Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Alaska Air article

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

BRA

Rollins Rules!
Joined
Jun 11, 2002
Posts
904
Taken from USA Today:​

Alaska Air chiefs says carrier headed in 'right direction'
In an interview with The Seattle Times, Alaska Airlines chairman Bill Ayer says the carrier is headed in the right direction. That’s despite the recent series of incidents and hiccups that have brought bad press to the airline. Despite the airline’s woes, however, there may be reason for optimism at Alaska Air. The company earned $55 million last year, making it the USA’s second most-profitable airline -- second only to discount giant Southwest, according to the Times. As for the incidents that have focused negative attention on the airline since this winter, they were among the items Ayer discussed in the interview. He addressed Alaska Air's decision to lay off 472 union workers last May and hire Menzies Aviation to handle its ground operations Seattle. “Problems began almost immediately,” the Times writes. “Luggage took ages to reach baggage carousels, and bags were lost. Flight delays became commonplace, and Alaska's on-time performance slipped to worst among 19 major U.S. airlines.”
Menzies has also been the focus of several operational incidents at the carrier. The Times says Ayer “acknowledged the timing of the switch (to Menzies) was lousy, and that nine months later Menzies continues to have trouble hiring and retaining enough qualified people.” Ayer also says he’s not happy about Alaska’s last-place performance in the federal on-time ratings for 2005. Still, he thinks the company has made the correct, albeit difficult moves in its effort to return to profitability. "As I look back at the decisions that we've made, I would say that they have largely been the right decisions. Certainly the direction has been right," Ayer says.


Posted at 08:07 AM/ET, Mar 07, 2006 in Alaska Air Group | Permalink | Comments (0)



Alaska Air chairman: Airlines using bankruptcy is ‘not right’​
Among the more interesting comments coming from The Seattle Times’ interview with Alaska Airlines chairman Bill Ayer is his take on airlines in bankruptcy. He says: "You know there are only two airlines that are trying to restructure — two legacy airlines — that are trying to restructure out of bankruptcy. Us and American. Virtually every other legacy carrier, long-term carrier, that ended up with a higher cost structure, used bankruptcy. And I just think that's not right.” He continues: “Every industry can avail itself of bankruptcy. But it certainly seems like the airlines have certainly been a customer of the government on this thing — a frequent customer — and we just decided a long time ago we weren't going there. We were going to control what we could control, we weren't going to count on anybody else to fix things. We were going to do what we can and make it work." Check out The Seattle Times to read the full transcript of Ayers’ interview.




They dump 472 union employees, and it's the other airlines that are "not right"?
 
BRA said:
The company earned $55 million last year, making it the USA’s second most-profitable airline -- second only to discount giant Southwest, according to the Times.

Did Alaska Airlines really make money last year? In Alaska's annual statement, they explain: "Our consolidated net loss for 2005 was $5.9 million, or $0.01 per diluted share." ( http://www.sec.gov/Archives/edgar/data/766421/000119312506034170/d10k.htm ).

Alaska goes on to explain: "Our consolidated income (loss) before the accounting change for 2005 was $84.5 million compared ($15.3) million in 2004. The 2005 results include certain items that impact the comparability of the years. These items are discussed in the “Year in Review and Current Events” section beginning on page 23. Our 2004 results also include certain items that impact comparability, including severance charges of $53.4 million ($31.8 million after tax), an impairment charge of $40.2 million ($26.7 million after tax) related primarily to our Boeing 737-200C fleet, mark-to-market hedging gains, net of the reclassification of previously recorded mark-to-market gains for settled hedges, of $56.9 million ($31.7 million after tax), and a navigation fee refund of $11.0 million ($6.3 million after tax). Excluding those items, consolidated income before the accounting change would have been $55.0 million in 2005 compared to $5.2 million in 2004."

You can also see how this all stacks up here: http://moneycentral.msn.com/investor/invsub/results/statemnt.asp?Symbol=ALK
Isn't the bottom line the number that matters? If they lost $5.9 million then they lost $5.9 million. Saying that they made $55 million in 2005 is kind of like saying, "well, we made $1.8 billion before our expenses." It looks to me like Alaska didn't make $55 million for 2005. It lost $5.9 million.
 
It is unwise to take those earnings reportings at face value. They have so many "unusual" and "one-time" accounting issues, and they toss those on whenever they see fit. Last year during negotiations with the Alaska pilots, they took just about every single hit they could find to make the numbers look as bad as possible. When they want to boost morale, they do the opposite. They can make those numbers look as good or as bad as they want.
 
BRA said:
They dump 472 union employees ...

Isn't that what Jesus would do? ;)

I'd ask if you still get the little prayer cards included with the "meals," but I'm guessing you don't get the meals anymore.

Do you get the prayer cards anyway?
 
Yes you do get meals on the longer flights. SEA - EWR gets them, complete with the prayer card and all. Which is a very nice touch and I'm glad they haven't given in to the rats in the ACLU and yanked them.
 
Amen Brother

Can I get an "Amen" to that!
 
The PIC said:
I think those "earnigs" reports didn't account for Horizon Airs' profit in 05.

No, my friend, the $5.9 million loss is reported for Alaska Air Group under the Consolidated Financial Statements section of the Annual Report. Alaska Air Group includes both Alaska Airlines and Horizon Airlines.
 
No, my friend, the $5.9 million loss is reported for Alaska Air Group under the Consolidated Financial Statements section of the Annual Report. Alaska Air Group includes both Alaska Airlines and Horizon Airlines.[/QUOTE]

Thanks I did not know that. Makes you wonder.
 

Latest resources

Back
Top