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Midwestindy
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How much trouble is Alaska Air in?

Tue Oct 31, 2017 12:33 am

Image

"Alaska Air chief commercial officer Andrew Harrison cited Los Angeles-Boston seven-day-advance fares dropping from $239 to $104, and the seven-day-advance fare from L.A. to San Francisco falling from $160 to $99."

"Delta and Southwest are pressing Alaska in Seattle and those carriers plus American, United and JetBlue are adding fare pressure in California."

"Alaska’s Chief Financial Officer Brandon Pedersen told Keay that “we are more frustrated than you about this whole thing.”
“There’s a lot of anxiety around here, there’s been a lot of tough conversations in the last few weeks about this,” Pedersen said."

"“We are being challenged today in the marketplace and I expect these challenges are going to get more intense in the months ahead.”

"revenue per available seat per mile flown — a closely watched measure of an airline’s efficiency — dropped to 13.12 cents from 13.97 cents a year ago, down 6.1 percent. This metric was actually flat on the legacy Alaska routes, but down on the legacy Virgin routes."

"Tilden said his team is studying the inherited Virgin routes closely and may reduce frequencies on some and make other changes."

https://www.seattletimes.com/business/b ... rizon-air/

Thoughts?
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EA CO AS
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 12:40 am

Midwestindy wrote:
“There’s a lot of anxiety around here, there’s been a lot of tough conversations in the last few weeks about this,” Pedersen said."


If you listen to the earnings call and/or read the transcript in its entirety, you'd learn this quote from Brandon has to do with the leadership team wanting to get the integration behind them so they can get back to what they do really, really well, and that's the business of running a great airline.

Midwestindy wrote:
Thoughts?


I think there are already threads with unwarranted hand-wringing and clutching of pearls about AS; we don't need another one.

But that's just me.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
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usxguy
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 12:55 am

Alaska isnt failing, its just not performing to Wall Street's expectations. Things will recover, just give it some time.
xx
 
allegiantflyer
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:11 am

I think AS is just in need of a good Ad Campaign. The other carriers advertise well, I think AS needs to spread their name more and they should be fine. I can't name a time I saw an AS ad outside the SEA market.

Do we know if AS has any plans for an Ad blitz in the future?
 
nutsaboutplanes
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:13 am

No airline goes through an integration without some turbulence. I have been through two of these, one was far less turbulent than the other but I can confirm that it is impossible to focus on normal business during an integration and some things do in fact slide. Performance metrics at all of the merged airlines were challenged during the first years of their mergers and AS isn’t immune. Mergers are long term plays. Eliminating a west’s coast competitor will bring fares up as the network is optimized and they have diversified their network away from Seattle which is strategically the right move. All of this was done while keeping a formidable B6 locked on the east coast and LGB.

I believe they would have been in trouble had they not pursued and sucessfully executed the merger. Long term planning sometimes means heartburn in the near-term.
American Airlines, US Airways, Alaska Airlines, Northwest Airlines, America West Airlines, USAFR
 
chrisair
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:16 am

allegiantflyer wrote:
Do we know if AS has any plans for an Ad blitz in the future?


Wish they'd bring the Sky High Airlines ads back. https://www.youtube.com/watch?v=SQXLHa6bBVs

https://www.youtube.com/watch?v=SQXLHa6bBVs
 
CV880
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:23 am

Airline stocks are down and oil is up.
 
tphuang
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:25 am

I say this as someone who is apparently too critical of AS.

AS is not in trouble. It's a very well run company that's currently experiencing the challenges merging with an airline whose network is not profitable. Some of the routes are challenging, but that's no different from any airline operating in an increasingly competitive environment. You can't let Wall Street dictate how you run an airline. Can we at least wait until at least the next major news item before we discuss if AS is in trouble?
 
hiflyeras
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:45 am

The same was said about pretty much any airline merger. They're doing just fine...fares are lower due to over capacity in many markets and that will eventually level out. AS wants to be a major player out of CA to the midwest and east coast but knows they will never carry numbers like they pull out of SEA or PDX. They say they want to eventually be the airline of choice out of CA but there are too many good competitors. If they can carry 20% of such a huge market they'd probably be happy.
 
