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  • Alaska Airlines

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    Darryl Grossauer
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    Alaska Airlines was founded in 1932 and is now the 5th largest US airline. It recently purchased Virgin America and is upgrading its entire airline. The CEO has led the company since 1991 and focuses on taking care of employees and customers, making Alaska Airlines the best and most preferred airline with the highest customer loyalty. While maintenance costs may increase as the fleet changes and fuel costs rise, the company has navigated challenges before and generates strong profits and returns through its loyal customer base.

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    Alaska Airlines was founded in 1932 and is now the 5th largest US airline. It recently purchased Virgin America and is upgrading its entire airline. The CEO has led the company since 1991 and focuses on taking care of employees and customers, making Alaska Airlines the best and most preferred airline with the highest customer loyalty. While maintenance costs may increase as the fleet changes and fuel costs rise, the company has navigated challenges before and generates strong profits and returns through its loyal customer base.

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    © All Rights Reserved
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    12 views1 page

    Alaska Airlines

    Uploaded by

    Darryl Grossauer
    Alaska Airlines was founded in 1932 and is now the 5th largest US airline. It recently purchased Virgin America and is upgrading its entire airline. The CEO has led the company since 1991 and focuses on taking care of employees and customers, making Alaska Airlines the best and most preferred airline with the highest customer loyalty. While maintenance costs may increase as the fleet changes and fuel costs rise, the company has navigated challenges before and generates strong profits and returns through its loyal customer base.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Alaska Airlines (ALK)

    RADAR – maverick Capital in it.

    UNDERSTANDING – 1932 founded. 5th largest US airline. Purchased Virgin America. Upgrading entire
    airline.

    Brand MOAT best of breed American airlines

    Named best airline 4 years running. Only carrier that goes direct to Alaska.

    MGMT -- CEO started in 1991, best suited because of background. Top 50 corporate leaders. Eaagle
    scout. In love with this business. Eats and sleeps business. BAG increase by 50% passengers. Modest
    salary. Gave back 100M to employees through dividends to shareholders. Takes care of his people.

    ROE 27%

    ROIC 12-15%

    MOS 11.4% $45.2

    PRICE $86.33

    PBT 8 years $67

    TEN CAP $57

    MOAT -- brand , preferred by customers overwhelmingly. #1 in fuel efficiency. First live stream Netflix.
    Biggest share of new passengers over DELTA.

    Competition is Delta, American Airlines.

    LOVE – Alaskan Airlines Foundation. Giving back. Moral leadership.

    EVENT

    STORY INVERSION

    Maintenance costs will increase because of different airplanes.

    Been trhoug it before and isn’t an issue.

    Competing with DAL but passengers are very loyal.

    Used cash to buy Virgin.

    Replenishing cash from FCF

    Fuel costs will rise.

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