Alaska adds to 737 MAX order; Airbus on the way out, airline one step closer to returning to “Proudly All Boeing”
Executives from Alaska Airlines and Boeing sign the agreement. (From left to right: Stan Deal, Boeing Commercial Airplanes President and CEO; Ihssane Mounir, Boeing Vice President of Commercial Sales and Marketing; Ben Minicucci, Alaska Airlines President; and Brad Tilden, Alaska Air Group CEO.)
Image: Alaska Airlines
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“Proudly All Boeing” is a mantra painted on the side of each Alaska Airlines’ Boeing 737 aircraft just behind its nose, in reference to Alaska and Boeing Commercial Airplanes’ shared roots in the Seattle, Washington area. However, Alaska has operated Airbus aircraft inherited from Virgin America in its fleet since January 11, 2018, when it received a single operating certificate for its merger with Virgin America originally announced in 2016. Today, Alaska announced a fleet plan that will begin to transition the airline back toward its status as an all-Boeing carrier.
Alaska Airlines announced Tuesday morning that it has come to an agreement with Boeing to order 23 additional Boeing 737 MAX aircraft. The order, when combined with 45 other MAX 9s the airline already has on order, will enable Alaska to retire a majority of the Airbus A320 family aircraft it inherited from Virgin America and pivot the airline most of the way back to an all-Boeing 737 mainline fleet.
Bulk of Ex-Virgin America Airbus aircraft to exit Alaska fleet
At the beginning of 2020, Alaska Airlines operated 10 Airbus A321neo, 51 Airbus A320, and 10 Airbus A319 aircraft. The Seattle-based carrier has already been retiring dozens of A319 and A320 aircraft this year due to the impacts of the COVID-19 pandemic on air travel demand, opting to retire all 10 of its A319s and several A320s over the summer. According to an SEC filing, by September 30, just 41 A320s remained in the fleet, with an additional 20 retiring by year’s end, bringing the total down to just 21 A320 aircraft. The A320 fleet size is projected to hold steady in 2021, with the remaining A320s to be retired in 2022 and 2023. Beyond 2023, the only ex-Virgin America aircraft that will remain in Alaska’s operation will be a small fleet of 10 Airbus A321neo aircraft, to be used for the airlines’ transcontinental operations.
Commemorative Certificate of Signing between Alaska Airlines and Boeing for 737-9 MAX order.
Image: Alaska Airlines
Today’s order brings Alaska’s 737 MAX order book to a total of 68 firm orders and options for an additional 52. The quantity of aircraft on order is more than enough to replace the retiring A320 aircraft and also grow the airline’s overall mainline fleet count from 217 to 232 aircraft by the end of 2023, which is just shy of its mainline fleet size before the COVID-19 pandemic began. Additionally, all orders are for the 737 MAX 9, which can seat 178 passengers, 28 more than the A320 aircraft they will replace, which will provide a significant boost to Alaska’s overall seat capacity.
As part of its transition back to a nearly all-Boeing fleet, Alaska will train its Airbus pilots to fly Boeings. 830 of the airline’s roughly 3,000 pilots are currently certified to fly Airbus, a number which will decline to roughly 145 after the training and Airbus fleet pulldown.
Alaska Boeing 737 MAX Delivery Plan
Alaska received a great deal with today’s order as compensation for the 737 MAX grounding and subsequent delivery delays on its existing MAX orders. The airline restructured the terms of a prior MAX deal with Boeing, which will allow Alaska to take delivery of 13 new 737 MAX 9 aircraft in 2021 without any capital spending that year. Alaska will also take on nine “white-tail” aircraft from Boeing, which had already been built, but have no current buyer after several airlines around the world cancelled some MAX orders.
An Alaska Airlines Boeing 737 MAX 9 (tail registration number N918AK) taxiing
Image: Alaska Airlines
Alaska is expected to take delivery of its first MAX aircraft in early 2021, becoming the fourth US-based carrier to operate the plane – Southwest, United, and American are the other three. Inaugural service is slated to commence on March 1st between Seattle and Los Angeles. In preparations for the introduction of the Boeing 737 MAX to its fleet, Alaska has launched a special section of its website dedicated to the 737 MAX and its safety. Here at The Window Flyer, we also have full faith in the aircraft’s safety (read our opinion piece here).
Alaska’s 737 MAX fleet will grow rather quickly, with deliveries of 13, 30, and 13 aircraft in 2021, 2022, and 2023, respectively. The remaining 12 will be delivered in 2024. In addition, the options for 52 additional aircraft can be exercised for delivery between 2023 and 2026.
A win for Alaska, Boeing, and the Puget Sound Region
Alaska Air Group CEO Brad Tilden, was quoted in a Seattle Times article saying that “We’re pleased to be standing side by side with Boeing,” billed today’s agreement as a win for Alaska, Boeing, and the economy in the Puget Sound region of Washington State where the Alaska and Boeing Commercial Airplanes are based, and where the Boeing 737 has been assembled since it first rolled off the production line in the 1960s.
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