Category Archives: Alaska Horizon

Alaska Airlines launches Embraer 175 jet service in the state of Alaska

Alaska Airlines added jet service on the Embraer 175 aircraft in the state of Alaska on October 18, 2020. The E175, operated by regional partner Horizon Air, now serves select markets in Alaska.

With the reduction of air service in Alaska earlier this year, the E175 jet gives Alaska Airlines the flexibility to increase daily frequency between Anchorage and Fairbanks, and to provide year-round service to King Salmon and Dillingham.

Photo: Alaska Airlines.

 

Alaska Airlines adds the Embraer 175 jet to state of Alaska flying

Alaska Airlines will start flying the Embraer 175 jet aircraft in the state of Alaska starting in October 2020. The E175, operated by regional partner Horizon Air, will serve select markets in Alaska.

“Alaskans who have flown the E175 jet in the Lower 48 have frequently asked when they might see the plane in the state, and we’re thrilled the time has come,” said Marilyn Romano, regional vice president. “This jet gives us the flexibility to increase daily frequency between Anchorage and Fairbanks up to seven times a day, and to provide year-round service to King Salmon and Dillingham. In time, the new mix of aircraft will unlock other markets in the state for future service.”

The E175 aircraft compliments the current Boeing 737 mainline flying in, to and from the state of Alaska and is perfect for many communities where larger jets are not the best option.

With no middle seats, the regional jet is configured with 12 seats in first class, 12 in premium class and 52 in the main cabin. Onboard amenities include Wi-Fi access, and Alaska Beyond Entertainment, which includes free movies and TV shows direct to customer devices and power outlets in first class.

“This has been an especially challenging time for Alaskans with the pandemic and reduction of air service hitting residents hard,” said Romano. “We’ve served the unique needs of the Great Land for 88 years and introducing a new aircraft to our in-state fleet supports additional flying and keeps Alaskans connected within the state and beyond.”

Alaska Airlines recently added Boeing 737 service to Cold Bay, and started service one month early to King Salmon and Dillingham. Alaska Air Cargo also began serving Unalakleet earlier this month with our 737-700 freighters.

Video:

Alaska Horizon aircraft photo gallery:

Alaska Airlines and Horizon Air announce receipt of payroll support program funds under CARES Act

Alaska Airlines and Horizon Air finalized agreements today with the U.S. Treasury Department and accepted full disbursement of funds through the Payroll Support Program (PSP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act, subject to terms that were previously disclosed.

Alaska and Horizon have received $992 million in the form of a $725 million grant and $267 millionloan, to be used exclusively toward continuing to pay employee salaries, wages and benefits. The funding will cover about 70% of budgeted payroll costs for both airlines through Sept. 30, 2020, and was based on similar costs reported by the airlines for the period of April through September 2019.

“We’re extremely grateful for the leadership of all federal government officials involved in enabling this direct support for aviation employees during this time of significantly suppressed demand and near-zero revenue,” said Brad Tilden, Alaska Air Group’s Chairman and CEO. “This support enables us to protect jobs and maintain critical transportation infrastructure while we work over the next few months to assess our business and make thoughtful decisions.”

Of the $992 million in PSP funding, $267 million is in the form of a loan and must be repaid to the government within a 10-year term. Additionally, the Treasury Department has received warrants to buy 847,000 non-voting shares of Alaska Air Group common stock at a price of $31.61 a share, which was the closing price of the stock on April 9, 2020.

Under this program, Alaska and Horizon have agreed to additional conditions such as no involuntary furloughs and no reductions to rates of pay or benefits through Sept. 30, 2020; to continue suspension of dividends and share repurchases until Sept. 30, 2021; limits on executive compensation through March 24, 2022; and to maintain the minimum levels of air service as required under a Department of Transportation rule.

Alaska and Horizon have separately applied for $1.1 billion in federal loan funding through a separate program authorized under the CARES Act. Funds loaned to both airlines through this program will support short-term liquidity needs and must be paid back in full. If finalized, the term of the secured term loan agreement would be five years, and provide for the Treasury Department to receive warrants to buy additional non-voting shares of Alaska Air Group common stock amounting to 10% of the loan value at a price of $31.61 a share. Discussions with the Treasury Department on this loan are still ongoing.

Alaska Airlines aircraft photo gallery (Boeing):

Alaska Airlines announces additional service from Monterey to San Diego

Alaska Airlines today announced a second nonstop flight between Monterey Regional Airport and San Diego, California beginning on September 9, 2020. The new flight will be in addition to the existing service Alaska provides between the two markets.

