Category Archives: Alaska Horizon

Horizon Air’s aircraft technicians and fleet service agents ratify a new six-year contract

Horizon Air’s (Alaska Horizon) (Seattle/Tacoma) aircraft technicians and fleet service agents have ratified a new six-year contract.

About 94 percent of members participated, and 53 percent of those voted in favor of the agreement.

The contract, ratified well ahead of the amendable date of December 16, 2014, includes a ratification bonus, annual wage increases and contract language enhancements. Horizon Air and IBT reached tentative agreement on the new contract in May 2014.

Under the Railway Labor Act, which governs collective bargaining agreements in the airline industry, contracts do not expire. Instead they become amendable. The ratified agreement for Horizon’s technicians becomes amendable in 2020.

The Federal Aviation Administration (FAA) has awarded Horizon its highest honor, the Diamond Certificate of Excellence, 13 times since 1999 in recognition of the airline’s safety training efforts.

Horizon Air is a subsidiary of Alaska Air Group and flies to 44 cities across the United States, Canada and Mexico.

Copyright Photo: Bombardier DHC-8-402 (Q400) N401QX (msn 4031) taxies across the airfield at Los Angeles in the WSU Cougars university colors.

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Horizon Air starts seasonal Portland-Kalispell, Montana flights

Alaska Airlines (Seattle/Tacoma) yesterday (June 9) launched seasonal daily service between Portland, Oregon, and Kalispell, Montana.

The flights will operate seasonally between Portland and Kalispell through August 23, connecting Portland-area residents to the natural beauty of northwest Montana, and Flathead Valley residents to the Rose City.

Kalispell is located in northwest Montana’s Flathead Valley, which encompasses the gateway to Glacier National Park, Whitefish Mountain Resort and Flathead Lake — the largest freshwater lake west of the Mississippi River. Alaska Airlines also operates daily year-round service between Kalispell and Seattle/Tacoma.

Alaska Airlines’ sister carrier, Horizon Air (Alaska Horizon) (Seattle/Tacoma), will operate the flights with the Bombardier DHC-8-402 (Q400) aircraft.

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Alaska Airlines fights back to hold its Seattle/Tacoma market share

Alaska Airlines (Seattle/Tacoma) is fighting back trying to hold on to its market share in its home Seattle/Tacoma market. The airline issued this statement today:

Alaska Airlines, which provides travelers with more nonstop flights from Seattle/Tacoma than any other carrier, will increase its departures for its hometown customers by 11 percent next spring. Alaska’s daily departures out of Seattle-Tacoma International Airport will increase from 253 to 280, giving travelers more options to the places they want to fly most.

“Alaska Airlines has been flying out of Seattle for more than half a century and we’re proud to offer our customers nearly four times the departures to more destinations than any other airline,” said Joe Sprague, senior vice president of communications and external relations. “With convenient nonstop service to 79 destinations from Seattle/Tacoma, our customers can fly to 80 percent of the places they want to go and this increases to 99 percent when combining Alaska’s flights and those of our partner airlines.”

Alaska Airlines will add 27 new roundtrips, including one daily between Seattle/Tacoma and Boise, Idaho, Boston, Chicago, Denver, Fairbanks, Alaska, and Palm Springs and Sacramento, California. The airline will also add two more daily roundtrips between Seattle/Tacoma and Los Angeles, and three more roundtrip shuttle flights between Seattle/Tacoma and Portland, Oregon. A Boeing 737 will replace a Bombardier Q400 on two of the 16 daily roundtrip flights between Seattle/Tacoma and Spokane, Washington, increasing the number of seats on Alaska between the state’s largest two cities from 3,200 to 3,350 a day.

The 11 percent increase in Seattle/Tacoma departures also includes previously announced service to six new destinations, including Albuquerque, New Mexico, Baltimore, Detroit, New Orleans, Tampa, Florida, and Cancún, Mexico.

Summary of new daily Seattle/Tacoma service:

Seattle – New Orleans: starting June 12

Seattle – Tampa: starting June 20

Seattle – Baltimore: starting September 2

Seattle – Detroit: starting September 4

Seattle – Albuquerque: starting September 18

Seattle – Cancún: starting November 6 pending governmental approval
Alaska Airlines expects the new flying will add approximately 100 jobs to the region, in addition to the 6,300 Alaska and Horizon Air employees who currently work in the Puget Sound area.

