Alaska Airlines and Lan Chile Announce a New Marketing Agreement.

SEATTLE--(BUSINESS WIRE)--Nov. 2, 1999--

Alaska Airlines (NYSE:ALK) and Lan Chile today announced formation of a comprehensive marketing relationship that will give Alaska customers convenient access to South America.

The agreement between the carriers, effective November 3, provides for reciprocal participation in each other's frequent flyer programs and a one way codesharing arrangement. Under the agreement, Lan Chile will place its "LA" designator code on Alaska Airlines flights between Los Angeles and Portland and Seattle.

Codesharing, which allows one carrier to coordinate and sell flights as its own on another carrier, provides customers with more travel options and the partner airline with incremental passenger traffic. In addition, reciprocal frequent flyer provisions will mean members of the Alaska Airlines Mileage Plan and Lan Chile's Lan Pass mileage programs will earn mileage credits and be able to use awards applicable to each other's route systems.

"This is an exciting development for Alaska Airlines and provides more extensive U.S., South America travel opportunities for our customers and theirs," said Gregg Saretsky, vice president of marketing and planning for Alaska Airlines. "This marketing relationship further extends international travel and international air cargo options for our customers."

"We are very pleased to have reached an agreement of this kind with a prestigious airline like Alaska Airlines," said Luis Ernesto Videla, general manager of Lan Chile. "Alaska's reputation as a quality airline delivering world class service is unchallenged."

Lan Chile offers ten weekly flights to Los Angeles, from Santiago, Chile and/or Lima, Peru.

Lan Chile is the largest domestic and international passenger/cargo air carrier in Chile and the leading airline in Latin America. Lan Chile serves 15 destinations in Chile, 17 in other Latin American cities and seven in the United States, Europe and the South Pacific.

Alaska Airlines serves more than 40 cities in Alaska, Mexico, Canada, and five Western states.