ASFlyer
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:49 am

EA CO AS wrote:
Midwestindy wrote:

I think there are already threads with unwarranted hand-wringing and clutching of pearls about AS; we don't need another one.

But that's just me.


... and me

Alaska actually had a decent quarter - they simply didn't meet analysts predictions, but they made money... a lot of it. There are hurdles in the future but there have always been hurdles and Alaska has always been great about overcoming them. Alaska has done a good job at overcoming adversity for just about ever.
 
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 1:56 am

tphuang wrote:
I say this as someone who is apparently too critical of AS.

AS is not in trouble. It's a very well run company that's currently experiencing the challenges merging with an airline whose network is not profitable. Some of the routes are challenging, but that's no different from any airline operating in an increasingly competitive environment. You can't let Wall Street dictate how you run an airline. Can we at least wait until at least the next major news item before we discuss if AS is in trouble?


I think I'm the person responsible for insinuating that you're too critical of Alaska. My apologies for that... and thank you for a thoughtful response here to the question asked.

As you pointed out, fares are depressed in many of Virgin's core markets - and, as you said, Alaska bought an airline with a network that struggled to make a profit. Every single route that Virgin flew and added over the years (save maybe for SFO-CUN) had multiple competitors, often times even LCC competitors. They had a great product initially, but still couldn't demand a fare premium and often times lowered the bar with regards to fares charged, just to sell seats. Alaska will get their arms around this and there will end up being some routes that lose frequency, possibly even some routes just axed altogether. In the end, I feel confident that Alaska management will find a way to make this work to their benefit. They've done this repeatedly over the years when faced with difficult circumstances.
 
PlanesNTrains
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 2:02 am

They're well-run and have shown the ability to navigate the challenges of operating an airline remarkably well. They are certainly facing some headwinds in the marketplace as well as the normal challenges of merging another carrier into your network.

I think it'd be cool for them to do a special subfleet of transcon aircraft with a more competitive F class, but with the bloodbath that's going on right now, that might not be prudent.
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
ucdtim17
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 2:06 am

allegiantflyer wrote:
I think AS is just in need of a good Ad Campaign. The other carriers advertise well, I think AS needs to spread their name more and they should be fine. I can't name a time I saw an AS ad outside the SEA market.

Do we know if AS has any plans for an Ad blitz in the future?


They already are blitzing in the Bay Area. It’s been pretty nonstop since the purchase.
 
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usxguy
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 2:19 am

Arbitration with the pilots came out and its pretty damn ugly for the pilots. Expect the Horizon issues to be nothing compared to what the Alaska FOs are going to be doing (or not doing, in this case).

EA CO AS, I know we don't always agree on things, but its going to be a rough ride ahead.
xx
 
ASFlyer
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 3:52 am

usxguy wrote:
Arbitration with the pilots came out and its pretty damn ugly for the pilots. Expect the Horizon issues to be nothing compared to what the Alaska FOs are going to be doing (or not doing, in this case).

EA CO AS, I know we don't always agree on things, but its going to be a rough ride ahead.


It's gonna be ugly. Every single U.S. airline is hiring. Many overseas carriers are hiring. Cargo airlines are hiring. Pilots can call the shots, they can go anywhere - Alaska Airlines won't be on very many Pilots short list. This is going to get uglier until the company realizes that there's nothing special about Alaska from an employment perspective, with regards to Pilots. Many of the FO's that were hosed during the Kasher arbitration are now Captains and have just gotten hosed again. Fabulous.
 
IPFreely
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 4:01 am

Midwestindy wrote:
Thoughts?


If you want to analyze whether a company is in trouble or not you should analyze the performance of the company, not the stock. Look at things like revenues, costs, debt, capital expenditures, cash position, etc., then get back to us.
 
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 4:06 am

usxguy wrote:
Arbitration with the pilots came out and its pretty damn ugly for the pilots.


Damn.

I haven't seen the arbitration award yet, but I was really hoping it would be something "fair," where neither side is happy, but both can live with it. Is there a link out there for it, or can you share highlights/lowlights since you've seen it?
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
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usxguy
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 4:18 am

Check your PMs.. and page 16, not 17
xx
 
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admanager
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 4:53 am

To answer the question about arbitration.
The arbitration results are not a pretty sight from pilots view. All the union proposals were denied.
Scope and job protection is denied.
New pay rates only for years 1-5. T Other years were denied. The pilots are not happy.
 
dc10lover
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:14 am

Delta is secretly smiling.
Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of. Same with OAK & SJC when it comes to SFO.
 
