Aircraft Held for Sale |
12 Months Ended | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||
| Aircraft Held for Sale | AIRCRAFT HELD FOR SALE We classify certain aircraft as held for sale at the time management commits to a plan to sell the aircraft, changes to the planned sale are not likely, the aircraft is actively marketed and available for immediate sale, and the sale is expected to be completed with one year. Pursuant to management’s review of its fleet operations strategy, nine aircraft were reclassified to ‘aircraft held for sale’ during the first quarter of 2015 and eight aircraft were reclassified during the fourth quarter of 2015, at which times such assets are no longer being depreciated or amortized. Aircraft may be classified as held for sale for more than one year as we continue to actively market the aircraft at reasonable prices. As of December 31, 2015, we have fifteen aircraft held for sale. The activity in aircraft held for sale during the year was as follows (in thousands):
In connection with the classification of these aircraft as held for sale, the Company recorded impairment charges totaling $14.9 million to write down the carrying value of the aircraft to their estimated fair value less the costs to sell. These charges are included in impairment of other assets in the consolidated statement of operations for the year ended December 31, 2015. The fair value of aircraft held for sale is considered a level 2 measurement in the fair value hierarchy as the measurement is based on the recent sales and listed prices in the active markets for similar aircraft. |
||||||||||||||||||||||||||||||||