Category Archives: Alaska Horizon

Alaska Airlines to take another look at flying to Everett after Snohomish County approves a Paine Field terminal

Alaska Airlines (Seattle/Tacoma) is taking another look at possibly serving Paine Field near Everett, Washington (north of Seattle) after the Snohomish County council approved the construction of a passenger terminal. Paine Field is also the home of Boeing’s 747/777/787 assembly plant.

The Snohomish County Council has approved a two-gate passenger terminal at PAE. The building will be leased to Propeller Airports (New York). The facility once built, could handle up to 23 flights a day according to KING 5.

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Meanwhile Alaska Airlines is now taking a new look at PAE for possible service probably by Horizon Air (Alaska Horizon) following this vote according to Puget Sound Business Journal.

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Copyright Photo: Michael B. Ing/AirlinersGallery.com. Horizon Air (Alaska Horizon) Bombardier DHC-8-402 (Q400) N452QX (msn 4459) taxies to the runway at Seattle-Tacoma International Airport (SEA) in the special “Employee Powered” livery featuring the signatures of employees.

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Alaska Air Group to reward its employees with a 9%+ bonus

Alaska Air Group (Alaska Airlines and Horizon Air) (Seattle/Tacoma) had a good financial year in 2014. The group is now rewarding its employees and has issued this statement:

Employees at Alaska Airlines and Horizon Air are receiving annual bonuses today of more than 9 percent of their annual pay, or more than five weeks’ pay for most workers. The bonus is in addition to the approximately $1,000 in 2014 monthly bonuses that most employees earned for achieving on-time and customer satisfaction goals.

The combined monthly and annual bonuses amounted to nearly $116 million, the highest in Alaska’s history, and are part of the company’s incentive-based pay program.

“We’re really excited to reward our employees for all the great work they’ve done this year,” said Tammy Young, Alaska Airlines’ vice president of human resources. “This is the sixth year in a row Alaska and Horizon employees have exceeded their payout targets for performance-based pay.”

Nearly $51 million in annual bonuses โ€” 55 percent of the total โ€” is being paid to nearly 6,000 Alaska and Horizon employees in the Puget Sound area. Another $12 million is being paid to 2,122 employees in the Portland, Oregon, area, while $9 million is going to workers throughout the state of Alaska.

Bonuses in Alaska Air Group’s Performance Based Pay Plan are determined by meeting specific company-wide goals for safety, customer satisfaction, cost control and profit that are approved annually by the board of directors. Since the inception of the program in 2003, Alaska has paid employees $624 million in combined incentive-based pay and monthly bonuses.

As part of its philosophy to provide employees with rewarding careers and good retirement benefits, Alaska Air Group has contributed $620 million over the past 6 years to its defined benefit pension plans, which were fully funded in 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 ER N469AS (msn 41702) prepares to land in Anchorage.

Alaska Airlines aircraft slide show:

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Horizon Air converts two Bombardier Q400 options into firm orders

Horizon Air Industries, Inc. (Horizon Air) (Alaska Horizon) (Seattle/Tacoma) has converted two of seven previously acquired Bombardier DHC-8-402 (marketed as the Q400 NextGen) aircraft options to firm orders. The airline retains its options on another five Q400 NextGen aircraft. Horizon Air and its sister carrier, Alaska Airlines are subsidiaries of Alaska Air Group.

Horizon Airโ€™s Q400 aircraft are equipped with Head-up Guidance Systems (HGS) for all-weather operations, Wide Area Augmentation Systems (WAAS) with approach guidance (LPV) for ILS-like landing minima at remote runways and RNP AR 0.1 to fly curved approaches to airports in difficult terrain.

