Ancillary revenue collected by airlines for products and services ranging from checked bags and extra legroom to co-branded credit cards continues to grow in size and importance to the industry. Fifty world airlines that disclose proceeds from such activities reported $22 billion in ancillary revenue last year, marking a 66-percent increase over 2009 results, according to a new report.
Alaska Air Group
Seattle-based Horizon Air will end all its so-called “branded” flying under a plan to move to a 100-percent capacity purchase agreement (CPA) model starting January 1. As a result, Alaska Air Group’s other subsidiary, Alaska Airlines, will assume complete responsibility for managing Horizon’s route network, along with all the risk associated with marketing and selling seats on the airline’s fleet of Bombardier Q400 turboprops and CRJ700s.
George Bagley, president and CEO of Horizon Air since 1995, has accepted the position of executive vice president of operations at Alaska Airlines, leaving the top post at Horizon to the airline’s former v-p of customer services, Jeff Pinneo. Bagley, 56, will report directly to Alaska Airlines president William Ayer, who recently became CEO as part of Alaska Air Group’s recent “comprehensive executive succession plan.”