Alaska Airlines and Horizon Air 2007 Annual Report Download - page 122

ITEM 2. PROPERTIES
AIRCRAFT
The following tables describe the aircraft we operate
and their average age at December 31, 2007:
Aircraft Type
Passenger
Capacity Owned Leased Total
Average Age
in Years
Alaska Airlines
Boeing
737-400 ..... 144 3 31 34 12.4
Boeing
737-400C . . . 72 5 — 5 15.3
Boeing
737-400F .... — 1 — 1 8.8
Boeing
737-700 ..... 124 17 3 20 7.0
Boeing
737-800 ..... 157 26 3 29 1.1
Boeing
737-900 ..... 172 12 — 12 5.4
Boeing MD-80 . . 140 — 14 14 15.1
64 51 115 8.3
Horizon Air
Bombardier
Q200 ....... 37 — 16 16 10.2
Bombardier
Q400 ....... 74–76 18 15 33 4.0
Bombardier
CRJ-700 ..... 70 2 19 21 5.5
20 50 70 5.9
Part II, Item 7, “Management’s Discussion and
Analysis of Financial Condition and Results of
Operations,” discusses future orders and
options for additional aircraft.
As of December 31, 2007, 47 of the 64 aircraft
owned by Alaska and five of the 20 aircraft owned
by Horizon are subject to liens securing long-term
debt, and the majority of the other owned Alaska
aircraft serve as collateral for our $185 million
line-of-credit facility. Alaska’s leased 737-400,
737-700, 737-800 and MD-80 aircraft have lease
expiration dates between 2008 and 2016,
between 2009 and 2010, between 2015 and
2018, and between 2008 and 2012, respectively.
Horizon’s leased Q200, Q400 and CRJ-700
aircraft have expiration dates between 2012 and
2014, in 2018, and between 2008 and 2020,
respectively. Alaska and Horizon have the option
to extend most of the leases for additional
periods, or the right to purchase the aircraft at the
end of the lease term, usually at the then-fair-
market value of the aircraft.
In 2006, Alaska announced a plan to transition
to an all-Boeing 737 fleet by the end of 2008,
which includes the accelerated retirement of our
MD-80 fleet. In 2007, Horizon announced its
plan to transition out of the Q200 aircraft by the
end of 2009 and replace them with larger Q400
aircraft. Giving consideration to these fleet
transition plans, the following table displays the
currently anticipated fleet counts for Alaska and
Horizon as of the end of each quarter in 2008:
31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08
Alaska Airlines
MD80 ......... 9 7 4 —
737-400 ....... 34 34 34 32
737-400F** .... 1 1 1 1
737-400C** . . . 5 5 5 5
737-700 ....... 20 20 20 20
737-800* ...... 33 36 41 46
737-900 ....... 12 12 12 12
Totals ......... 114 115 117 116
Horizon Air
Q200 ......... 13 12 12 10
Q400 ......... 33 33 33 36
CRJ-700 ....... 20 20 20 20
Totals ......... 66 65 65 66
* The total includes one additional leased aircraft in 2008.
** F=Freighter; C=Combination freighter/passenger
Although the number of aircraft in our operating
fleet at the end of each period presented
remains relatively consistent, it is important to
note that the larger B737-800s and the Q400s
are replacing the smaller-gauge MD-80s and
Q200s. Therefore, our total capacity, as
measured by available seat miles, will increase
even though the number of aircraft remains
consistent.
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