Property and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment Disclosure [Text Block]

PROPERTY AND EQUIPMENT

At June 30, 2011, the Company’s subsidiaries owned or leased under capital leases 61 aircraft in serviceable condition, consisting of 19 Boeing 767-200 aircraft leased to external customers and 42 aircraft operated by the Company's airlines. These 42 aircraft consist of 14 Boeing 767-200, one Boeing 767-300, two Boeing 757, 11 Boeing 727, and 14 McDonnell Douglas DC-8. Additionally, as of June 30, 2011, the Company had four Boeing 767-200 aircraft and one Boeing 767-300 aircraft undergoing modification to standard freighter configuration. Also, at June 30, 2011, the Company had two other Boeing 767-300 and one Boeing 757 aircraft which are expected to enter into the freighter modification process in 2011. The combined carrying value of aircraft in modification or scheduled to undergo modification was $99.1 million at June 30, 2011.

Property and equipment, to be held and used, consisted of the following (in thousands):



	June 30, 2011			December 31, 2010
Aircraft and flight equipment	$	1,029,223		$	928,784
Support equipment	51,202			50,424
Vehicles and other equipment	1,531			1,604
Leasehold improvements	714			714
	1,082,670			981,526
Accumulated depreciation	(354,640		)	(322,770		)
Property and equipment, net	$	728,030		$	658,756

Aircraft and flight equipment includes $13.6 million of property held under capital leases as of June 30, 2011 and $22.2 million as of December 31, 2010. Accumulated depreciation and amortization includes $7.7 million as of June 30, 2011 and $10.8 million as of December 31, 2010 for property held under capital leases. CAM owned aircraft with a carrying value of $294.4 million and $263.2 million that were under leases to external customers as of June 30, 2011 and December 31, 2010, respectively.

At June 30, 2011, ACMI Services had four DC-8 airframes and one Boeing 727 airframe with a combined carrying value of $1.1 million, whose engines and rotables were being used for other aircraft in the Company's fleets.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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