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Southwest adding new Sea-Tac flights next spring

Southwest Airlines will add two flights to its Sea-Tac schedule this spring, the airline said today.

One of the those flights will connect Denver and Sea-Tac and another will cover the route from Sea-Tac to St. Louis. The new flights will begin in May.

Southwest is aggressively expanding in both cities to take advantage what it perceives as weakness among the incumbent airlines there.

In Denver, a bankrupt Frontier Airlines recently was acquired by Republic Airlines. In St. Louis, the dominant carrier, American, continues to shave down its flight schedule.

American once had a major hub at St. Louis which it acquired when it bought TWA. The carrier has steadily diminished St. Louis' importance while bolstering its existing hubs in Chicago and Dallas.

Alaska Air Group reports profits above expectations

SeaTac's Alaska Air Group, despite reduced passenger traffic and lower fares, today announced profits with special items of $87.6 million in the third quarter.

That compares with a loss of $86.5 million in the same quarter in 2008.

This year's third quarter, traditionally the busiest quarter for the airline, was "one of the best quarters we've had in a very long time," Alaska Chairman Bill Ayer told analysts and reporters in a conference call.

Without the effects of special items such as fuel hedges, the company made $83 million in the quarter or $2.33 a share. Analysts polled by Zacks Research had predicted profits of $2.26 a share.

The company's turnaround was fueled literally by a huge difference in fuel prices between this year's third quarter and last's. During last year's third quarter, oil prices hit $147 a barrel. During this year's prices were half of that or less.

The airline holding company, parent of Alaska Airlines and Horizon Air, also reworked its schedule to cut capacity in weaker markets such as California, Arizona and Nevada and to expand to new markets such a additional islands in Hawaii, Houston and Austin. The airline begins flying from Sea-Tac to Atlanta Friday.

"Our work to reduce capacity to better match demand, redeploy aircraft to into promising new markets and achieve record operational reliability contributed to our best quarterly financial performance in many years," said Ayer.

While improving its profits, both Alaska and Horizon achieved better on-time performance. Alaska was the top on-time performer among major domestic airlines every month this year from April through September, and Horizon was near the top among smaller carriers.

New fees for checked baggage also contributed to the company's profit margin. Since the July 7 imposition of those fees, the airlines have received $23 million in new revenues without a noticeable diminishment in passenger market share to the only major airline that doesn't impose checked baggage fees, Southwest.

Alaska's profits came during a quarter when many of its large and small competitors were reporting losses or, at best, small profits.

Delta Air Lines, the world's largest carrier, reported third quarter losses of $161 million this week. American Airlines' parent, AMR, said its losses for the July through September period were $395 million.

Phoenix's US Airways lost $80 million in the same period. Continental Airlines reported a narrower loss, $18 million, in the third quarter. United Airlines was in the red $57 million for the quarter.

Southwest Airlines said it lost $16 million in the quarter including one-time charges.

On the positive side, JetBlue Airways said it made $15 million in the quarter. AirTran Holdings of Orlando reported a net profit of $10.4 million.

Norwegian Air Shuttle orders six Boeing 737s

Oslo's Norwegian Air Shuttle today confirmed an order for six more Boeing 737-800 aircraft.

The low-cost European carrier has ordered 48 737s from Boeing with this order. The airline is also leasing 22 of the single-aisle Renton-built planes from leasing firms.

Founded in 2002, the airline is expanding its network in Europe with the 186-seat planes.

Norwegian's 737s will be among the first to feature Boeing's new "Sky Interior." That interior features soft blue overhead lighting, modified sidewalls and window surrounds and overhead bins.

Port of Tacoma offering free bus tour from South Hill

The Port of Tacoma is offering a free bus tour of its facilities Friday from 9 a.m. to noon.

The port's tour bus will pick up passengers who've reserved their seats at the South Hill Park & Ride lot at 10416 94th Ave. E. at 9 a.m.

Reservations are available by calling the port at 253-383-9463 or by e-mail at bustours@portoftacoma.com

Passengers should be back in South Hill by noon, the port said. Photo identification is required for riders 17 and older.

Expedia closing Tacoma call center

On-line travel company Expedia Inc. announced today it will close its Tacoma call center office by the end of the year.

The company plans to transfer some of the work the Tacoma office performed to an expanded call center in Las Vegas.

The company said an unspecified number of workers in Tacoma will be offered jobs in Expedia's Bellevue headquarters or in the Las Vegas call center.

The company didn't say specifically why it is closing the Tacoma operation, one of four call centers it maintains around the country.

It did issue a general explanation: "In making the decision to grow the Las Vegas location and close the Tacoma location, Expedia concluded that these geographic changes in its call center footprint would enable the company to most effectively serve its customers and address its evolving business needs."

"Expedia is providing support to any employees transitioning out of the company," the company said in a press release.

Tight cost containment keeps TrueBlue Inc. in the black

Tacoma temporary staffing provider TrueBlue Inc. stayed profitable in the third quarter despite a 27 percent revenue drop compared with the third quarter of 2008.

