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Alaska Air and jetBlue work toward key fleet decisions; Airbus and Embraer await the outcome

Analysis

The two major low cost, higher frills airlines in the US - Alaska Air Group and jetBlue Airways - are both in the process of fleet reviews, aiming to strike the right balance of flexibility for the future. Each airline is also working to create the right mix of owned versus leased aircraft in order to achieve favourable levels of unencumbered aircraft in their respective fleets.

The most high profile decision for Alaska is the ultimate fate of the Airbus narrowbody fleet and order book it inherited with its acquisition of Virgin America. For now, Alaska seems focused on more pressing merger related issues, stressing the first lease for Virgin America's A321 narrowbodies does not expire until 2019.

JetBlue is undertaking heavy scrutiny of its subfleet of 100-seat Embraer 190 jets, while also evaluating optioning the Airbus A321LR for potential trans-Atlantic expansion, against the backdrop of working to achieve ambitious cost reductions by a self-imposed deadline of 2020.

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