Boeing (NYSE: BA) and Alaska Airlines (NYSE: ALK) completed Boeing's first firm airplane order of 2014 for two additional 737-900ER (Extended Range) airplanes. The agreement, worth $192 million at current list prices, coincides with today's direct delivery of the 100th Next-Generation 737 airplane to Alaska Airlines. The 737, the world's best-selling commercial airliner, is a valuable contributor to the Pacific Northwest economy.
"As the hometown airline in 'Jet City' for more than half a century, Alaska is proud to fly an all-Boeing fleet," said Mark Eliasen, Alaska Air Group's vice president of finance and treasurer. "The 737-900ER has proven to be an ideal upgrade for us. This aircraft offers impressive operational efficiencies and environmental benefits, and our customers are very pleased with its onboard amenities."
The aircraft order and delivery of Alaska's 100th Next-Generation 737 was marked by a special celebration and delivery flight attended by 50 frontline employees from the airline and 50 Boeing employees.
"Alaska Airlines consistently leads the industry, and they've built a strong performance record with Boeing's 737s," said Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes. "We are very proud to be Alaska Airlines' hometown partner and have a role in the success of their business. This order, with the delivery of the 100th Next-Generation 737, is further testament to our enduring partnership with Alaska Airlines."
The airline-manufacturer partnership results in a significant economic benefit for the Pacific Northwest. The 737, built at the Renton, Wash., factory, is the world's best-selling airliner with more than 5,400 in service worldwide; one 737 takes off or lands every 2.3 seconds. Boeing Commercial Airplanes contributes more than $940 million each week into the Washington state economy. In 2012, Boeing paid more than 2,000 Washington state suppliers a total of $4.6 billion; supporting an estimated 125,000 direct and indirect jobs in Washington.
Alaska Airlines and its regional partner, Horizon Air, contribute 22,000 jobs at the carriers and their business partners, generating another $5.6 billion in annual economic activity across the state.
The largest and newest model in the Next-Generation 737 family, the 737-900ER can carry up to 26 more passengers or fly about 500 nautical miles (926 km) farther than the 737-900. Alaska Airlines operates the 737-900ER in a two-class configuration with 181 seats and features the Boeing Sky Interior.
The longer range of the 737-900ER can connect distant city pairs across continents, such as Seattle and Orlando, Fla., in a generous two-class configuration. It has substantial economic advantages over competing models, including 6 percent lower operating costs per trip and 4 percent lower operating costs per seat mile.
The Boeing Sky Interior is the latest in a series of enhancements for both airlines and passengers that introduces new lighting and a curving architecture to create a distinctive entry way. Passengers enjoy a more open cabin feel and newly improved and expanded pivot bins. In addition, all of Alaska's seats feature outlets providing dual 110-volt and USB power.
Alaska flies 131 Boeing 737 aircraft, including 14 737-900ERs. The carrier has 68 firm orders for 737-900ERs and 737 MAX aircraft to be delivered through 2022. Alaska took delivery of its first 737-900ER in October 2012 and began adding Next-Generation 737s to their fleet in July 1999 with the first delivery of a 737-700.
Source: The Boeing Company (NYSE: BA)
Date: Jan 14, 2014