Alaska Airlines and Horizon Air 2013 Annual Report Download - page 109

ITEM 2. PROPERTIES
AIRCRAFT
The following table describes the aircraft we
operate and their average age at December 31,
2013:
Aircraft Type Seats Owned Leased Total
Average
Age in
Years
B737 Freighters &
Combis ....... 0/72 6 — 6 20.2
B737-400/700 . . 144/124 17 22 39 16.1
B737-800/900/
900ER .......157/172/181* 76 10 86 5.8
B737
Passenger
Aircraft ..... 93 32 125 9.0
Total
Mainline
Fleet ..... 99 32 131 9.5
Q400 .......... 76 36 15 51 7.1
Total ......... 135 47 182 8.8
*The number of seats for -800’s and -900’s indicate seats prior to
the cabin upgrade project. For the -800’s and -900’s that have
completed the cabin upgrade project with the Recaro seats, the
number of seats will increase to 163 and 181, respectively.
“Management’s Discussion and Analysis of
Financial Condition and Results of Operations”
discusses future orders and options for
additional aircraft.
Thirteen of our owned aircraft secure long-term
debt arrangements or collateralize our revolving
credit facility. See further discussion in “Liquidity
and Capital Resources.”
Alaska’s leased B737 aircraft have lease
expiration dates between 2014 and 2021.
Horizon’s leased Q400 aircraft have expiration
dates in 2018. Horizon also has 2 owned and 14
leased CRJ-700 aircraft, of which 13 are
subleased to third-party carriers. The head
leases on the 14 leased CRJ-700 aircraft have
expiration dates between 2018 and 2020.
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.
GROUND FACILITIES AND SERVICES
Alaska and Horizon lease ticket counters, gates,
cargo and baggage space, ground equipment,
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 owns several buildings located at or near
Seattle-Tacoma International Airport (Sea-Tac)
near Seattle, WA. These include a multi-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,
and various other commercial office buildings,
including its Seattle corporate headquarters
complex. Alaska also leases a stores warehouse
and additional office space in Kent, WA for its
call center functions. Alaska’s major facilities
outside of Seattle include a regional
headquarters building, an air cargo facility and a
hangar/office facility in Anchorage, AK, as well
as leased call center facilities in Phoenix, AZ and
Boise, ID. Alaska uses its own employees for
ground handling services at most of its airports
in the state of Alaska. At other airports
throughout its system, those services are
contracted to various third-party vendors.
Horizon owns its Seattle corporate headquarters
building. It leases operations, training, and
aircraft maintenance facilities in Portland and
Spokane, as well as line maintenance stations in
Boise, Bellingham, Eugene, San Jose, Medford,
Redmond, Seattle, and Spokane.
ITEM 3. LEGAL PROCEEDINGS
We are a party to routine litigation matters
incidental to our business. Management believes
the ultimate disposition of these matters is not
likely to materially affect our financial position or
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ŠForm 10-K