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Alaska Airlines Delaying Aircraft Deliveries

Alaska Air (NYSE: ALK) has experienced severe margin compression over the past several quarters, due to a combination of rising fuel costs, stiff competition, and merger pains following its 2016 acquisition of Virgin America. However, management is laser-focused on rebuilding the company’s profitability. Toward that end, Alaska Airlines is set to reduce its growth rate until it starts hitting its margin and return on invested capital goals.

Last quarter, Alaska Airlines began taking concrete steps to align its fleet plan with its new target of 4% annual growth and $750 million of annual capital expenditures for 2019 and 2020. The carrier restructured its orders with Boeing (NYSE: BA), Airbus (NASDAQOTH: EADSY), and Embraer (NYSE: ERJ) to better fit its projected needs.

Click the link below for the full story!

Alaska Airlines Delaying Aircraft Deliveries

Alaska Airlines Adds Flights at JFK Airport

On Wednesday, two years to the day after announcing that it would acquire Virgin America, Alaska Air (NYSE: ALK) rolled out some more changes to the route network it inherited from Virgin.

As part of the Virgin America deal, Alaska Air acquired 23 slots at New York’s JFK Airport. (Each slot allows one takeoff or one landing at a specified time between 6 a.m. and 10:59 p.m.) Virgin America used nearly all of these slots to operate flights to its main bases of San Francisco and Los Angeles. By contrast, Alaska Airlines plans to redeploy some of these slots to enable more flights to other West Coast cities where it has a strong presence — and where it faces less competition.

Click the link below for the full story!

Alaska Air Adds Flights at JFK

Boom Supersonic looks to replace the Concorde

Boom Supersonic is a startup company that is designing a new 55 passenger supersonic air transport with a range of 4,500 nautical miles. The company is currently assembling a 1/3 scale demonstrator aircraft that should take to the skies in late 2018. The demonstrator aircraft, as with the current airliner design, will be powered by three turbofan engines. It will be fabricated out of composite materials, and will feature a conventional compound delta wing configuration, similair to that of the Concorde design. The company is based out of Centennial Airport in Englewood, Colorado.

Boom Supersonic has identified 500 daily routes that the aircraft could viably operate on. Flying over water at a speed of Mach 2.2, the aircraft would be able to operate the New York to London route in 3 hours and 15 minutes. The aircrafts range of 4,500 nautical miles means that transpacific flights from the west coast to Tokyo would require a stop for refueling in Anchorage, Alaska or Honolulu, Hawaii. The company has projected a market potential for up to 1,000 supersonic airliners by the year 2035. The target purchase price for the aircraft is $200M apiece, and would not be nogotiable. Options and interiors would be subject to additional costs on top of the purchase price.

Virgin Atlantic placed an option for 10 aircraft with Boom in March of 2016, and Virgin Galactic has stated that it will aid in the manufacturing and testing the supersonic transport. The company also secured an option for 15 aircraft from an unidentified European customer, as well as 51 additional commitments at the 2017 Paris Air Show. In December of 2017, Japan Airlines announced a partnership that included a strategic investment of US $10 million in Boom. JAL will also collaborate with the company to refine the aircraft design and help define the passenger experience for supersonic travel. Japan Airlines also confirmed that it was one of the customers that placed a commitment for up to 20 of the aircraft at the Paris Air Show.

You can read the Boom/JAL press release at the link below:

Boom/JAL press release

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