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Alaska Airlines orders
35 Boeing 737-800s
Purchase lays groundwork for growth opportunities ahead
June 15, 2005
Alaska Airlines announced an order for 35 Boeing 737-800 aircraft, with an option to acquire up to 15 more. The order also includes purchase rights for an additional 50 737-800s.
“While we still have work to do on our operational performance, we are beginning to have visibility into a cost structure that will allow us to be profitable in this changed environment,” CEO Bill Ayer said. “This order positions us for growth opportunities ahead.”
“When we embarked on our Alaska 2010 plan two years ago, we envisioned a profitable and growing airline with a competitive cost structure, delivering superior customer value,” Ayer said. “At a time of both internal and external challenge, we can’t lose sight of our long-term goals. We must lay the groundwork for what will move us forward. This order gives us the ability to upgrade our fleet and expand our network in the years ahead.”
Ayer noted that the industry is littered with carriers that didn’t change with the times and became vulnerable. “Just treading water is not an option in this kind of environment. Our efforts to date have put us in a position to not only survive but seize opportunities to grow and strengthen our competitive advantage,” Ayer said.
737-800 ideally suited for Alaska’s growth path
“When the hometown airline chooses the hometown airplane, it’s cause for celebration,” said Alan Mulally, president and CEO of Boeing Commercial Airplanes. “With this order, our Alaska Airlines partner reconfirms the value of the Next-Generation 737 as the airline continues building for success in an increasingly competitive environment.”
Gregg Saretsky, executive vice president of marketing and planning, said the new order of 737-800s will feature a total of 157 seats and a third lavatory in the main cabin, based on flight attendant and customer feedback. The longer range and fuel-saving winglets make the aircraft “ideally suited for many of our markets. The -800 also gives us the ability to fly additional transcontinental routes and increase our seat capacity to better accommodate growing passenger loads on the West Coast,” he said.
Part of Boeing’s “Next Generation” 737 line that includes the -700 and -900, the -800 is the most popular single-aisle airplane and the fastest-selling airplane of all time. In addition to its longer range, it has a cost per available seat mile that is lower than the -700.
While Alaska’s 35-aircraft order is worth $2.3 billion at list price, Brad Tilden, chief financial officer, said Alaska “secured a great deal from Boeing, which will ensure we’re taking delivery of new aircraft at very competitive prices.”
Saretsky said, “Whether as a replacement or growth airplane, the -800 gives us the range, flight-deck technology, fuel economy and passenger-friendly features we need to stay competitive and add new routes in the coming years.”
35 Boeing 737-800s
Purchase lays groundwork for growth opportunities ahead
June 15, 2005
Alaska Airlines announced an order for 35 Boeing 737-800 aircraft, with an option to acquire up to 15 more. The order also includes purchase rights for an additional 50 737-800s.
“While we still have work to do on our operational performance, we are beginning to have visibility into a cost structure that will allow us to be profitable in this changed environment,” CEO Bill Ayer said. “This order positions us for growth opportunities ahead.”
Delivery of the 35 new aircraft will be phased over the next six years, with the first new airplane slated to enter Alaska’s fleet in January 2006. The delivery plan gives Alaska flexibility to expand its fleet by approximately 60 aircraft through 2011 or replace older airplanes with new aircraft without increasing fleet size. The order includes three 737-800s the airline already planned to acquire in 2006.
“When we embarked on our Alaska 2010 plan two years ago, we envisioned a profitable and growing airline with a competitive cost structure, delivering superior customer value,” Ayer said. “At a time of both internal and external challenge, we can’t lose sight of our long-term goals. We must lay the groundwork for what will move us forward. This order gives us the ability to upgrade our fleet and expand our network in the years ahead.”
Ayer noted that the industry is littered with carriers that didn’t change with the times and became vulnerable. “Just treading water is not an option in this kind of environment. Our efforts to date have put us in a position to not only survive but seize opportunities to grow and strengthen our competitive advantage,” Ayer said.
737-800 ideally suited for Alaska’s growth path
“When the hometown airline chooses the hometown airplane, it’s cause for celebration,” said Alan Mulally, president and CEO of Boeing Commercial Airplanes. “With this order, our Alaska Airlines partner reconfirms the value of the Next-Generation 737 as the airline continues building for success in an increasingly competitive environment.”
Gregg Saretsky, executive vice president of marketing and planning, said the new order of 737-800s will feature a total of 157 seats and a third lavatory in the main cabin, based on flight attendant and customer feedback. The longer range and fuel-saving winglets make the aircraft “ideally suited for many of our markets. The -800 also gives us the ability to fly additional transcontinental routes and increase our seat capacity to better accommodate growing passenger loads on the West Coast,” he said.
Part of Boeing’s “Next Generation” 737 line that includes the -700 and -900, the -800 is the most popular single-aisle airplane and the fastest-selling airplane of all time. In addition to its longer range, it has a cost per available seat mile that is lower than the -700.
While Alaska’s 35-aircraft order is worth $2.3 billion at list price, Brad Tilden, chief financial officer, said Alaska “secured a great deal from Boeing, which will ensure we’re taking delivery of new aircraft at very competitive prices.”
Saretsky said, “Whether as a replacement or growth airplane, the -800 gives us the range, flight-deck technology, fuel economy and passenger-friendly features we need to stay competitive and add new routes in the coming years.”