The company today announced net income of $8.2 million for the quarter ending Sept. 25. That's 19 cents a share.

That income is about half the $16.3 million or 38 cents per share the staffing company made in the same quarter last year.

Revenues were $284.8 million compared with $387.9 million for the same period in 2008.

"Our strict cost management combined with ongoing stabilization in the same branch revenue drove our results this quarter," said TrueBlue Chief Executive Steve Cooper. The company's ongoing efforts to reduce is workers compensation costs also helped keep the company in the black, he said. TrueBlue has reduced workplace injuries by 60 percent over the last six years.

The downtown Tacoma-headquartered company has closed 155 branch offices and cut company-wide employment from 3,300 to less than 2,600 since the first of the year.

Management has trimmed other expenses by 30 percent, he said.

The company's results were about six cents a share better than its own predictions, said Chief Financial Officer Derrek Gafford. That improvement was the result of better-than-expected revenues, particularly from a single large customer whose need for temporary staffing has continued longer than expected.

The company's economy measures, said Cooper, have left TrueBlue, parent company of such brands as Labor Ready, Spartan Staffing, CLP Resources, Plane Techs and TLC, well-positioned to benefit from any upswing in business once business activity increases.

The company is beginning to see some freshening of demand in the Midwest where auto parts suppliers are ramping up their factories.

"It really started with Cash for Clunkers, but it's continued on after that," said Cooper.

The construction industry, a major source of demand for temporary help, is still ailing, company officials said.

The startup of some federal stimulus-funded projects will begin happening late this year and early next, said Cooper. Those projects may stimulate demand for more workers.

Those stimulus projects have been slower to leave the starting line than the government had hoped, but with preliminary planning and permitting done, they should begin moving forward, he said.

Goodwill opening new store in former Puyallup cinema

Tacoma Goodwill Industries plans a grand opening next week for its new Puyallup store just off River Road in a remodeled former cinema.

The new 17,000-square-foot store will open with ceremonies beginning Oct. 29 at 8:45 a.m. Puyallup Mayor Don Malloy, Goodwill Board President Bob Bruback and Goodwill Chief Executive Officer Terry Hayes will officiate at the event.

The new store at 1200 Fourth St. NW next to KMart will employ about 35 workers and have a payroll of $500,000 including benefits, said Hayes.

During the Oct. 29 through Nov. 1 grand opening, shoppers will have an opportunity to win a DVD player, an iPod Nano and $50 gas cards.

On the opening day only, Goodwill will have a mattress truckload sale. Mattress and box spring sets will be priced at $199 for twins, $249 for fulls, $299 for queen-sized and $399 for king-sized. A frame will be included with the purchase free.

The store is the 24th for Tacoma Goodwill, the 10th in Pierce County.

Boeing CEO admits outsourcing went too far

Boeing needs to bring more of its engineering work back inside Boeing, the company's chief executive said today after announcing a $1.6 billion loss for the third quarter.

Jim McNerney said the company went too far in attempting to develop the revolutionary 787 Dreamliner while also installing a new design and production scheme that relied heavily on outside suppliers.

Much of the company-wide quarterly loss was driven by $2.5 billion in new costs associated with design and production problems on the Dreamliner. The company also took $1 billion in additional losses on the development and production of a second new project, a next generation 747.

"The industry got a little overheated," said McNerney addressing the root of the 787 and 747 problems. "Baselines set up were very aggressive."

Attempting to build a new plane with pioneering composite technology while simultaneously pushing major design and construction responsibility out to partners was "a bridge too far," he said.

"We need to bring more of the engineering, especially as the systems level, back into Boeing," he told reporters and analysts in a conference call.

The Dreamliner is now nearly 2 1/2 years late in flying for the first time, and the 747-8's first flight schedule recently slipped into the first quarter of 2010.

Boeing's losses for the quarter amounted to $2.23 a share. The 787 and 747 charges alone amounted to a $3.59 a share. Good performance in other parts of the company blunted those Dreamliner and 747 losses.

"The fundamental operating engine of the company is running well," McNerney noted.

While some airlines have deferred or canceled orders in the first nine months of the year, the commercial airplanes side of the company still has a backlog of orders -- $254 billion -- that represent more than seven years of production, he said.

The company has no plans to reduce the production pace of its bread-and-butter 737 at its Renton plant, he said, despite some deferrals by some customers.

Boeing will continue laying off workers to adjust to changing demands in other sectors, particularly in defense where the government is tightening up programs and in the service sector where airlines are cutting back on expenses, the Boeing CEO said.

Second Dreamliner assembly site decision coming within two weeks

Boeing will announce whether a second 787 Dreamliner assembly line will be built in Everett or in South Carolina within the next two weeks.

Boeing Chief Executive Officer Jim McNerney told analysts and reporters today the announcement from him and Boeing Commercial Airplanes chief Jim Albaugh will happen within a fortnight.

Talks continue with the International Association of Machinists about how the union and the company can ensure labor peace in Puget Sound, he said.

