Alaska Air to start service to Denver, Boston

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DENVER , Jan 9 (Reuters) - Alaska Air Group (ALK) said on Wednesday it will
begin daily non-stop service in April to Denver from the Pacific Northwest,
as the airline builds on the strength of its hubs and redeploys excess plane
capacity from other markets.

Alaska Airlines will also start daily non-stop service between Seattle and
Boston.

The announcement at Denver International Airport was good news for the city
where UAL Corp.'s (UAL) United Airlines controls a majority of the flights
and has cut back since the September hijack attacks.

"From Seattle alone, Denver now represents the fourth most popular
destination for travelers," said Gregg Saretsky, Alaska's senior vice
president of marketing and planning. "Our new service to Denver will build
on the strength of Alaska's Seattle hub, as well as (regional carrier
subsidiary) Horizon's Portland (Oregon) and Boise (Idaho) hubs. COMPETITION
FROM FRONTIER


A spokesman for Seattle-based Alaska Air said the airline will use larger
Boeing 737-900s on some current routes like Pacific Northwest to southern
California, allowing it to reduce flights to those destinations and free up
some planes for other destinations.

Saretsky said the new routes are part of an effort by both Alaska Air and
Horizon to build on the strength of their hubs in Seattle and Portland and
redeploy excess capacity in existing markets where it makes sense.

Aviation consultant Michael Boyd said Denver-based low-cost Frontier
Airlines (FRNT) might provide heavy competition to Alaska Air because its
customer service is well regarded by travelers.

Alaska Air has deferred deliveries of eight 737s, four slated for 2002 and
four in 2003, in order to keep costs down in the wake of the travel slump
that followed the Sept. 11 attacks.

Alaska has 102 aircraft in its fleet. The airline also expanded its service
to Washington, D.C., since the attacks.

Alaska will maintain its current fleet size by extending leases on four
MD-80 jetliners originally slated to return to their owners by the end of
January.

Alaska and Horizon will begin service to Denver on April 28 with six daily
non-stop flights, three from Seattle on Alaska, and two from Portland,
Oregon, and one from Boise, Idaho, on Horizon. Alaska's new service between
Boston and Seattle will begin on April 4 with one daily non-stop flight
flown with a 120-seat Boeing 737-700.

Also April 28, Alaska will inaugurate seasonal non-stop service between
Vancouver, B.C., and Orange County, California.

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