There are many reasons an airline may want to operate a single type of plane -- pilot training and route swaps are easier and you can save on not having too many different spare parts in stock.
Having a single aircraft is a strategy typically taken on by smaller and low-cost airlines. Dallas-based Southwest (LUV) flies exclusively the Boeing (BA) 737 while, in Europe, EasyJet (EJTTF) only takes city-hoppers on the Airbus (EADSF) A320s.
While Alaska Airlines (ALK) is the fifth-largest airline in the U.S., it has still been in the process of transitioning to only flying Boeing's 737. Last spring, the airline announced plans to sunset its 30 Airbus A320ceos and 10 A321neos by the end of 2023.
The goal is to simplify its fleet and become an all-Boeing operator. To that end, the airline announced that it is buying 52 Boeing 737 Max planes with options for an additional 105 aircraft.
A Very Large Plane Purchase
The purchase was announced on Tuesday. The planes, which will be delivered between 2024 and 2027, will bring the airline's total fleet to 146 planes.
"This investment secures aircraft to optimize our growth through the next decade, which we know will be a formidable competitive advantage," Alaska Airlines CEO Ben Minicucci said in a statement.
At the moment, the airlines operates 35 737-9 aircraft while another 43 737 Max planes are being phased in over the next 14 months.
Shutterstock
While the financial details of the purchase are not being disclosed, Alaska Airlines said that it hopes to save between $75 and $100 million by becoming a single-carrier airline.
Alaska Air Group's stock is down nearly 20% year-over-year.
"We're proud of the strong financial foundation that uniquely positions Alaska to make this commitment to our future, and of the fantastic partnership we share with our hometown aircraft manufacturer at Boeing," Minicucci said.
Buying Planes: A Sign Of Market Confidence?
A narrow-body, the Boeing 737 is considered to be an industry "workhorse" due to a wider cabin that can fit more people and also be converted for cargo transport. According to Simple Flying, Boeing has delivered 10,506 of the 737 to different airlines around the world since it was first introduced in 1968.
This makes the 737 by far the most common plane used by airlines and seen at airports globally.
The 737 Max, the latest version, faced extensive groundings for more than a year after two fatal crashes tied to software problems in the planes. The plane has won recertification in most markets, including China.
Alaska Airlines currently uses the 737 Max for longer flights cross-country or between the West Coast and Hawaii.
"Built in our Renton factory near Alaska's headquarters in Washington state, these airplanes will carry passengers to destinations for years to come," Stan Deal, president and CEO of Boeing Commercial Airplanes, said in a statement.
The new order includes the 737-8, 737-9 and 737-10 models. The latter is currently waiting to receive FAA approval but airlines are already investing in it --Delta (DAL )ordered 100 of the planes earlier this year.
American Airlines (AAL), meanwhile, recently put down a deposit for the purchase of 20 supersonic jets from privately-owned company Boom Supersonic. The plane has yet to fly but would allow airlines to promise lightning-fast flight times. New York to London would take less than three hours instead of the customary seven.
