American Airlines 2003 Annual Report Download - page 15

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13
Substantially all of the Company’s aircraft leases include an option to purchase the aircraft or to extend the lease
term, or both, with the purchase price or renewal rental to be based essentially on the market value of the aircraft
at the end of the term of the lease or at a predetermined fixed amount.
Ground Properties
The Company leases, or has built as leasehold improvements on leased property: most of its airport and terminal
facilities; its maintenance and training facilities in Fort Worth, Texas; its principal overhaul and maintenance bases
at Tulsa International Airport (Tulsa, Oklahoma), Kansas City International Airport (Kansas City, Missouri) and
Alliance Airport (Fort Worth, Texas); its regional reservation offices; and local ticket and administration offices
throughout the system. American has entered into agreements with the Tulsa Municipal Airport Trust; the Alliance
Airport Authority, Fort Worth, Texas; the New York City Industrial Development Agency; and the Dallas/Fort Worth,
Chicago O'Hare, Newark, San Juan, and Los Angeles airport authorities to provide funds for constructing,
improving and modifying facilities and acquiring equipment which are or will be leased to the Company. The
Company also uses public airports for its flight operations under lease or use arrangements with the municipalities
or governmental agencies owning or controlling them and leases certain other ground equipment for use at its
facilities.
For information concerning the estimated lives and residual values for owned ground properties, lease terms and
amortization relating to ground properties under capital leases, and acquisitions of ground properties, see Notes 1
and 5 to the consolidated financial statements.