Copyright Photo: Steve Bailey/AirlinersGallery.com. The all-Boeing relationship at Alaska Airlines should not be overlooked as the Alaska-Delta “battle of Seattle” escalates for market share in the home of Boeing. The pictured brand new Boeing 737-990 ER N467AS (msn 36362) was handed over to hometown Alaska Airlines on May 22, 2014.

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Alaska Air Group’s board approves a $650 million buy back

Alaska Air Group’s board of directors (Alaska Airlines and Horizon Air) (Seattle/Tacoma) has approved a share repurchase program authorizing the company to buy back up to $650 million of its common stock. This share repurchase program represents approximately 10 percent of the market capitalization of the company.

The board also approved a quarterly cash dividend of 25 cents per share as part of Air Group’s program to be a leader in returning capital to investors. The dividend to all shareholders of record as of May 20 will be paid on June 4.

The $650 million repurchase program will begin immediately after the existing $250 million buyback is completed.

AAG intends to finance the dividend and stock repurchases with cash on hand and cash flow from operations.

The program allows the company to repurchase its common stock using open market stock purchases, negotiated transactions or through other means, including accelerated share repurchases and 10b5-1 trading plans.

This will be Alaska’s eighth repurchase program since 2007. The company has spent $519 million buying back more than 21 million shares of its stock.

Alaska Air Group began paying a quarterly dividend of 20 cents per share in August 2013, the first time since 1992 that the company had paid a dividend. It was increased to 25 cents per share this past February.

Copyright Photo: Alaska Airlines’ Boeing 737-490 N791AS (msn 28886) taxies at Los Angeles International Airport in the special “Follow Me to Disneyland” color scheme.

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Alaska Airlines starts its “I am Alaska” campaign

Alaska Airlines (Seattle/Tacoma) has started its “I am Alaska” campaign, first with employees and later for loyal customers.

The airline offered this brief statement and video:

“I am Alaska” celebrates the great people of Alaska Airlines and Horizon Air. Their hard work and perseverance has kept the airlines safe and on time. Their award-winning customer service and innovation has earned their customers’ loyalty. Throughout the company, employees everywhere are proud to say, “I am Alaska.”

Video: Alaska Airlines.

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Alaska Air Group reports GAAP net income of $94 million for the first quarter

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air – Alaska Horizon) (Seattle/Tacoma) today reported first quarter 2014 GAAP net income of $94 million, or $1.35 per diluted share, compared to $37 million, or $0.51 per diluted share in the first quarter of 2013. Excluding the impact of mark-to-market fuel hedge adjustments of $8 million ($5 million after tax, or $0.07 per diluted share), the company reported record adjusted net income of $89 million, or $1.28 per diluted share, compared to adjusted net income of $44 million, or $0.62 per diluted share, in 2013.

“Our record first quarter results reflect strong demand for our service and the efforts we’ve taken to improve the value we bring to our customers,” CEO Brad Tilden said. “Our solid foundation of award-winning service, excellent operational performance, low costs and low fares, and the best employees in the business will help us sustain our success in the face of increasing competition.”

Financial Highlights:

Reported record first quarter net income, excluding special items, of $89 million, or $1.28 per diluted share, compared to adjusted net income of $44 million, or $0.62 per diluted share in the prior-year quarter. This quarter’s results compare to a First Call analyst consensus estimate of $1.24 per share.

Recorded net income for the first quarter under Generally Accepted Accounting Principles (GAAP) of $94 million or $1.35 per diluted share, compared to net income of $37 million, or $0.51 per diluted share in 2013.

Reported record adjusted pretax margin for the first quarter of 11.8%.

Achieved trailing 12-month return on invested capital of 14.8% compared to 13.4% in the 12 months ended March 31, 2013.

Paid a $0.25 per-share quarterly cash dividend on March 11 totaling $17 million. This is a 25% increase from the previous cash dividend payment of $0.20 per-share.

Repurchased 352,851 shares of common stock for $30 million in the first quarter of 2014.

Lowered adjusted debt-to-total-capitalization ratio by 3%, to 32%, from December 31, 2013.

Held $1.4 billion in unrestricted cash and marketable securities as of March 31, 2014.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Dedicated freighter operations at Alaska Air Cargo becomes very active in Alaska this time of the year. Boeing 737-490 (F) N709AS (msn 28896) touches down at Ted Stevens Anchorage International Airport (ANC).

