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ALASKA ACCELERATES AIRCRAFT RETIREMENT CHARGES TO BE TAKEN AGAINST 1992 RESULTS

 SEATTLE, Jan. 7 /PRNewswire/ -- Alaska Air Group (NYSE: ALK) announced today that its Alaska Airlines subsidiary will accelerate the retirement of its remaining Boeing 727 fleet.
 The corporation will report a $16.6 million after tax charge against 1992 results associated with this action. The charge is a one time write-down of the value of 18 airplanes -- 14 B727-200 and four B727-100 aircraft -- plus spare engines and associated parts.
 Originally scheduled to be phased out between 1994 and 1996, the B727s will now begin leaving the airline's fleet this year with retirement anticipated within two years. During the past year, the company retired nine B727-200s.
 Raymond J. Vecci, chairman and chief executive officer, said, "This action recognizes the lower value of the 727 fleet and reflects our intent to accelerate their retirement." Vecci also said the phase out is part of a plan announced earlier this week to reduce the number of aircraft types in the fleet and lower future operating costs.
 Alaska Air Group also announced today it will take an additional one-time $5.4 million after-tax charge against 1992 results by adopting a new accounting standard (FASB #106) which recognizes the cost of future medical benefits for retirees. This charge represents the transition liability for post-retirement medical benefits.
 The effect of both actions will result in a combined one-time charge against 1992 results of $22 million, or a loss of $1.66 per share.
 Alaska Air Group Inc. is the parent company of Seattle-based Alaska Airlines and Horizon Air Industries.
 -0- 1/7/93
 /CONTACT: J. Ray Vingo, 206-433-3232, or Lou Cancelmi, 206-433-3170, both of Alaska Air Group/
 (ALK)


CO: Alaska Air Group Inc.; Alaska Airlines ST: Washington IN: AIR SU:

LM -- SE008 -- 2839 01/07/93 17:30 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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