Labor disruptions remain a major issue in the decision about where to locate the second assembly line for the tardy but revolutionary composite airliner.

Washington has been campaigning hard for Everett noting that workers in this area have more aerospace experience, are better educated and have the advantage of operating the only existing final assembly line.

But bettors are putting money on Charleston, S.C., if only because having a second site in a state that is not union-friendly would give Boeing a psychological advantages in a potential strike situation in Puget Sound.

Machinists last year shut down Boeing assembly lines for two months while they struck Boeing over new contract proposals.

Asked why Boeing, which has been burned in its attempt to outsource much of the engineering and subassembly work on the Dreamliner, would build a second assembly line on the opposite coast, McNerney noted that Boeing already has major operations in Charleston and that diversity of operations sites would buffer the effects of labor disruptions.

“Our balance sheet would be a lot stronger today had we not had a strike last year, our customers would be a lot happier today had we not had a strike last year and the 787 program would be in better shape,” McNerney said.

“I don’t blame this totally on the union, but the mix hasn’t worked well yet,” he said. “So we’ve either got to satisfy ourselves that the mix is different or we’ve got to diversify our labor base.”

Boeing has already sought building permits in Charleston for construction of a new assembly plant there, but the company says those applications are no indication of its final decision.

Boeing owns a former Vought Aerospace plant in Charleston that builds fuselage sections for the Dreamliner. It also owns half of another plant that joins those sections with fuselage parts built in Italy. Boeing bought those plants from Vought when the Texas-based company was overwhelmed with production problems.

Area Chamber celebrates 125 years

The Tacoma-Pierce County Chamber marked 125 years of business advocacy with a luncheon Tuesday at the Greater Tacoma Convention and Trade Center.

Simpson Investment Co.'s Ray Tennison is the outgoing Chamber chairman. In his remarks he said the past two years have been the most difficult in a generation for business and government.

"I am heartened by this community's ability to adapt," he said. "Sometimes with too many groups and too many meetings, but people are still dedicated."

Murray Pacific Corporation's Toby Murray, the incoming chairman, said that while his business has been a Chamber member for some time, he personally hadn't been that involved in activities until now. He also indicated that even the Chamber isn't immune to belt-tightening.

Staff and volunteers would be reviewing the Chamber's programs, events and services, he said, ending his remarks with a call to action.

"If you have time, volunteer it," he said. "If you have ideas, share them. If you have resources, consider investing them."

Other parts of the event included:

• The keynote speech, delivered by Kirkland-based "futurist" Glen Hiemstra, who said the world is in the midst of a "techo-social-economic revolution" that began in the early 1980s and won't be concluded until around 2020. Hiemstra said things are out of balance, especially the country's balance of wealth, and that the U.S. and the world needs an "economic reset" while protecting the free enterprise system. In his view, the keys to successful future business ideas are that they are smart, simple and sustainable.

• Pioneering and long-time Chamber members, featured in video interviews and awards: Weyerhaeuser, Puget Sound Energy, University of Puget Sound, Brown & Brown and the Roman Meal Company.

• "We Like Tacoma," by S.A. Huntington Jr., was written in 1909 and first performed by about 15,000 Tacomans who marched 20 blocks in downtown Seattle in July of that year. The chorus?

"We like Tacoma,
Where rail meets sail,
Where all are hearty, prosperous and hale,
Down on Commencement Bay,
A "New York's" going day by day –
Tacoma, the peer for all."

Delta adding new international flights from Sea-Tac

Delta Air Lines announced new flights from Sea-Tac Airport to Asia and Europe today adding destinations Beijing in China and Osaka in Japan and bolstering its repertoire of flights to Amsterdam.

The flights from Sea-Tac to Beijing and Osaka will begin next summer. Three additional weekly flights to Amsterdam are slated to start June 1. The airline, which merged with Northwest Airlines last year, already offers seven weekly flights to Amsterdam, hub for its European partner, Air France-KLM.

The Beijing flights begin June 4. The airline will challenge China's Hainan Airlines, which already flies that route. Osaka flights are due to start June 7. Northwest Airlines once flew that route but abandoned it.

Delta already flies from Sea-Tac to Tokyo daily. The airline earlier this year dropped flights from Sea-Tac to London to free up an aircraft for other overseas routes from other airports.

Delta will use its code-sharing arrangements with SeaTac's Alaska Airlines to feed the international flights and to get international passengers to other domestic destinations that Delta doesn't serve.

Sea-Tac in recent years has both gained and lost international service. Last summer, longtime Sea-Tac tenant SAS halted service from the Puget Sound area to Copenhagen as part of a systemwide cutback. Delta also ended its London service, although British Airways continued its service to the English capital.

Air France added non-stop service from Sea-Tac to Paris in 2007. Aeromexico began serving Mexico City and San Jose del Cabo from Sea-Tac in 2008. Lufthansa started service to Frankfurt and Hainan to Beijing last year. Icelandair began flying from Sea-Tac to Reykjavik last summer.