Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (P) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) P = Airframe Price plus Optional Features Price (as set forth in Table 1 of this Purchase Agreement). ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I), calculated by establishing a three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February and March; the value released for the second quarter will be used for the months of April, May and June; the value released for the third quarter will be used for the months of July, August and September; the value released for the fourth quarter will be used for the months of October, November and December. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of ECI and CPI.
Appears in 2 contracts
Samples: Supplemental Agreement (Gol Intelligent Airlines Inc.), Supplemental Agreement (Gol Intelligent Airlines Inc.)
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (PP)(L + M - 1) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) 130.1 M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) ICI 123.6 P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement)) less the base price of Engines (as defined in this Exhibit D) in the amount of $[Confidential Treatment Requested]. ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of October, November October and DecemberNovember. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3ICI = The three-month arithmetic average of the released monthly values for the Industrial Commodities Index as set forth in the "Producer Prices and Price Index" (Base Year 1982 = 100) as released by the Bureau of Labor Statistics, U.S. Department of Labor values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to set forth in the month of scheduled delivery of table below for the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in In determining the value of L, the ratio of ECI divided by 130.1 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .65 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. In determining the value of M, the ratio of ICI divided by 123.6 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .35 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. Months to be Utilized Month of Scheduled in Determining the Aircraft Delivery Value of ECI and CPIICI January June B, July B, Aug. B February July B, Aug. B, Sept. B March Aug. B, Sept. B, Oct. B April Sept. B, Oct. B, Nov. B May Oct. B, Nov. B, Dec. B June Nov. B, Dec. B, Jan. D July Dec. B, Jan. D, Feb. D August Jan. D, Feb. D, Mar. D September Feb. D, Mar. D, Apr. D October Mar. D, Apr. D, May D November Apr. D, May D, June D December May D, June D, July D The following definitions of B and D will apply: B = The calendar year before the year in which the scheduled month of delivery as set forth in Article 2.1 occurs.
Appears in 2 contracts
Samples: Letter Agreement (Alaska Air Group Inc), Letter Agreement (Alaska Airlines Inc)
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (PP)(L + M - 1) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) Adjustment L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) ----- 130.1 M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) ICI ----- 123.6 P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement). ) less the base price of Engines (as defined in this Exhibit D-1) in the amount of: [*CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] {Block B "A" Market Aircraft} [*CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] {Block C "B" Market Aircraft} ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of October, November October and DecemberNovember. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3ICI = The three-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered Industrial Commodities Index as set forth in the month of July, the months June, July "Producer Prices and August of the preceding year will be utilized in determining the value of ECI and CPI.Price Index" (Base
Appears in 1 contract
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Aircraft Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (PP)(L + M - 1) (L + M) - P Where: Pa = Airframe Aircraft Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.] M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) ICI [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.] P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement). ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of October, November October and DecemberNovember. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3ICI = The three-month arithmetic average of the released monthly values for the Industrial Commodities Index as set forth in the "Producer Prices and Price Index" (Base Year 1982 = 100) as released by the Bureau of Labor Statistics, U.S. Department of Labor values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to set forth in the month of scheduled delivery of table below for the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in In determining the value of L, the ratio of ECI divided by [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.] will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .65 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. In determining the value of M, the ratio of ICI divided by [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.] will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .35 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. Months to be Utilized Month of Scheduled in Determining the Aircraft Delivery Value of ECI and CPIICI January June B, July B, Aug. B February July B, Aug. B, Sept. B March Aug. B, Sept. B, Oct. B April Sept. B, Oct. B, Nov. B May Oct. B, Nov. B, Dec. B June Nov. B, Dec. B, Jan. D July Dec. B, Jan. D, Feb. D August Jan. D, Feb. D, Mar. D September Feb. D, Mar. D, Apr. D October Mar. D, Apr. D, May D November Apr. D, May D, June D December May D, June D, July D The following definitions of B and D will apply: B = The calendar year before the year in which the scheduled month of delivery as set forth in Article 2.1 occurs.
Appears in 1 contract
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (P) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement)) less the base price of Engines (as defined in this Exhibit D1) in the amount of [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of October, November October and DecemberNovember. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3ICI = The three-month arithmetic average of the released monthly values for the Industrial Commodities Index as set forth in the "Producer Prices and Price Index" (Base Year 1982 = 100) as released by the Bureau of Labor Statistics, U.S. Department of Labor values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to set forth in the month of scheduled delivery of table below for the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in In determining the value of L, the ratio of ECI divided by 130.1 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .65 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. In determining the value of M, the ratio of ICI divided by 123.6 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .35 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. Months to be Utilized Month of Scheduled in Determining the Aircraft Delivery Value of ECI and CPIICI January June B, July B, Aug. B February July B, Aug. B, Sept. B March Aug. B, Sept. B, Oct. B April Sept. B, Oct. B, Nov. B May Oct. B, Nov. B, Dec. B June Nov. B, Dec. B, Jan. D July Dec. B, Jan. D, Feb. D August Jan. D, Feb. D, Mar. D September Feb. D, Mar. D, Apr. D October Mar. D, Apr. D, May D November Apr. D, May D, June D December May D, June D, July D The following definitions of B and D will apply: B = The calendar year before the year in which the scheduled month of delivery as set forth in Article 2.1 occurs.
