Boston, MA 10/07/2014 (wallstreetpr) – Alaska Air Group, Inc. (NYSE:ALK) has given a reason to The Boeing Company (NYSE:BA) to fly high. The former has released a press information yesterday disclosing its deal with Boeing. Under the agreement reached, Alaska Airlines has shopped for 10 737 planes from The Boeing Company for nearly $990 million.
Fuel Efficiency
Alaska Air Group, Inc. (NYSE:ALK) said that it intends to replace its 737- 400s with the new 737-900 ERs as the new planes will be able to accommodate 25% more passengers while keeping the fuel costs unchanged. Moreover, the new planes will have cabins with extra leg space, larger overhead bins and power outlets facility at every seat. The new order will now bring the total boeing jets number to 74 for Alaska Air Group, Inc. (NYSE:ALK).
Narrow Body Saturation
The deal comes amid market concerns about the shrinking demand for the narrow-body planes of The Boeing Company (NYSE:BA). During the last week, Boeing had announced that it will boost the production of narrow body planes to 52% by the year 2018, higher than 42% at present.
Meanwhile, Alaska Air Group, Inc. (NYSE:ALK)’s President and CEO, Brad Tilden reiterated the company’s commitment to encourage locally built planes and the enhanced features that it will provide to the customers. At the same time, the investment of $990 million into the airplanes could be a factor of its significant success in the long term. The carrier’s fuel efficiency drive has won it acknowledgement from the International Council on Clean Transportation for three years in a row. The latest deal should ensure that it remains a fuel efficient carrier throughout the U.S.
Commenting on the new orders, The Boeing Company (NYSE:BA)’s CEO and President, Ray Conner, also, expressed satisfaction to remain on the priority list of Alaska Air Group, Inc. (NYSE:ALK). He added that the carrier is a valuable partner to the company and has been continuously committed to their community.
