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Posts tagged merger

As Jon Ostrower from the Wall Street Journal reports:

That means Alaska will have 349 aircraft at their disposal after all deliveries are made and the merger is completed. That is a huge increase for them and even with the retirement of 15 Bombardier Q400s by 2018, they will still have a very big fleet for the size of the operation they are running now.

Route growth has to be on the horizon then (no pun intended). With the Virgin America merger it is clear that Alaska will increase their presence in San Francisco. I would not be surprised to see them keep Virgin America’s transcontinental routes to JFK and Boston but I could also see them flying a number of west coast routes that are underserved by United, Delta, and American.

The big unknown is what happens to Alaska’s presence at Seattle. They have the planes for growth but Seattle is already overcrowded and I don’t know that Alaska has the gates to start a whole of new flights. I guess theortically they could park the E175s at the regional gates and have passengers walk outside to the planes, but even that area is a mess during the morning and evening rush hours.

This could also mean the end of the contract that Alaska has with SkyWest for operation of CRJ-700 and E175 regional jets to a number of destinations. SkyWest currently flies routes like Seattle-Milwaukee and Portland-Austin on E175 and Portland-Tuscon with CRJ-700s. To responsibly grow, Alaska may start operating those routes with their own planes and pilots via the Horizon Air subsidiary.

All of this to say, it is going to be interesting to see a rather niche carrier like Alaska navigate the waters of huge growth without overextending themselves in terms of passenger capacity and the physical limitations they will face at Seattle and Portland.

The cover takes a look at the airlines from a chemistry standpoint. Overall, the article is pretty good and gives a look at the merger from a perspective we as consumers aren’t necessarily used to seeing.

The cover still throws me off a bit, but the story behind how they design covers at BusinessWeek is very interesting.

When asked about being edgy, here is what the designers said –

It’s funny because I don’t think we are [edgy]. Everyone takes covers, interprets covers in a slightly different way. When you’re privy to the process, it demystifies it a bit. When you’re part of the process it loses the surprise value. So, I don’t see this one as particularly surprising. I think it’s fun. But, yah, it’s nice that everyone thinks that.

I think it’s an edgy cover and pretty much unnecessary.