Alaska Air Group Announces Succession Plan; Kelly to Retire on May 20.

Business Editors

SEATTLE--(BUSINESS WIRE)--Feb. 12, 2003

The board of directors of Alaska Air Group announced today that William S. Ayer will succeed John F. Kelly later this year as chairman and chief executive officer of Alaska Air Group, parent company of Alaska Airlines and Horizon Air.

Ayer, president of Alaska Airlines since 1997 and chief executive officer of the airline for the past year, assumes the posts of chairman of Alaska Airlines and president of Alaska Air Group from Kelly, effective immediately. He becomes chairman and chief executive officer of Alaska Air Group on May 20 upon Kelly's retirement.

"It's hard to overstate the impact John Kelly has had on Alaska Air Group," said Bruce R. Kennedy, chairman emeritus and member of the board of Alaska Air Group. "Under John's guidance, direction and commitment, Alaska Airlines and Horizon Air have become recognized as technological leaders and innovators within the airline industry. Both carriers have consistently received national awards for customer service. Both have made major transitions to new fleets of aircraft. Both have strengthened and expanded their route systems while maintaining a strong position in their respective markets. That takes strong, steady leadership and, in triumph and tragedy, leadership has been John's hallmark."

Kelly, 58, joined Alaska Airlines as assistant vice president of sales. During his tenure with the company he has held the positions of vice president of marketing at Alaska Airlines, president, chairman and CEO of Horizon Air Industries, executive vice president and chief operating officer of Alaska Airlines and president, chairman and CEO of both Alaska Airlines and Alaska Air Group. He became a member of the board of Alaska Air Group in 1989.

Ayer, 48, became chief executive officer of Alaska Airlines in January 2002. Prior to that he served the airline as president and chief operating officer. He was elected to the Alaska Air Group board in 1999.

A veteran of 20 years with both Alaska Airlines and Horizon Air, Ayer joined Alaska in 1995 as vice president of marketing and planning. In 1997 he became the carrier's senior vice president of customer service, marketing and planning. Before coming to Alaska, he was Horizon Air's senior vice president of operations and, prior to that, held several positions with the airline's marketing department, including vice president of marketing and planning.

"It is difficult to imagine a person better suited than Bill for the personal and professional challenges associated with the tasks he will be assuming. The board has complete confidence in his knowledge, experience and leadership, all honed during a distinguished aviation career," said Kelly. "Most important, Bill personifies the positive values that this company stands for and he enjoys the respect and trust of his employees."

Alaska Air Group is the parent company of Seattle-based Alaska Airlines and Horizon Air.