Airlines is going to get rid of its
MD-80 aircraft (pictured) to make way for Boeing 737s, a type of
aircraft that the airline already has in service. 26 MD-80s are leaving,
and 39 Boeing 737-800s are joining the fleet. Delivery is between now
and 2008.
Savings will apparently be about $115 million per year
as fuel, operating, and maintenance costs plummet. Although the number
of aircraft operated by Alaska will only increase by 4, compared to the
beginning of the year, its capacity will increase by 18%.
This is
a smart move for Alaska. Sure, the company is going to have to go
through two pre-tax charges of $130 million to $150 million, but the
savings clearly win in the long run. Interesting to note that Alaska,
which is a seudo-low cost carrier, is going to simply its fleet to just
Boeing 737s - something that competitor Southwest Airlines has always
done.
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