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Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Horizon Air’s (Alaska Horizon) Bombardier DHC-8-402 (marketed as the “Q400”) N440QX (msn 4347) in the special Oregon State University-OSU Beavers color scheme taxies to the runway at the Seattle-Tacoma International Airport (SEA) hub.

Horizon Air’s dispatchers approve the new contract

Horizon Air (Alaska Horizon) (Seattle/Tacoma) and the Transport Workers Union have jointly announced that the carrier’s 17 dispatchers have ratified a new four-year contract by a ratio of 82 percent.

Horizon Air and TWU reached tentative agreement on a new contract on March 19.

Horizon Air is a subsidiary of Alaska Air Group and flies to 39 cities across the United States, Canada and Mexico.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N400QX (msn 4030) in the special Idaho Vandals livery arrives in Los Angeles.

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Alaska Airlines and Horizon Air announce aggressive sustainability goals

Alaska Airlines (Seattle/Tacoma) and Horizon Air (Seattle/Tacoma) have announced aggressive 2020 sustainability goals, pledging to decrease fuel consumption by 20 percent, use a sustainable aviation biofuel at one or more airports and increase its recruitment of military veterans.

These are among a series of goals and accomplishments highlighted in Alaska Air Group’s newly released 2013 Sustainability Report, which summarizes the company’s progress on environmental, social and economic goals.

Among the most significant accomplishments made since the airlines’ last Sustainability Report are improvements in fuel efficiency, which saved Alaska Air Group more than 10 million gallons of fuel since 2011. The airlines also cut waste by 50 percent per passenger, saving nearly 2,900 tons of recyclables that otherwise would have gone to landfills. In all, the airlines have reduced their greenhouse gases by more than 30 percent per revenue mile since 2004 as part of the company’s efforts to be a greener neighbor within the communities where it flies.

Air Group’s Sustainability Report analyzes the airlines’ efforts from Jan.1, 2012, through Dec. 31, 2013. It is the company’s second comprehensive report in accordance with Global Reporting Initiative G4 Core Guidelines, an international standard for sustainability reporting on people the planet and performance.

Key highlights of the last two years include:

Flight attendants collected for recycling nearly 2,900 tons of paper, plastic, aluminum and glass waste onboard Alaska and Horizon flights in the last two years, cutting in half the amount of waste sent to landfills since 2010. That amount weighs the same as more than 1,600 cars. Alaska and Horizon are the only airlines that recycle on every domestic flight.

Air Group signed an off-take agreement with Hawaii BioEnergy to buy sustainable aviation biofuels from the Hawaiian Islands beginning in 2018. The airline has set a goal of using sustainable biofuels at one or more of its airports by 2020.

Alaska and Horizon cut emissions another 2.8 percent over the last reporting period (2011), for a total 30.4 percent reduction in carbon emissions since 2004 (measured by flying one passenger one mile).

Alaska Air Group contributed $15.5 million in cash and in-kind contributions to more than 1,300 charitable organizations since 2011.
All Horizon Air flights and three-quarters of Alaska Airlines flights arriving at Seattle-Tacoma International Airport are using a new method of airport approaches, which allow aircraft to fly shorter, continuous descents. Estimates are that Greener Skies approaches will save more than 2 million gallons of fuel annually for all properly equipped airlines and reduced emissions by 22,400 metric tons of CO2—equal to the emissions contained in 96 rail cars of coal. Noise exposure for an estimated 750,000 people in the Puget Sound region has also been reduced.

Alaska and Horizon reduced fuel use by 10 million gallons since 2011 (as measured per revenue passenger mile) by flying the Boeing 737 and Bombardier Q400 — the most fuel-efficient aircraft in their classes. The airlines installed winglets on aircraft, used cutting-edge satellite navigation procedures and switched to electric vehicles for airport operations at Seattle-Tacoma International Airport, among other measures. The International Council on Clean Transportation ranked Alaska Airlines No. 1 in fuel efficiency among U.S. domestic airlines in 2013.

Alaska Airlines and Horizon Air increased their employee engagement scores by 20 percent over 2011. Engagement measures employee satisfaction and involvement with their jobs.

In other news, Alaska Airlines will drop the following unprofitable routes according to Airline Route:

Los Angeles-San Jose, CA (April 5)

Portland, OR-Long Beach (August 23)

Portland, OR-Atlanta (September 1)

Denver-Anchorage (summer seasonal)

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-990 N323AS (msn 30021) gracefully climbs away from the runway at the Seattle-Tacoma International Airport hub and home.

