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Alaska Air CEO weighs in on replacing Virgin America's Airbus fleet with Boeing jets

Alaska Air CEO weighs in on replacing Virgin America's Airbus fleet with Boeing jets

Old Jul 18, 17, 10:05 pm
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Post Alaska Air CEO weighs in on replacing Virgin America's Airbus fleet with Boeing jets

Alaska Airlines will likely shed the Airbus jets it inherited in its takeover of Virgin America and slowly replace them with Boeing aircraft, Alaska Air Group CEO Brad Tilden said Tuesday.

"My dad was a 32-year Boeing guy," Tilden told a Seattle business audience at a breakfast organized by the Puget Sound Business Journal. "This company could not be more in love with Boeing, or loyal to Boeing.
https://www.bizjournals.com/seattle/...phase-out.html

More info in the article.
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Old Jul 19, 17, 4:36 am
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While I understand the benefits of having a unified (or relatively unified) fleet and I recognize thart he was addressing a "local" audience, the idea that an airline would pick its aircraft supplier based on where the CEO's dad worked is sort-of facepalm-worthy in my mind.
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Old Jul 20, 17, 3:43 pm
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You clearly don't know Alaska Airlines.
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Old Jul 20, 17, 8:56 pm
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It was just a meeting with local Seattle businessmen. Of course your going to tout the local product to the homecrowd.

With that being said, there is nothing VX fleet can do, that Alaska's own fleet can't. Not to mention the majority of VX fleet is leased and they are probably paying higher lease rates, than whatever Alaska negotiates for it's own fleet. It's a no-brainer that the Airbus fleet is on the way out.
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Old Jul 22, 17, 9:43 am
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The secret sauce of the AS relationship with its home market is that it is fiercely loyal to local institutions, Boeing in particular. It goes both ways. While the Airbus product is excellent, particularly the 321 neo, this is a conscious marketing decision, the cost of which will be borne between Boeing, on pricing and trade in remarketing (similar to what they did with SIA years ago), and Alaska, as a deal cost, likely already factored into the VX purchase price.
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Old Jul 22, 17, 2:25 pm
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Originally Posted by deelmakur View Post
The secret sauce of the AS relationship with its home market is that it is fiercely loyal to local institutions, Boeing in particular. It goes both ways. While the Airbus product is excellent, particularly the 321 neo, this is a conscious marketing decision, the cost of which will be borne between Boeing, on pricing and trade in remarketing (similar to what they did with SIA years ago), and Alaska, as a deal cost, likely already factored into the VX purchase price.
It's pretty ironic, since Boeing isn't even headquartered in Seattle anymore, and, what is produced in the area is pieced together from parts sourced from all over the world.
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Old Jul 22, 17, 4:39 pm
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Really, nothing new here.

For the next ~4 years Alaska will be a mixed fleet with Boeing (mostly), some Airbus, Embraer, and Bombardier. Airbus will fade out as the leases expire. Did anyone really think Brad was going to wake up one morning and discover what a great craft the Airbus 320 family is?
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Old Jul 22, 17, 6:43 pm
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Originally Posted by jimmygottfredson View Post
Really, nothing new here.

For the next ~4 years Alaska will be a mixed fleet with Boeing (mostly), some Airbus, Embraer, and Bombardier. Airbus will fade out as the leases expire. Did anyone really think Brad was going to wake up one morning and discover what a great craft the Airbus 320 family is?
Well, the 321 is pretty nice.
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Old Jul 23, 17, 12:03 pm
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Originally Posted by Baze View Post
Well, the 321 is pretty nice.
Any aircraft can be nice depending on how the airline configures it. Are Spirit's A321's nice as well? My guess is most people would say no.
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Old Jul 23, 17, 3:18 pm
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Originally Posted by Yellowjj View Post
Any aircraft can be nice depending on how the airline configures it
You bet. I'd love to be on an AS 73G in a BBJ 18 seat config.
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Old Jul 23, 17, 4:20 pm
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Originally Posted by Yellowjj View Post
Any aircraft can be nice depending on how the airline configures it. Are Spirit's A321's nice as well? My guess is most people would say no.
Only been on AA's 321 and it was nice.
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Old Jul 25, 17, 8:30 am
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Originally Posted by Baze View Post
Only been on AA's 321 and it was nice.
ExUS A321 seats stunk especially in F with pitch tighter than Y on B6.
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Old Jul 27, 17, 11:16 am
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"This company could not be more in love with Boeing, or loyal to Boeing."
Expert negotiating position, there.
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Old Jul 27, 17, 11:50 am
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Originally Posted by BearX220 View Post
Expert negotiating position, there.
I doubt a presentation to a bunch of Seattle execs is much of a "negotiation".

I also doubt AS is going to fall much in love with Airbus if their engine suppliers are having problems getting A32xneos out the door and accepted for delivery.

http://www.reuters.com/article/us-ai...-idUSKBN1AC0GJ

Enders confirmed Airbus had delivered "around 15" Pratt-powered A320neo twin-engined aircraft in the first half compared with around 100 planned for that variant in 2017.

Asked how this squared with the 134 engines that Pratt says it delivered in the first half, Enders said deliveries of aircraft depended on customer acceptance.

Industry sources say some airlines have been refusing to take Pratt-powered jets because of the lack of available spares.
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Old Jul 27, 17, 3:10 pm
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Originally Posted by eponymous_coward View Post
I doubt a presentation to a bunch of Seattle execs is much of a "negotiation".

I also doubt AS is going to fall much in love with Airbus if their engine suppliers are having problems getting A32xneos out the door and accepted for delivery.

http://www.reuters.com/article/us-ai...-idUSKBN1AC0GJ
P&W isn't the only engine supplier. All of VX's Airbuses have CFMs.
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