Faster bags, simplification of bag fee structure, cancelled routes
Jun 16, 2010, 2:07 pm
#1
Original Poster
Join Date: Nov 2007
Location: (PHL) Cape May, NJ
Programs: MVP Gold 75K, Board Room, Marriott Gold, Hertz Gold
Posts: 2,439
Faster bags, simplification of bag fee structure, cancelled routes
http://www.alaskasworld.com/Newsroom...616_082310.asp
Bag guarantee dropped from 25 minutes to 20 minutes.
Simplification of baggage fee structure and drastically reduced costs for heavy packers, but increases costs for 1 bag by 5 bucks:
Bag 1: $20 (+$5)
Bag 2: $20 (-$5)
Bag 3: $20 (-$30)
Both MVP and MVP Gold elites receive 2 free bags (Wasn't MVP just 1 free bag before?); intra-alaska, mexico, and military service bag rules unchanged.
http://www.alaskasworld.com/Newsroom...616_115008.asp
Route cancellations and service reductions:
Service from Seattle to Pasco and Vancouver, and from Medford to Los Angeles, will be reduced by one flight in each market to help boost profitability on the remaining flights. Seattle-Kelowna service will be reduced by one flight in the fall, but it will be reinstated during the busier winter season.
Discontinued routes include Boise to Idaho Falls, Boise to Los Angeles, Flagstaff/Prescott to Los Angeles, Eureka/Redding to Seattle, Redmond to Los Angeles, and Sacramento to Santa Barbara.
http://www.thenewstribune.com/2010/0...some-cash.html
Alaska airlines creates a plan to reduce the $1.237B in cash by $350M to $887M in stock buyback, pay off debt, and pay cash for some aircraft. Curious.
Bag guarantee dropped from 25 minutes to 20 minutes.
Simplification of baggage fee structure and drastically reduced costs for heavy packers, but increases costs for 1 bag by 5 bucks:
Bag 1: $20 (+$5)
Bag 2: $20 (-$5)
Bag 3: $20 (-$30)
Both MVP and MVP Gold elites receive 2 free bags (Wasn't MVP just 1 free bag before?); intra-alaska, mexico, and military service bag rules unchanged.
http://www.alaskasworld.com/Newsroom...616_115008.asp
Route cancellations and service reductions:
Service from Seattle to Pasco and Vancouver, and from Medford to Los Angeles, will be reduced by one flight in each market to help boost profitability on the remaining flights. Seattle-Kelowna service will be reduced by one flight in the fall, but it will be reinstated during the busier winter season.
Discontinued routes include Boise to Idaho Falls, Boise to Los Angeles, Flagstaff/Prescott to Los Angeles, Eureka/Redding to Seattle, Redmond to Los Angeles, and Sacramento to Santa Barbara.
http://www.thenewstribune.com/2010/0...some-cash.html
Alaska airlines creates a plan to reduce the $1.237B in cash by $350M to $887M in stock buyback, pay off debt, and pay cash for some aircraft. Curious.
Last edited by maokh; Jun 16, 2010 at 2:16 pm
Jun 16, 2010, 2:31 pm
#2
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Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
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Posts: 20,387
Alaska airlines creates a plan to reduce the $1.237B in cash by $350M to $887M in stock buyback, pay off debt, and pay cash for some aircraft. Curious.
I also agree with this from the TNT article:
Questioned about Alaska’s stance on mergers and acquisitions, Ayer said the company believes that investors will fare best if the company remains relatively smaller than the big network carriers. That small size allows the airline to make quick adjustments to its business plan and route structure to cope with changing travel patterns.
In the airline business, said Ayer, bigger is not always better.
In the airline business, said Ayer, bigger is not always better.
Last edited by eponymous_coward; Jun 16, 2010 at 3:12 pm
Jun 16, 2010, 5:00 pm
#3
Join Date: Jun 2005
Location: PIT
Programs: AS MVPG 75K, DL GM, DL SkyClub
Posts: 279
Jun 17, 2010, 12:04 am
#4
A FlyerTalk Posting Legend, Moderator, Information Desk, Ambassador, Alaska Airlines
Join Date: Dec 2006
Location: FAI
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Not at all. Makes them a less tempting takeover target by other airlines that are desperate for cash, plus it will reduce operating expenses going forward (less leases and debt).
I also agree with this from the TNT article:
ETA: I take it that now AS can afford cookies for the Golds at year's end, since they are flush with cash?
I also agree with this from the TNT article:
ETA: I take it that now AS can afford cookies for the Golds at year's end, since they are flush with cash?
Bringing them back would be NOE ^
