Alaska Airlines Gets Rid of Older Jets

Seattle-based Alaska Airlines is going to get rid of its MD-80 aircraft (pictured) to make way for Boeing 737s, a type of aircraft that the airline already has in service. 26 MD-80s are leaving, and 39 Boeing 737-800s are joining the fleet. Delivery is between now and 2008.

Savings will apparently be about $115 million per year as fuel, operating, and maintenance costs plummet. Although the number of aircraft operated by Alaska will only increase by 4, compared to the beginning of the year, its capacity will increase by 18%.

This is a smart move for Alaska. Sure, the company is going to have to go through two pre-tax charges of $130 million to $150 million, but the savings clearly win in the long run. Interesting to note that Alaska, which is a seudo-low cost carrier, is going to simply its fleet to just Boeing 737s - something that competitor Southwest Airlines has always done.

3 comments:

tulsi said...

We are growing with a fuel-efficient, comfortable and reliable airplane (the 737)," Bill Ayer, Alaska's chairman and chief executive, told reporters and analysts in a conference call. The decision eventually will mean more 737 orders for The Boeing Co., though just how many remains to be seen.
------------
Shahama


Alaska Alcohol Addiction Treatment

Smarry said...

The decision eventually will mean more 737 orders for The Boeing Co., though just how many remains to be seen.

___________________
Smarry
More Movies More Fun & Entertainment

Sell Frequent Flyer Miles said...

Frequent flyer miles and credit cards are considered to be the best of the reward type credit cards. Many credit cards offer rewards ranging from money back to free air travel, like frequent flyer credit cards. These cards let you earn free air miles for making purchases on your credit card. This is a good offer for people who travel often. The key is to find the card that offers the best deal.