Alaska Airlines to Retire MD-80 Jets

SEATTLE – Alaska Airlines will retire all of its MD-80 jets nearly a decade ahead of schedule and fly nothing but Boeing 737s by 2009.

Brad Tilden, Alaska’s chief financial officer, said switching to a more fuel-efficient plane that requires less maintenance will save the Seattle-based carrier up to $130 million annually.

Alaska’s current fleet includes 84 737s and 26 MD-80s, made by McDonnell Douglas, which Boeing Co. acquired in 1997. By 2009, when the fleet switch is complete, Alaska said it will be flying 114 single-aisle 737s.

Alaska, a subsidiary of Alaska Air Group Inc., announced the decision Monday, saying its board of directors approved the plan March 9.

The company estimated that buying new 737s and training MD-80 pilots to fly the planes, selling 15 MD-80s and ending leases on another 11 will cost roughly $750 million.

In all, Alaska has 43 Boeing 737s on firm order through 2011. It also has options for 24 and purchase rights for 27.