Alaska Air Group(NYSE:ALK) announced a strategic investment in Loft Dynamics to develop the first hyper-realistic, full-motion Boeing 737 virtual reality simulator. The airline company made the investment through Alaska Star Ventures.

Loft Dynamics is described as a Swiss-based company specializing in virtual reality flight simulation technology for pilot training. Founded in 2016 by Fabi Riesen, Loft Dynamics is headquartered in Dübendorf, Zürich, Switzerland, with a North American office in Santa Monica, California.

The goal of Alaska Air's (NYSE:ALK) investment is to revolutionize pilot training by leveraging extended reality technology. Loft Dynamics is recognized for its FAA- and EASA-qualified VR helicopter simulators, and the partnership marks its expansion into fixed-wing aircraft training. 

The VR simulators promise to enhance pilot training efficiency and safety while addressing challenges such as the global pilot shortage. The Boeing 737 VR simulator will feature cutting-edge technologies, including six-degrees-of-freedom motion platforms, 360-degree panoramic 3D views, advanced pose tracking, and customizable scenarios. Compact in design, these simulators require significantly less space than traditional full-motion devices, making them more accessible and scalable. 

Alaska Air (NYSE:ALK) plans to install the simulators at its bases once they receive FAA approval. Looking ahead, the company pointed to the potential of VR technology to transform pilot training by offering immersive, data-driven experiences that replicate real-world flight conditions. The innovation aligns with the company's history of pioneering aviation advancements.

Shares of Alaska Air (ALK) were down 4.4% in early trading on Friday amid broad market declines.