Tuesday, October 1, 2013

Max Effect For October 2013

Alaska Airlines orders five more Boeing 737-900s

You say Five! and then meah!, So what's the big deal here with 5, 737-900's Max. It doesn't touch some of the other orders in comparison that both Boeing and Airbus have gathered. However for me it signifies further the transition of the 737-Max family of aircraft. Southwest Airlines, the signature 737 customer has already weighed in with its initial order for the Max. The Alaska Air order signifies a western US move for improvement without changing horses in the middle of the stream. 

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  • Alaska Airlines said it's ordered five more Boeing Co. 737-900 extended range airplanes with a list value of $481 million.
  • Seattle-based Alaska Airlines, a unit of Alaska Air Group Inc. (NYSE: ALK), now has unfilled orders for 35 737-900ERs and 37 737 MAX airplanes.
  • "Today's announcement supports our goal of growing Alaska Airlines by 4 to 8 percent a year," said Mark Eliasen, Alaska Air Group's vice president of finance and treasurer, in a statement.
  • Boeing (NYSE: BA) said the 737-900ER can carry up to 26 more passengers or fly about 500 nautical miles farther than the 737-900."
So what's the purpose of writing about an order of five?  Next year could bring another order of five as the fleet updates beyond the initial 32+ 5 Max's. Alaska has a remaining pool of 35, 737-900 ER before receiving any Max product. This order indicates a long term incremental order of fleet inventory renewal within a budgetary frame work..  Numbers of note is the 26 more passengers and five hundred more miles for the -9 Max. Ouch, that is a money number,  that will lever routes, and expand markets. Its just not a fleet renewal order, but a confirmation on a new strategy.  Alaska Air is not just for Alaska, but for the adventurer where ever adventure is found. The extra 500 mile and 26 passengers for the Max will expand the Alaska business plans. Its a time zone shift outward from its current route system. Could you imagine seeing an Alaska Airways livery in Tahiti, New Zealand or Australia. "Whats up with that", I did use the word "Adventure" in the opening comments. 

That's what Alaska's Airways is about, and that's what sun-light deprivation will do to your well being. Anchorage to Hawaii or Seattle to Hawaii and so forth. The change  to a -9 Max in Honolulu from from another Max will put an airline into Airspace using the word Alaska and some Destination in the Pacific, not ever used before in the same travel brochure. The island hopping Northwest would enjoy Alaska Airways high level of service with a free pair of sunglasses awarded for every destination in the South Pacific.

The knife's edge cuts from both ends of the -9 Max edge. Distance and passengers is that edge and other airline from the east may seize on as an opportunity, and fly west with passengers on the Max -9 new extended passenger and distance range outward other places into its market expansion. The Max possibilities will change travel opportunities as Alaska Air may find out with its new inventory turn-over.