Alaska Airlines To Purchase 50 Boeing Jetliners For $5 Billion

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Alaska Air Group, Inc. (NYSE:ALK), the subsidiary of Alaska Air Group, will purchase 50 Boeing 737 jetliners in a $5 billion deal signed on Thursday. Alaska Airlines CEO Brad Tilden said that the deal will provide sufficient aircraft to meet the growing demand, and Alaska Airlines will continue to operate the world’s quietest and most fuel efficient aircraft. The Wall Street Journal had earlier anticipated the deal, as two people familiar with the matter had already informed reporters of it.
Alaska Airlines To Purchase 50 Boeing Jetliners For $5 Billion

The Seattle-based Alaska Air Group, Inc. (NYSE:ALK) has an “all-Boeing fleet.” Under the contract, the aircraft carrier will purchase 13 Next-Generation 737-900ERs, 17 737 MAX 9s, and 20 737 MAX 8s. These planes will replace some of the older airplanes and support the carrier’s anticipated growth. Max is the improved version of the classic plane, with redesigned engines and improved fuel efficiency.

“We value our longstanding relationship with Boeing and look forward to painting ‘Proudly All Boeing’ on the nose of our aircraft for many, many years into the future,” Brad Tilden said.

Alaska Air Group, Inc. (NYSE:ALK) already operates 120 of Boeing 737s. This mid-range aircraft is known in the aviation industry as the fuel-efficient workhorse.

“The 737 MAX will be a great addition to Alaska Airlines’ all-Boeing 737 fleet,” said Ray Conner, the president of  Boeing Commercial Airplanes. “It will build on the strong record of operational and financial performance that Alaska Airlines has established with the 737 family.”

Of course, Alaska won’t be paying the full price. All of its airplanes are from Boeing stable, and Boeing offers discounts to the major airline customers. It would be the biggest ever order in the history of Alaska Airlines. The ordered planes will be delivered to Alaska Air Group, Inc. (NYSE:ALK) between 2015 and 2022. Alaska has its base at Seattle-Tacoma International Airport, and serves in 95 cities.

Before this order, The Boeing Company (NYSE:BA) had already received orders for 858 of 737 Max airplanes from the airlines around the world. Boeing developed the Max to compete directly with Airbus A320 Neo. In fact, Alaska is the seventh U.S. customer for 737 Max.

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Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at [email protected]

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