Alaska Air stock falls sharply on difficulties with Virgin, Horizon Air
Oct 25, 2017, 5:25 pm
#1
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Alaska Air stock falls sharply on difficulties with Virgin, Horizon Air
Seattle Times article
Alaska Air Group management acknowledged Wednesday that the ongoing challenges of integrating its big Virgin America acquisition have caused “a lot of anxiety around here… a lot of tough conversations,” and have distracted executives from other issues.
Chief executive Brad Tilden also said ongoing problems with cancelled flights at Alaska’s regional carrier Horizon Air have prompted him to move its flight operations center from Portland to Seattle.
Chief executive Brad Tilden also said ongoing problems with cancelled flights at Alaska’s regional carrier Horizon Air have prompted him to move its flight operations center from Portland to Seattle.
Oct 25, 2017, 6:03 pm
#2
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Wow... 13% drop.
ALK... wow. Time to buy? Or more bumps ahead...
ALK... wow. Time to buy? Or more bumps ahead...
Oct 25, 2017, 7:29 pm
#5
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Nevertheless, Tilden said, the quarter brought “pricing pressure, especially at our transcontinental and inter-California markets, with walk-up fare levels being well below historical norms.”
Delta and Southwest are pressing Alaska in Seattle and those carriers plus American, United and JetBlue are adding fare pressure in California.
Oct 25, 2017, 7:50 pm
#6
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Why would Alaska buy Virgin, then remove the only advantage it had on many of the Virgin routes just as competitors like B6, AA, United, DL are adding a lot of capacity on these same routes? On transcons, Virgin is far behind all competitors in the premium cabin and more expensive than competitors in economy.
Competition is increasing every day and the only strategy they have implemented in California is to add a bunch of new routes and hope that people pay for it and that there are enough pilots to fly them.
They are getting killed on transcons and intra California flights now and it will just get worse with the AS product and giving away premium seats. They are not going to make money as the bottom feeder carrier from California.
UA’s conference call was panned last week but the one for ALK today made the UA management team look like geniuses.
Oct 25, 2017, 9:27 pm
#8
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You sure about that? I'm not saying that it isn't trickier than they'd hoped, especially with the QX problems happening simultaneously, but they didn't get into a bidding war with B6 on a whim.
Last edited by jinglish; Oct 25, 2017 at 10:05 pm
Oct 25, 2017, 9:39 pm
#9
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Oct 25, 2017, 9:47 pm
#10
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If it wasn't for the BUR-SEA flight, I'd switch entirely. As it is I'm not going to requal for next year, so I guess I'll be a free agent.
Oct 25, 2017, 9:50 pm
#11
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Full transcript:
https://seekingalpha.com/article/411...all-transcript
Most interesting quote (to me):
Yes, I think they are having tremendous buyers' remorse...
https://seekingalpha.com/article/411...all-transcript
Most interesting quote (to me):
Brandon S. Pedersen - Alaska Air Group, Inc.
It's Brandon. Maybe I'll disclose – I can assure you that we are more frustrated than you about this whole thing. And there's a lot of anxiety around here. There's been a lot of tough conversations in the last few weeks about this. We've already started talking about this notion of a glide slope to get from the place we are now to the place we want to be.
It's Brandon. Maybe I'll disclose – I can assure you that we are more frustrated than you about this whole thing. And there's a lot of anxiety around here. There's been a lot of tough conversations in the last few weeks about this. We've already started talking about this notion of a glide slope to get from the place we are now to the place we want to be.
Oct 25, 2017, 9:53 pm
#12
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My next two SFO/JFK are on DL, for $13xx/RT, on lie flat seats with lounge access on both ends.
Oct 25, 2017, 9:55 pm
#13
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Full transcript:
https://seekingalpha.com/article/411...all-transcript
Most interesting quote (to me):
Yes, I think they are having tremendous buyers' remorse...
https://seekingalpha.com/article/411...all-transcript
Most interesting quote (to me):
Yes, I think they are having tremendous buyers' remorse...
Oct 25, 2017, 10:53 pm
#14
Join Date: Oct 2006
Posts: 734
Disappointing that there wasn't more focus on the Horizon debacle and the lasting impact that will have on Alaska's reputation. Allowing that to happen (and continue and continue) will ultimately be as or more important than many of the Virgin integration challenges. It's really tough to win back a customer treated so poorly for all these months.
Oct 25, 2017, 11:20 pm
#15
Join Date: Jul 2001
Posts: 702
Full transcript:
https://seekingalpha.com/article/411...all-transcript
Most interesting quote (to me):
Yes, I think they are having tremendous buyers' remorse...
https://seekingalpha.com/article/411...all-transcript
Most interesting quote (to me):
Yes, I think they are having tremendous buyers' remorse...
Just my $0.02 of course, but if you read the entire transaction between Hunter Keay and the senior leadership, there's nothing that would lead any reasonable person to conclude there's "buyer's remorse" of any kind.