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Summer seasonal Denver – Anchorage service is also cancelled.

Employees of Alaska Airlines and Horizon Air receive the highest profit-sharing bonuses today

Alaska Airlines‘ (Seattle/Tacoma) and Horizon Air‘s (Seattle/Tacoma) employees 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 $1,150 in 2013 monthly bonuses that most employees earned for achieving on-time and customer satisfaction goals.

The combined monthly and annual bonuses amounted to nearly $105 million, the highest in Alaska’s history, and are part of the company’s incentive-based pay program.

“Our company’s success wouldn’t be possible without the award-winning customer service, industry-leading on-time performance and solid execution by our outstanding employees,” Alaska Air Group CEO Brad Tilden said. “On behalf of the leadership teams at Alaska and Horizon Air, I want to thank and congratulate our people for their terrific efforts.”

Nearly $51.3 million in annual bonuses — 62 percent of the total — is being paid to about 6,400 Alaska and Horizon employees in the Puget Sound area. Another $11 million is being paid to 2,026 employees in thePortland, Ore., area, while $8.2 million is going to workers throughout the state of Alaska.

“It’s really great to work for a company that recognizes all of their employees who contribute to the success of their business,” said JoAnne Ryan, an Alaska Airlines customer service agent based in Seattle. “The fact thatAlaska includes all workgroups in the incentive-based pay program just reinforces to me that I work for a company that values me as an employee, and the work I do makes a difference in our success.”

Ryan said she plans to use her bonus to pay off bills and take a two-week vacation to Australia.

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 $538 million in combined incentive-based pay and monthly bonuses, which is about 5.75 percent on average each year.

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 5 years to its defined benefit pension plans, which were fully funded in 2013.

In addition to the financial benefit the employee bonuses provide to the Puget Sound area, the 22,000 jobs at Alaska Air Group and in related industries in Washington state generate $5.6 billion in annual economic activity.

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Horizon Air to offer free local beers in Alaska

Alaska Airlines (Seattle/Tacoma) issued this announcement about the upcoming Horizon Air (Alaska Horizon) (Seattle/Tacoma) service in the state of Alaska starting on March 3:

Travelers on Alaska Airlines flights between Anchorage and Fairbanks and Anchorage and Kodiak will soon enjoy an extra infusion of local flavor in the form of Silver Gulch Brewing & Bottling Co.’s Old 55 Pale Ale.

Passengers will have the opportunity to sample the moderately hopped, American-style pale ale free of charge beginning March 3, when Alaska Airlines introduces the Bombardier Q400 to the state of Alaska. The flights will be operated for Alaska Airlines by its sister carrier, Horizon Air (Alaska Horizon). These flights will feature complimentary soft drinks, Starbucks coffee, Northwest wine and microbrews (for passengers 21 and older), and A la Cart planeside baggage service.

The brewery, which has locations in Anchorage and north of Fairbanks, will bottle the beer in stainless steel “Kleen Kanteens,” (above) which are lighter, stronger and more environmentally friendly than traditional glass bottles.

Samples are about 6.5 ounces and will be offered to customers on flights operating after 11 a.m.

Travelers can pick up their very own Kleen Kanteens (or traditional glass growlers) filled with their favorite Silver Gulch beers at the brewery’s restaurant in the C Concourse at Ted Stevens Anchorage International Airport or at the brewery and restaurant in Fox, Alaska.

Horizon Air is a subsidiary of Alaska Air Group and flies to 39 cities across the United States, Canada and Mexico.

Silver Gulch Brewing and Bottling was founded in Fox, Alaska, in 1998 by two lifelong Alaskans. Silver Gulch is America’s most northern brewery, located at the start of the “haul road” to Prudhoe Bay about 11 miles north of Fairbanks. Silver Gulch opened its first restaurant adjacent to the brewery in 2007, later opening a restaurant at Anchorage International Airport in 2012. Silver Gulch maintains a selection of 12 or more freshly brewed ales and lagers year-round, many of which are available at fine dining and drinking establishments throughout Alaska.

Top Copyright Photo (all others by Alaska Airlines): James Helbock/AirlinersGallery.com. Horizon Air’s Bombardier DHC-8-402 (Q400) N452QX (man 4459) arrives in San Diego in the special Employee Signatures color scheme.

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