Aircraft technicians at Horizon Air ratify new four-year contract

Rhea-AI Summary

Horizon Air's aircraft technicians and fleet service agents have ratified a new four-year contract with over 74% approval. The agreement includes wage scale increases, separate vacation and sick leave accruals, and additional compensation benefits. The technicians maintain Horizon's fleet of 45 Embraer 175 aircraft. The contract negotiation, led by the Aircraft Mechanics Fraternal Association (AMFA), ensures continued service across Horizon's network of more than 55 cities throughout North America, with bases in Washington, Oregon, Idaho, and Alaska. The agreement demonstrates Horizon's commitment to its maintenance workforce while positioning the airline for future growth.

Positive

• 74% approval rate indicates strong workforce support for the new contract
• Increased wage scale and improved benefits package helps retain skilled technicians
• Contract provides stability for maintenance operations of 45 Embraer 175 aircraft fleet
• Agreement ensures continued reliable maintenance service across 55+ North American cities

Negative

• Increased labor costs may impact operating expenses

Insights

Financial Analyst

Horizon Air's technician contract brings labor stability but has minimal impact on Alaska Air Group's overall financial outlook.

The ratification of a new four-year labor agreement for Horizon Air's aircraft technicians and fleet service agents represents a standard operational development for Alaska Air Group (ALK). The contract, approved by 74% of voting employees, includes wage scale increases and enhanced benefits for these essential maintenance personnel.

This agreement specifically impacts the technicians responsible for maintaining Horizon's fleet of 45 Embraer 175 aircraft. While these employees play a critical role in ensuring aircraft safety and reliability, they represent just one workgroup within one subsidiary of Alaska Air Group's broader operations.

From a financial perspective, the agreement provides cost certainty through approximately 2029 for this portion of the workforce. However, without disclosed financial details, the precise impact on operating expenses remains unclear. The strong approval rate suggests the terms struck a reasonable balance between employee needs and company constraints.

The agreement eliminates potential operational disruption risk from this particular labor group—an important consideration in the airline industry where maintenance-related delays can significantly impact customer satisfaction and revenue.

Investors should view this development in proper context: Horizon Air operates as a regional carrier serving over 55 cities, functioning as just one component of Alaska Air Group's expanded network that now includes Alaska Airlines and Hawaiian Airlines across more than 140 destinations. The broader impact on ALK's overall financial performance is likely to be minimal.

SEATTLE, May 6, 2025 /PRNewswire/ -- Horizon Air aircraft technicians and fleet service agents, who are represented by the Aircraft Mechanics Fraternal Association (AMFA), have ratified a new four-year contract. The contract was approved by more than 74% of those employees who voted. The new contract includes increases to the wage scale, separate vacation and sick leave accruals and other compensation increases.

Horizon's aircraft technicians are responsible for the maintenance of the carrier's fleet of 45 Embraer 175s.

"Our technicians and fleet service employees play a very important role in our operation. They're some of the best in the industry and do an incredible job of keeping our aircraft safe, reliable and clean," said Nathan Engel, Vice President of Maintenance & Engineering at Horizon Air. "We are grateful to the AMFA negotiating team for working with us to find solutions that not only work for our technicians, but position Horizon for the future."    

"Thank you to AMFA14 members for your strong participation and patience during this process," said Chuck Clum, AMFA Local 14 Horizon Air Representative. "Your negotiating team was focused on reaching an agreement that benefits all of us today and moving forward."

Contracts in the airline industry do not expire. Once they become amendable, the current contract remains in effect until a new agreement is ratified.

With bases in Washington, Oregon, Idaho and Alaska, Horizon serves more than 55 cities throughout North America.

About Alaska Air Group

Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, with McGee Air Services a subsidiary of Alaska Airlines. With hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco, we deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia and the Pacific. Alaska is a member of the oneworld Alliance with Hawaiian scheduled to join in 2026. With oneworld and our additional global partners, guests can earn and redeem miles for travel to over 1,000 worldwide destinations. Guests can book travel at alaskaair.com and hawaiianairlines.com. Learn more about what's happening at Alaska and Hawaiian. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."

 

View original content:https://www.prnewswire.com/news-releases/aircraft-technicians-at-horizon-air-ratify-new-four-year-contract-302447603.html

SOURCE Alaska Air Group

FAQ

What are the main benefits in Horizon Air's (ALK) new technician contract?

The new contract includes wage scale increases, separate vacation and sick leave accruals, and other compensation increases for aircraft technicians and fleet service agents.

How long is Horizon Air's (ALK) new technician contract valid?

The new contract is valid for four years, though airline industry contracts don't expire but become amendable, with current terms remaining in effect until a new agreement is ratified.

What percentage of Horizon Air technicians approved the new contract?

Over 74% of voting employees approved the new four-year contract.

How many aircraft do Horizon Air technicians maintain?

Horizon Air technicians are responsible for maintaining a fleet of 45 Embraer 175 aircraft.

How many cities does Horizon Air serve?

Horizon Air serves more than 55 cities throughout North America, with bases in Washington, Oregon, Idaho, and Alaska.