Alaska Airlines Presents Offers on Key Sections of Proposed Pilot Contract

SEATTLE, May 20 /PRNewswire-FirstCall/ -- As part of its ongoing
negotiations with the Air Line Pilots Association (ALPA), Alaska Airlines last
week presented counter-offers on key sections of a proposed contract. Alaska
Airlines issued the following statement regarding its bargaining with ALPA to
date:
"Since negotiations began, the company has been clear that we are open to
a wide variety of tradeoffs, such as increasing wages and retirement security
in exchange for improved productivity. However, Alaska Airlines, the
ninth-largest U.S. carrier, has the second-highest pilot labor costs in the
industry and is not in a position to increase the total cost of its pilot
contract at a time of rapidly rising fuel prices and a deteriorating economy.
Nevertheless, the company has proposed to contractually increase pilots'
current opportunity for annual profit sharing.
"ALPA's proposals to date would burden Alaska Airlines with the
highest-cost pilot contract in the industry by a significant margin. That
simply doesn't work for our customers, employees and shareholders."
Several highlights of the airline's proposed five-year contract include:
-- The company's wage proposal on signing would elevate top-of-scale
Alaska Airlines captains and seven-year first officers to the
third-highest pay rate in the industry (behind Southwest and
American).
The offer would also provide annual scale increases and a mechanism
for
additional annual increases if warranted by changes in market pay
rates.
-- At ALPA's request, the company kept the incumbent retirement plans
unchanged. Alaska Airlines' counter-proposal on retirement would
offer new- hire pilots participation in a 401(k) plan with a company
contribution that exceeds what most other U.S. airlines offer. Closing
the existing defined benefit plan to new pilots improves the long-term
security of the pension fund for current participants.
-- The company's counter-proposal on insurance would slightly increase
pilots' monthly contribution, but would provide them with expanded
dental and vision benefits; improved short-term disability, life, and
accidental death and dismemberment insurance; eliminate the
prescription
drug deductible; and add a cap on annual increases in employee
contributions.
-- The Alaska Airlines counter-proposal does not propose any significant
change over current language regarding code-share and contract flying.

Alaska Airlines also stated that, "Changing industry economics may affect
the company's future proposals."
Alaska Airlines' contract with its pilots became amendable (open for
negotiation) on May 1, 2007. Since January 2007, ALPA and the company have
been bargaining nearly every week, often three days a week. At ALPA's request,
negotiators for both parties have discussed almost every line of the contract
and agreed to innumerable improvements for pilots.
"To resolve our differences, Alaska Airlines has indicated its willingness
to continue meeting with ALPA negotiators as often as needed," the company
said in a statement.
Alaska Airlines and Horizon Air together serve 93 cities through an
expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. For
reservations, visit alaskaair.com.
For more news and information, visit the Alaska Airlines/Horizon Air Newsroom
at alaskaair.com/newsroom.
SOURCE Alaska Airlines

Caroline Boren, +1-206-392-5101, or Paul McElroy, +1-206-392-5038, both of
Alaska Airlines