Executive Succession Plan Announced for Alaska Airlines and Horizon Air

Business Wire, Jan 31, 2002

Business Editors

SEATTLE--(BUSINESS WIRE)--Jan. 31, 2002

John F. Kelly, chairman of the board of Alaska Air Group, Inc. (NYSE:ALK) announced today the election of William S. Ayer as chief executive officer of Alaska Airlines and revealed a comprehensive executive succession plan for Alaska Airlines and Horizon Air Industries.

Under the plan, Kelly, chief executive officer at Alaska Airlines since 1995, will remain chairman, president and CEO of the parent company, Alaska Air Group, in addition to chairman of its subsidiaries, Alaska Airlines and Horizon Air.

Ayer, 47, will retain the title of president of Alaska Airlines while assuming the responsibilities of chief executive officer. A veteran of almost 20 years with both airlines, Ayer most recently served as the president and chief operating officer of Alaska. Prior to that he was Alaska's senior vice president of customer service, marketing and planning. At Horizon, Ayer spent 13 years in sales, marketing and planning, rising to senior vice president of operations. He then joined Alaska in 1995 as vice president of marketing and planning.

"Bill is a bright, articulate leader who embodies the spirit and culture that make Alaska Airlines unique," said Kelly. "Bill's many talents and broad experience make this a natural transition for him, while his strong commitment to our employees and our customers ensures the continuation of Alaska Airlines' preeminent position in the marketplace."

Kelly, whose focus will now center on broad strategic planning, finance and government affairs, said the board has been developing the succession plan over the past three years. "All of us on the board believe this plan assures an orderly and smooth executive succession," said Kelly. "We are fortunate to have the depth of management talent at Alaska and at Horizon to enable critical senior level positions to be filled internally."

As part of the plan, the board also elected George D. Bagley to both the board of directors of Alaska Airlines and to the new position of executive vice president of operations at Alaska Airlines. Bagley, 56, president and chief executive officer of Horizon Air since 1995, will report directly to Ayer and head up the largest division within Alaska Airlines.

With more than 22 years of operating experience at both companies, including three years as vice president of flight operations at Alaska, Bagley will be in charge of overseeing all of Alaska's flight operations, maintenance and ground operations.

"I've had the privilege of working with George at both airlines, and he is a key addition to the executive team at Alaska Airlines," said Ayer. "His extensive knowledge of operations, his results-oriented leadership and his commitment to customer service will be invaluable to me and to Alaska Airlines."

Kelly also announced the election of Jeffrey Pinneo, 45, to replace Bagley as president and chief executive officer of Horizon Air, one of the nation's largest regional air carriers. In addition, Pinneo was elected to the board of directors of Horizon Air. "Jeff is a dynamic leader who, through exceptionally strong organizational and operational skills, has already made major contributions at Horizon Air," said Kelly. Most recently Horizon's vice president of customer service, Pinneo has served both Alaska and Horizon for nearly 20 years in marketing and customer service positions.

At Alaska Airlines, the executive succession plan also includes the elections of Gregg A. Saretsky to executive vice president of marketing and planning and Bradley D. Tilden to executive vice president of finance and chief financial officer. Ayer said that both positions, along with Bagley's, are new to the management structure of Alaska Airlines. "These changes modify our senior management process in a way designed to enhance communication, teamwork, decision making and the achievement of the goals we set for ourselves," said Ayer. "These new group leaders, who will work closely with me to formulate and implement Alaska's strategic and operational plans, are critical to that process."

Saretsky, 42, will direct marketing, planning, e-commerce, reservations and inflight services in his new job. Most recently senior vice president of planning and marketing, he joined Alaska Airlines four years ago from Canadian Airlines, where he served as vice president of passenger marketing. He has 17 years of airline experience in marketing, planning, customer service, inflight services and reservations.

In addition to finance, Tilden, 41, will oversee employee services and information and communication services at Alaska Airlines. He will also retain his current position of vice president and chief financial officer of Alaska Air Group, a post he assumed in 1999. Tilden has served Alaska Airlines for more than 10 years in several positions of increasing responsibility that cover all aspects of the corporation's financial and accounting operations. He came to Alaska Airlines from the accounting firm of Price Waterhouse & Company.