Item 1.01 Entry into a Material De?nitive Agreement.
Amended and Restated Capacity Purchase Agreement
On
• A five-year term, commencingJanuary 1, 2021 -December 31, 2025 , covering 40 aircraft; • Establishes new compensation payable to Mesa during the new term; • Grants American the option in its sole discretion to withdraw up to: (a) 10 aircraft during calendar year 2021, provided that for the 6-month period endingJune 30, 2021 , American may only exercise this right if the number of mainline narrow body aircraft in American's fleet has been reduced by a specified number of aircraft during such period, (b) 5 aircraft during each of calendar years 2022 and 2023, and (c) during the period fromJanuary 1, 2024 toJuly 31, 2024 , American can remove the first 20 aircraft to the extent not otherwise removed in 2021 - 2023, and thereafter they have the right to remove the last 20 aircraft; • Also grants American the right to withdraw a limited number of aircraft in connection with the failure to meet certain performance objectives for the fleet over consecutive monthly periods, or failure to satisfactorily complete established cabin interior program requirements by certain deadlines; and • Provides American with additional termination rights, subject to certain cure periods, including the occurrence of a force majeure event (as defined in the American CPA) that lasts for a specified number of consecutive days (including but not limited to a future epidemic or pandemic), the occurrence of a labor dispute that affects Mesa's ability to operate over a specified number of days, and operating in violation of any existing American collective bargaining agreement.
The foregoing description of the American CPA and the transactions contemplated
thereby does not purport to be complete and is qualified in its entirety by
reference to the full text of the American CPA, which we expect to file as an
exhibit to our Quarterly Report on Form 10-Q for the fiscal quarter ending
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