Alaska Air's Merger Synergies Are Waiting for Departure
Alaska Air Group's mainline carrier, Alaska Airlines, has long served West Coast markets as a low-fare alternative to legacy carriers, employing low-cost carrier tactics like maintaining fleet commonality (only flying Boeing 737s) and servicing shorter routes. Alaska mostly connects its focus cities to domestic U.S. locations but also serves Canada, Costa Rica, and Mexico. Because of its traditionally low-cost model and domestic focus, Alaska doesn’t belong to a global alliance but instead maint...Alaska Air Group operates two airlines, Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon). The company's operation also includes McGee Air Services, an aviation services provider. The company has three segments: Mainline, which includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the United States., and in parts of Canada, Mexico, and Costa Rica; Regional, which includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchase agreements (CPA); and Horizon, which includes the capacity sold to Alaska under CPA.
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