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Alaska Airlines targets US$1 billion profit boost by 2027

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Alaska Airlines targets US billion profit boost by 2027


Michael Rousseau, President and CEO of Air Canada, has been elected as the new Chairperson of the Star Alliance Chief Executive Board (CEB), succeeding Scott Kirby, CEO of United Airlines, who served in the role since December 2020. As Chairperson, Rousseau wi… Read More »



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Alaska

Mizzou Engineers Develop Advanced Solutions for Port of Alaska Operations

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Mizzou Engineers Develop Advanced Solutions for Port of Alaska Operations


December 11, 2024

Mizzou Engineer Sharan Srinivas is improving freight and fuel truck operations at the Port of Alaska through cutting-edge simulation modeling and the development of an innovative digital communication platform.


A Mizzou Engineering team is making significant strides in improving freight and fuel truck operations at the Port of Alaska. This two-pronged project, led by Sharan Srinivas, associate professor of industrial and systems engineering, is funded by the Alaska Department of Transportation (AKDOT) and aims to enhance operational efficiency, reduce congestion and empower stakeholders with data-driven tools.

The Port of Alaska plays a critical role in delivering goods to 90% of the state’s population, with up to 1,300 trucks entering and exiting the port on peak days. With all traffic relying on a single entry and exit road, potential disruptions could have severe economic and societal consequences.

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“Efficient port operations are crucial for the state’s economy and the quality of life of its residents,” Srinivas said. “Our goal is to equip stakeholders with tools that ensure operations can continue smoothly, even in the face of unexpected disruptions.”

Progress with Simulation Models

Over the last several months, the team has developed a sophisticated simulation model to assess truck movements and evaluate the impact of potential disruptions within the port. This virtual representation of real-world operations helped identify nine critical road segments where disruptions could hinder day-to-day activities. For each potential bottleneck, the team designed alternative routes, tested these scenarios in the model and provided tailored recommendations to stakeholders.

“We’ve made great progress in building a system that not only helps stakeholders understand baseline performance but also empowers them to evaluate the impact of long-term and short-term disruptions,” Srinivas said. “Through the use of our cloud-based platform, iFreightOps, stakeholders can now conduct scenario analyses and compare feasible alternatives in terms of implementation ease and performance.”

 The iFreightOps digital communication portal enables port administrators to report six types of incidents—maintenance, route changes, emergency responses, traffic congestion, equipment breakdowns and accidents. Each report includes visual markers, severity levels and estimated resolution times.

“Right now, trucking companies have limited visibility into Port-related disruptions,” Srinivas said. “Our portal bridges this gap by providing real-time updates and recommendations so companies can better plan their operations and avoid unnecessary congestion.”

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The system also integrates predictive analytics based on historical data to forecast daily truck traffic patterns and potential congestion zones, ensuring stakeholders have a proactive approach to managing operations. Alerts for new incidents are automatically disseminated via text and email to subscribed users.

Anticipated Improvements and Stakeholder Feedback

The platform has already demonstrated its potential to revolutionize operations at the Port of Alaska. By reducing incident communication time from 20 minutes to near real-time and enabling traffic to bypass disruptions with minimal delays, iFreightOps is poised to significantly improve truck turnaround times. Early estimates suggest that the platform can mitigate delays with only a 5-10% increase in turnaround time during disruptions, a vast improvement compared to current conditions.

Stakeholders have expressed enthusiasm about the system. Port administrators and trucking companies participating in beta testing have praised the portal’s capabilities, citing its potential to support data-driven decision-making.

“Our stakeholders are thrilled with what we’ve developed so far,” Srinivas said. “They’ve highlighted how the portal will help them make more informed decisions and manage disruptions more effectively.”

Scalability and Future Plans

With innovative tools like iFreightOps, the Mizzou Engineering team is not only addressing immediate challenges at the Port of Alaska but also setting the stage for a smarter, more efficient future for port operations across the country.

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The team plans to refine the portal based on stakeholder feedback and deploy the system with the Anchorage municipality’s IT team. Plans are also in motion to develop a modular framework that can be scaled and adapted for other ports across the nation.

“The goal is to create a scalable solution that other ports can customize to their unique needs,” Srinivas said. “By working with AKDOT and the Port of Alaska, we’re setting a precedent for using technology to improve port operations nationwide.”

The project is a collaborative effort involving Suchi Rajendran, an assistant professor of industrial and systems engineering, Prasad Calyam, Curators’ Distinguished Professor, and students from industrial and systems engineering, electrical engineering, computer science and data informatics. Students Ray Wood, Matt Floyd, Nima Raad, Vamsi Pusapati, Hemanth Yeddulapalli and Karan Karthik have been instrumental in developing the simulation models and digital platform.