Appears in 1 contract
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (P) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement)) less the base price of Engines (as defined in this Exhibit D) in the amount of [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for October and November. 1783-10R1 October 27, 1996 Continental Airlines, Inc. 2929 Allen Parkway Houston, Texas 77019 Subject: Xxxxxx Xxxxxxxxx No. 1783-10R1 to Purchase Agreement No. 1783 - Option Aircraft This Letter Agreement amends Purchase Agreement No. 1783 dated March 18, 1993 (the months Purchase Agreement) between THE BOEING COMPANY (Boeing) and CONTINENTAL AIRLINES, INC. (Buyer) relating to Model 757-224 aircraft (Aircraft). This Letter Agreement supersedes and replaces in its entirety Letter Agreement 1783-10. All terms used and not defined herein shall have the same meaning as in the Purchase Agreement. In consideration of October, November and December. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3-month arithmetic average Buyer's purchase of the released monthly values (expressed Aircraft, Boeing hereby agrees to manufacture and sell up to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] to Buyer, on the same terms and conditions set forth in the Purchase Agreement, except as a decimal otherwise described in Attachment A hereto, and rounded subject to the nearest tenth) using the values for the 11th, 12th terms and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of ECI and CPIconditions set forth below.
Appears in 1 contract
Samples: Supplemental Agreement (Continental Airlines Inc /De/)
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (PP)(L + M - 1) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) --- 130.1 M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) ICI --- 123.6 P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement). ) less the base price of Engines (as defined in this Exhibit D-1) in the amount of: [*CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] {Block B "A" Market Aircraft} [*CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] {Block C and Block D "B" Market Aircraft} ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of October, November October and December. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of ECI and CPINovember.
Appears in 1 contract
Samples: Ual Corp /De/
Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Aircraft Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (P) (L + M) - P Where: Pa = Airframe Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement). ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of OctoberOctober and November. AIRFRAME AND ENGINE PRICE ADJUSTMENT between THE BOEING COMPANY and CONTINENTAL AIRLINES, November INC. Exhibit D1 to Purchase Agreement Number 1951 Current Generation Aircraft PRICE ADJUSTMENT DUE TO ECONOMIC FLUCTUATIONS AIRFRAME PRICE ADJUSTMENT (1995 Base Price) Airframe and December. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Engine Price Index (BLS Series ID CUUR0000SA0), calculated as a 3-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values Adjustment for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Current Generation Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of ECI and CPI.
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Formula. Airframe and Optional Features price adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing of this Purchase Agreement and to adjust the amount to be paid by Customer at delivery for the effects of economic fluctuation. The Airframe Aircraft Price Adjustment will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (PP)(L + M - 1) (L + M) - P Where: Pa = Airframe Aircraft Price Adjustment. (For Models 717-200, 737-600, 737-700, 737-800, 737-900, 777-200LR and 777-300ER the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x (ECI ECIb ) where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) --- 116.2 M = .35 x (CPI CPIb) where CPIb is the base year index (as set forth in Table 1 of this Purchase Agreement) ICI --- 115.9 P = Airframe Price plus Optional Features Aircraft Basic Price (as set forth in Table 1 Article 3.2 of this Purchase Agreement). ECI is a = A value determined using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of LaborLabor on a quarterly basis for the months of March, Bureau of Labor Statistics Employment Cost Index Manufacturing – Total Compensation (BLS Series ID ECU12402I)June, September and December, calculated by establishing a as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the values months set forth in the table below for the 11thapplicable Aircraft, 12th and 13th months prior to with the released Employment Cost Index value described above for the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be March also being used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June also used for the months of April, May April and JuneMay; the value released for the third quarter will be September also used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December also used for the months of October, November October and DecemberNovember. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index (BLS Series ID CUUR0000SA0), calculated as a 3ICI = The three-month arithmetic average of the released monthly values for the Industrial Commodities Index as set forth in the "Producer Prices and Price Index" (Base Year 1982 = 100) as released by the Bureau of Labor Statistics, U.S. Department of Labor values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to set forth in the month of scheduled delivery of table below for the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in In determining the value of L, the ratio of ECI divided by 116.2 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .65 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. In determining the value of M, the ratio of ICI divided by 115.9 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .35 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. Months to be Utilized Month of Scheduled in Determining the Aircraft Delivery Value of ECI and CPIICI ------------------ --------------------- January June B, July B, Aug. B February July B, Aug. B, Sept. B March Aug. B, Sept. B, Oct. B April Sept. B, Oct. B, Nov. B May Oct. B, Nov. B, Dec. B June Nov. B, Dec. B, Jan. D July Dec. B, Jan. D, Feb. D August Jan. D, Feb. D, Mar. D September Feb. D, Mar. D, Apr. D October Mar. D, Apr. D, May D November Apr. D, May D, June D December May D, June D, July D The following definitions of B and D will apply: B = The calendar year before the year in which the scheduled month of delivery as set forth in Paragraph 1 occurs.
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