MIAMI — Alaska Airlines formally broke ground Monday on construction of a new $40 million aircraft maintenance and engineering hangar in Anchorage.

Officials with the Seattle-based airline said the planned 105,000-square-foot structure is part of a $100 million investment in Alaska that includes the expansion of 11 terminals across the state and the conversion of three 737-700 passenger aircraft into freighters, carried out by Israel Aerospace Industries.

According to the airline, the new facility designed by Anchorage-based architect firm McCool Carlson Green will be nearly three times the size of the current premises, and it will hold two 737 MAX 9 aircraft, which will be the largest and widest aircraft in the Alaska Airlines fleet.

The new hangar will hold up to two Boeing 737 MAX 9. The carrier has 17 of the type on order. (Credits: Alaska Airlines)

“The design proudly displays our new brand while also providing a larger, more functional space for our 80 maintenance and engineering employees in Anchorage,” said Kurt Kinder, Alaska Airlines Vice President of Maintenance and Engineering. “This new hangar signifies our growing airline, as well as our continued commitment to the state of Alaska.”

Construction will begin in the fall 2016 and is scheduled to be complete in the second quarter of 2018. Alaska Airlines has hired local general contractor and construction manager Kiewit Building Group to build the new hangar, and at peak construction, the project will employ 150 people.