Pemco Aviation Group Inc. announced Tuesday that Alaska Airlines has contracted with the company's Dothan, Ala., subsidiary, Pemco World Air Services, for a first-ever conversion of B737-400 aircraft from passenger to freighter and passenger to "combi" configurations.

The deal covers seven airplanes, including five firm conversion orders and two options. The aircraft will be delivered in 2006 and 2007. Financial terms were not disclosed.

"Pemco's experience and track record converting other 737 models made them the right choice for this order, which will help expand and enhance our cargo capability," said Ben Minicucci, staff vice president of maintenance for Alaska Airlines.