In my last post, I talked about why Boeing needs to consider moving forward with the NMA given the state of the industry. With this article however I will be talking about why Alaska can show interest in the NMA. I feel like this would be a perfect opportunity for Boeing and Alaska to capitalize on should they move forward with the proposed aircraft.
Compliment and/or Replace the A321Neo Series
If Alaska considers ordering the NMA, it would work alongside the A321Neo on their transcon routes from each of their West Coast hubs to cities such as New York or Miami. Then they can then utilize their 737s on other flights elsewhere such as Seattle to Los Angeles or even Los Angeles to Milwaukee. The reason being so is because given the demand for transcontinental passenger travel in the United States, it would be suitable enough for Alaska to do a case study with Boeing on the NMA. There is however another reason as to why the NMA would be good for Alaska. Recently they announced that they would retire their A319 and A320s in favor of the Boeing 737 MAX 9 by 2023. If Alaska were to order the NMA in 2024, it would mean that Alaska could potentially retire their A321Neos in favor of the new plane. This would help restore Alaska’s slogan as being “Proudly All Boeing” again. With a larger plane in their fleet, it would provide another new opportunity for Alaska to seek.
New Premium Cabin Product
Alaska ordering the NMA could potentially lead them to consider introducing a new premium cabin product for this aircraft and even their A321Neos. As of right now, Alaska Airlines’ first class cabin doesn’t have any lie flat seating instead going with recliner style seating that’s similar to what one would see on international carriers’ premium economy. In a q4 2020 earnings call for Alaska, the Chief Commercial Officer Andrew Harrison stated the following....
“We feel really good. We are thankful that we maintained a non-lie-flat position. We think our first class seats are spot on for the demand environment.”
However with competitors such as Delta, United, JetBlue and American investing in premium products in first class, the NMA could provide Alaska Airlines with an opportunity to potentially introduce a new, business/first class product to compete in this lucrative market. But there is one other reason that is much more important for Alaska to commit to the NMA.
Their Relationship with Boeing and the State of Washington
If Alaska were to potentially order the NMA within the next decade, it would further enhance their relationship with Boeing thus putting pressure on them to build the NMA in Everett. As I previously said in my last article, I talked about how the NMA being built in Everett can offset the relocation of the Dreamliner program to South Carolina. By ordering the NMA however Alaska will be a reliable customer to Boeing given their Pacific Northwest roots. As a result, it would help the Seattle based airline enhance the state economy by giving the employees at Everett a more stable situation. Not only would Boeing benefit from this but also Alaska Airlines as a brand because they will show a commitment to the Pacific Northwest thus giving them an edge over Delta in their ever-growing rivalry brewing in Seattle.
Conclusion
In summary, I think that Alaska Airlines should express some interest in the NMA so they have the ability to adapt in the ever changing US market while also sticking to their Seattle roots. But what do you guys think? Should Alaska Airlines express interest in the NMA? Be sure to leave a comment below and keep looking to the sky!