Item 2. Properties
ITEM 2. PROPERTIES
Flight Equipment
As of September 30, 2022, our aircraft fleet consisted of the following :
Average
Passenger
Flight
Cruising
Average
Aircraft Type
Owned
Leased
Total
Capacity
Range (miles)
Speed (mph)
Age (years)
E-175 Regional Jet
18
62
80
70-76
2,100
530
6.9
CRJ-900 Regional Jet
49
15
64
76-79
1,500
530
16.0
CRJ-700 Regional Jet
8
2
10
50-70
1,600
530
17.5
CRJ-200 Regional Jet
1
—
1
50
1,500
530
28.7
Boeing 737 Cargo Jet
—
3
3
2,600
530
29.0
Total
76
82
158
Several factors impact our fleet size, including contract expirations, lease expirations, growth opportunities and opportunities to transition to an alternative airline partner. Below is a summary of our fleet by aircraft type. Our actual future fleet size and mix of aircraft types will likely vary, and may vary materially, from our current fleet size.
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E-175s – As of September 30, 2022, we operated 60 E-175 and 20 E-175LL aircraft under our United CPA. As part of our amended and restated United CPA, we agreed to extend the term of 42 of our E-175 aircraft (owned by United) for an additional five (5) years which will now expire between 2024 and 2028, subject to United's early termination rights. United also has the right to extend the term of these aircraft for four (4) additional three-year increments. In addition, 18 of the E-175 aircraft (owned by us) operating under our United CPA expire between January 2028 and November 2028, subject to United's early termination rights. In the current period, we added 20 E-175LL aircraft under the United CPA with a term of 12 years. Our United CPA permits United, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the United CPA in its discretion, or remove aircraft from service, by giving us 90 days’ notice.
▪
CRJ-900s – As of September 30, 2022, we operated 42 CRJ-900 aircraft under our American CPA and 11 CRJ-900 aircraft as operational spares. Our American CPA will expire in 2025 unless otherwise extended or amended. Our American CPA is subject to termination prior to that date, subject to our right to cure, in various circumstances. Eleven (11) of these CRJ-900 aircraft have been classified as held for sale during fiscal year 2022.
▪
CRJ-700s – As of September 30, 2022, our fleet included 10 CRJ-700 aircraft. Eight (8) of these CRJ-700 aircraft are classified as assets held for sale, and the remaining two (2) aircraft were leased to a third party.
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CRJ-200s – As of September 30, 2022, our fleet included one (1) CRJ-200 aircraft that has been classified as held for sale during fiscal year 2022.
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Boeing 737 Cargo Jets – As of September 30, 2022, we leased one (1) Boeing 737 aircraft from a third party and subleased two Boeing 737 aircraft from DHL under our DHL FSA. The DHL FSA expires five (5) years from the commencement date of the first aircraft placed into service. The first revenue generating flight took place in October 2020.
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Facilities
In addition to aircraft, we have office and maintenance facilities to support our operations. Each of our facilities are summarized in the following table:
Type
Location
Ownership
Approximate
Square Feet
Corporate Headquarters
Phoenix, Arizona
Leased
33,770
Training Center
Phoenix, Arizona
Leased
23,783
Parts/Stores
Phoenix, Arizona
Leased
12,000
Hangar
Phoenix, Arizona
Leased
22,467
Office, Hangar and Warehouse
El Paso, Texas
Leased
31,292
Office, Hangar
Dallas, Texas
Leased
30,440
Parts Storage
Dallas, Texas
Leased
8,143
Hangar
Houston, Texas
Leased
74,524
Hangar
Louisville, Kentucky
Leased
26,762
Hangar
Dulles, Washington
Leased
28,451
Warehouse
Tucson, Arizona
Leased
10,590
Warehouse, Office
Erlanger, Kentucky
Leased
6,025
We believe our facilities are suitable and adequate for our current and anticipated needs.