Alaska Airlines and Horizon Air 2013 Annual Report Download - page 97

The comprehensive summary of alliances with
other airlines are as follows:
Frequent
Flyer
Agreement
Codeshare—
Alaska
Flight # on
Flights
Operated by
Other Airline
Codeshare—
Other Airline
Flight # on
Flights
Operated by
Alaska /
Horizon /
SkyWest
Major U.S. or
International Airlines
Aeromexico (a) ...... Yes No Yes
American Airlines/
American Eagle . . . Yes Yes Yes
Air France .......... Yes No Yes
British Airways ...... Yes No No
Cathay Pacific
Airways .......... Yes No Yes
Delta Air Lines (b) . . . Yes Yes Yes
Emirates .......... Yes No Yes
KLM .............. Yes No Yes
Korean Air ......... Yes No Yes
LAN S.A. ........... Yes No Yes
Fiji Airways (c) ...... Yes No Yes
Qantas ............ Yes No Yes
Regional Airlines
SkyWest (c) ........ Yes Yes No
Era Alaska ......... Yes Yes No
PenAir (c) .......... Yes Yes No
(a) Alaska and Aeromexico launched a new codeshare
partnership in December 2012, and began reciprocal
frequent flyer partnership in July 2013.
(b) Alaska has codeshare agreements with the Delta
Connection carriers SkyWest, ExpressJet, Pinnacle, and
Compass as part of its agreement with Delta.
(c) These airlines do not have their own frequent flyer
program. However, Alaska’s Mileage Plan members can
earn and redeem miles on these airlines’ route systems.
The following is the financial impact of our
marketing alliances:
2013 2012 2011 2010 2009
Air Group Marketed
Revenues ...... 90.0% 90.2% 89.3% 89.9% 89.3%
Codeshare
Agreements:
Delta Air Lines .... 3.8% 3.4% 3.6% 3.7% 1.9%
American
Airlines ........ 2.6% 2.7% 3.4% 3.1% 3.4%
Others .......... 0.9% 0.8% 0.8% 0.8% 2.3%
Interline
Agreements:
Domestic
Interline ....... 1.9% 2.1% 2.2% 1.9% 2.5%
International
Interline ....... 0.8% 0.8% 0.7% 0.6% 0.6%
Total Operating
Revenue ..... 100.0% 100.0%100.0%100.0%100.0%
TICKET DISTRIBUTION
Airline tickets are distributed through three
primary channels:
•Alaskaair.com: It is less expensive for us to
sell through this direct channel and, as a
result, we continue to take steps to drive
more business to our website. In addition,
we believe this channel is preferable from a
branding and customer-relationship
standpoint in that we can establish ongoing
communication with the customer and tailor
offers accordingly.
•Traditional and online travel agencies: Both
traditional and online travel agencies
typically use Global Distribution Systems
(GDS), such as Sabre, to obtain their fare
and inventory data from airlines. Bookings
made through these agencies result in a fee
that is charged to the airline. Many of our
large corporate customers require us to use
these agencies. Some of our competitors do
not use this distribution channel and, as a
result, have lower ticket distribution costs.
•Reservation call centers: These call centers
are located in Phoenix, AZ, Kent, WA, and
Boise, ID. We generally charge a $15 fee for
booking reservations through these call
centers.
Our sales by channel are as follows:
2013 2012 2011 2010 2009
Alaskaair.com ....... 55% 54% 51% 48% 45%
Traditional agencies . . 27% 27% 28% 28% 32%
Online travel
agencies ......... 13% 13% 13% 15% 11%
Reservation call
centers .......... 5% 6% 8% 9% 12%
Total .......... 100% 100% 100% 100% 100%
SEASONALITY AND OTHER FACTORS
Our results of operations for any interim period
are not necessarily indicative of those for the
entire year because our business is subject to
seasonal fluctuations. Our profitability is
generally lowest during the first and fourth
quarters due principally to lower traffic.
Profitability typically increases in the second
quarter and then reaches its highest level during
11
ŠForm 10-K