Will Alaska Airlines disappear as a brand in 2015?
Yes — at least, according to this article by 24/7 Wall St. which claims that Alaska Airlines will be one of ten brands predicted to disappear within 18 months when using a certain methodology applied with the following major criteria, including:
- Declining sales and losses;
- Disclosures by the parent of the brand that it might go out of business;
- Rising costs that are unlikely to be recouped through higher prices;
- Companies that are sold;
- Companies that go into bankruptcy;
- Companies that have lost the great majority of their customers; and
- Operations with withering market share.
The following text is what was specifically stated in the article pertaining to Alaska Airlines:
“Alaska Air Group Inc. (NYSE: ALK) is one of the few remaining independent airlines in the United States that is not owned by one of the four larger carriers. Even larger airlines have been acquired: Northwest was bought by Delta, Continental merged with United and U.S. Airways joined with American Airlines. The recent consolidations in the industry have been successful, leading to significant cost cuts. Alaska Air, with its profits and customer service reputation, is the last real prize left.
There has been speculation that Delta might buy Alaska Air for its West Coast routes. The rumors have pushed Alaska Air shares higher.
Alaska Air is particularly strong in the busiest West Coast markets, especially in Salt Lake City, Los Angeles and Seattle. It has also begun to challenge carriers in East Coast markets, including several cities in Florida. Revenue and net income have risen steadily over the past five years. And Alaska Air often ranks highest in customer satisfaction among traditional carriers.”
FlyerTalk member lg20 is skeptical at best: “I think that only one of the brands on the 2013 list is actually gone. So, the track record isn’t great. #1 on the 2013 list was American Airlines, who seem to still be around. At least that was the brand they chose to keep.”
Meanwhile, Alaska Airlines is forging ahead with such innovations as being the first carrier to incorporate new overhead bins from The Boeing Company, which will purportedly increase storage space in its aircraft by up to 48 percent.
As of the time this article was posted here at The Gate, no FlyerTalk member agreed with the prediction — and you can count me as one of them…
…so I will ask you: do you believe that the Alaska Airlines brand will disappear by 2015?
