Tag Archives: Alaska Horizon (Horizon Air)

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:

 

Alaska Air Group reports its first quarter 2019 results

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N636QX (msn 17000749) PAE (Nick Dean). Image: 946086.

Alaska Air Group made this announcement today:

Financial Highlights:

  • Reported net income under Generally Accepted Accounting Principles (GAAP) of $4 million, or $0.03 per diluted share for the first quarter of 2019 and 2018.
  • Reported net income for the first quarter of 2019, excluding special items such as merger-related costs and mark-to-market fuel hedge accounting adjustments, of $21 million, or $0.17 per diluted share, compared to $18 million or $0.14 per diluted share, in the first quarter of 2018. This quarter’s adjusted results compare to the First Call analyst consensus estimate of $0.12 per share.
  • Paid a $0.35 per-share quarterly cash dividend in the first quarter, a 9% increase over the dividend paid in the first quarter of 2018.
  • Repurchased a total of 214,891 shares of common stock for approximately $13 million in the first three months of 2019.
  • Generated approximately $470 million of operating cash flow in the first three months of 2019, including merger-related costs.
  • Held $1.4 billion in unrestricted cash and marketable securities as of March 31, 2019.
  • Maintained debt-to-capitalization ratio of 47% as of March 31, 2019, similar to the 47% as of Dec. 31, 2018.

Operational Highlights:

  • Launched commercial service from Paine Field in Everett, Washington, to eight West Coast destinations and began service from Seattle to Columbus, Ohio, and El Paso, Texas.
  • Completed painting 25 Airbus aircraft in Alaska livery, and expect to complete the remainder of the fleet in the second quarter.
  • Announced plans to build a new Alaska Lounge in Terminal 2 at San Francisco International Airport.
  • Introduced a new Alaska Airlines Visa Signature Card sign-up promotion offering up to 40,000 miles to new cardholders.
  • Added four Boeing 737-900ER aircraft to the mainline operating fleet in the first quarter of 2019.

Recognition and Awards:

  • Ranked the best U.S. Airline by Money Magazine for the second year in a row.
  • Named “Best Mid-Size Airline” by TripAdvisor in their 2019 Travelers Choice awards.
  • Ranked as the No. 2 Airline in America by The Points Guy.

Alaska Air Group Inc., today reported first quarter 2019 GAAP net income of $4 million, or $0.03 per diluted share, compared to $4 million, or $0.03per diluted share in the first quarter of 2018. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported adjusted net income of $21 million, or $0.17 per diluted share, compared to $18 million, or $0.14 per diluted share, in 2018.

“We performed well in the first quarter despite severe winter storms in the Pacific Northwest,” said Alaska CEO Brad Tilden. “The leadership team and I want to thank our employees for running the operation safely, and as smoothly as possible, and for taking great care of our guests throughout the quarter. Our margin improvement initiatives gained traction despite the storms, and we are optimistic about the rest of 2019.”

The following table reconciles the company’s reported GAAP net income and earnings per diluted share (diluted EPS) for the three months ended March 31, 2019 and 2018 to adjusted amounts.

Top Copyright Photo (all others by the airline): Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N636QX (msn 17000749) PAE (Nick Dean). Image: 946086.

Alaska Horizon aircraft slide show:

Horizon Air celebrates its 1981 beginnings with this special livery on N421QX

"Alaska celebrates Horizon Air" in a 1981 livery

Horizon Air launched regional operations on September 1, 1981 as an independent carrier in the Pacific Northwest. Now the Alaska Airlines-owned carrier is celebrating its past with this Q400 now painted in a 1981-like livery.

Horizon Air made this announcement and photos on social media:

New paint, old-school. N421QX

In celebration of Horizon Air’s heritage, we’ve debuted a new themed-aircraft. N421QX flew on its inaugural flight from Yakima, WA to Seattle on Tuesday, which was also Horizon’s first flight ever in 1981.

The livery was the idea of Andrew S. (above), a Seattle-based crew scheduler. “I pitched the idea of a Horizon livery to Gary [Gary Beck, Horizon Air CEO] when he took over the helm of Horizon in January 2018,” Andrew said. “I was impressed with his genuine willingness to listen to employees, and he was keen on the idea.

“Creating an airline people love happens when we’re all working together as one team, valuing and appreciating each other’s contributions,” says Horizon President & CEO Gary Beck. “This livery celebrates the people of Horizon and the essential role the company has played in Air Group’s success.”

Top Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N421QX (msn 4149) SEA (Royal S. King). Image: 945910.

Alaska Horizon aircraft slide show:

Horizon Air aircraft slide show:

Bottom Copyright Photo: Horizon Air Fairchild F-27 N271PH (msn 14) BFI (Christian Volpati Collection). Image: 934396.

Horizon Air Fairchild F-27 N271PH (msn 14) BFI (Christian Volpati Collection). Image: 934396.

Alaska Airlines announces daily nonstop service to El Paso, Texas

Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N635QX (msn 17000731) SEA (Michael B. Ing). Image: 943663.

Alaska Airlines announced today it will begin daily nonstop service between Seattle-Tacoma International Airport and El Paso International Airport, along with daily nonstop service between El Paso and San Diego International Airport. El Paso is a new destination for Alaska.

 

The new service is scheduled to begin February 19, 2019, offering the only nonstop flights from Seattle/Tacoma and San Diego to El Paso.

Alaska has considered El Paso as a new destination for some time. It’s currently the largest underserved market from Seattle/Tacoma within the range of our Embraer 175 jets. That aircraft – with three cabin classes – is a perfect fit for this route, which will be flown by Horizon Air.