2175301
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:15 am

admanager wrote:
To answer the question about arbitration.
The arbitration results are not a pretty sight from pilots view. All the union proposals were denied.
Scope and job protection is denied.
New pay rates only for years 1-5. T Other years were denied. The pilots are not happy.


IF all union proposals were denied... To me (as a former Union member) that means that the Union's position were in fairy tale land and not near reality. They should have gotten at least 40% if their proposals were based closer to reality. It may not be fair to the pilots... but, it's their union and the pilots actually can control the union proposals (if they want to).

Perhaps the next set of Union proposals will be by different leaders and be more realistic.

Have a great day,
 
Varsity1
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:20 am

2175301 wrote:
admanager wrote:
To answer the question about arbitration.
The arbitration results are not a pretty sight from pilots view. All the union proposals were denied.
Scope and job protection is denied.
New pay rates only for years 1-5. T Other years were denied. The pilots are not happy.


IF all union proposals were denied... To me (as a former Union member) that means that the Union's position were in fairy tale land and not near reality. They should have gotten at least 40% if their proposals were based closer to reality. It may not be fair to the pilots... but, it's their union and the pilots actually can control the union proposals (if they want to).

Perhaps the next set of Union proposals will be by different leaders and be more realistic.

Have a great day,


Not really. The arbitrator is known to be extremely pro business and conservative. The pilots expected to lose.

With QX's staffing problems, you would think AS would be careful not to piss up wind.
 
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:42 am

Varsity1 wrote:
With QX's staffing problems, you would think AS would be careful not to piss up wind.


Keep in mind that the contractually agreed-upon move to an arbitrator pre-dates much of the issues at QX. While the arbitrator's decision is meant to be binding, I don't think anything is preventing AS from paying more than the arbitrator has awarded if ALPA agrees.

So, you never know...
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
chrisair
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 6:28 am

EA CO AS wrote:
While the arbitrator's decision is meant to be binding, I don't think anything is preventing AS from paying more than the arbitrator has awarded if ALPA agrees.

So, you never know...


You think ALK management would willingly pay more without their hand being forced?

Feel bad for everyone at Alaska now. The next few years will be interesting to watch (hopefully my AS trips aren't affected too much!).
 
scoping2008
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 6:43 am

allegiantflyer wrote:
I think AS is just in need of a good Ad Campaign. The other carriers advertise well, I think AS needs to spread their name more and they should be fine. I can't name a time I saw an AS ad outside the SEA market.

Do we know if AS has any plans for an Ad blitz in the future?


They've been running a television ad campaign in the Hawaii market for the past several weeks. Every local station seems to have ads touting the AS Mileage Plan and how the airline serves the most destinations on the West Coast from Hawaii.
 
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 6:51 am

chrisair wrote:
You think ALK management would willingly pay more without their hand being forced?


Possibly! The QX meltdown, brought on by the new realities of the pilot job market, REALLY opened the eyes of senior leadership at AAG. They know the marketplace for pilots has changed fundamentally, and while costs need to stay under control to remain competitive, wages and benefits need to be competitive to remain relevant as well.

Unless I'm mistaken, the arbitrator's award gave top-of-scale Captains and FOs pay that's now tied for industry-leading with DL for 73X/A32X equipment. That's not insignificant, but there will likely need to be more than just that to make AAG a career destination in the next decade or two.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
nutsaboutplanes
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 7:39 am

chrisair wrote:
EA CO AS wrote:
While the arbitrator's decision is meant to be binding, I don't think anything is preventing AS from paying more than the arbitrator has awarded if ALPA agrees.

So, you never know...


You think ALK management would willingly pay more without their hand being forced?

Feel bad for everyone at Alaska now. The next few years will be interesting to watch (hopefully my AS trips aren't affected too much!).


