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Passing the torch

John Kelly to retire this spring;
Bill Ayer to lead all of Air Group

Posted February 12, 2003

John Kelly, chairman and CEO of Alaska Air Group for the last eight years, announced today that he will retire from the company in May. Bill Ayer, president of Alaska Airlines since 1997 and CEO of the carrier for the last year, will succeed him as head of Air Group.

At its regular quarterly meeting today, the board of directors elected Ayer to the posts of chairman of Alaska Airlines and president of Alaska Air Group, effective immediately, and said he will become chairman and CEO of AAG upon Kelly’s retirement at the company’s annual shareholders’ meeting on May 20. This will complete a succession plan that began some four years ago.

"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 in 1976. 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; 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 CEO 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. He later became the carrier’s senior vice president of customer service, marketing and planning, and eventually president. 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.

"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," Kelly said. "The board has complete confidence in his knowledge, experience and leadership, all honed during a distinguished aviation career. Most important, Bill personifies the positive values that this company stands for and he enjoys the respect and trust of his employees."

BE SURE TO CLICK BACK TO ALASKASWORLD.COM
TOMORROW (THURSDAY) MID-MORNING FOR A CONVERSATION WITH
KELLY ABOUT HIS DECISION AND THE FUTURE OF ALASKA AIRLINES.


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