Alaska Airlines and Horizon Air 2009 Annual Report Download - page 118

ITEM 2. PROPERTIES
AIRCRAFT
The following tables describe the aircraft we
operate and their average age at December 31,
2009:
Aircraft Type
Passenger
Capacity Owned Leased Total
Average
Age in
Years
Alaska Airlines
Boeing:
737-400 .... 144 3 24 27 14.1
737-400C* . . 72 5 — 5 17.3
737-400F* . . — 1 — 1 10.8
737-700 .... 124 17 2 19 9.1
737-800 .... 157 41 10 51 2.3
737-900 .... 172 12 — 12 7.4
Total ..... 79 36 115 7.5
Horizon Air
Bombardier:
Q400 ...... 76 25 15 40 5.1
CRJ-700 .... 70 2 16 18 7.3
Total ..... 27 31 58 5.8
* C=Combination freighter/passenger; F=Freighter
Part II, Item 7, “Management’s Discussion and
Analysis of Financial Condition and Results of
Operations,” discusses future orders and
options for additional aircraft.
Most of our owned aircraft secure long-term debt
arrangements or collateralize our revolving credit
facility. See further discussion in “Liquidity and
Capital Resouces” on page 44.
Alaska’s leased 737-400, 737-700, and
737-800 aircraft have lease expiration dates
between 2010 and 2016, in 2010, and between
2015 and 2021, respectively. Alaska has four
MD-80 aircraft, one owned and three under long-
term lease arrangements through 2012,
currently in temporary storage. Horizon’s leased
Q400 and CRJ-700 aircraft have expiration dates
in 2018 and between 2018 and 2020,
respectively. Horizon also has 16 leased Q200
aircraft and two leased CRJ-700 aircraft that are
subleased to third-party carriers. 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.
Alaska completed its transition to an all-Boeing
operating fleet during 2008. Horizon’s long-term
goal is to transition to an all-Q400 operating
fleet. As market conditions have hindered the
remarketing efforts on the CRJ-700 aircraft and
as Horizon has successfully deferred future
Q400 deliveries, the fleet transition plan has
been delayed until market conditions improve.
The following table displays the currently
anticipated fleet counts for Alaska and Horizon
as of the end of each quarter in 2010. This plan
assumes that we are able to remarket three
CRJ-700 aircraft in the first half of 2010. Given
current market conditions, there is no assurance
that we will be successful in doing so.
31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10
Alaska Airlines
737-400 .... 24 24 24 23
737-400C* . . 5 5 5 5
737-400F* . . 1 1 1 1
737-700 .... 19 19 18 17
737-800 .... 51 55 55 55
737-900 .... 12 12 12 12
Totals ...... 112 116 115 113
Horizon Air
Q400 ...... 40 40 40 40
CRJ-700 .... 18 15 15 15
Totals ...... 58 55 55 55
* C=Combination freighter/passenger; F=Freighter
GROUND FACILITIES AND SERVICES
Alaska and Horizon lease ticket counters, gates,
cargo and baggage space, office space, and
other support areas at the majority of the
airports they serve. Alaska also owns terminal
buildings in various cities in the state of Alaska.
Alaska has centralized operations in several
buildings located at or near Seattle-Tacoma
International Airport (Sea-Tac) near Seattle,
Wash. These include a five-bay hangar and
shops complex (used primarily for line
maintenance), a flight operations and training
center, an air cargo facility, an information
technology office and datacenter, an office
building, and corporate headquarters complex.
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