Alaska Airlines swaps Airbus A320s for 13 new Boeing 737 MAX jets
Alaska Airlines is marching steadily towards returning to a mostly Boeing 737 fleet with a new deal to replace Airbus A320s with 737 MAX jets.
The Seattle-based carrier will lease 13 737 MAX 9s from lessor Air Lease Corporation (ALC) in exchange for 10 A320s, Alaska said Monday. The deal brings its firm commitments for the MAX to 45 aircraft, including orders for 32 planes.
Alaska began weighing either more A321neos or 737 MAXes as a replacement for its 61 Airbus A319 and A320 jets in January. However, the onset of the coronavirus pandemic changed the equation with the carrier accelerating Airbus retirements and quietly moving towards more 737s — the mainstay of its 217-jet mainline fleet.
Want more airline-specific news? Sign up for TPG's free new biweekly Aviation newsletter!
Alaska says it will have 39 A320s left after the ALC deal. However, if the 10 it said it's exchanging on Monday are in addition to those it has already retired — or has slated for retirement — then a back-of-the-notebook analysis shows the airline with just 22 A320s in its fleet by the end of 2022, according to the fleet plan at the end of September.
The airline acquired the A320 fleet as part of its deal for Virgin America that closed in December 2016. Alaska has no plans to remove the 10 A321neos that it gained as part of the merger.
The A320s-for-737 MAXes deal enhances "our fleet and advance our environmental, operational and financial performance," said Alaska CEO Brad Tilden in a statement.
Related: Why Alaska Airlines can't retire its Airbus A320s all at once
Alaska plans to take delivery of its first 737 MAX in January following the re-certification of the beleaguered jet earlier in November. The MAX was grounded for more than 20 months after two fatal crashes took the lives of 346 people.
The airline plans to begin MAX flights with passengers in March, according to its website.
The MAXes from ALC will begin arriving at the end of 2021 and continue through 2022. Alaska will sell the A320s to the lessor when the "transaction closes" and lease them back for a short period.
Reports had indicated that Alaska was in discussions with Boeing over an additional MAX order once the FAA lifted its grounding notice. These may still be pending, however; with cash for new jets limited, leasing presents a lower upfront cost to acquiring new jets.
Related: US authorities lift Boeing 737 MAX grounding, allow jets to resume flights
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + 4% back in Bilt Cash on everyday purchases |
Pros
- Unlimited up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Housing payments may include transaction fees, depending on the payment method
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 3 months + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.