Alaska Air restructuring Horizon Air subsidiary, dropping its branded business

In a move that is long overdue, according to analysts, Alaska Air Group is restructuring subsidiary Horizon Air, dropping its branded business in favour of a 100% capacity purchase business model that is more like its peers. Announced in Alaska's latest investor update filing, the company said that effective 01-Jan-2011, Horizon will shift to a model whereby all of its flying will be performed on behalf of Alaska Airlines under a capacity purchase agreement (CPA). Currently, Horizon operates approximately 43% of its schedule in flying for Alaska.