A company report on Alaska Airlines

1. Madeline Endres
endremad

2. The Problem
● Alaska (the west) is far away
● Alaskans (westerners) like travel
● Flights to Alaska are expensive

3. The Product
300 Planes
115 Destinations
44 Million Passengers

4. Financial Information: Profit

5. Financial Information: Alaska Air Stocks

6. Delta Stocks

7. Why the disparity?
A FIGHT FOR SEATTLE

8. Alaska Airlines History
1932: First
commercial
Alaska airline
1944:
Renamed
Alaska Airlines
1960s: Merge
with Cordova
airlines:
Fairbanks to
Seattle
1979: Airlines
deregulated
1987: Horizon
air merger
2018: Virgin
America
Merger
Finalized
2016: End
Delta
partnership
Pre 2003:
Delta
codeshare
starts

9. Business Model
● Sell flight tickets → Optimize routes
● Encourage brand loyalty → Mileage plan
● Expand flight map → Partners, Mergers

10. 2014

11. 2018

13. Secret Sauce
● Monopolies on Alaska routes
● Reliability
● Fantastic Mileage Plan

14. Mileage PlanTM
● Intra-Alaska travel
● International travel
● Alaska Airlines Credit Card
● Caters to Alaskans

15. Affordable International Travel: Case Study
Freshman Year:
Alaska style:
(1,438 + 1,927) x 6 = 20,190
Free ticket to Santiago = 20,000
Delta style:
(567 x 5) x 6 = 17,010
Free ticket to Santiago = 115,000

16. Alaska Delta American* United Southwest
Airline Partners*
19 20 25 26 0
Mile for Mile
Mileage Plan
Yes No No No No
Many Pacific
Northwest
Flights
Yes TBD No No No
High Customer
Rankings
Yes Yes No No Yes
Over 100 Million
passengers
No Yes Yes Yes Yes

17. Prediction?
Short term: Moderate Success → Route war continues
Long term: Failure → Delta is larger and will win: Likely merge

18. References
● https://www.alaskaair.com/content/travel-info/our-aircraft
● https://www.pinterest.com/pin/331647960041123029/
● http://www.portlandtraveltips.com/2014/01/06/redeeming-alaska-airlines-mileage-plan-miles-domestic-awards-s
topovers-and-free-one-ways/
● https://en.wikipedia.org/wiki/List_of_largest_airlines_in_North_America
● https://blog.alaskaair.com/alaska-airlines/mileage-plan/a-mile-flown-is-a-mile-earned/
● https://www.travelmath.com/flying-distance/from/Anchorage,+AK/to/Seattle,+WA
● https://www.delta.com/content/www/en_US/skymiles/how-to-earn-miles.html#miles
● https://www.delta.com/flight-search/search-results?cacheKeySuffix=01112285-357e-425e-9d64-ec7bd424bb99
● http://www.businessinsider.com/best-airlines-america-2017-4
● https://finance.yahoo.com/news/alaska-air-group-falls-52-140302037.html
● https://news.delta.com/delta-and-alaska-airlines-will-end-partnership-may-2017
● https://finance.yahoo.com/quote/ALK
● https://www.delta.com/content/www/en_US/traveling-with-us/where-we-fly/flight-partners.html
● https://www.united.com/CMS/en-US/Marketing/CustComm/Promotions/Pages/AirlinePartners.aspx
● https://www.united.com/ual/en/us/fly/mileageplus/earn-miles/united.html
● https://www.usatoday.com/story/travel/flights/todayinthesky/2016/12/19/frenemies-no-more-delta-alaska-air-ter
minate-partnership/95605050/
● https://www.travelcodex.com/korean-air-may-end-partnership-alaska-airlines/