Alaska Air Group

Alaska Air Group, Inc.
Public
Traded as
Industry Transportation
Founded 1985
Headquarters SeaTac, Washington, U.S.
Area served
 United States
Key people
 Brad Tilden
(Chairman and CEO)
Services Airline Services
Revenue Increase US$7.933 Billion (2017)[1]
Decrease US$1.260 Billion (2017)
Increase US$1.028 Billion (2017)
Total assets Increase US$10.722 Billion (2017)
Total equity Increase US$3.715 Billion (2017)
Number of employees
 23,156 (2017)
Subsidiaries
Website alaskaair.com

Alaska Air Group is an airline holding company based in SeaTac, Washington. It owns two certificated airlines operating in the United States: Alaska Airlines and Horizon Air.[2] The Alaska Air Group also oversees an aircraft ground handling company, McGee Air Services, which is wholly owned by Alaska Airlines.

History

Headquarters for Alaska Air Group

It was formed in 1985 and acquired Horizon Air and Jet America Airlines the next year. Jet America Airlines was merged into Alaska Airlines in 1987.

Between 2007 and 2010, the number of employees under Alaska Air Group's subsidiaries dropped from 13,618 (10,142 at Alaska Airlines and 3,476 at Horizon Air) to 12,039 (9,013 at Alaska Airlines and 3,202 at Horizon Air).[3][4][5][6] By 2011, the number of employees had risen to 12,806 (9,640 at Alaska Airlines and 3,166 at Horizon Air).[7]

In 2011, Alaska Air Group replaced the AMR Corporation in the Dow Jones Transportation Average following AMR's filing for bankruptcy.[8]

On March 29, 2016 Alaska Airlines announced that it would form a wholly owned subsidiary called McGee Air Services, a dedicated airline services company. McGee competes with other, similar companies to provide ground handling, aircraft cleaning and wheelchair services to Alaska Airlines.[9]

On April 4, 2016, Alaska Air Group announced plans to acquire Virgin America, pending approval from US government regulators and Virgin America shareholders,[10] before the acquisition was completed on December 14, 2016.[11] The total price for the acquisition was approximately $2.6 billion. Until 2018, Alaska Air Group continued to operate Alaska Airlines and Virgin America as separate airlines and continued to honor both Alaska's Mileage Plan and Virgin America's Elevate loyalty programs.[12] By the end of 2016, following Virgin America's acquisition the number of Alaska Air Group employees rose to 19,112 (12,224 at Alaska Airlines, 3,616 at Horizon Air, and 3,252 at Virgin America).[13]

On March 22, 2017 the company announced that Alaska Air Group would merge Virgin America and Alaska Airlines, with the combined airline to operate under the Alaska Airlines brand. The merger was largely completed on April 25, 2018 and the Virgin America brand is expected to be fully retired by the end of 2019.[14]

Ownership

As of 2017, Alaska Air Group shares are mainly held by institutional investors T. Rowe Price, The Vanguard Group, and others.[15]

Operations

Fleet

Alaska Air Group operates a mix of Airbus, Boeing, Bombardier, and Embraer aircraft through its subsidiaries Alaska Airlines and Horizon Air. As of October 2017, Alaska Airlines' fleet consisted of 248 jet aircraft,[16] and Horizon Air's fleet consisted of 41 turboprop and 16 jet aircraft, with the combined fleet under Alaska Air Group's management numbering 298 aircraft.

Alaska Air Group has created a new branding identity for its Horizon Air subsidiary and other independently owned and separately directed affiliate regional airlines it chooses to contract to do regional flying business into markets too limited to be flown only on Alaska Airlines mainline equipment. Among the other airlines now sub-contracted to do additional flying for the Alaska Air Group is SkyWest, Inc.'s SkyWest Airlines, whose Bombardier CRJ700 and Embraer E175 aircraft dedicated to providing service for the Alaska Air Group are painted in a very similar manner to Alaska Horizon's. SkyWest's fleet however, is branded Alaska SkyWest to differentiate that airline's aircraft from those of Horizon Air.[17]

Route network

Through Alaska Airlines and Horizon Air, Alaska Air Group services the passenger and cargo markets of the Pacific Northwest with its extensive route network hub through Seattle/Tacoma and Portland International Airports, and the state of Alaska through Ted Stevens Anchorage International Airport. After the demise of Aloha Airlines and ATA Airlines in 2008, Alaska Air Group expanded heavily centering on Hawaii and other non-airline hub secondary mainland cities and airports, including San Diego International Airport and San Jose International Airport.[18] After the acquisition of Virgin America in 2016, Alaska Air Group further expanded into California through Virgin America's hubs at San Francisco and Los Angeles International Airports, and focus city at Dallas Love Field in Texas.[19]

References

  1. ↑ "News Release, Investors". Alaska Airlines. Alaska Airlines, Inc. April 29, 2017.
  2. ↑ "Alaska Air Group, Form 8-K, Current Report, Filing Date Oct 10, 2017" (PDF). secdatabase.com. Retrieved October 24, 2017.
  3. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date Feb 20, 2008" (PDF). secdatabase.com. Retrieved Jan 2, 2013.
  4. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date Feb 19, 2009" (PDF). secdatabase.com. Retrieved Jan 2, 2013.
  5. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date Feb 19, 2010" (PDF). secdatabase.com. Retrieved Jan 2, 2013.
  6. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date Feb 23, 2011" (PDF). secdatabase.com. Retrieved Jan 2, 2013.
  7. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date Feb 21, 2012" (PDF). secdatabase.com. Retrieved Jan 2, 2013.
  8. ↑ Hwang, Inyoung (30 November 2011). "Alaska Air to Replace AMR in Dow Jones Transportation Average". Bloomberg Businessweek. Archived from the original on 2012-05-09. Retrieved 9 May 2012.
  9. ↑ "Alaska Airlines Announces the Formation of a New Subsidiary - McGee Air Services". McGee Air Services. March 29, 2016. Retrieved October 28, 2017.
  10. ↑ "Alaska Air to acquire Virgin America in $4bn deal". BBC News. April 4, 2016. Retrieved April 4, 2016.
  11. ↑ "Alaska Air Group closes acquisition of Virgin America, becomes the 5th largest U.S. airline". Alaska Airlines (Press release). Alaska Airlines, Inc. December 14, 2016.
  12. ↑ Kim, Susanna (April 4, 2016). "What You Should Know About the Virgin America, Alaska Air Merger". ABC News – Breaking News, Latest News, Headlines & Videos. ABC News Internet.
  13. ↑ "Alaska Air Group, Form 10-K, Annual Report, Filing Date Feb 28, 2017" (PDF). secdatabase.com. Retrieved October 24, 2017.
  14. ↑ Goldman, David and Ostrower, Jon (March 23, 2017). "Alaska Airlines is killing off the Virgin America brand". CNN Money. Cable News Network.
  15. ↑ "Alaska Air Group, Inc. Ownership Summary". NASDAQ.com. Retrieved October 24, 2017.
  16. ↑ "Alaska Airlines Fleet Details and History". Planespotters.net. Retrieved October 24, 2017.
  17. ↑ "Information about the planes we fly". Alaska Airlines. Alaska Airlines, Inc. Retrieved October 24, 2017.
  18. ↑ Segal, Dave (February 15, 2013). "Alaska Airlines successfully fills voids in Hawaii left by failed airlines". The Honolulu Star-Advertiser. Retrieved June 21, 2017.
  19. ↑ "Cities served". Alaska Airlines. Alaska Airlines, Inc. Retrieved October 24, 2017.
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