Alaska speeds retirement of 10 Airbus A320s

Alaska Airlines will retire 10 of the Airbus A320 aircraft it owns earlier than intended, accelerating its cost-saving transition back to the all-Boeing fleet structure it operated before acquiring Virgin America. The Seattle-based carrier expects an impairment charge for accelerating the retirement of these aircraft after determining “the carrying value was no longer recoverable”, it disclosed on 1 October in a filing to the US Securities and Exchange Commission. Alaska has not disclosed a timetable for its plan to remove the A320s from its fleet, which will cost them an impairment charge because they are being financed. “The charges are expected to range from $115 million to $125 million, but are still subject to finalization,” Alaska states, adding that it will evaluate future options for these aircraft. These 10 owned A320s are each around five years old, Cirium fleets data shows. This means Alaska will likely sell the aircraft rather than scrap them for parts, says Cirium aviation analyst Syed Zaidi. “The reasons aren’t to do with the A320s, it’s just to do with costs,” Zaidi says. “The A320 family is still in demand but there is a natural drop in values during the current climate. These aircraft are so young that they are not going to a second-tier operator.”<br/>