Alaska Airlines and Boeing in $5 billion deal
Alaska Airlines will buy 50 Boeing 737 single-aisle jetliners under a
$5 billion deal, the largest purchase in the carrier’s history, the
companies said on Thursday.
“This order positions us for growth and ensures that we’ll continue
to operate the quietest and most fuel-efficient aircraft available for
the foreseeable future,” said Alaska Airlines president and CEO Brad
The Seattle-based airline, which runs an all-Boeing fleet, will buy
20 737 MAX 8s, 17 737 MAX 9s and 13 Next-Generation 737-900ERs, under
the contract. The new airplanes will be used to replace older aircraft
and to support the airline’s anticipated growth, the company said.
“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,” Tilden added. The 737 is a well-known and
fuel-efficient workhorse mid-range aircraft in the aviation industry and
the Seattle airline already operates 120 of them. “The 737 MAX will be a
great addition to Alaska Airlines’ all-Boeing 737 fleet,” said Boeing
Commercial Airplanes president and CEO Ray Conner.
“It will build on the strong record of operational and financial
performance that Alaska Airlines has established with the 737 family,”
he added. Alaska Airlines, is a subsidiary of the NYSE listed Alaska Air
Group, andtogether with partner airlines, it serves 95 cities, with its
hub at Seattle-Tacoma International Airport.
India’s Kingfisher cancels flights on labour woes
India’s cash-strapped Kingfisher Airlines cancelled all of its
flights on Monday due to staff unrest, adding to doubts about the ailing
private carrier’s future and sending its shares plunging.
R.K. Khanna, deputy director-general of India’s civil aviation
regulator, said no Kingfisher flights had operated Monday and that they
had summoned the carrier’s chief executive Sanjay Agarwal to discuss the
problems on Tuesday.
“The airline will have to explain how long the cancellations will
continue,” he told AFP.
Kingfisher, which is desperately in need of capital to keep flying,
said earlier in the day it had cancelled some flights because of
problems with staff, who have not been paid for months.
“A section of our employees have been threatening and manhandling
other employees who are reporting to work. We are anticipating
disruptions and delays of flights across our network,” airline spokesman
Prakash Mirpuri said.
“With a view to mitigate the impact of these anticipated disruptions,
we are proactively cancelling several flights across our network for
October 1,” he said in the statement, adding the firm would talk to
employees on the issue.
Kingfisher shares fell by their highest permissible daily limit,
ending down 4.78 percent at 15.35 rupees on the Bombay Stock Exchange,
following the news.
The Press Trust of India news agency reported some Kingfisher
engineers had gone on strike to demand wages unpaid for seven months.
On Sunday night, passengers landing in big metros such as Delhi or
Mumbai were stuck inside their aircraft as Kingfisher’s engineers
refused to work and did not put safety wedges on aircraft tyres after
landing, media reports said.
In other cases passengers could not disembark some planes as step
ladders were not attached.
Kingfisher has faced a series of strikes by pilots and engineers over
delays in salaries, and has cut international and several domestic
flights to curb costs.
The company was India’s second-largest airline until a year ago but
now has a market share of just 3.2 percent, the smallest of the
Owner Vijay Mallya, a billionaire liquor baron, last week said he was
in talks with foreign airlines to sell a stake in the firm after the
government relaxed foreign investment rules.
Also last week, local banks -- which own a quarter of Kingfisher --
rejected a request from the company for another loan.