Established in 1981, Horizon Air was acquired in 1986 by Alaska Air Group, Inc., the parent company of Alaska Airlines. At its start, the airline operated two aircraft and served three destinations in Washington state. Today, Horizon flies its 76-seat Q400 aircraft on behalf of Alaska Airlines and serves 43 cities in the western United States, Canada and Mexico. Horizon Air, which is also a codeshare partner of American Airlines and Delta Air Lines, operates both the longest (Seattle to Fresno, 748 miles/1,204 km) and shortest (Pullman to Lewiston, 26 miles/42 km) turboprop routes currently being served by regional carriers in the U.S.

In 2014, Bombardier and Horizon Air signed a five-year heavy maintenance agreement whereby Bombardier will perform heavy maintenance tasks for the airlineโ€™s fleet of Q400 aircraft at Bombardierโ€™s service center in Tuscon, Arizona.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N448QX (msn 4409) arrives in Anchorage, Alaska.

Alaska Horizon aircraft slide show:

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Alaska Air Group reports 4Q GAAP net income of $148 million and $605 million for 2014, its best quarter/year ever

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2014 GAAP net income of $148 million, or $1.11 per diluted share, compared to GAAP net income of $78 million, or $0.56 per diluted share in 2013. Excluding mark-to-market fuel hedge gains of $6 million ($4 million after tax, or $0.03 per diluted share), a benefit related to the curtailment of certain postretirement benefit plans and a one-time gain associated with the settlement of a legal matter for $30 million in aggregate ($19 million after tax, or $0.14 per diluted share), the company reported record fourth quarter 2014 net income of $125 million, or $0.94 per diluted share, compared to net income, excluding mark-to-market fuel hedge gains, of $77 million, or $0.55 per diluted share, in 2013.

The company reported full-year 2014 GAAP net income of $605 million, compared to $508 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $571 million, or $4.18 per diluted share for 2014, compared to net income of $383 million, or $2.70 per diluted share in 2013.

This is a company record for earnings for the fourth quarter and any year.

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Copyright Photo: Michael B. Ing/AirlinersGallery.com.ย Alaska Airlines Boeing 737-890 N525AS (msn 35692) with Aviation Partners Boeing Split Scimitar Winglets climbs away from the runway at Los Angeles International Airport.

Alaska Airlines aircraft slide show:

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Alaska Horizon today starts Las Vegas-Mammoth Lakes flights

Alaska Airlines (Seattle/Tacoma) inaugurates new Alaska Horizon (Horizon Air) (Seattle/Tacoma) seasonal service between Las Vegas and Mammoth Lakes, California, today (January 15). Mammoth Lakes is a popular ski destination and close to Yosemite National Park.

Alaska’s nonstop flight from Las Vegas to Mammoth Lakes will operate on Mondays and Thursdays between January 15 and April 6, 2015.

Alaska Airlines also provides year-round flights to Mammoth Lakes from Los Angeles and winter seasonal flights from San Diego.

Copyright Photo: Bruce Drum/AirlinersGallery.com.ย Alaska Horizon’s (Horizon Air) Bombardier DHC-8-402 (Q400) N403QX (msn 4037) arrives in Las Vegas in the special college Montana State Bobcats color scheme.

Alaska Horizon aircraft slide show:

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Alaska Air Group reports a third quarter GAAP net profit of $198 million

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported third quarter 2014 GAAP net income of $198 million, or $1.45 per diluted share, compared to $289 million, or $2.04 per diluted share in the third quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments and a one-time special revenue item in the prior year, the company reported record adjusted net income of $200 million, or $1.47 per diluted share, compared to adjusted net income of $157 million, or $1.11 per diluted share, in 2013.

“This was our best quarterly result ever” said CEO Brad Tilden. “I want to thank our 13,000 employees who are keeping a focus on playing our game, and working hard every day to run a great operation, keep fares low, and deliver award winning service to our customers. All of us at Alaska would like to thank our customers for their continued loyalty.”

