Category Archives: Alaska Horizon

Horizon Air flight attendants ratify a new five-year contract

Horizon Air‘s (Alaska Horizon) (Seattle/Tacoma) flight attendants have approved a new five-year contract. The ratification vote concluded yesterday afternoon (July 18) with 75 percent of the participating flight attendants voting in favor of the agreement.

The new contract includes pay raises, quality of life improvements and more flexible scheduling. The agreement becomes amendable on July 18, 2018. The previous contract became amendable on December 21, 2011. Labor agreements in the airline industry do not expire; they become amendable and remain in effect until a new contract is ratified.

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

Copyright Photo: Bruce Drum/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N437QX (msn 4240) in the special Boise State Broncos livery taxies to the runway at the Seattle/Tacoma hub.

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Horizon Air:

Horizon Air and SkyWest to open up four new routes from Seattle/Tacoma and Portland for Alaska Airlines and two routes from San Diego

Alaska Airlines (Seattle/Tacoma) will inaugurate daily service between Seattle/Tacoma and Colorado Springs, Colorado, starting on November 1, and between Seattle/Tacoma and Omaha, Nebraska, starting on November 7. The carrier will also add nonstop flights between Portland, Oregon, and Tucson, Arizona, starting on November 1, and between Portland and Reno, Nevada, starting on November 8, 2013.

Summary of new service:
Seattle-Colorado Springs
Start date	City pair	Departs	Arrives	Frequency
Nov. 1	Seattle-Colorado Springs	6:20 p.m.	9:55 p.m.	Daily
Nov. 2	Colorado Springs-Seattle	8 a.m.	9:55 a.m.	Daily

Seattle-Omaha
Start date	City pair	Departs	Arrives	Frequency
Nov. 7	Seattle-Omaha	10:40 a.m.	3:45 p.m.	Daily
Nov. 7	Omaha-Seattle	4:15 p.m.	5:45 p.m.	Daily

Portland-Reno
Start date	City pair	Departs	Arrives	Frequency
Nov. 8	Portland-Reno	11:10 a.m.	12:45 p.m.	Daily
Nov. 8	Reno-Portland	1:15 p.m.	2:50 p.m.	Daily

Portland-Tucson
Start date	City pair	Departs	Arrives	Frequency
Nov. 1	Portland-Tucson	9:15 a.m.	1:05 p.m.	Daily
Nov. 1	Tucson-Portland	1:35 p.m.	3:30 p.m.	Daily

All times based on local time zones.

The new Portland-Reno flights will be flown for Alaska Airlines by Horizon Air (Alaska Horizon) (Seattle/Tacoma) using 76-seat Bombardier DHC-8-402s (Q400s). The remaining flights will be operated by SkyWest Airlines (Alaska SkyWest) (St. George) using 70-seat Bombardier CRJ700 regional jets.

Alaska Airlines last operated between Portland and Reno in 2009 and also served Portland-Tucson in 2003.

In addition, Alaska Airlines will begin new daily service between San Diego and Boise, Idaho, starting on November 1, and daily seasonal service between San Diego and Mammoth Mountain Ski Area in California, starting on December 19, 2013.

Summary of new service:
San Diego-Boise
Start date	City pair	Departs	Arrives	Frequency
Nov.1	Boise-San Diego	10:20 a.m.	11:25 a.m.	Daily
Nov.1	San Diego-Boise	5:35 p.m.	8:40 p.m.	Daily

San Diego-Mammoth Lakes
Start date	City pair	Departs	Arrives	Frequency
Dec. 19-April 13	San Diego-Mammoth	5:30 p.m.	7 p.m.	Mon, Tue, Wed,
				Thu, Fri, Sun
Dec. 19-April 13	Mammoth-San Diego	7:30 p.m.	9 p.m.	Mon, Tue, Wed,
				Thu, Fri, Sun
Dec. 21-April 12	San Diego-Mammoth	9:30 a.m.	11 a.m.	Saturdays only
Dec. 21-April 12	Mammoth-San Diego	11:30 a.m.	1 p.m.	Saturdays only
All times based on local time zones.

The new 90-minute flight to Mammoth Lakes is estimated to save residents more than 6 hours of driving. Horizon Air (Alaska Horizon) will operate the Mammoth Lakes flights for Alaska Airlines using 76-seat Bombardier DHC-8-402s (Q400s). SkyWest Airlines (Alaska SkyWest) will operate the new San Diego-Boise flights for Alaska using 70-seat Bombardier CRJ700 regional jets.

