Alaska Airlines consolidates routes, adds tag flights to maintain service to all its destinations
Alaska Airlines is going back to the future to maintain its route network, dusting off the old strategy of tagging 12 destinations together to maintain service to all of its cities as the novel coronavirus pandemic takes a bite out of demand.
The carrier will end nonstop service between its Seattle (SEA) base and six cities: Baltimore/Washington (BWI); Charleston, South Carolina (CHS); Columbus, Ohio (CMH); Helena, Montana (HLN); Houston Bush Intercontinental (IAH) and Santa Barbara, California (SBA), from April 10 through April 30, Alaska spokesperson Ray Lane told TPG.
The six cities will instead be served one-stop from Seattle as tags on six other routes:
- Baltimore/Washington via Pittsburgh (PIT)
- Charleston via Raleigh/Durham (RDU)
- Columbus via Minneapolis/St. Paul (MSP)
- Helena via Kalispell, Montana (FCA)
- Houston via Dallas/Fort Worth (DFW)
- Santa Barbara via San Luis Obispo, California (SBP)
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"Our team worked to solve a unique challenge of providing service to as many communities as possible, as efficiently as possible," Lane said. "A tag flight is beneficial because it streamlines the use of our resources – aircraft, fuel and crews – to serve more destinations."
Tag routes are nothing new for Alaska. The airline operates a so-called "milk run" from Seattle to Anchorage (ANC) with stops in several small communities in southern part of the state of Alaska. In addition, the carrier used tag routes when it first expanded south along the West Coast in the 1980s, for example it added service to Burbank (BUR) via Portland, Oregon (PDX) in 1981.
The streamlined approach to maintaining service also allows Alaska to meet the requirements of the CARES Act, or the government aid package that includes the airlines. The bill requires airlines to maintain service to all of their U.S. destinations determined reasonable by the Department of Transportation as a condition of accepting any of the $50 billion in aid.
Carriers are allowed to offer as little as one weekly flight depending on their prior schedule, according to the DOT. In addition, they have the option of serving destinations in either their summer or winter schedule.
Related: Airlines will have to meet these schedule requirements to get coronavirus aid
Alaska has applied for some of the $25 billion in staff compensation grants available under the CARES Act. Raymond James analysts estimate the airline could receive around $1 billion in funds, which would help extend the nearly seven months of available cash in its bank accounts.
The carrier will reduce capacity by 80% in both April and May, the airline said in a securities filing on April 6. The cuts are in response to an at least 80% drop in demand for air travel.
As part of the capacity cuts, Alaska has parked more than 25 aircraft, according to Atmosphere Research data. Some Airbus jets have been stored in Greensboro, North Carolina (GSO).
Related: Alaska Airlines extends elite status, companion certificate validity due to coronavirus
While consolidating some routes in the contiguous U.S., Alaska continues to serve all of its destination in the state of Alaska. The airline provides vital air service around the state, including to many communities that have no other connections to the outside world.
The commitment follows the bankruptcy of RavnAir, the largest regional airline in the state, on April 5. RavnAir shut down after bookings plummeted up to 90% and operating funds needed until CARES Act money becomes available dried up, the carrier said in its Chapter 11 filing. The Anchorage-based airline hopes to secure funds under the aid package that will allow it to resume flying.
In response to RavnAir's bankruptcy, Alaska Airlines has committed to serving several communities in its namesake state. It will maintain flights to Kodiak (ADK), begin seasonal service to Dillingham (DLG) and King Salmon (AKN) earlier than its originally planned June start. It's also working to add flights to Cold Bay (CDB). All of the cities would be served from Alaska's Anchorage hub and replace service previously offered by RavnAir.
“We believe these are important steps that Alaska Airlines can take to support the infrastructure of the state of Alaska and ensure the people and communities of the state remain connected during this incredibly challenging time,” said Alaska CEO Brad Tilden.
RavnAir is the third U.S. regional carrier to shut down as travelers stay home to slow the spread of COVID-19. Both Compass Airlines and Trans States Airlines will or have closed their doors completely as business has dried up.
Related: How long will US airlines’ cash last? Between 4 months and a year
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.