American Airlines 2004 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2004 American Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

13
As part of the Company’s fleet simplification initiative, American has agreed to sell certain aircraft. As of
December 31, 2004, remaining owned aircraft to be delivered under these agreements include three Boeing 767-
200 Extended Range and one Boeing 767-200 aircraft.
AMR Eagle has leased its 10 owned Embraer 145s not operated by the Company to Trans States Airlines, Inc.
The Company is actively marketing its remaining Boeing 767-200 owned non-operating aircraft and does not
anticipate bringing these aircraft back into service.
For information concerning the estimated useful lives and residual values for owned aircraft, lease terms for leased
aircraft and amortization relating to aircraft under capital leases, see Notes 1 and 5 to the consolidated financial
statements.
Lease expirations for the leased aircraft included in the preceding table of operating flight equipment as of
December 31, 2004, are:
Equipment Type 2005 2006 2007 2008 2009
2010
and
Thereafter
American Airlines Aircraft
Airbus A300-600R - - - 3 3 18
Boeing 737-800 -----10
Boeing 757-200 - - 15 9 1 31
Boeing 767-200 Extended Range - - - 2 1 9
Boeing 767-300 Extended Range - 2 - 3 - 8
McDonnell Douglas MD-80 10 - 1 12 6 181
10 2162911257
AMR Eagle Aircraft
Super ATR - 2 ----
Saab 340B/340B Plus 3 11 10 8 - -
31310 8 - -
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.
A very large majority of the Companys owned aircraft are encumbered.
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.