Alaska and Horizon to Partner With American Airlines.

SEATTLE--(BUSINESS WIRE)--Dec. 9, 1998--Alaska Air Group (NYSE:ALK) announced today signing a letter of intent for the creation of a marketing partnership between its subsidiaries, Alaska Airlines and Horizon Air, and American Airlines/American Eagle.

"This is exciting news for Alaska and Horizon customers and all of our Mileage Plan members," said Bill Ayer, president of Alaska Airlines. "It greatly expands travel and mileage opportunities for our passengers and considerably strengthens Alaska's and Horizon's marketing presence in California, the Pacific Northwest and the West Coast."

"Alaska and American share an uncompromising commitment to quality, which has made us both service leaders in this industry," said Mike Gunn, American's senior vice president -- marketing. "Our customers will enjoy enormous benefits from this partnership -- from linking our frequent flier programs to accessing American's global network."

Alaska also announced that it has provided a notice to Northwest Airlines of its intent to modify an existing marketing agreement. "Our aim is to find a mutually acceptable way for Alaska to continue to market cooperatively with Northwest," said Ayer. "We are in talks with Northwest and we remain hopeful that we can maintain existing partner relations which have benefited both organizations."

Alaska and Horizon intend to implement a fully reciprocal frequent flyer relationship with American and American Eagle, allowing customers to earn mileage credits and use awards across each other's networks. Codesharing by the carriers has also been discussed, but is subject to labor contract provisions.

Alaska Airlines and Horizon Air together serve more than 70 communities in eight Western states, Canada and Mexico. American and American Eagle serve more than 230 destinations worldwide.