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Alaska advocates celebrate halted Kroger-Albertsons merger

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Alaska advocates celebrate halted Kroger-Albertsons merger



Shoppers come and go from Fred Meyer and Carrs stores that face each other across the Seward Highway in Midtown Anchorage on Thursday, Aug. 8, 2024. The parent companies of the competing businesses, Kroger and Albertsons, want to merge. (Matt Faubion/Alaska Public Media)

A federal judge in Oregon and a Washington state court judge both issued rulings Tuesday temporarily blocking the proposed merger between grocery giants Kroger and Albertsons, halting fears of numerous Alaska store closures.

In Alaska, Kroger owns 11 Fred Meyer stores, while Albertsons owns 24 Carrs or Safeway stores as well as the Crow Creek Mercantile in Girdwood. As part of the merger, the companies were prepared to sell off 18 of the state’s grocery stores. 

Bridget Shaughnessy Smith is a spokeswoman for the Alaska Public Interest Research Group, a nonprofit that has lobbied against what would be the largest grocery store merger in U.S. history. She called the judges’ decisions a big win for the state. 

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“The grocery store competition we have is crucial to keeping prices fair, preserving consumer choice and supporting the community wellbeing,” she said. “This decision is a win for all Alaskans who rely on accessible and affordable food options, and we hope that it will effectively put an end to this monopoly threat.”  

Alaska’s congressional delegation as well as a couple dozen state lawmakers also opposed the merger. 

Officials with Albertsons and Kroger argued that the merger was necessary for the businesses to compete with major retailers that also sell food like Wal-Mart, Costco and Amazon.

Shaughnessy Smith said she hopes the wide opposition to the merger will discourage the grocery chains from appealing the courts’ decisions. 

“We’re hoping that with the large amount of bipartisan opposition from all levels of government, as well as this decision from a federal court, that the companies will not pursue further legal action,” she said.

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Congresswoman Mary Peltola applauded the judges’ decision in a statement Tuesday. 

“A blocked merger means protecting produce on our shelves, good-paying jobs in our communities, and preservation of our way of life,” she wrote.


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Alaska Airlines launches new nonstop flights and 'premium' offers in $1 billion profit plan

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Alaska Airlines launches new nonstop flights and 'premium' offers in  billion profit plan


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Alaska Airlines (ALK+11.71%) is launching a handful of new nonstop flights to Asia as it sets an ambitious incremental profit goal a few months after it merged with Hawaiian Airlines.

The Seattle-based airline plans to grow its profit by $1 billion through 2027, leaning on its $1.9 billion merger with Hawaiian to widen its access to routes across the Pacific Ocean and wide-body jets. Alaska expects to see commercial operations deliver an additional $800 million in revenue, largely as a result of new enhanced offerings.

Alaska said it would begin offering new nonstop daily flights between the Seattle-Tacoma International Airport and Tokyo’s Narita International Airport, beginning in May 2025, and flights to Seoul’s Incheon International Airport as early as next October. By 2030, it plans to serve at least 12 nonstop global destinations with long-haul widebody aircraft from Seattle.

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“From our global gateway in Seattle, we can conveniently connect travelers from across our network as they head to Asia and beyond,” said Alaska CEO Ben Minicucci in a statement. “Hawaiian’s spacious widebody aircraft, along with its excellent onboard service and amenities, will make for a terrific trip from one side of the Pacific Rim to the other.”

Alaska forecasts pretax profit margins of between 11% and 13% for 2027, earnings per share of at least $10, and no margin dilution over the year following the merger closing.

It also raised its fourth-quarter guidance for adjusted earnings per share to between 40 and 50 cents, up from prior guidance of between 20 and 40 cents, according to a regulatory filing. Alaska cited strong close-in bookings for October and November and strong holiday demand, which is boosting December revenue. The company will present at its annual conference for investors on Tuesday afternoon.

Besides the new flights, Alaska is employing a host of new measures to try and enhance the consumer experience and generate revenue. Last month, the airline began testing out an artificial intelligence-powered schedule optimization tool to help it schedule its planes.

Alaska is also launching a “premium” credit card with Bank of America (BAC-0.63%) as part of its plans to boost its mileage plan, increasing its premium seat mix on its Boeing (BA+2.23%) narrowbody fleet, and expanding its Loung program. Planned lounges at airports in San Diego, Honolulu, and Seattle will join Alaska’s portfolio by 2027.

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Despite Alaska and Hawaiian operating separately, Alaska Air Group is working on combining the carrier’s loyalty programs. For now, miles can be transferred between Alaska and Hawaiian accounts for free. A separate loyalty program for Hawaii’s residents, “Huaka‘i by Hawaiian,” has also been launched.

“We’re focused on strengthening the commercial levers that drive the greatest guest satisfaction, and ultimately preference,” Alaska Chief Commercial Officer Andrew Harrison said in a statement. “Our guests will benefit from more premium seats, an enhanced loyalty program with even more ways to earn and redeem miles, and new global destinations to the places they most want to go.”



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