With these flights, Alaska Airlines will offer 25 peak-daily departures from San Diego with nonstop service to 12 domestic and two international destinations.

Top Copyright Photo: Bruce Drum/AirlinersGallery.com. Horizon Air’s Bombardier DHC-8-402 (Q400) N441QX (msn 4348) pushes from the gate at the Seattle-Tacoma International Airport hub.

Alaska Airlines:

Alaska Horizon:

Alaska SkyWest:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ700 (CL-600-2C10) N215AG (msn 10009) lands at Long Beach.

Horizon Air orders three additional Bombardier Q400s

Horizon Air (Alaska Horizon) (Seattle/Tacoma) has signed a firm contract to acquire three 76-seat Bombardier DHC-8-402 (Q400) NextGen turboprop airliners. The transaction represents the conversion of three previously booked options on the aircraft. The airline also reconfirmed its options on another seven Q400 NextGen aircraft.

The three new aircraft will increase Horizon Air’s orders for Q400 and Q400 NextGen airliners to 51 aircraft – the world’s largest fleet. Including the order announced today, Horizon Air has ordered a total of 100 Bombardier Dash 8/Q-Series aircraft since 1985.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N440QX (msn 4347) in the special Oregon State University-OSU Beavers collegiate livery departs from Los Angeles International Airport.

Alaska Horizon:

Horizon Air:

Horizon Air and the flight attendants reach a tentative agreement on a new contract

Horizon Air (Alaska Horizon) (Seattle/Tacoma) and theAssociation of Flight Attendants (AFA) announced they have reached tentative agreement on a new five-year contract for the carrier’s nearly 500 flight attendants.

The proposed contract includes pay raises, quality of life improvements and more flexible scheduling. It still must be presented to union members for review and a ratification vote, which is expected to be completed in mid-July. The current contract was ratified on Dec. 21, 2009 and became amendable on Dec. 21, 2011.

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) N429QX (msn 4161) prepares to land at Los Angeles International Airport.

Alaska Horizon:

Horizon Air:

Alaska Airlines to fly from Anchorage to Phoenix and Las Vegas, Horizon Air to operate in Alaska

Alaska Airlines (Seattle/Tacoma) will begin flying nonstop between Anchorage and Phoenix, starting on December 18, and Anchorage and Las Vegas, starting on December 19, 2013.

Flights will operate on each route three times a week. Anchorage-Las Vegas service will be offered year-round while Anchorage-Phoenix flights will operate seasonally through April 19, 2014.

Summary of new service:

Start date	City pair	Departs	Arrives	Frequency

Dec. 18	Anchorage-Phoenix	9:10 a.m.	4:35 p.m.	Mon, Wed, Sat
Dec. 18	Phoenix-Anchorage	5:35 p.m.	9:30 p.m.	Mon, Wed, Sat
Dec. 19	Anchorage-Las Vegas	10:05 a.m.	4:10 p.m.	Thu, Fri, Sun
Dec. 19	Las Vegas-Anchorage	5:10 p.m.	9:45 p.m.	Thu, Fri, Sun

Times based on local time zones.

Carrier introducing Bombardier Q400s to the state of Alaska

Alaska Airlines will add flying within the state of Alaska using Bombardier DHC-8-402 (Q400) aircraft flown by Horizon Air (Alaska Horizon) (Seattle/Tacoma), starting on March 3, 2014. The Q400 will operate eight daily round-trip flights between Anchorage and Fairbanks currently flown with Boeing 737 aircraft. Additionally, the Q400 will replace an Alaska Airlines Boeing 737 on one of two daily round-trip flights between Anchorage and Kodiak seasonally from October through April. Initial service will begin on March 3 and continue through April 30, 2014.

“Flying the fast and efficient Q400 enables Alaska Airlines to increase our frequency from seven to nine roundtrips a day for Anchorage-Fairbanks travelers, giving them more options for traveling between the state’s two largest cities,” Romano said. “It also gives us the flexibility to fly our larger aircraft to new destinations out of Anchorage, such as the new nonstop routes to Las Vegas and Phoenix.”

With a crew of two pilots and two flight attendants, the Q400 is configured with 76 seats in an all-coach cabin. The aircraft also is equipped with the Head-Up Guidance system and satellite-based navigation technology similar to Alaska’s Boeing 737s.

Horizon Air, a wholly-owned subsidiary of Alaska Air Group, will have 60 employees (30 flight attendants and 30 pilots) based in Anchorage to fly the aircraft. Alaska Airlines employees will provide ground-based customer service and maintenance support.

