Alaska Air Could Switch to Airbus....

[Lumber Yak]

Found this on Yahoo Finance today. Flying a side-stick Airbus might be fun... Although I doubt Boeing would allow a Seattle-based airline to fly an all-Airbus fleet.... Looks like a negotiating threat...

What do Alaska pilots think about the possibility of flying an A320 - even if it is remote?


Read below:



Alaska Air says could switch to Airbus from Boeing
Friday January 10, 3:11 pm ET


SEATTLE, Jan 10 (Reuters) - U.S. low-fare carrier Alaska Airlines said on Friday it may swap some of its all-Boeing Co.(NYSE:BA - News) jet fleet for rival Airbus SAS(XETRA:EAD.DE - News; Paris:EAD.PA - News) aircraft for the first time in a bid to cut costs.
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Still several months away from a decision on phasing out its 40 older Boeing 737-200 and MD-80 narrow-body jetliners, Alaska executives are asking for sale and lease prices on Airbus A320 family jets as well as updated 737-800s and -900s.

"Given the financial losses we are experiencing, it's important that we examine every area of our business for potential cost savings and that includes aircraft ownership costs," said Brad Tilden, the airline's chief financial officer, in a prepared statement.

Alaska, the Seattle-based No. 9 U.S. carrier which serves mostly West Coast routes, said it also may buy or lease used aircraft, hundreds of which are idling at desert airstrips as airlines wait out a spectacular decline in air travel demand.

The airline is the latest all-Boeing carrier to consider buying jets from Airbus. The Toulouse, France-based manufacturer last year won a key order for 120 A319s from Britain's EasyJet Plc (London:EZJ.L - News), Europe's largest no-frills airline, which currently flies only Boeing jets.

That deal reportedly came at a 40 percent discount to the $6.2 billion list price and included concessions from Airbus to help offset the cost of operating two aircraft types.

Airlines can save money by operating one aircraft model, which reduces training and maintenance expenses -- a strategy made popular by U.S. low-fare king Southwest Airlines(NYSE:LUV - News).

"We very pleased with the Boeing product and we've been loyal Boeing customers," said Alaska spokesman Jack Walsh. "But the economic conditions demand that we explore all alternatives."

An Airbus spokeswoman in Europe declined to comment and an Airbus North American spokeswoman did not immediately respond to a request for comment.

Boeing, which runs its commercial jet unit from Seattle, a few miles down the road from Alaska's headquarters, has long advocated the single aircraft fleet model and noted that the airline operates 62 additional 737s.

"We value our 50-year relationship with Alaska Airlines and we look forward to working with them in the future," Boeing spokesman Todd Blecher said.

But Alaska's Walsh, while acknowledging the benefits of a standardized fleet, said the airline had not necessarily committed to that strategy.

Alaska has performed better than many large airlines during an epic air travel slump exacerbated by the Sept. 11, 2001 U.S. hijack attacks.

Its parent, Alaska Air Group Inc. (NYSE:ALK - News), posted a $10.6 million profit in the third quarter of 2002. But analysts project the company will lose money in 2003

Alaska Air shares were down 32 cents at $23.46 in Friday afternoon Nasdaq trading, a loss of 1.4 percent.

 

[Bluesuitah]

Airbus advantages

Maybe they can get a sweet deal and not have to pay for the jets either. I hear airbus is giving them away!

 

[KDA or DEATH]

Strategy

They'll (Alaska) play Boeing against Airbus, just like you play car dealers.

Boeing MUST do whatever they need to do to protect their market share, which is eroding rapidly, and MOST LIKELY will meet any Airbus proposal. If not...Well, thats scary stuff!

And, let's just wait to watch and see what happens with the A380 / 747X showdown.... If Airbus plays this right those darn Frogs (and their partners) might just hose Boeing.

Can't happen?

Remember Eastern, Pan AM, TWA, Braniff....United? (doh! Sorry.)

Bigger = NOT always better.....Change with the times or die.

YKW

 

[mar]

Call me cynical, but...

Maybe I'm too cynical but to me it sounds like the 50-year honeymoon is finished with Boeing as the blame game begins over the AS261 crash.

Was it AS mx?

Or MD (Boeing) design?

Let's sue the FAA--that'll make everyone happy, but I think somebody just got kicked out of bed.

 

[dogg]

It's not for any of that. It is to make the aquisition of Frontier and Jet Blue that much easier. With united and usair out of the way, it will give Alaska what it needs, which is a mid-continent base and an east coast base. You have to think big.................

 

[Midnight Mike]

Too bad, Alaska can simply phase out the older 737's & pick up the newer 737's,
phase out the MD80's & pick up additional 737's. Going to an all 737 fleet would
certainly decrease crew training, maintainence cost.

The Airbus adventure sounds as if a potential merger is looming, they can actually
keep the companies separate, mergers are a nightmare for the airlines, as cross
training is required to handle the revised senority list. If it is a merger, Alaska can
always use the Airbus from the other airline (wink, we have an idea who it is) and
have the Airbus cover the routes from the aircrafts that are going to be phased out.

Unless of course we are going to see another Easy Jet deal, where Airbus will cover
the crew training that would be required for the MD80 & 737 classic boys.

Too early, should be interesting to see where this goes.....

 

[Mil-BushPilot]

I am definitely no insider, but Alaska is a VERY conservative company and I just don't think they are in for any type of merger at this point. They are very carefully growing right now, and good on them, I just don't think they would take any unnecessary gambles.

 

[F9 Driver]

I'd trade

animals for Eskamos

Don't underestimate Airbus. They have been fighting hard and winning against Boeing.

 

[mar]

And/Or

C'mon Dogg--spill them beans. You seemed to intimate an acquisition of both Frontier *and* JetBlue. That's pretty ambitious. Maybe one or the other, but both?

Good on Elastic Airlines! I'd love to see them grow but Mil-Bush Pilot is right: they're very conservative.

I just wish they'd decide to buy a DC-6 operation--and why not? They have Douglas experience.

 

[Michael Knight]

Mar,

I believe dogg was talking tongue-in-cheek. It would be pretty tough for Alaska to acquire JetBlue, which has a market cap nearly 3X that of Alaska. I agree that these are two companies that like it their way and I wouldn't speculate that either would want to acquire or merge with the other. Not enough synergy, IMHO.

I agree with the original poster that it is most likely about getting the best price from the only two big airplane dealers around.