Alaska Air Buys 35 Planes To Add Routes, Boost Capacity ?

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Alaska Air Buys 35 Planes To Add Routes, Boost Capacity  
 
  

Wednesday June 15, 5:35 PM EDT 


SEATTLE -(Dow Jones)- Alaska Air Group Inc. (ALK) (ALK) ordered 35 737-800 aircraft from Boeing (BA), in a deal worth about $2.3 billion based on the list price of the aircraft.

The carrier said in a press release Wednesday that the added aircraft would give the company the ability to fly more transcontinental routes and boost seat capacity to meet rising demand on the West Coast.

Also, Alaska has an option to acquire up to 15 more aircraft and has purchase rights for another 50 737-800s. =- 

"This order positions us for growth opportunities ahead," Alaska's chief executive, Bill Ayer, said in the statement.

Alaska said the aircraft -- scheduled for delivery in the next six years -- will allow the company to expand its fleet by about 60 planes through 2011 or to replace older airplanes without increasing fleet size.

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The first plane is scheduled for delivery in January.

The 737-800 is a twin-jet and will be configured in two classes with a total of 157 seats and a third lavatory in the main cabin.

The aircraft also have fuel-saving winglets, leather seats and larger overhead storage bins.

Alaska currently has 109 aircraft in its fleet.

Alaska reported a first-quarter loss of $80.5 million, or $2.39 a share and had cash and short-term investments of about $764 million at March 31.

Representatives for the carrier weren't available immediately to say how the company plans to pay for its new planes.

Company Web site: http://www.alaskaair.com

-Jacquie Jordan; Dow Jones Newswires; 201-938-5400; AskNewswires@xxxxxxxxxxxx 


Roger
EWROPS

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