Top Copyright Photo: Mark Durbin/AirlinersGallery.com. Boeing 737-790 WL N644AS (msn 30795) taxies at San Francisco with a Wi-Fi sticker by the forward door.

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Alaska Horizon:

Horizon Air:

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) N401QX (msn 4031) in the WSU Cougars – Washington State University special scheme climbs away from Los Angeles International Airport.

Alaska Air Group reports 1Q net income of $37 million

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported first quarter 2013 GAAP net income of $37 million, or $0.51 per diluted share, compared to $41 million, or $0.56 per diluted share in 2012. Excluding the impact of mark-to-market fuel hedge adjustments of $12 million ($7 million after tax, or $0.11 per diluted share), the company reported record first quarter 2013 net income of $44 million, or $0.62 per diluted share, compared to net income excluding mark-to-market fuel hedge adjustments of $28 million, or $0.39 per diluted share, in 2012.

“Our record performance in what is seasonally our weakest quarter is due to steady demand that kept pace with our growth, and to the many changes we’ve made to improve our business over the last several years,” Alaska Air Group CEO Brad Tilden said. “Looking ahead, we’re facing increased competition in certain markets, and we will closely monitor the environment and continue to adjust our plans to appropriately address these challenges. Our first quarter results, and our ability to be flexible and adapt to an ever-changing industry landscape, would not be possible without the dedication and determination of our employees at Alaska and Horizon.”

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the first quarters of 2013 and 2012 to adjusted amounts:

	Three Months Ended March 31,
	2013				2012
(in millions, except per-share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	37	$	0.51	$	41	$	0.56
Mark-to-market fuel hedge adjustments, net of tax	7		0.11		(13)		(0.17)
Non-GAAP adjusted income and per-share amounts	$	44	$	0.62	$	28	$	0.39

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Pulling together, Boeing 737-490 N705AS (msn 29318) in the “Spirit of Alaska Statehood” livery approaches Los Angeles International Airport.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Alaska Air Group reports 4Q net income of $44 million, $316 net income for 2012

Alaska Air Group, Inc. (Alaska Airlines and Horizon Air) (Seattle/Tacoma) today reported fourth quarter 2012 GAAP net income of $44 million, or $0.61 per diluted share, compared to GAAP net income of $64 million, or $0.88 per diluted share in 2011. Excluding mark-to-market fuel hedge losses of $10 million ($6 million after tax, or $0.09 per diluted share), the company reported record fourth quarter 2012 net income of $50 million, or $0.70 per diluted share, compared to net income excluding mark-to-market fuel hedge gains of $37 million, or $0.51 per diluted share, in 2011.

The company reported full-year 2012 GAAP net income of $316 million, compared to $245 million in the prior year. Excluding the impact of the items noted in the table below, the company reported record net income of $339 million, or $4.73 per diluted share for 2012, compared to net income of $287 million, or $3.92 per diluted share in 2011. This marks the company’s ninth consecutive year of adjusted profits and the third year in a row the company has exceeded its goal of a 10 percent return on invested capital.

The following table reconciles the Company’s adjusted net income and earnings per diluted share (EPS) during the full year and fourth quarters of 2012 and 2011 to amounts as reported in accordance with GAAP:

	Three Months Ended December 31,
	2012				2011
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	44	$	0.61	$	64	$	0.88
Mark-to-market fuel hedge adjustments, net of tax	6		0.09		(27)		(0.37)
Non-GAAP adjusted income and per share amounts	$	50	$	0.70	$	37	$	0.51

	Twelve Months Ended December 31,
	2012				2011
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	316	$	4.40	$	245	$	3.33
Fleet transition costs, net of tax	—		—		24		0.33
Mark-to-market fuel hedge adjustments, net of tax	23		0.33		18		0.26
Non-GAAP adjusted income and per share amounts	$	339	$	4.73	$	287	$	3.92

Copyright Photo: Michael B. Ing. Newly-painted Boeing 737-890 N559AS (msn 35178) displays the updated Wild Alaska Seafood “Salmon-Thirty-Salmon 2” as it climbs at Los Angeles International Airport.

Alaska Airlines:

Alaska Horizon:

Horizon Air:

Horizon Air’s pilots ratify to extend the current contract for six more years

Horizon Air (Alaska Horizon) (Seattle/Tacoma) and the International Brotherhood of Teamsters have announced the carrier’s 610 pilots ratified an agreement to extend the current contract for three years, creating a new six-year pact. Among pilots who voted, 77 percent approved ratification.

“The fact that the extension was achieved three years before the contract became amendable demonstrates the effectiveness of our sincerely collaborative approach with our union-represented workgroups,” Horizon President Glenn Johnson said.

