Alaska Airlines - Introduction and Company Overview

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[pic] August 12, 2011 [pic] Introduction and company overview Alaska Airlines was founded in Anchorage in 1932 and expanded to 22 aircraft operating within the state by 1934. In the late 70s, the airline began expansion to the lower Western states and by 1987 had acquired Horizon Air and Jet America bolstering its North South route structure and complementing the seasonal nature of travel to Alaska Today Alaska Air Group, Inc. (Alaska Air) is the holding company for Alaska Airlines, Inc. and Horizon Air Industries Inc. The company offers passenger air service to more than 23 million passengers to more than 90 destinations. It also provides freight and mail services in the state of Alaska and on the West Coast.…show more content…
Equity markets don’t look to be very good for raising capital at the moment because of the current situation with the economy at hand. However, opportunities such as ATA airlines closing down allow for a potential low fixed cost entry when it comes towards purchasing aircraft. Having a whole fleet up for potential sale could be a very attractive option for someone looking to enter the market when compared towards purchasing all new equipment instead. Older carriers still have their legacy and brand names however low-cost alternatives provide customers with better bargains. The biggest benefit the older carriers have is their hubs which are already established. It is hard for a new entrant to come into the market and establish a hub when the market is already oversaturated. Power of Suppliers: The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn't very likely. In other words, you probably won't see suppliers starting to offer flight service in addition to building air crafts. Power of Buyers: Traditionally the customers belong to two main segments, business and leisure. Business travelers often book flights at the last minute and have the backing of large organizations and they are relatively

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