AA has given its union employees multiple raises outside of CBA’s and added profit sharing. While these required union approval, they were not bargained. If the airline feels its prudent and makes sense in order to keep labor peace, they will do it. If I were AAG, I would shoot for a contract that was mid-range so that they can show that they are offering more than what the arbitrator required. This would help to soften the sting of the arbitrators decision and it would be an initial extension of the olive branch.
American Airlines, US Airways, Alaska Airlines, Northwest Airlines, America West Airlines, USAFR
 
chrisair
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 7:58 am

EA CO AS wrote:
That's not insignificant, but there will likely need to be more than just that to make AAG a career destination in the next decade or two.


nutsaboutplanes wrote:
If I were AAG, I would shoot for a contract that was mid-range so that they can show that they are offering more than what the arbitrator required. This would help to soften the sting of the arbitrators decision and it would be an initial extension of the olive branch.


I hope you two are right. I'd hate to see the QX fiasco drift over to mainline. Time will tell...
 
n562wn
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How much trouble is Alaska Air in?

Tue Oct 31, 2017 7:58 am

EA CO AS wrote:
chrisair wrote:
You think ALK management would willingly pay more without their hand being forced?




Unless I'm mistaken, the arbitrator's award gave top-of-scale Captains and FOs pay that's now tied for industry-leading with DL for 73X/A32X equipment. That's not insignificant, but there will likely need to be more than just that to make AAG a career destination in the next decade or two.



You are mistaken. From what I've seen, the arbitrator placed them at fifth in pay for topped out Captains with zero scope improvements. I can see their angst.



Sent from my iPhone using Tapatalk
My statements do not represent my former employer or my current employer and are my opinions only.
 
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 8:17 am

n562wn wrote:
EA CO AS wrote:
chrisair wrote:
You think ALK management would willingly pay more without their hand being forced?




Unless I'm mistaken, the arbitrator's award gave top-of-scale Captains and FOs pay that's now tied for industry-leading with DL for 73X/A32X equipment. That's not insignificant, but there will likely need to be more than just that to make AAG a career destination in the next decade or two.



You are mistaken. From what I've seen, the arbitrator placed them at fifth in pay for topped out Captains with zero scope improvements. I can see their angst.



The arbitrator's award shows the new top of scale rate as $251.00, equal to that of DL. What am I missing?
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
n562wn
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How much trouble is Alaska Air in?

Tue Oct 31, 2017 8:23 am

EA CO AS wrote:
n562wn wrote:
EA CO AS wrote:



Unless I'm mistaken, the arbitrator's award gave top-of-scale Captains and FOs pay that's now tied for industry-leading with DL for 73X/A32X equipment. That's not insignificant, but there will likely need to be more than just that to make AAG a career destination in the next decade or two.



You are mistaken. From what I've seen, the arbitrator placed them at fifth in pay for topped out Captains with zero scope improvements. I can see their angst.



The arbitrator's award shows the new top of scale rate as $251.00, equal to that of DL. What am I missing?


The fact that the current topped out DL 737 rate is $267?
My statements do not represent my former employer or my current employer and are my opinions only.
 
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 9:29 am

n562wn wrote:
EA CO AS wrote:
n562wn wrote:


You are mistaken. From what I've seen, the arbitrator placed them at fifth in pay for topped out Captains with zero scope improvements. I can see their angst.



The arbitrator's award shows the new top of scale rate as $251.00, equal to that of DL. What am I missing?


The fact that the current topped out DL 737 rate is $267?


Source, please? My info shows DL's rate at $251 as of 2016.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
n562wn
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 9:32 am

EA CO AS wrote:
n562wn wrote:
EA CO AS wrote:

The arbitrator's award shows the new top of scale rate as $251.00, equal to that of DL. What am I missing?


The fact that the current topped out DL 737 rate is $267?


Source, please? My info shows DL's rate at $251 as of 2016.


https://www.airlinepilotcentral.com/air ... _air_lines

You can look up other airlines rates as well. They usually do a pretty good job of updating it.
My statements do not represent my former employer or my current employer and are my opinions only.
 
MIflyer12
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 10:37 am

2175301 wrote:
IF all union proposals were denied... To me (as a former Union member) that means that the Union's position were in fairy tale land and not near reality. They should have gotten at least 40% if their proposals were based closer to reality. It may not be fair to the pilots... but, it's their union and the pilots actually can control the union proposals (if they want to).

Perhaps the next set of Union proposals will be by different leaders and be more realistic.

