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Weekly UpdatesIn a state as large as Alaska, with communities often situated in remote locations, it is almost impossible to underestimate the importance of the cargo industry. Food, equipment and sundries are shipped daily to the 49th state from cities down south; seafood and other natural resource commodities shipped from Alaska to the rest of the nation help keep the state's economy strong.
For more than 75 years, Alaska Airlines has been providing cargo services to the Last Frontier. From its start flying mail to the communities of Bristol Bay to its current incarnation as the airline operating the most extensive air cargo operation on the West Coast, Alaska Airlines has always understood the importance of cargo operations to both its own success, and the continued success of the state.
"Cargo has always served as a foundation for Alaska Airlines, and we knew a few years ago that we needed to make some fleet-planning decisions in order to continue our commitment to cargo and the state," said Matt Yerbic, managing director of cargo, Alaska Airlines. "We decided to replace our current fleet of 727-200s with five larger cargo aircraft, which will allow us to increase capacity by 20 percent on a fleet-to-fleet basis."
THE NEW FLEET
In June 2006, Alaska Airlines took delivery of a Boeing 737-400 freighter, which provides 50 percent more cargo capacity and more advanced flight guidance capabilities than the 737-200 it replaces. Four more 'combi' aircraft, which will carry both passengers and cargo, will join the fleet over the next several months, with the last airplane being delivered by spring of 2007. The airline also has options to convert two more aircraft from passenger to cargo configurations.
"This new fleet includes more modern aircraft," said Yerbic, who added that all of the planes are equipment with RNP, or Required Navigation Performance. This technology, pioneered by Alaska Airlines in Juneau, allows aircraft to fly safer, more reliable landings and reduces reliance on ground-based navigation aids.
"What this means from a passenger standpoint is that we're delivering more schedule reliability," said Yerbic. Since the inception of RNP on all of Alaska Airlines' flights, an average of one to two flights per day into Juneau that previously would have been cancelled or diverted due to weather have completed their routes.
In addition to being the first airline to create and then utilize RNP, Alaska Airlines is also the first airline to convert a 737-400 from an all-passenger airplane to an all-cargo configuration. The freighter, which has been part of Alaska Airlines' fleet since 1999, was retrofitted by Pemco World Air Services. "Though a significant number of 737-300 aircraft have been converted, no one has ever retrofitted a 737-400 like this before," said Yerbic. "Certainly, it was a challenge, but we thought it was really important to be consistent with our overall fleet, and to be able to offer the same reliability and performance."
A $100 MILLION COMMITMENT
The introduction of the large freighter and the four combi planes is just one part of Alaska Airlines' $100 million plan to expand and modernize its cargo operation to meet the growing demands of its customers. As the transporter of more than 150 million pounds of cargo annually, the airline knew that it needed to expand capacity, as well as update its operations to become a world-class provider of transport services.
"The $100 million that Alaska Airlines is spending reflects our long-term commitment to transporting people and cargo in Alaska," said Yerbic. "But it's important to note that the new airplane fleet is only one portion of this. We have gone through a complete transformation in our cargo business, which will include the launch of a new cargo reservations system (this month).
"Following this, we will be introducing a new tracking, tracing and scanning system, which will enable us to follow cargo anywhere it goes," he added. "This new generation software system will allow us to springboard to an even higher level of service."
A COMMITMENT TO THE CUSTOMER
One customer who has already benefited from the airline's increased cargo capacity is Ocean Beauty Seafood, who filled the airline's first Copper River salmon flight to Seattle with 29,000 pounds of fish. "Increased capacity helps us get more product into the fresh market," said Tom Sunderland, director of marketing, Ocean Beauty Seafood. "In the past few years, the fresh market has gown, but there has been a lack of capacity to get the product to market to meet the demand.
"What Alaska Airlines' increased capacity means is that they are listening and being responsive to the needs of their customers," he added. "That's good business. And in the fish business, increased capacity helps everyone on an immediate basis, right down to the fishermen."
As a way of helping both businesses, Ocean Beauty also worked with Alaska Airlines to improve cool-chain integrity. "Our emphasis has always been to continue to improve the quality of the product we deliver to the marketplace," said Jan Koslosky, director of Supply Chain. "We developed initiatives internally and with our agents to make sure that the product is being kept at appropriate temperatures."
Ocean Beauty and Alaska Airlines created a training program for cargo handlers that taught them how to handle the product and showed what happens to fish when not kept at the proper temperatures. "The response we got from the people who attended the classes was very positive," said Koslosky. "And this past summer, we saw the results of that training; by and large, the attention paid not just to our seafood, but to all of the seafood industry's products, was vastly improved."
As Alaska Airline's cargo capacity continues to grow and operations become more streamlined, it is expected that customers will find even more to appreciate. "We are entering a new era in the cargo business, which will enable us to provide even better service for the folks in the state of Alaska," said Yerbic.
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