Heavy investment: Alaska’s Minicucci speaks at Boeing Field in Seattle, Washington. The CEO says the new planes are central to Alaska’s ability to compete against the top US airlines. — Reuters
SEATTLE: Alaska Air Group Inc is ordering 110 Boeing Co aircraft, laying the groundwork for a global network with the largest investment in new planes in the airline’s history.
The Seattle-based airline said it is purchasing 105 narrowbody 737 Max 10 models and five 787-10 widebody aircraft, exercising all of its remaining options for the long-haul model.
Alaska also secured purchase rights for an additional 35 of the 737 aircraft, extending deliveries through 2035.
The order builds on Alaska’s US$1.9bil acquisition of Hawaiian Airlines, which gave the carrier access to Asia-Pacific markets it had never served on its own.
Chief executive officer (CEO) Ben Minicucci said the new planes are central to Alaska’s ability to compete against the top US airlines, including Delta Air Lines Inc and United Airlines Holdings Inc.
“We’re going to compete against the big three and win,” Minicucci told an audience as Alaska unveiled a rebranded 787 at a Boeing delivery centre in Seattle on Wednesday.
The plane order signals Alaska’s willingness to invest heavily as Alaska links Seattle and Honolulu into a broader international network and pursues premium long-haul travellers.
Hawaiian operates widebody aircraft and has long used Honolulu as a gateway to Asia and Australia.
Alaska faces stiff competition. Delta has expanded its own international presence in Seattle as carriers vie for premium overseas travellers.
The fifth-largest US carrier is also still working to integrate Hawaiian into operations and bounce back after a tech outage and higher costs.
The five additional 787-10 aircraft will support Alaska’s international expansion from Seattle, enabling the airline to fly to at least 12 long-haul destinations by 2030, the company said.
The order brings Alaska’s firm future 787 fleet to 17 aircraft, with five already in service. The carrier’s focus will be serving its hubs on the West Coast and Hawaii, Alaska chief financial officer Shane Tackett told Bloomberg ahead of the announcement.
“We would love to be able to fly throughout more of the country, but we have to serve these core markets completely first,” he said.
Alaska had 71 unfilled 737 Max orders at Boeing prior to the announcement.
The carrier is doubling down on the single-aisle plane by making its first Max purchase since a near-catastrophic fuselage panel blowout on a brand-new 737 Max two years ago.
The deal also helps buoy confidence in the largest variant of the Max family, whose certification and market debut are running years behind schedule.
Boeing has said it is on track to secure regulatory approval for the aircraft later this year.
“It’s more than an order. This is about a doubling down of their commitment to Boeing,” the planemaker’s CEO Kelly Ortberg said earlier at the event.
“Alaska has been very, very helpful in helping us benchmark our safety and quality improvements across the enterprise.”
The order tops Alaska’s purchase of 52 Boeing 737 Max aircraft in 2022.
The deal also reflects a broader shift away from its historical model centred on domestic flying in the western US, with 737s serving as the backbone of the operation and limited international reach beyond Hawaii and Latin America.
Since acquiring Hawaiian, Alaska has gained access to widebody aircraft including Boeing 787s and Airbus SE A330s, accelerating its move into long-haul flying. — Bloomberg
