Aircraft Mechanics Fraternal Association Ratifies New Contract With Alaska Airlines.

SEATTLE--(BUSINESS WIRE)--June 23, 1999--

Alaska Airlines (NYSE:ALK) and the Aircraft Mechanics Fraternal Association announced today that a new, 42-month contract has been ratified between the airline and its more than 1,000 aircraft maintenance technicians, technician helpers, janitors and fleet service employees.

"This is something to cheer about," said Bill Ayer, the airline's president. "The agreement is fair and equitable, giving our people an attractive compensation package, while allowing the airline to remain in a sound competitive position. The spirit of cooperation that defined the talks that produced this agreement was really a textbook case of how you'd like contracts to be negotiated. I'm very heartened by this agreement and by the overwhelming margin it was ratified."

Louie Key, an Alaska Airlines aircraft maintenance technician and AMFA Local 14 negotiator, had similar words of praise. "Everybody can hold their heads high. This is an agreement we can all be proud of," Key said. "Our negotiating team and everyone in this work group worked very well together. It was a real team effort and it's why we're here today."

The contract covers 3 1/2 years -- to December 2003 -- and establishes a 120-day period for negotiations. After that period, it would provide for binding arbitration of a limited number of issues, including rates of pay, by an impartial arbitrator, if necessary.

In addition, the agreement establishes enhanced rates of pay, retirement, health and 401(k) benefits. It also provides for a union shop.

Alaska Airlines serves 40 cities in six Western states, Mexico and Canada.