Alaska Airlines dissatisfied with Amazon cargo contract, executive says
image from: freightwaves.com
Alaska Airlines wants to renegotiate the cargo flying contract with Amazon it inherited after acquiring Hawaiian Airlines 16 months ago because the venture isn’t very economical, a top executive strongly suggested last month.
Industry experts familiar with both companies say Alaska Airlines’ dissatisfaction with the Amazon (NASDAQ: AMZN) business likely stems from difficulties aligning passenger and cargo pilot schedules for better efficiency, and contract terms with razor-thin profit margins.
Hawaiian Airlines began supporting Amazon’s air logistics network in October 2023 and currently operates 10 Airbus A330-300 converted freighter aircraft on behalf of the retail giant. Under the contract, Amazon supplies the leased widebody aircraft and Hawaiian provides crews and maintenance. Alaska Air Group acquired Hawaiian in September 2024.
“We’re excited about the cargo side of the business, but there is optimization that has to happen. [The dedicated charter arrangement] with Amazon is a tough business. It’s only 10 aircraft. It’s a whole different operation than the passenger side of the business. And we’ve got to make that work long-term,” Alaska Air Group’s Chief Financial Officer Shane Tackett said during a session at the Goldman Sachs Industrial and Materials Conference on Dec. 4.
“So there are parts of the business that are going to require focus to optimize. It’s now clear where we have to go and sort of fix pieces that were a little bit broken when we closed the transaction,” he added, without providing specifics.
Alaska Air declined to provide an additional comment. Media representatives from Amazon did not respond to queries. Amazon and Alaska Air are both based in Seattle.
(READ MORE - freightwaves.com)
Alaska Airlines dissatisfied with Amazon cargo contract, executive says
Alaska Airlines wants to renegotiate the cargo flying contract with Amazon it inherited after acquiring Hawaiian Airlines 16 months ago because the venture isn’t very economical, a top executive strongly suggested last month.
Industry experts familiar with both companies say Alaska Airlines’ dissatisfaction with the Amazon (NASDAQ: AMZN) business likely stems from difficulties aligning passenger and cargo pilot schedules for better efficiency, and contract terms with razor-thin profit margins.
Hawaiian Airlines began supporting Amazon’s air logistics network in October 2023 and currently operates 10 Airbus A330-300 converted freighter aircraft on behalf of the retail giant. Under the contract, Amazon supplies the leased widebody aircraft and Hawaiian provides crews and maintenance. Alaska Air Group acquired Hawaiian in September 2024.
“We’re excited about the cargo side of the business, but there is optimization that has to happen. [The dedicated charter arrangement] with Amazon is a tough business. It’s only 10 aircraft. It’s a whole different operation than the passenger side of the business. And we’ve got to make that work long-term,” Alaska Air Group’s Chief Financial Officer Shane Tackett said during a session at the Goldman Sachs Industrial and Materials Conference on Dec. 4.
(READ MORE - freightwaves.com)
Air Force identifies last of the service members killed in 1952 Alaska plane crash
image from: stripes.com
The last of the 52 service members killed in a 1952 transport plane crash in Alaska have been identified, closing a project begun 13 years ago when glacier movement first revealed remains of the missing.
“Reaching this point — identifying all 52 of our fallen service members — represents the highest fulfillment of our sacred duty to bring our fallen home,” said Air Force Col. Martha Sasnett, the commander of Air Force Mortuary Affairs Operations.
The four-propeller C-124 Globemaster II was on a flight from McChord Air Force Base near Tacoma, Wash., to Elmendorf Air Force Base near Anchorage on Nov. 22, 1952, when it went down on Mount Gannett.
(READ MORE - stripes.com)
Alaska Airlines orders more than 100 Boeing planes
Alaska Airlines placed an order for more than 100 Boeing planes Wednesday, the largest order in the airline’s history.
The order includes 105 narrowbody 737 MAX 10s and five widebody 787-10s. It also includes the option for an additional 35 737s down the line.
(READ MORE - seattletimes.com)