The new contract includes wage increases, improvements in productivity and quality of life, and better job security. The extended contract becomes amendable on December 14, 2018, and was originally ratified in November 2010.

Copyright Photo: Michael B. Ing. Bombardier DHC-8-402 (Q400) N403QX (msn 4037) dressed in the school colors of the Montana State Bobcats taxies to the runway at the Seattle-Tacoma International Airport hub.

Alaska Horizon:

Horizon Air:

Horizon Air and its pilots tentatively agree on a six-year contract extension

Horizon Air (Alaska Horizon) (Seattle/Tacoma) and the International Brotherhood of Teamsters have announced they have reached tentative agreement to extend the current contract for the carrier’s 610 pilots for six years.

A ratification vote by union members is expected to be completed by mid-December. If ratified, the new contract would become amendable on Dec. 14, 2018. The current contract was ratified in November 2010 and becomes amendable in December 2015.

Copyright Photo: Joe G. Walker. Bombardier DHC-8-402 (Q400) N437QX (msn 4240) in the Bronco State Broncos climbs away from Portland, Oregon.

Alaska Horizon:

Alaska Air Group reports net income of $163.4 million in the third quarter

Alaska Air Group, Inc. (Alaska Airlines and Horzon Air) (Seattle/Tacoma) reported third quarter 2012 GAAP net income of $163.4 million, or $2.27 per diluted share, compared to $77.5 million, or $1.06 per diluted share in 2011. Excluding the favorable impact of mark-to-market fuel hedge adjustments of $21.2 million ($13.1 million after tax, or $0.18 per diluted share), the company reported record third quarter 2012 net income of $150.3 million, or $2.09 per diluted share, compared to net income excluding special items of $131.1 million, or $1.79 per diluted share, in 2011.

Third quarter highlights with comparison to 2011:

Reported record third quarter net income, excluding special items, of $150.3 million, or $2.09 per diluted share, compared to adjusted net income of $131.1 million, or $1.79 per diluted share. This quarter’s results compare to a First Call mean estimate of $2.08 per share.
Earned net income under Generally Accepted Accounting Principles (GAAP) of $163.4 million, or $2.27 per diluted share, compared to net income of $77.5 million, or $1.06 per diluted share.
Held the No. 1 spot in U.S. Department of Transportation on-time performance among the 10 largest U.S. airlines for the 12 months ended August 2012.
Announced a new $250 million share repurchase program, representing approximately 10 percent of our market capitalization, while completing our previously announced $50 million share repurchase program.
Achieved trailing 12-month return on invested capital of 12.7 percent, compared to 12.0 percent in the 12 months ended Sept. 30, 2011.
Lowered adjusted debt-to-total capitalization ratio by 8 points, to 54 percent, since Dec. 31, 2011.
Held $1.2 billion in unrestricted cash and marketable securities as of Sept. 30, 2012.
Received “2012 Global Vision Award” by Travel + Leisure magazine for Alaska Airlines’ sustainability efforts.

New routes:

Began new service between Seattle and Fort Lauderdale, Fla.; Portland, Ore., and Washington, D.C.; and Seattle and San Antonio in the third quarter.
Announced expanded service between Los Angeles and Anchorage beginning in summer 2013.

Boeing order:

Signed an aircraft purchase agreement with Boeing for 50 new 737 aircraft, including 37 of Boeing’s new 737 MAX aircraft with deliveries expected in 2015 through 2024. This order positions Alaska to replace aging aircraft over the next decade and grow the fleet, assuming profitability and return-on-invested-capital targets can be met.

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (EPS) during the third quarters of 2012 and 2011 to adjusted amounts:

	Three Months Ended September 30,
	2012				2011
(in millions, except per share amounts)	Dollars		Diluted EPS		Dollars		Diluted EPS
Reported GAAP net income	$	163.4	$	2.27	$	77.5	$	1.06
Fleet transition costs, net of tax	—		—		1.2		0.02
Mark-to-market fuel hedge adjustments, net of tax	(13.1)		(0.18)		52.4		0.71
Non-GAAP adjusted income and per share amounts	$	150.3	$	2.09	$	131.1	$	1.79

Copyright Photo: Nick Dean. Alaska Airlines’ Boeing 737-490 N791AS (msn 28886) decorated as “Follow Me to Disneyland/50 Years” completes its final approach into the Seattle/Tacoma hub.

All of the Horizon Air aircraft have now been rebranded as Alaska Horizon.

Alaska Airlines: