ARC NEWS
Horizon Air to operate E175's in Alaska
June 24, 2020
Alaska Airlines will add Embraer 175 regional jets to its fleet flying within the state of Alaska, bringing in the smaller-gauge aircraft on routes that would not be profitable using larger jets. The Brazilian-made aircraft, operated by Alaska’s regional partner Horizon Air, will begin service in Alaska in October 2020. The airline says the smaller jet will allow it to serve more destinations more often, and open further opportunities. “This jet gives us the flexibility to increase daily frequency between Anchorage and Fairbanks up to seven times a day, and to provide year-round service to King Salmon and Dillingham,” Alaska’s regional vice-president Marilyn Romano says. “In time, the new mix of aircraft will unlock other markets in the state for future service.” these routes had previously been flown with larger Boeing 737's, but that has become a costly proposition after the coronavirus pandemic and subsequent travel restrictions caused a sharp decline in passenger demand since the beginning of the year, motivating the airline to swap out the 737's for smaller jets. The change also allows Alaska to add frequencies in the void created on some routes when regional carrier Ravn Air ceased operations on 5 April. The E175's are configured with 12 first-class seats, 12 premium-economy seats and 52 economy seats, Alaska says. Air travel is the most reliable and regular form of transportation for both passengers and cargo to remote communities across the state, which is the USA’s largest by area and closest to the Arctic Circle. Ground- and sea-based transportation networks are often only able to operate at certain times of the year or in specific weather conditions. In May, Alaska Air Group – the parent company of Alaska Airlines and Horizon Air - reported a $321 million operating loss during the first quarter, down from a $25 million operating profit in the same period a year earlier. The airline has said it hopes to reduce monthly cash burn to $200 million by June, down from $400 million in March. It collected $992 million in payroll support as part of the CARES Act, passed by the US Congress in March, designed to support airlines and prevent redundancies as they manage through the global crisis.

Source: Cirium


Shot-down UIA 737 recorders to be sent to France: Iran's ministry
June 23, 2020
Iranian authorities appear set to send the flight recorders of the Boeing 737-800 shot down over Tehran to France for download of their data. The issue of reading the data following the event involving the Ukraine International Airlines flight PS752, operating from Tehran to Kiev on 8 January, has been mired in political discussion. But Iran’s foreign affairs ministry states that minister Mohammad Javad Zarif has informed Canadian counterpart Francoias-Philippe Champagne that the Iranian authorities will transfer the recorders to France “in the coming days”. “A decision has been made regarding the sending of the [recorders], which will be implemented soon,” the ministry adds. It states that the coronavirus outbreak – which badly affected Iran – has complicated the situation. French authority BEA has the capability to retrieve the recorder information at its Paris facilities. None of those on board the 737-800 survived after two missiles from a Tor-M1 anti-aircraft system were launched shortly after the aircraft took off. Iran’s Civil Aviation Organisation indicates that secondary radar contact with flight PS752 was initially lost about 3min after departure, as the aircraft climbed through 8,100ft, and that primary radar tracked it for a further 3min before it came down about 9nm from Tehran’s Imam Khomeini airport.

Source: Cirium


Alaska forecasts bleak next couple of quarters
June 23, 2020
Alaska Air Group on 22 June is forecasting difficult times ahead for the second and third quarters even as air travel demand begins to slowly emerge. The group is projecting that June capacity will be down 70% year-over-year while revenue will be down 80% year-over-year. Passenger traffic began to increase while cancellations began to decrease in May, but Alaska says "demand remains significantly below historic levels" as the coronavirus pandemic drags on. The parent of company of Alaska Airlines and Horizon Air says in a Securities and Exchange Commission filing that "if demand continues to improve, we expect to moderate our capacity cuts into July and August to approximately down 60% and down 50% from prior-year levels". So far, the uptick in travel led Alaska on 19 June to resume flying eight aircraft belonging to its regional partner SkyWest Airlines. The carrier aims to take delivery of three Boeing 737 Max aircraft by December, along with 15 more in 2021, depending on the regulatory process to recertificate the grounded Boeing aircraft. The mainline parked 156 aircraft through April, reducing capacity by 78% year-over-year, while revenue was down 87%. The reopening of some state economies and businesses has contributed to a slight increase in travel, driving carriers to return some aircraft to service. At 19 June Alaska had $2.7 billion in cash and short-term investments and continues to cut costs. The air group employs around 22,000 workers, 6,000 of whom have accepted voluntary short-term and incentive leave. Alaska Air Group president Ben Minicucci has said the company may reduce its workforce by 3,000 people in 2021. The Seattle-based holding company expects to burn $150 million cash during the month of June, an improvement from the monthly cash burn rate of $400 million at the end of March. It aims to eliminate cash burn by the end of 2020. The group had 319 aircraft in its fleet as of 19 June, including 225 aircraft in the mainline Alaska fleet. In May it permanently parked 12 Airbus A320 family aircraft and said it would refocus pilot training on Boeing aircraft.

Source: Cirium


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