Travel

Q&A: What's next for Alaska Airlines?

SEATTLE -- There's no question about who dominates the skies over the 49th state: Alaska Airlines, based in Seattle, serves more destinations in the 49th state with daily jet service than any other airline. And because most of Alaska is not connected by roads or highways, reliable air transportation is a lifeline for travelers going to work, to the doctor or on vacation.

While Alaska Airlines is in the midst of another busy summer season, the carrier is expanding throughout the Lower 48 and Hawaii. Recently, Alaska announced plans to fly to Omaha, Colorado Springs and Steamboat Springs. Additionally, there are new nonstops slated for Anchorage travelers to both Las Vegas and Phoenix. Earlier, the airline inaugurated new nonstop service between Fairbanks and Portland and between Anchorage and Kona.

Alaska Airlines is not part of any of the big airline alliances (Sky Team, Star Alliance or OneWorld). Rather, through its mileage partnerships and code-share arrangements, it has developed its own network. Travelers on Delta, American, KLM, Air France, LAN, Emirates and Aeromexico can earn and redeem miles that in turn accrue to the elite MVP, MVP Gold and MVP 75K status for upgrades and mileage bonuses. Travelers also can earn and redeem miles on PenAir, Qantas, Cathay Pacific and Era Alaska.

Joe Sprague is the vice president of marketing for Alaska Airlines, and also oversees the carrier's state of Alaska operations. He started working for the airline in 2000 as the regional sales director in Anchorage. Before that, Sprague held several positions in the regional aviation industry, including director of marketing at Era Aviation.

Q: How many destinations does Alaska Airlines serve in Alaska?

Sprague: Alaska Airlines serves 19 destinations in Alaska (20 if you include Anchorage-Dutch Harbor, which is operated for Alaska by PenAir). Three of those destinations are seasonal (summer-only): Juneau-Gustavus, Anchorage-King Salmon and Anchorage-Dillingham. The other 16 destinations (Ketchikan, Petersburg, Sitka, Wrangell, Juneau, Cordova, Yakutat, Kodiak, Bethel, Nome, Kotzebue, Barrow, Prudhoe Bay, Fairbanks, Anchorage, Adak) are served year-round with 737s. Fifteen of the 16 are served daily (Alaska flies Anchorage-Adak twice each week). One statistic underscores the special significance of these flights, I think: only three of those destinations are connected to the road system (Anchorage, Fairbanks and Prudhoe Bay). Alaska Airlines employs about 1,700 people in Alaska.

Q: Tell me about Alaska's fleet of aircraft--and how it's changing.

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Sprague: Alaska flies the Boeing 737. That includes the 737-400 combi aircraft, as well as the newer 737-800 and 737-900ER (extended range). The -900 series features new technical upgrades and cabin features including Boeing's "Sky" interior, increased overhead storage, in-seat power supply, new seats and wi-fi. The largest planes, the 737-900ERs, will be configured for 181 passengers. These will be our largest airplane--and the additional capacity will enable us to offer lower fares.

As we bring these newer, larger aircraft online, we're working to better serve communities in Alaska. We understand that our customers want low air fares. We also recognize that these new planes are expensive--and that we may be overdelivering on the number of seats required. The reality is smaller communities don't need a 150-passenger jet. So if we can right-size the aircraft for the community, we believe it will allow us to bring fares down.

We think the 76-seat Bombardier Q400 may allow us to do that. The operating costs are lower with the twin-prop. But every market is different. So we're starting with the Q400 between Anchorage and Fairbanks and between Anchorage and Kodiak next year. We will look at other communities down the road.

Q: How important is the Mileage Plan program to Alaska Airlines?

Sprague: The Mileage Plan is an important vehicle. It allows us to provide some recognition and rewards for flying Alaska Airlines. And we appreciate the strong, loyal support of our customers in Alaska. Club 49 (for Alaska residents only) is a separate program, but it's directly linked to a member's Mileage Plan account. We're always trying to connect with communities and organizations throughout the state. But the Mileage Plan and Club 49 allows us to connect with the individual traveler.

We know the Bank of America Visa affinity card also is an important benefit for our frequent travelers. It's a great way for travelers to get some real value: extra miles and an annual companion pass, for example.

Q: Your competitors at Virgin America, JetBlue, United and Frontier Airlines are operating more flights into Anchorage and Fairbanks this summer. Your fares are lower as a result. How does this change your strategy in Alaska?

Sprague: Competition is a healthy thing. We recognize it makes us a sharper, more focused company. That way, we can better-deliver for our customers.

Q: Technological innovation is a hot button in the airline industry today. What is Alaska Airlines doing to take advantage of new technology?

Sprague: There are several types of technological innovation in our business, including operational developments and customer-facing. On the operations front, we're guided by the "safety first" mantra. That's why we've invested heavily in the GPS-guided RNP navigation systems for approaches like Juneau. This has improved the operational reliability in and out of Alaska's captial city. Because of the enhanced safety components of this technology, we allow other airlines, including United and Southwest, to use it for tricky approaches in San Francisco and at Reagan International in Washington, D.C. We've also invested in the "Heads-Up Guidance Systems" for both our 737s and Q400s.

For customers, Alaska Airlines has a long history of technological innovation. We were the first airline to sell tickets on the web. We have the portable "digEplayers" with movies, TV and music onboard. Many airlines now have the Gogo Inflight internet access -- and we're optimistic that Canada will soon have the antennaes necessary to offer a seamless connection between Anchorage and Seattle. In fact, Gogo plans to have more antennas over Canada soon, which would enable inflight WiFi from Anchorage to Chicago or Anchorage to Denver, for example.

Q: Looking forward, what is your goal for Alaska Airlines?

Sprague: Flying has a fair share of hassles these days: booking, checking in, the TSA, baggage and the on-board experience. We want to remove those hassles and be the easiest airline to work with. By 2017, that is our goal. We want to accomplish this by offering more functionality in our mobile apps (for smartphones and tablets) and provide more options for travelers to "self serve," including print-at-home bag tags, for example.

We're optimistic about increased access to the pre-check program with TSA to streamline security. And we're always working to smooth the boarding process.

Q: Recently, Alaska Airlines announced an increase in its checked baggage fees. How will this affect Alaskans?

Sprague: Well, it makes the Club 49 benefits more valuable! (Note: Club 49 is open to all Alaska residents and allows for two free checked bags on flights to or from Alaska. Travelers flying within Alaska may check three free bags at no additional charge.)

Scott McMurren is an Anchorage-based travel marketing consultant who has lived in Alaska for three decades, spending much of that time traveling the far-flung corners of the state. Visit his website at www.alaskatravelgram.com or follow him on Twitter for breaking travel news.

Scott McMurren

Scott McMurren is an Anchorage-based marketing consultant, serving clients in the transportation, hospitality, media and specialty destination sectors, among others. Contact him by email at zoom907@me.com. Subscribe to his e-newsletter at alaskatravelgram.com. For more information, visit alaskatravelgram.com/about.

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