Have a great day,


That won't be a popular point of view but, yes, it is possible to 'lose' in arbitration. If we looked back over the last 20 years, how many of those years saw AS pilot wages equal to highest in the industry? Why should they match the highest now? What were pilots willing to give up (in wages or work rule productivity) in order to gain scope protection? There are lots of questions like that for arbitrators to consider.
 
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vhtje
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 11:11 am

dc10lover wrote:
Delta is secretly smiling.


Why does EVERY damn thread in this forum need to be made about Delta?
I only turn left when boarding aircraft. Well, mostly. All right, sometimes. OH OKAY - rarely.
 
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DL_Mech
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 12:20 pm

chrisair wrote:


Hard to believe they made those commercials using TWA's then current seats.
This plane is built to withstand anything... except a bad pilot.
 
username21
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 2:00 pm

vhtje wrote:
dc10lover wrote:
Delta is secretly smiling.


Why does EVERY damn thread in this forum need to be made about Delta?


Because Delta is competing aggressively with Alaska in Seattle.
 
vadodara
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 2:05 pm

Anyone have access to CAPA's article on Alaska?
 
Varsity1
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 3:20 pm

vhtje wrote:
dc10lover wrote:
Delta is secretly smiling.


Why does EVERY damn thread in this forum need to be made about Delta?



This is DeltaAirliners.net . Didn't you notice the blue?
 
allegiantflyer
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 3:40 pm

scoping2008 wrote:
allegiantflyer wrote:
I think AS is just in need of a good Ad Campaign. The other carriers advertise well, I think AS needs to spread their name more and they should be fine. I can't name a time I saw an AS ad outside the SEA market.

Do we know if AS has any plans for an Ad blitz in the future?


They've been running a television ad campaign in the Hawaii market for the past several weeks. Every local station seems to have ads touting the AS Mileage Plan and how the airline serves the most destinations on the West Coast from Hawaii.


Which ads are they playing? this is the only one I can find and id doesn't seem all tat effective, I really hope they make some better ones I know their marketing team can.

https://www.youtube.com/watch?v=uNyqT3XhBbs

It was previously said they are blitzing the Bay Area, could be true. Using SLC to compare, it appears SFO-SLC is more loaded than LAX-SLC which appears to always be half empty.

A couple weeks of ads in LAX metro and I say done.
 
DarthLobster
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 4:14 pm

Never thought I’d see the day when an airline made a 20% margin in a quarter and everyone was unhappy about it. If this were the 2000s they’d be spraying themselves with champagne.

Fuel affects everyone, integration is expensive, and fare wars come and go. AS is still widely profitable, so everyone panicking (especially dirtbag financial analysts) needs to just take an F’ing chill pill.
 
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jnev3289
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 4:20 pm

DarthLobster wrote:
Never thought I’d see the day when an airline made a 20% margin in a quarter and everyone was unhappy about it. If this were the 2000s they’d be spraying themselves with champagne.

Fuel affects everyone, integration is expensive, and fare wars come and go. AS is still widely profitable, so everyone panicking (especially dirtbag financial analysts) needs to just take an F’ing chill pill.

Just buy a ton of their stock like I did
 
allegiantflyer
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:30 pm

I think AS is doing well but, AS needs to revaluate how much space their "Premium Class/ Elite Status - Refundable Ticket" takes up in Economy. This class is so large that many of their planes are going out half empty, there just aren't that many people willing to pay that much for a ticket that they have reserved in their cabin.
 
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Midwestindy
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:48 pm

Btw to those addressing their comments towards me, I have no opinion on the matter, I literally just Copy and Pasted from a Seattle Times article......
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Varsity1
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 5:55 pm

allegiantflyer wrote:
I think AS is doing well but, AS needs to revaluate how much space their "Premium Class/ Elite Status - Refundable Ticket" takes up in Economy. This class is so large that many of their planes are going out half empty, there just aren't that many people willing to pay that much for a ticket that they have reserved in their cabin.


AS needs to understand that they can't hide in their corner and print money anymore..

Airlines around the country are bringing the fight to the west coast/pac nw.
 
F9Animal
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 6:41 pm

Alaska isn't in trouble. An airline that is not profitable is in trouble. Even if Alaska only squeezed a $10 profit, that makes it successful. I trust that Alaska has a team of executives that are paid to steer Alaska successfully. Yes, we can all agree there are areas that Alaska can do better, and that's why people are put in job positions to execute the goals.

