFMI actually provides the Aircraft Allowance to the Airframer Airbus and the actual delivery date is delayed (not due to acts or failure to act by CFM) more than 2 days [***] from the date CFM CFMI provides such allowancethe Aircraft Allowance then the following will occur under the following circumstances: (a) The Borrower will request that Airbus immediately return the Aircraft Allowance to CFMI and CFMI will hold the Aircraft Allowance and pay it to Airbus when the Borrower and Airbus confirm that the Aircraft is ready for delivery; and (b) If the delay of the Aircraft delivery is solely a result of the fault of the Borrower to perform its obligations under the purchase agreement with Airbus and Airbus has not returned the Aircraft Allowance to GE, Airline then the Borrower will pay to CFM CFMI interest on such amountthe Aircraft Allowance, calculated from the date of payment to Airbus to the Airframer earlier of the date (i) Airbus returns the Aircraft Allowance to GE; or (ii) the date of actual Aircraft delivery. Interest will be computed at [***]. Such payment to the Airframer may be offset against any amounts due and owing CFM.

Appears in 1 contract

Sources: Cfmi Engine Benefits Agreement (Frontier Group Holdings, Inc.)