Overview. Financially, Alaska Airlines is a strong performer in the modern airline marketplace, having come a long way from its storied Alaskan bush plane roots. Today, Alaska Airlines is the 7th largest US air carrier and is ranked 5th for overall performance among the top 12 carriers for 2014(Alaska airlines: Company facts.; Bowen & Headley, 2015). Notably, in 2015 Alaska Airlines carried 21 million passengers on 173 thousand flights resulting in 27.768 billion Revenue Passenger Miles (RPM) and 32.694 billion Available Seat Miles (ASM) which accounted for 4.5% share of passenger travel in the US (Bureau of transportation statistics: Air carrier snapshot (alaska airlines).). In addition to these performance statistics, Alaska Airlines has
…show more content…
In fact, Alaska Airlines net income was so significant in 2015 that employees received nearly 5 week’s pay as bonus, under the company’s performance based pay system, which compensates employees beyond their regular salaries for meeting operational performance goals (Alaska airlines and horizon air employees receive nearly five weeks extra pay in bonuses.). It is performance like this, with a focused and calculated business plan that has earned Alaska Air Group, the parent company to Alaska Airlines, the confidence of its investors. Moreover, Alaska Airlines has earned an impressive investment-grade rating, one of only two airline corporations in the industry to earn this coveted financial ranking (Alaska air group - investor information - annual reports: 2014.). Furthermore, this level of high performance gives promise to the FAA when considering futures in the industry including an optimistic perspective that the “industry has been transformed from that of a boom-to-bust cycle to one of sustainable profits” (FAA aerospcae forecast: Fiscal years …show more content…
Undeniably, these very efforts have contributed to recent high earnings and have garnered Alaska Airlines recognition as the most fuel efficient domestic carrier by the International Council on Clean Transportation (Li, Kwan, & Rutherford, OCT 2015). Rationally, one would think that all of this success would come at some negative cost, yet it has not come at an adverse cost to Alaska Airlines employees, customer experiences or safety programs. Consistently, earning the highest customer satisfaction rating from J.D. Power for eight consecutive years, ranking among the top twenty safest airlines and earning the FAA’s Diamond Award for stalwart commitment to maintenance and training programs makes Alaska Airlines not only a desirable carrier to travel with but also an enviable place to work (Alaska airlines awards and recognition.). Already a strong market leader, having just unveiled its first major brand overhaul in the past 25 years, Alaska Airlines is poised to remain a profitable and efficient Airline for the foreseeable future (Alaska airlines unveils first major brand change in 25
In fact, Alaska Airlines net income was so significant in 2015 that employees received nearly 5 week’s pay as bonus, under the company’s performance based pay system, which compensates employees beyond their regular salaries for meeting operational performance goals (Alaska airlines and horizon air employees receive nearly five weeks extra pay in bonuses.). It is performance like this, with a focused and calculated business plan that has earned Alaska Air Group, the parent company to Alaska Airlines, the confidence of its investors. Moreover, Alaska Airlines has earned an impressive investment-grade rating, one of only two airline corporations in the industry to earn this coveted financial ranking (Alaska air group - investor information - annual reports: 2014.). Furthermore, this level of high performance gives promise to the FAA when considering futures in the industry including an optimistic perspective that the “industry has been transformed from that of a boom-to-bust cycle to one of sustainable profits” (FAA aerospcae forecast: Fiscal years …show more content…
Undeniably, these very efforts have contributed to recent high earnings and have garnered Alaska Airlines recognition as the most fuel efficient domestic carrier by the International Council on Clean Transportation (Li, Kwan, & Rutherford, OCT 2015). Rationally, one would think that all of this success would come at some negative cost, yet it has not come at an adverse cost to Alaska Airlines employees, customer experiences or safety programs. Consistently, earning the highest customer satisfaction rating from J.D. Power for eight consecutive years, ranking among the top twenty safest airlines and earning the FAA’s Diamond Award for stalwart commitment to maintenance and training programs makes Alaska Airlines not only a desirable carrier to travel with but also an enviable place to work (Alaska airlines awards and recognition.). Already a strong market leader, having just unveiled its first major brand overhaul in the past 25 years, Alaska Airlines is poised to remain a profitable and efficient Airline for the foreseeable future (Alaska airlines unveils first major brand change in 25