SEATTLE--(BUSINESS WIRE)--Oct. 26, 2001--Horizon Air said today the airline is nearing the end of the first phase of its fleet modernization program. Current plans call for the company to grow by up to 7 percent next year.

The first phase has all 69-seat F-28 jets and 37-seat Dash 8-100 turboprops replaced with 15 new 70-seat CRJ-700 regional jets and 15 new 70-seat Q400 turboprops by the second quarter of 2002. The CRJ-700s and Q400s are faster, quieter and more fuel-efficient than the aircraft they are replacing. The airline will continue to operate 37-seat Q200 turboprops on short distance routes. The second phase of the modernization program includes delivery of additional regional jets starting in 2003.

With more 70-seat aircraft in its stable, Horizon said it can grow available seat miles by up to 7 percent next year. Available seat mile, or ASM, is an industry term that refers to one aircraft seat flown one mile. For example, a 70-seat aircraft flown 100 miles would generate 7,000 ASMs. ASMs take into account the seating capacity of an airline's aircraft and the distance flown, in contrast to counting the number of flights or number of aircraft.

Horizon said it has several new routes under consideration for expansion next year. Horizon recently announced new jet service between Medford, Ore., and Los Angeles starting Nov. 20, 2001.

Horizon also announced that it will merge its Boise flight crew base into its crew base in Portland effective Dec. 30, 2001. A crew base is a location where pilots and flight attendants report for duty.

The change affects 63 jet pilots and 72 flight attendants who are currently based in Boise and will have their base changed to Portland. Horizon does not require that pilots and flight attendants reside near their base, and it is quite common in the airline industry for flight crews to commute to their base by air.

Horizon cited the unfavorable economics of staffing the relatively small Boise base as the reason for the merger. By comparison, the Portland base is composed of 750 pilots and flight attendants. Horizon's other crew base is in Seattle. The merger will not affect Horizon's Boise flight schedule, which currently includes 28 daily flights.

Horizon Air operates flights to cities throughout California, Idaho, Montana, Oregon, Washington, Alberta, and British Columbia. Horizon Air and Alaska Airlines are subsidiaries of Alaska Air Group, Inc.

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