I find it funny that failure is now measured in lower profits today. Seems like it was yesterday everyone was counting big losses as a sign of trouble. Alaska is indeed facing more competition. But, Alaska is big enough now to give competitors competition. Alaska isn't in trouble, and there is still alot of areas they can improve.
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IPFreely
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Joined: Sun Dec 24, 2006 8:26 am

Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 7:03 pm

allegiantflyer wrote:
I think AS is doing well but, AS needs to revaluate how much space their "Premium Class/ Elite Status - Refundable Ticket" takes up in Economy. This class is so large that many of their planes are going out half empty, there just aren't that many people willing to pay that much for a ticket that they have reserved in their cabin.


Alaska just reported 85% load factor for the last quarter and year-to-date. So you might want to rethink that "planes are going out half empty" statement.

https://newsroom.alaskaair.com/2017-10- ... 17-results
 
allegiantflyer
Posts: 366
Joined: Mon Mar 12, 2012 6:59 pm

Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 8:15 pm

IPFreely wrote:
allegiantflyer wrote:
I think AS is doing well but, AS needs to revaluate how much space their "Premium Class/ Elite Status - Refundable Ticket" takes up in Economy. This class is so large that many of their planes are going out half empty, there just aren't that many people willing to pay that much for a ticket that they have reserved in their cabin.


Alaska just reported 85% load factor for the last quarter and year-to-date. So you might want to rethink that "planes are going out half empty" statement.

https://newsroom.alaskaair.com/2017-10- ... 17-results


I did not in anyway mean all of them as I'm not in the AS hating crowd. their SEA and PDX loads are great. But many of their routes out of California are...meh. Check out EWR-SJC,LAX-SLC/BWI/MEX and others. The problem for the majority of these is that Elite Status takes up too much of the main cabin.
 
ucdtim17
Posts: 622
Joined: Fri Jun 03, 2016 6:38 pm

Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 8:43 pm

allegiantflyer wrote:
IPFreely wrote:
allegiantflyer wrote:
I think AS is doing well but, AS needs to revaluate how much space their "Premium Class/ Elite Status - Refundable Ticket" takes up in Economy. This class is so large that many of their planes are going out half empty, there just aren't that many people willing to pay that much for a ticket that they have reserved in their cabin.


Alaska just reported 85% load factor for the last quarter and year-to-date. So you might want to rethink that "planes are going out half empty" statement.

https://newsroom.alaskaair.com/2017-10- ... 17-results


I did not in anyway mean all of them as I'm not in the AS hating crowd. their SEA and PDX loads are great. But many of their routes out of California are...meh. Check out EWR-SJC,LAX-SLC/BWI/MEX and others. The problem for the majority of these is that Elite Status takes up too much of the main cabin.


Or many of the new routes from SFO. One day out fares to MEX are $187 with the front half of the plane empty most days. Higher fares on other routes, but similarly half full E175s. They wanted to add dots quickly, so they did that regardless of whether each route made sense on its own merits.
 
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EA CO AS
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Re: How much trouble is Alaska Air in?

Tue Oct 31, 2017 10:05 pm

allegiantflyer wrote:
IPFreely wrote:
allegiantflyer wrote:
I think AS is doing well but, AS needs to revaluate how much space their "Premium Class/ Elite Status - Refundable Ticket" takes up in Economy. This class is so large that many of their planes are going out half empty, there just aren't that many people willing to pay that much for a ticket that they have reserved in their cabin.


Alaska just reported 85% load factor for the last quarter and year-to-date. So you might want to rethink that "planes are going out half empty" statement.

https://newsroom.alaskaair.com/2017-10- ... 17-results


I did not in anyway mean all of them as I'm not in the AS hating crowd. their SEA and PDX loads are great. But many of their routes out of California are...meh. Check out EWR-SJC,LAX-SLC/BWI/MEX and others. The problem for the majority of these is that Elite Status takes up too much of the main cabin.


Just how many rows do you think Premium Class takes up in each aircraft? Those few rows represent buy-up opportunities for people who want 4” more legroom, early boarding, and free drinks, and are comp upgrades for elites who weren’t able to be upgraded to F.

PC is very lucrative cabin real estate for AS.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group

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