Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Horizon adopting all-CPA business model

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

onewithwings

Well-known member
Joined
Jun 3, 2006
Posts
776
Starting Jan. 1, Horizon Air will change to an all-CPA (capacity purchase agreement) business model, gaining a stable and predictable revenue source insulated from marketplace risks. Our simpler operating model will focus on providing safe, reliable, cost-effective capacity to Alaska Airlines at a market-based price.

"I've been sharing with everyone these past weeks that it's been clear for a while that Horizon's business model no longer worked, as is evident from the financial results," President Glenn Johnson says. "We needed to find a way to move financial performance into the 'win' column alongside all of our other successes, such as safety, reliability and customer satisfaction. I'm now convinced shifting to an all-CPA model will do that and help us achieve our 10 percent ROIC [return on invested capital] target. And it will let us focus on what we are best at – operating a safe and reliable airline while providing top-notch customer service in the air and on the ground."

Horizon will remain an airline separate from Alaska and operate under a separate operating certificate, so Alaska will still be obligated by regulations to clearly disclose to customers that Horizon is the operating carrier for flights designated with the AS code. But from an internal financial viewpoint, the flying will be accounted for differently, aligning with how other regional airlines are compensated by their major airline partners. Alaska will determine where, when, and how much Horizon will fly, and buy all the needed capacity under the CPA. Horizon will no longer be financially at risk for filling seats to raise revenue; our focus will be on providing our service as cost effectively as possible.

"This is the road to growth for Horizon, where we all ultimately want to be," Johnson says. "Once we have brought our cost structure in line with market and are clearly on a path toward our ROIC goal, we'll be better positioned to make the case for obtaining more aircraft in order to do more CPA flying for Alaska and potentially other airlines."
 
Expect to be bidding against SKYW.
I hate this business.
PBR
 
Have you ever thought about quiting?
No Joe,
I haven't thought about quilting. I will say every time I read one of your posts, I hope and pray you are " one of a kind", and I think you are an extreme example of the stereotypical pathetic regional lifer. Unlike you, I have higher aspirations than flying a regional jet to Fargo every winter, I am waiting for the next opportunity, and when it presents, I will gladly quit.
PBR
P.S. Quilting is ghay, but you know that.
 
No Joe,
I haven't thought about quilting. I will say every time I read one of your posts, I hope and pray you are " one of a kind", and I think you are an extreme example of the stereotypical pathetic regional lifer. Unlike you, I have higher aspirations than flying a regional jet to Fargo every winter, I am waiting for the next opportunity, and when it presents, I will gladly quit.
PBR
P.S. Quilting is ghay, but you know that.

Well said. I hope you move on (before the CRJ-200s go away) and find a better paying job and QOL eventually. Joe Merchant loves Monroe, Dothan, and Fayettville, and has no aspirations to go anywhere he currently doesn't already know all of the ATC freqs by memory. It scares him to go somewhere new. Expand your wings and see something new when you can. Good luck to you.


Bye Bye--General Lee
 
Just watch.. In a couple of years, AS management is going to come by and say that Horizon is too expensive, etc etc etc etc. Next thing you know, they are throen to the curb.

QX has a HUGE following here on the west coast, and can survive on it's own.
 
Just my opinion...

I've only ridden on Horizon a handful of times, but I think they have the best "regional" product. It beats most "mainline".

You all are a great group (crewmembers, that is).

Wish the best for all of you.
 

Latest resources

Back
Top