The new flight begins operation on September 9, 2020 and compliments the airlines existing daily flight between Monterey and San Diego. The flight will leave San Diego at 4:30 pm and will arrive Monterey at 5:58 pm. The flight to San Diego will leave Monterey at 6:40pm arriving San Diego at 8:03 pm.

The all-jet service between San Diego and Monterey will be provided by Alaska’s sister carrier, Horizon Air, flying the Embraer 175 aircraft featuring first class and premium class cabins. On the E175, every seat is either a window or an aisle seat, there are no middle seats. Guests will enjoy Wi-Fi connectivity, hundreds of free movies and TV shows that can be streamed on personal devices and free texting while onboard. It’s all part of Alaska’s award-winning service and focus on offering low fares and great value to our guests.

Alaska Horizon aircraft photo gallery:

Alaska to add Paine Field – Boise service

Alaska Airlines meanwhile will add new daily Everett (Paine Field) – Boise service on June 18, 2020.

The new route will be operated by Alaska Horizon.

Alaska Horizon aircraft photo gallery:

Current Alaska routes from PAE:

Alaska Airlines to launch daily nonstop service between Seattle/Tacoma and Monterey, California

Alaska Airlines announced today it will begin daily nonstop service between Seattle-Tacoma International Airport and Monterey Regional Airport (MRY) in central California, further solidifying Alaska as the number one airline between the Pacific Northwest and the Bay Area. The new, year-round service is scheduled to begin June 18, and it will be the only nonstop flight offered between the two cities.

Alaska remains committed to offering the most nonstop flights from Sea-Tac, with Monterey becoming the 92nd nonstop destination this summer.

Alaska currently offers nonstop jet service between San Diego and Monterey. So, in addition to flyers along the Central Coast traveling south to sunny San Diego, they’ll soon be able to head north to the spectacular scenery of the Pacific Northwest.

The all-jet service between Seattle and Monterey will be provided by Alaska’s sister carrier, Horizon Air, flying the Embraer 175 aircraft featuring first class and premium class cabins. On the E175, every seat is either a window or aisle – there are no middle seats. Guests will enjoy Wi-Fi connectivity, hundreds of free movies and TV shows that can be streamed on personal devices and free texting while onboard. It’s all part of Alaska’s award-winning service and focus on offering low fares and great value to our guests.

 

Alaska Airlines expands West Coast service between Pacific Northwest and California

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N400SY (msn 17000732) SNA (Michael B. Ing). Image: 947332.

Alaska Airlines has reaffirmed its commitment to the West Coast with new, nonstop service from the Pacific Northwest and the state of Alaska in the north, and from San Francisco, Los Angeles and San Diego in the south.

Starting in early January, guests will be able to travel eight new routes:

  • Spokane to Los Angeles (two daily departures)
  • Spokane to San Francisco (two daily departures)
  • Redmond / Bend, Oregon to Los Angeles
  • Redmond / Bend, Oregon to San Diego
  • Redmond / Bend, Oregon to San Francisco
  • Boise to Los Angeles (two daily departures)
  • Missoula, Montana to Los Angeles
  • Anchorage to San Francisco

New Spokane service:

Start Date Destination Departs Arrives Frequency Aircraft
Jan. 7 Spokane-Los Angeles 7:00 a.m. 9:40 a.m. Daily E175
Jan. 7 Spokane-Los Angeles 4:40 p.m. 7:20 p.m. Daily E175
Jan. 7 Los Angeles-Spokane 9:30 a.m. 12:10 p.m. Daily E175
Jan. 7 Los Angeles-Spokane 8:05 p.m. 10:45 p.m. Daily E175
March 19 Spokane-San Francisco 7:00 a.m. 9:28 a.m. Daily E175
March 19 Spokane-San Francisco 4:20 p.m. 5:49 p.m. Daily E175
March 19 San Francisco-Spokane 9:00 a.m. 11:12 a.m. Daily E175
March 19 San Francisco-Spokane 7:35 p.m. 9:47 p.m. Daily E175

New Redmond / Bend service:

Start Date Destination Departs Arrives Frequency Aircraft
Jan. 7 Redmond / Bend-

Los Angeles

6:00 p.m. 8:50 p.m. Daily E175
Jan. 7 Los Angeles-

Redmond / Bend

8:00 a.m. 10:39 p.m. Daily E175
March 19 Redmond / Bend-

San Diego

11:40 a.m. 2:08 p.m. Daily E175
March 19 San Diego-

Redmond / Bend

2:50 p.m. 5:19 p.m. Daily E175
March 19 Redmond / Bend-

San Francisco

7:00 a.m. 8:38 a.m. Daily E175
March 19 San Francisco-

Redmond / Bend

 6:35 p.m. 8:14 p.m. Daily E175

New Boise service:

