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Boeing's Newest Airplane Could Improve Alaska Air's Fortunes
Not too long ago, Alaska Air (NYSE: ALK) was a model airline, at least from an investor's perspective. In both 2015 and 2016, the company produced outstanding 24% pre-tax margins (excluding special items), outpacing rivals. However, rising costs, growing competition in Seattle, and unit revenue weakness at its Virgin America subsidiary are combining to undermine its profitability. In the current quarter, Alaska will be lucky to break even. (finance.yahoo.com) Plus d'info...
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And to add something years back a friend of mine wrote a document about the cost savings having one type of aircraft verses two or more. Now they are getting away from that with the Airbus AC. That will not help the bottom line.
This would be an interesting case study to profile both Southwest and Alaska now moving forward to see how they will differ.
