11-7-13 RDC Welcomes Alaska Airlines!

RDC Meeting Report: How Alaska Airlines is responding to travel needs of Alaskans

Dave Harbour

Today in Anchorage, members of the Resource Development Council for Alaska (RDC) welcomed as their biweekly keynote speaker, Joe Sprague, Marketing Vice President for Alaska Airlines (NGP Photo with RDC member after meeting).

Eighteen years ago, Sprague began attending RDC meetings and since then has held posts of increasing responsibility with the state's namesake airline — in Alaska, Washington D.C. and at the company's Seattle headquarters. Meanwhile, his Alaska staff continues to be active supporters of RDC and numerous other Alaska organizations.

While introducing Sprague, RDC President Phil Cochrane noted that, "Air transportation is at the very heart of resource development."

Sprague then went on to prove Cochrane's point by noting the airline's depth of support for all of Alaska's resource industries, including oil and gas, commercial fishing, tourism and mining.

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“We feel like we need to maintain a close tie with resource development in Alaska,” Sprague said, noting the array of Prudhoe Bay flights and the airline’s focus on supporting support industries that serve resource development companies.

He also recounted the airline’s daily support flights to the Red Dog mine, commercial fishing service links to Dutch Harbor using a PenAir partnership and general, statewide support for Alaska seafood marketing by transporting fresh seafood from local communities directly to markets in Alaska and the Lower 48. “We are absolutely committed to the air cargo business in Alaska,” said Sprague, adding that the airline also planned to expand service with the use of specialty cargo aircraft.

Sprague touched on a benefit program unique to Alaska, Club 49, which he said has been, “a phenomenal program for us. The entire focus,” he said, “is to make travel more affordable for Alaskans.” Customers living in Alaska can sign up to receive notices of special intra and interstate fares from and back to Alaska.

In the state, the airline allows for up to three, free checked bags for Club 49 members and two free bags may be checked for out of state travel. Alaska Airlines is now working on a program to provide Club 49 members with additional discounts on more expensive interstate flights.

While respectful of his company’s competitors, he said he “couldn’t think of another airline that has the statewide reach of Alaska Airlines”. The Airline serves 19 destinations in the state with 1,600 in-state employees.

Going forward, Sprague said, the Airline will be identifying more ways to make intrastate travel more affordable. This strategy will include supplementing statewide coverage with addition of Horizon Air turboprop equipment. This will enable the airline to provide more frequent flights within the state, more economically. The first schedules will involve Horizon planes serving Fairbanks and Kodiak from Anchorage beginning in March 2014.

Sprague discussed the rapid growth of the Airline, with the last quarter being the best in the company’s history and a potential $5 billion quarter next year. The company’s Hawaii business from west coast departure cities has dramatically increased company revenue. He attributed the company’s strength to its growth and diversity – serving expanded destinations in Mexico, Hawaii and the Lower 48 and said more flights would be added in 1014 to Phoenix, Omaha and Las Vegas destinations.

Member Maynard Tapp asked about other expansion. Sprague said that several other West Coast cities could become hubs for expanded travel eastward, just as Seattle now is.

Sprague also noted various accomplishments in addition to the revenue increases, including the airline’s 25^th Anniversary of its service to Cabo San Lucas; its designation as the, “most fuel efficient airline in the United States”; and exciting retro-design plans for planes.

Scheduled aircraft improvements include new designer seats for enhanced passenger comfort; LED ceiling lights creating a pleasant, mood ambiance; recessed windows to increase passenger space; inclusion of 110 volt and USB hub connections in seating areas, and wireless Internet capability.

Event Video Here. Event Photos Below (Obtain full resolution photos here):

Sophie Minich, Cook Inlet Region, Inc.