ENGINE ESCALATION. The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for Rolls-Royce plc Trent 1000 series engines and all accessories, equipment and parts provided by the engine manufacturer (Engines). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (P+B)(L + M) - P Where: Pa = Engine Price Adjustment. 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 (ICI ICIb) where ICIb is the base year index (as set forth in Table 1 of this Purchase Agreement) P = Engine Price per Aircraft (as set forth in Table 1 of this Purchase Agreement). B = 0.005 x (N/12) x (P) where N is the number of calendar months which have elapsed from the Airframe Price Base Year and Month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of 0.005 X (N/12) will be rounded to 4 places, and the final value of B will be rounded to the nearest dollar. ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Employment Cost Index for workers in aircraft manufacturing - Wages and Salaries” (ECI code 3721), calculated by establishing a three-month arithmetic average value (expressed as a P.A. No. 2924 D
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ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for Rolls-Royce plc Trent 1000 General Electric Aircraft GENX series engines and all accessories, equipment and parts provided by the engine manufacturer (Engines). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: Pa = (P+B)(L + M) - P Where: Pa = Engine Price Adjustment. 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 (ICI ICIb) where ICIb is the base year index (as set forth in Table 1 of this Purchase Agreement) P = Engine Price per Aircraft (as set forth in Table 1 of this Purchase Agreement). B = 0.005 x (N/12) x (P) where N is the number of calendar months which have elapsed from the Airframe Price Base Year and Month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of 0.005 X (N/12) will be rounded to 4 places, and the final value of B will be rounded to the nearest dollar. ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Employment Cost Index for workers in aircraft manufacturing - Wages and Salaries” (ECI code 3721), calculated by establishing a three-month arithmetic average value (expressed as a P.A. No. 2924 Dby
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