Financial Highlights:

Reported record third quarter net income, excluding special items, of $200 million – a 27% increase over the third quarter of 2013.
Reported adjusted earnings per share of $1.47 per diluted share, a 32% increase over the third quarter of 2013 and ahead of First Call analyst consensus estimate of $1.42 per share.
Earned net income for the third quarter under Generally Accepted Accounting Principles (GAAP) of $198 million or $1.45 per diluted share, compared to net income of $289 million, or $2.04 per diluted share in 2013.
Recorded $84 million of incentive pay through the first nine months of 2014. This includes each Air Group employee earning at least $800 by meeting or exceeding monthly customer satisfaction and operational performance goals and tracking to earn above-target payouts for full-year goals.
Increased fuel efficiency (as measured by seat-miles per gallon) by 2.8% as part of our effort to be the airline leader in environmental stewardship.
Grew passenger revenues by 7%, compared to the third quarter of 2013.
Generated record adjusted pretax margin in the third quarter of 21.8% compared to 18.4% in 2013.
Generated 15.9% pretax margin for the trailing 12-month period ended Sept. 30, 2014, compared to 11.7% for the same period in the prior year.
Achieved trailing 12-month after-tax return on invested capital of 17.2% compared to 13.0% in the 12-month period ended Sept. 30, 2013.
Repurchased 3.4 million shares of common stock for $159 million in the third quarter of 2014, and 5.3 million shares for $242 million in the first nine months of 2014, representing 3.8% of the total shares outstanding at the beginning of the year.
Paid a $0.125 per-share quarterly cash dividend on September 4, bringing total dividend payments so far this year to $51 million.
Generated $1 billion in operating cash flows for the 12-months ended Sept. 30, 2014, generating $321 million of free cash flows.
Lowered adjusted debt-to-total-capitalization ratio to 31%.
Held $1.3 billion in unrestricted cash and marketable securities as of Sept. 30, 2014.
Became one of only two U.S. airlines with investment grade credit ratings.

Copyright Photo: Ken Petersen/AirlinersGallery.com. Boeing 737-890 N579AS (msn 35187) arrives in Las Vegas.

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Despite increased competition from Delta, Alaska Airlines’ traffic and passenger numbers increase but the load factor drops

Alaska Air Group Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) despite increased competition, especially from Delta Air Lines (Atlanta) at its Seattle/Tacoma hub, has managed to increase its traffic and passenger numbers for the first nine months of 2014, mostly through its vigorous expansion. However the number of passengers has not kept up with the expansion and this has lead to a lower load factor.

The Group reported September and year-to-date operational results for its subsidiaries, Alaska Airlines and Horizon Air, and on a combined basis. Detailed information is provided below.

Alaska logo

Air Group:

On a combined basis, Air Group reported a 9.0 percent increase in traffic on a 9.9 percent increase in capacity compared to September 2013. This resulted in a 0.7 point decrease in load factor to 81.9 percent. These statistics include flights operated by Alaska and those under capacity purchase agreements, including Horizon, SkyWest and PenAir.

The following table shows the operational results for September and year-to-date 2014, compared to the prior-year periods:

The Group and Alaska Airlines:

Alaska 9 mo traffic 9.2014

Alaska Horizon – Horizon Air:

Alaska Horizon 9 mo traffic 9.2014

Copyright Photo: Arnd Wolf/AirlinersGallery.com. Alaska Airlines’ Boeing 737-890 N569AS (msn 35184) in the 75th Anniversary retrojet scheme arrives in Las Vegas.

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Alaska Airlines sponsors environmental entrepreneurship competition at the University of Washington

Alaska Airlines (Seattle/Tacoma) is sponsoring theย University of Washington Foster School of Business’ย Environmental Innovation Challenge. The airline issued this statement today:

Today, the University of Washington Foster School of Business announced Alaska Airlines as the naming sponsor of its annual Environmental Innovation Challenge.

In the Environmental Innovation Challenge, approaching its seventh year, student teams must define an environmental problem, develop a solution, produce a prototype, and create a business summary that demonstrates the commercial viability of their product, process or service. Teams are judged on their prototypes, the market opportunity, and their pitch to an audience of nearly 200 industry experts from the Seattle environmental and entrepreneurship communities.