Start Date Destination Departs Arrives Frequency Aircraft
March 19 Boise-Los Angeles 7:45 a.m. 8:58 a.m. Daily E175
March 19 Boise-Los Angeles 4:30 p.m. 5:45 p.m. Daily E175
March 19 Los Angeles-Boise 8:30 a.m. 11:33 a.m. Daily E175
March 19 Los Angeles-Boise 7:55 p.m. 10:58 p.m. Daily E175

New Missoula service:

Start Date Destination Departs Arrives Frequency Aircraft
March 19 Missoula-Los Angeles 7:00 p.m. 8:59 p.m. Daily E175
March 19 Los Angeles-Missoula 2:45 p.m. 6:24 p.m. Daily E175

New Anchorage service:

Start Date Destination Departs Arrives Frequency Aircraft
April 21 Anchorage-

San Francisco

11:45 a.m. 5:25 p.m. Daily 737
April 21 San Francisco-
Anchorage
9:45 a.m. 1:30 p.m. Daily 737

Alaska is also increasing the frequency of flights between certain markets:

  • Beginning January 7, there will be an additional flight between San Francisco and Orange County, California, for a total of seven daily nonstops. On March 19, there will be the addition of a second daily flight between San Francisco and Chicago O’Hare.
  • On January 7, the flight between San Diego and Orlando, which is currently flown five times a week, becomes daily nonstop service. Starting March 19, second daily flights will begin between San Diego and Boise, and San Diego and Santa Rosa, California. Also on March 19, nonstop service between San Diego and San Jose, California, increases from four to six flights daily. On May 21, a second daily flight between San Diego and Boston goes into service.

A majority of the new routes will be served by the Embraer 175 jet, an aircraft with only window and aisle seating – no middle seats. On all of the new routes, guests will enjoy award-winning service in a three-class cabin that includes First Class and Premium Class; a fresh, seasonal food and beverage menu; Most Free Movies in the Sky with hundreds of movies and TV shows available for viewing on personal devices; free texting on most flights; and Wi-Fi connectivity for purchase.

Alaska Airlines and its regional partners fly 46 million guests a year to more than 115 destinations with an average of 1,200 daily flights across the United States and to Mexico, Canada and Costa Rica.

Top Copyright Photo: Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N400SY (msn 17000732) SNA (Michael B. Ing). Image: 947332.

Alaska SkyWest aircraft photo gallery:

Current routes flown by SkyWest Airlines for Alaska Airlines:

Alaska Airlines announces new service between Paine Field and Spokane

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N629QX (msn 17000683) PAE (Nick Dean). Image: 947300.

Alaska Airlines announced today it will launch daily nonstop service between Spokane International Airport and Paine Field-Snohomish County Airport in Everett on November 4.

 

Spokane becomes the 10th destination served by Alaska at the new terminal in Everett.

Effective Date City Pair Departs Arrives Frequency Aircraft
Nov. 4, 2019 Everett-Spokane 7:55 p.m. 9:10 p.m. Daily E175
Nov. 5, 2019 Spokane-Everett 7:40 a.m. 8:55 a.m. Daily E175

Alaska started commercial service at Paine Field on March 4, 2019. In that short time, flying in and out of Everett has become a popular, convenient option for many travelers, especially those who live north of Seattle who don’t want to drive to Sea-Tac Airport. As of late July, nearly 300,000 guests have flown Alaska’s flights at Paine Field.

All Alaska flights at Paine Field are operated by Horizon Air with jet service using the Embraer 175 aircraft, which features a three-class cabin. From Paine Field, guests can currently fly to eight destinations: Las Vegas; Los Angeles; Orange County, California; Phoenix; Portland, Oregon; San Diego; San Francisco; and San Jose, California.

Top Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N629QX (msn 17000683) PAE (Nick Dean). Image: 947300.

Alaska Horizon aircraft slide show:

Alaska Air Group returns two Q400 to service due to the 737 MAX 9 delays

Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N447QX (msn 4364) SEA (Michael B. Ing). Image: 947263.

The Alaska Air Group has announced in its filing that two of the three Boeing 737-MAX 9 aircraft that were originally scheduled for delivery in 2019 have been shifted to 2020 in light of the recent MAX grounding, based on the best estimate of the expected delivery dates.

Two Bombardier Q400 aircraft (above) that were previously removed from the operating fleet will be returning to revenue service. The expect changes are expected to occur in late 2019.

