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Web posted Monday, January 26, 2004

Alaska Airlines seeks more slots to D.C.'s Reagan Airport

By Pat King
Alaska Journal of Commerce

Alaska Airlines Jan. 9 applied for additional slots at Washington, D.C.'s Reagan National Airport.

The company aim is to add two more daily nonstop roundtrips between Seattle and D.C., and inaugurate service between Los Angeles and Reagan with two daily nonstop roundtrips.

Congress recently authorized creation at Reagan National of more "beyond-the-perimeter" slots, reserved for flights serving cities that are more than 1,250 miles away.

The slots will be awarded in the spring.

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In 2001, Alaska Airlines won a pair of slots at DCA (Reagan National Airport) and used them to launch daily nonstop service to Seattle with same-plane, one-stop service to Anchorage.

Customer response was positive and effectively launched Alaska's entries into other East Coast destinations - Boston, New York/Newark, Miami, Orlando, and Dulles International in Northern Virginia.

"While competition for the new slots will be fierce, we think we're well positioned," said Alaska CEO Bill Ayer in a statement.

"We know that the states of Alaska, Washington, California, and the West Coast generally, need and will support more service," Ayer said. "Also, one of the considerations for awarding the slots is that the airline operates fewer than 10 roundtrips a day out of Reagan. We have just one right now."

Of the two new Seattle-to-Washington D.C., flights Alaska is proposing, one would be routed to provide same-plane, one-stop service to Fairbanks, and the other, from May-early September, to Juneau. Both new flights would offer connections to communities served by fellow Alaska Air Group company Horizon Air.

"That's a very attractive thing for the state of Alaska because there's no connection required," said Greg Witter, an Alaska Airlines spokesperson in Seattle.

"It's a very seamless trip to the nation's capital. You're not changing planes and there's no connection time."

The proposed route from Los Angeles would provide the only nonstop service from California to Washington, D.C.

Alaska plans to operate Boeing 737-700 aircraft on each of the proposed flights, and may add 737-900s to the mix at LAX over time.

Alaska and Horizon together serve 80 cities in Alaska, the Lower 48, Canada and Mexico.

State begins operating airport at Adak Island

The state of Alaska signed an agreement Jan. 15 with the Aleut Corp. to take over airport operations on Adak Island in the Aleutian Chain.

The airport transfer agreement will convey part of the land of the Naval Air Station at Adak to the Aleut Corp. for other Native land interests.

As part of the agreement, the state will receive $10 million from the Navy to help underwrite airport operations on Adak.

Adak's airport is one of the largest and most sophisticated airports in the Aleutian Islands. Built by the Navy for Naval air transport, the airport is a world-class facility worth millions of dollars, consisting of a 7,800-foot runway and a 7,600-foot runway. It is equipped with an instrument landing system and glide slope that facilitate instrument landings.

Currently, Adak has scheduled jet service provided by Alaska Airlines.

According to Mike Barton, Alaska Department of Transportation & Public Facilities Commissioner, the future development of Adak and the Aleutian region depends on good air transportation.

The military first developed an air station on Adak during World War II.

Adak was most recently run by the Navy, until a mid-1990 decision by the federal government to cease operations there under the military's Base Realignment and Closure Program. That decision made the land at Adak eligible for transfer back to the Aleut Corp.

The military will remain on Adak, however, as part of its environmental monitoring and cleanup program.

Dave Jensen, CEO of the Aleut Corp., said in a statement, "With this transaction, future support of military and commercial activity in the region is assured and we are very pleased to work with the state in opening up these new business opportunities."

Cathay Pacific expands fleet of cargo aircraft

Cathay Pacific Airways, which operates an average of 35 cargo flights a week through Ted Stevens Anchorage International Airport, plans to add as many as 13 aircraft to its freighter fleet, more than doubling its current cargo fleet in the next few years.

"We're very excited about the increase of our freighter services," said Audene Barlow, airport services manager for Cathay Pacific in Anchorage.

Cathay is the world's sixth-largest air cargo carrier in terms of tonnage carried.

"This is very good news for us," Barlow said. "We're looking forward to the increase of our services in North America."

The Hong Kong-based carrier also said Jan. 8 that it will launch new cargo services to Beijing, Munich and some points in North America.

The airline didn't specify the intended North American destinations but said it is awaiting government approvals for all the new flights. Barlow did not know the new North American ports.

Cathay, which has 11 freighters, has placed an order to purchase one new Boeing 747-400F freighter for delivery in February 2005, it said in a statement.

It will also convert at least six, and as many as 12, Boeing 747-400 passenger aircraft into freighters.

Cathay plans to convert either its own or second-hand passenger aircraft, and the six minimum conversions will be ready by 2007.

Cathay began operating three passenger services a week between Hong Kong and Beijing last month after a 13-year absence from the mainland market. It said previously it intended to fly three freighter services to the Chinese capital weekly.

Cathay has not operated passenger service through Anchorage since Aug. 5, 2003.

In fiscal year 2002, Cathay Pacific generated almost $2 million in total airport revenue at Ted Stevens Anchorage International Airport, or 3.9 percent of the total, according to airport documents.

Anchorage rated most logistics-friendly city

It's common knowledge that Ted Stevens Anchorage International Airport is the pre-eminent international cargo crossroads for trans-pacific freighter business.

And now "Expansion Management" magazine, in its December 2003 edition, rates Anchorage as the most logistics-friendly city in the West, above Los Angeles, Seattle and San Francisco.

The study is conducted annually in conjunction with "Chief Logistics Officer" magazine.

Located just nine hours by air to 95 percent of the industrialized world, Anchorage has steadily built its reputation as a major distribution hub, along with cities like Memphis.

Currently, Anchorage is home to Federal Express' No. 2 hub in the world in terms of air cargo volume, and UPS' No. 3 hub by volume worldwide.

"Anchorage is often overlooked in terms of its strategic location; however, as can be seen by this article, we are effectively getting the message out to more business decision makers," said Larry Crawford, president and CEO of the Anchorage Economic Development Corporation, in a statement.

"If you look at the globe from the top, Anchorage is clearly located in the geographic center of the Northern Hemisphere," Crawford said.

Anchorage offers unparalleled access to the world's markets, said Michael Kean, transportation director of the AEDC.

"This recognition lends itself nicely to our goal of attracting businesses to Anchorage that can benefit from our strategic location," Kean said in a statement.

"For companies that operate worldwide and specialize in high-value, time-critical products and components, Anchorage is definitely worth exploring."

"Expansion Management" has a circulation of more than 45,000 and reaches senior executives who plan and oversee their organizations' facilities development, relocation and expansion activities.

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