“We’re thrilled that Alaska Airlines has chosen to sponsor the Environmental Innovation Challenge. With their history of innovation, Northwest roots and steadfast support of education, Alaska Airlines is a perfect sponsor for one of the region’s most elite student challenges,” said Connie Bourassa-Shaw, director of the Foster School’s Buerk Center for Entrepreneurship. “Their commitment to environmental responsibility aligns perfectly with the spirit of the competition.”

Alaska’s 10-year sponsorship commitment includes a reduced travel rate for out-of-state teams to Seattle to participate in the April competition and flying guest faculty instructors from other universities in the Pacific Northwest to observe or judge the challenge. The airline will also host the challenge at the Seattle Center House next April. More information about the 2015 Alaska Airlines Environmental Innovation Challenge can be found at http://www.foster.washington.edu .

“As a proud supporter of the University of Washington and industry leader in environmental stewardship, we’re thrilled to support the next generation of innovators whose ideas and concepts will no doubt improve our communities for years to come,” said Joe Sprague, senior vice president of communications and external relations for Alaska Airlines.

To date, the chance to compete in the Environmental Innovation Challenge has attracted hundreds of student teams from Washington and Oregon. Prize money is one draw; so are the opportunities to hone an idea through interaction with peers, prototype development and conversations with industry experts.

A number of teams have gone on to launch their companies. One such example is HydroSense. The team won the inaugural Environmental Innovation Challenge with a water-usage monitoring technology that screws onto a single valve in a home and can detect water use down to each specific toilet, shower and faucet. HydroSense was acquired by Belkin in 2010.

Alaska Airlines has supported the state’s largest university in various ways for more than five decades. The UW’s on-campus basketball arena, the “Alaska Airlines Arena at Hec Edmundson Pavilion,” is named after the carrier and is part of a multi-year agreement to sponsor the UW Athletics program. Last year Alaska Airlines donated nearly $1.4 million in cash and in-kind contributions to almost 100 youth and educational programs and schools in the greater Puget Sound area and throughout Washington.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Horizon Air’s Bombardier DHC-8-402 (Q400) N435QX (msn 4232) is painted in the special University of Washington Huskies college livery. N435QX taxies to the runway at the Seattle-Tacoma International Airport hub. Today N435QX wears Alaska Horizon titles.

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Horizon Air to operate seasonal flights from Las Vegas to Mammoth Lakes, California

Horizon Air (Alaska Horizon) (Seattle/Tacoma) will operate seasonal service between Las Vegas and Mammoth Lakes, California.

Horizon Air’s nonstop flight from Las Vegas to Mammoth Lakes will operate on Mondays and Thursdays between January 15 and April 6, 2015.

Horizon Air will operate the flights with the Bombardier DHC-8-402 (marketed as the Q400) turboprop aircraft on the new route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Horizon Air now spreads its wings from Alaska to the U.S. Southwest. Bombardier DHC-8-402 (Q400) N443QX (man 4353) in the University of Alaska Seawolves college motif departs from Anchorage.

Alaska Horizon (Horizon Air):ย AG Slide Show

Alaska Air Group reports a net profit of $165 million for the second quarter

Alaska Air Group, Inc., (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported second quarter 2014 GAAP net income of $165 million, or $1.19 per diluted share, compared to $104 million, or $0.74 per diluted share in the second quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $13 million ($8 million after tax, or $0.06 per diluted share), the company reported record adjusted net income of $157 million, or $1.13 per diluted share, compared to adjusted net income of $105 million, or $0.74 per diluted share, in 2013.

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Copyright Photo: Mark Durbin/AirlinersGallery.com. Alaska Airlines has already added Aviation Partners Boeing Split Scimitar Winglets to 12 Boeing 737 aircraft. Boeing 737-890 N588AS (msn 35685) with SS Winglets taxies at San Francisco.

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