The Group also updated and outlined its fleet plans in the filing below:

The Alaska Air Groups, Inc. quarterly report to the United States Securities and Exchange Commission:

At June 30, 2019, the Company had operating leases for 10 Boeing 737 (B737), 62 Airbus, and 9 Bombardier Q400 aircraft. Additionally, the Company operates 32 Embraer 175 (E175) aircraft through its capacity purchase arrangement with SkyWest Airlines, Inc. (SkyWest). Remaining lease terms for these aircraft extend up to 12 years, with options to extend, subject to negotiation at the end of the term. As extension is not certain, and rates are highly likely to be renegotiated, the extended term is only capitalized when it is reasonably determinable. While aircraft rent is primarily fixed, certain leases contain rental adjustments throughout the lease term which would be recognized as variable expense as incurred. Variable lease expense for aircraft was $1 million and $2 million for the three and six months ended June 30, 2019, respectively.

Capacity purchase agreements with aircraft (CPA aircraft)

At June 30, 2019, Alaska had CPAs with three carriers, including the Company’s wholly-owned subsidiary, Horizon. Horizon sells 100% of its capacity under a CPA with Alaska. Alaska also has CPAs with SkyWest to fly certain routes in the Lower 48 and Canada, and with Peninsula Aviation Services, Inc., (PenAir) to fly certain routes in the state of Alaska. Under these agreements, Alaska pays the carriers an amount which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services. As Horizon is a wholly-owned subsidiary, intercompany leases between Alaska and Horizon have not been recognized under the standard. The agreement with PenAir does not contain a leasing arrangement, resulting in no asset or liability recognized.

Remaining lease terms for CPA aircraft range from 8 years to 11 years. Financial arrangements of the CPAs include a fixed component, representing the costs to operate each aircraft and is capitalized under the new lease accounting standard. CPAs also include variable rent based on actual levels of flying, which is expensed as incurred. Variable lease expense for CPA aircraft for the three and six months ended June 30, 2019 was not material.

As of June 30, 2019, the Company has one scheduled lease delivery of an A321neo aircraft remaining in 2019, valued at $52 million. We also had three scheduled lease deliveries of E175 aircraft in 2021 to be operated by SkyWest. Subsequent to June 30, 2019, the Company canceled these aircraft deliveries through an amendment to the capacity purchase agreement. All future lease contracts have remaining non-cancelable lease terms ranging from 2019 to 2033.

Aircraft purchase commitments include non-cancelable contractual commitments for aircraft and engines.

As of June 30, 2019, the Company had commitments to purchase 32 Boeing 737 MAX 9 aircraft, with deliveries in the remainder of 2019 through 2023. Future minimum contractual payments for these aircraft have been updated to reflect the most current anticipated delivery timing for Boeing 737 MAX 9 aircraft, which has been delayed as a result of the grounding order mandated by the FAA on March 13, 2019.

The Company also has commitments to purchase five E175 aircraft with deliveries in the remainder of 2019 through 2021 and has cancelable purchase commitments for 30 Airbus A320neo aircraft with deliveries from 2023 through 2025. In addition, the Company has options to purchase 37 B737 MAX aircraft from 2021 through 2024 and 30 E175 aircraft from 2021 through 2023. The Company also has the option to increase capacity flown by SkyWest with eight additional E175 aircraft with deliveries from 2021 to 2022.

Aircraft Commitments

As of June 30, 2019, we have firm orders to purchase or lease 41 aircraft. We also have cancelable purchase commitments for 30 Airbus A320neo with deliveries from 2023 through 2025. We could incur a loss of pre-delivery payments and credits as a cancellation fee. We also have options to acquire 37 B737 aircraft with deliveries from 2021 through 2024 and 30 E175 aircraft with deliveries from 2021 through 2023. In addition to the 32 E175 aircraft currently operated by SkyWest in our regional fleet, we have options in future periods to add regional capacity by E175 aircraft.

The following table summarizes expected fleet activity by year as of June 30, 2019, and are subject to change:

Top Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N447QX (msn 4364) SEA (Michael B. Ing). Image: 947263.

Alaska Horizon aircraft slide show:


Alaska Airlines adds a new destination from Everett

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N620QX (msn 17000640) PAE (Nick Dean). Image: 946631.

Alaska Airlines is adding a new route from Paine Field in Everett, WA. A new route from PAE to Palm Springs will be launched on November 5, 2019.

All Alaska flights at Paine Field are operated by Horizon Air with jet service using the Embraer 175 aircraft, which features a three-class cabin.

From Paine Field, guests can currently fly to eight destinations: Las Vegas; Los Angeles; Orange County, California; Phoenix; Portland, Oregon; San Diego; San Francisco; and San Jose, California.

Top Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N620QX (msn 17000640) PAE (Nick Dean). Image: 946631.

Alaska Horizon aircraft slide show: