Boeing Gets Order for 35 Planes From Alaska Air

Alaska Air Group Inc. announced a $2.3-billion deal Wednesday to buy 35 Boeing Co. 737-800 aircraft and said it might acquire as many as 15 more.

The money-losing parent of Alaska Airlines has been cutting costs and streamlining operations to help offset higher fuel prices, but it said the order positioned it for growth.

“We are beginning to have visibility into a cost structure that will allow us to be profitable in this changed environment,” Alaska Air Chief Executive Bill Ayer said.

Delivery of the 35 aircraft will be phased in over six years. The first will enter the airline’s fleet in January 2006, the airline said.

The delivery plan gives the airline the flexibility to expand its fleet by about 60 aircraft through 2011 or replace older planes with new ones without increasing its fleet size, Seattle-based Alaska Air said.

Chicago-based Boeing is set to regain the lead in commercial jet orders from rival Airbus this year for the first time since 2000.

Alaska Air shares rose 16 cents to $30.63. Boeing shares increased $1.48 to $64.41.