The Alaska Air Group is currently in talks with Canadian aircraft manufacturer Bombardier to address a possibility of deferring deliveries of Q400 turbo props for the airline’s Horizon Air unit.
The possibility is being strongly considered because of unstable economic conditions. Many US airlines are streamlining, plus, effects of the economy have reduced the demand for travel. These are not conducive conditions for new orders and investments.
“Horizon is in discussions with Bombardier about deferring future Q400 aircraft deliveries and retiming them to coincide with the successful remarketing and transition out of the CRJ-700 aircraft," Alaska Air said in a company filing, which was released last Tuesday.
Bombardier’s turboprop line was successful during the rise of fuel prices, because it raised the demand for fuel-efficient aircrafts. However, over the course of the last few months, fuel prices have dropped along with the prospects of economic growth.
Air Alaska claimed that Bombardier has already proposed a deferral schedule that is composed of one delivery for 2008, five in 2009, five in 2010, and the remaining three orders would follow after some time.
“We are continuing to negotiate and the schedule is subject to change,” Alaska Air commented.
