ALASKA AIRLINES ACCELERATES AIRCRAFT RETIREMENT CHARGES TO BE TAKEN AGAINST 1993 RESULTS
SEATTLE, Dec. 16 /PRNewswire/ --Alaska Air Group (NYSE: ALK; PSE) has announced that its Alaska Airlines subsidiary has successfully concluded the planned retirement of the Boeing 727-200 from its fleet. Today the company reported that all but two of its Boeing 727-200 aircraft will be removed from operations by year end with the last two aircraft to be retired in May 1994. This action will result in a net charge against fourth quarter 1993 results of $9.8 million, or a loss of 73 cents per share. The charge reflects an acceleration of the original retirement schedule announced last year. In 1992, the company recorded a net charge of $16.6 million, or a loss of $1.25 per share based on a program to retire the fleet by the end of 1994. The charge covers the additional write-down of the value of B727 aircraft -- plus related parts inventory. "The phase out of these older jets combined with their replacement by new aircraft will lower future operating costs," said Raymond J. Vecci, chairman and chief executive officer. "This means that virtually all of Alaska's 1994 flying will be done more efficiently with two-pilot, twin-engine aircraft." Vecci also noted that Alaska will have the youngest fleet in the United States with an average age of six years. During the past year, Alaska Airlines has taken delivery of six new Boeing 737-400 aircraft. In 1994, it will replace the Boeing 727-200s with 10 new aircraft consisting of six B737-400s and four MD-80s. At the end of 1994, Alaska's total fleet size will remain unchanged at 72 aircraft. With the retirement of the B727, 90 percent of Alaska's fleet will meet the federal Stage III airport noise rules. Alaska Air Group is the parent company of Seattle-based Alaska Airlines and Horizon Air Industries. -0- 12/16/93 /CONTACT: J. Ray Vingo of Alaska Air Group, 206-433-3232, or Lou Cancelmi of Alaska Airlines, 206-433-3170/ (ALK)
CO: Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States Air Group; Alaska Airlines Alaska Airlines, (NYSE: ALK) is an airline based in Seattle, Washington, United States. It operates hubs at Seattle-Tacoma International Airport, Ted Stevens Anchorage International Airport, Los Angeles International Airport, and Portland International Airport. ; The Boeing Co. ST: Washington IN: AIR SU:
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