El Paso will become Alaska’s third destination to Texas served from San Diego, joining Austin and Dallas Love Field.

El Paso will become the 91st nonstop destination available from Alaska’s main hub in Seattle/Tacoma this spring.

Top Copyright Photo: Alaska Horizon (Horizon Air) Embraer ERJ 170-200LR (ERJ 175) N635QX (msn 17000731) SEA (Michael B. Ing). Image: 943663.

Alaska Horizon aircraft slide show:

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Horizon Air Q400 (N449QX) is stolen by an employee at SEA and crashed in Pierce County, WA

Horizon Air Q400 (N449QX) is stolen by an employee at SEA and crashed in Pierce County, WA on August 10, 2018

Alaska Airlines and Horizon Air issued this statement:

A STATEMENT FROM ALASKA AIR GROUP CEO BRAD TILDEN AND HORIZON AIR CEO GARY BECK

Brad Tilden: “There was an incident late yesterday involving the unauthorized operation of one of our aircraft that took off from Sea-Tac around 8 p.m.

“We are still gathering facts, but at this point we understand there was only one person aboard, an employee of Horizon Air, who was operating the aircraft. I want to share how incredibly sad all of us at Alaska are about this incident. Our heart is heavy for the family and friends of the person involved.

“We’re working to find out everything we possibly can about what happened, working with the Federal Aviation Administration, the Federal Bureau of Investigation, and the National Transportation Safety Board. We are giving those investigators our full support and cooperation.

“With these investigations underway, our focus will remain on supporting the family of the individual involved, the broader Alaska and Horizon family, and our communities and guests.

Brad Tilden

CEO, Alaska Air Group


Gary Beck: “I want to echo what Brad said about how incredibly sad all of us are about what happened last night.

“Our first priority is always the safety and care of our people and guests. Our hearts are with all of our employees at Horizon Air, and the larger Alaska Airlines community, and the family of the individual involved.

“The Horizon Air Q400, which was taken from Sea-Tac International Airport, was not scheduled to fly at the time of the incident. While we have not yet confirmed the identity of the employee, we have confirmed that all crew and passengers are accounted for. Air Traffic Control was in contact with the individual during the brief flight before it crashed on Ketron Island about an hour after it left Sea-Tac. No ground structures were involved in the crash.

“We are working closely with the authorities and our own safety teams to thoroughly understand this incident.

“I want to thank the employees of Horizon Air and our guests. Our primary objective is to do everything possible to support all of you.”

Gary Beck, President and CEO, Horizon Air

Update: 1:15 p.m. on Aug. 11, 2018
View today’s press conference with our CEO, Brad Tilden, Horizon Air CEO, Gary Beck, the FBI and the Port of Seattle.

  • All of us at Alaska Airlines and Horizon Air are saddened by last night’s unauthorized flight of a Horizon Q400 aircraft that resulted in the loss of life of the individual involved.
  • Our top priority is the safety of our guests and employees. Simply put there is nothing more important to us.
  • We are working closely with the FBI, the NTSB and the FAA to better understand the circumstances of this unauthorized flight. The FBI is the lead investigator for this incident.
  • Yesterday’s events will push us to learn what we can from this tragedy so that we can help prevent it from happening again at our airline or any other.

Update: 12:15 a.m. on Aug. 11, 2018
A toll-free hotline has been established for anyone who believes they may know the person involved in the Horizon Air incident. The number is 1-888-283-2153.

Update: 11:54 p.m. on Aug. 10, 2018
Alaska Airlines believes a ground service agent employed by Horizon Air was the individual responsible for flying the Horizon Q400 without clearance from Sea-Tac International Airport around 8 p.m. tonight.

The plane, which was taken from a maintenance position and was not scheduled for passenger flight, crashed about an hour later in a wooded area on Ketron Island in rural Pierce County. No ground structures were involved at the crash site.

Military jets were scrambled from Portland, but it does not appear that these jets were involved in the crash of the Horizon aircraft.

This individual who took the aircraft, who has not yet been positively identified until remains are examined, is believed to have been the only person on the plane when the plane was taken from a maintenance position at Sea-Tac.

First responders are at the crash site. Appropriate government agencies, including NTSB, FAA and FBI, have been notified.

Update: 10:55 p.m. on Aug. 10, 2018
A brief statement from Constance von Muehlen of Horizon Air regarding tonight’s incident:

“Good evening, I’m Constance von Muehlen, Horizon Air chief operating officer. I’m sorry to share with you this evening that at approximately 8 p.m., one of our Q400 airplanes made an unauthorized takeoff from Sea-Tac Airport. We believe it was taken by a single Horizon Air employee and that no other passengers or crew were onboard. Shortly thereafter, it crashed on Ketron Island by South Tacoma. Our hearts are with the families of the individual aboard as well as all of our Alaska Air and Horizon Air employees. We will provide more information as it becomes available.”

Update: 10 p.m. on Aug. 10, 2018 
Alaska Airlines has confirmed that a Horizon Airlines Q400 that had an unauthorized takeoff from Sea-Tac International Airport around 8 p.m. has gone down near Ketron Island in Pierce County.
Alaska is working to confirm who was on board, but it is believed that there were no passengers or crew on board other than the person operating the plane. NTSB has been notified.

Original post: 9:32 p.m. on Aug. 10, 2018
We are aware of an incident involving an unauthorized take-off of a Horizon Air Q400. We believe there are no passengers on board. More information as we learn more.

Video:

Copyright Photo: Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) N449QX (msn 4410) SEA (Michael B. Ing). Image: 928195.

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