Alaska Airlines were to take delivery of two of its first-of-a-kind Boeing 737-400s that carry both cargo and passengers, just as it brought its Web-based cargo reservations system online Feb. 1.

“This is really exciting for us here at Alaska Airlines,” said Matt Yerbic, director of cargo for Alaska Airlines. “We have a one-of-a-kind aircraft, and now we can really fly these markets as no one else can.”

The planes are scheduled on the Fairbanks, Deadhorse, Barrow routes first, and then the Kotzebue, Nome and Bethel routes, according to Alaska officials.

Alaska Airlines has invested $100 million in retrofitting five Boeing 737-400s from passenger planes to combination and freighter aircraft.

Alaska committed $30 million alone to retrofit the two aircraft received last week.

The unique aircraft are specially retrofitted Boeing 737-400s that carry both passengers and freight, and will go into service immediately to meet market demand, according to Yerbic. These aircraft are the first Boeing 737-400s that have been retrofitted with cargo doors and passenger seating.

The 737 combination aircraft carry as much as 20 percent more cargo than the older Boeing 737-200 combis, have a 20 percent better fuel efficiency, overhead bins for passenger carry-ons, and special leather seats with an improved seat pitch.

According to Alaska Airlines Cargo officials, the older 200 model aircraft will go out of service as the newer models come online.

According to Yerbic, the older 737-200 combi aircraft could only carry three cargo pallets. The new aircraft will carry four 125-inch pallets and 72 passengers.

“We are doing something no one has ever done before,” said Bill McKay, a senior vice president at Alaska Airlines. “Alaskans can be very proud of this aircraft, it's the first like it in the world.”

Alaska Airlines were to take delivery of the aircraft Feb. 1 at the Ted Stevens Anchorage International Airport.

The retrofits were done by Pemco World Air Services, which was forced to deliver the aircraft months later than originally announced.

“We are pleased with these aircraft,” said Kevin Casey, vice president of commercial business services for Pemco. “We wished we could have delivered a couple of months earlier, but as a result we built a superior product.”

According to Casey and McKay, the delays were attributed to making the aircraft “top drawer.”

“Alaska (Airlines) is awesome to work with, these folks don't cut corners and are very thorough in their approach and engineering,” Casey said.

Casey indicated that a great deal of the delay was due to new Federal Aviation Administration regulations.

“We had to adhere to FAA Change Product Rules,” Casey said. “These rules basically required us to meet all the requirements of a newly manufactured aircraft.”

Two of the new craft, one of which is seen here, were to arrive in Alaska Feb. 1, ready to go straight to work. PHOTOS Courtesy of Alaska Airlines

Pemco built the cargo door and flooring, and was joined by Goodrich, which did the fire systems. Ancra International LLC Loading Systems modified the Boeing aircraft, new cargo door opening and loading system.

As Alaska Airlines puts the two new aircraft into service, the airline is launching a new cargo reservations system.

“Demand has increased at all points in the north and western parts of the state, and we have suffered a little waiting for these aircraft to come online,” Yerbic said. “Now we can supply as much as the demand.”

Both Yerbic and McKay said that a schedule change to Deadhorse and Barrow would aid passengers and shippers alike.

“There's no denying there is something coming up there, and we will schedule our flights real soon to provide service to the companies on the North Slope,” Yerbic said.

Yerbic also said the airline will make a decision soon on other aircraft.

“We have an option to add a fifth combi and a second all-cargo 737-400,” Yerbic told the Journal.

Yerbic announced in October 2006 that all freight will now be charged by the pound instead of by the package, and that the company has reorganized its deliveries from 18 zones in North America down to 10.

While the first aircraft go into service in the North and Western region, Southeast Alaska should see more service as well.

“There is very good news for Southeast,” McKay said. “We will have one northbound and one southbound flight as part of the summer schedule just for getting fish products to market.”

McKay credited Pemco and the FAA for their help in getting the planes certified.

“This is a great partnership,” McKay said. “We've created a rather terrific aircraft for the Alaska market that will serve rural Alaska for years to come.”

Pemco's Casey agreed.

“Alaska is a niche market with special industrial needs. The 400 combis are now being sought after by other developing countries in the world.”

After Pemco announced the Alaska Airlines freighter and combi retrofits, Icelandic Air ordered a similar aircraft.

Rob Stapleton can be reached at