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 TOP STORY

Eight questions
for John Kelly

Outgoing chairman talks about decision 
to retire, his successor & Alaska's future

Posted February 13, 2003

Nearly 27 years after joining Alaska Airlines — and almost eight years to the day after he became chairman, president and CEO of Alaska Air Group — John Kelly announced this week that he will retire May 20, passing the corporate reins to Bill Ayer. The move completes an executive succession plan that began about four years ago when Ayer was added to the AAG board of directors.

Ayer, president of the airline since 1997, added the duties of CEO a year ago as part of the well-designed succession plan. He now assumes the additional roles of Alaska Airlines chairman and AAG president. The transition will be complete in May when he also becomes chairman and CEO of Alaska Air Group.

Kelly spent a few minutes earlier this week with Greg Witter, managing director of strategic and corporate communications, to talk about the change. (A subsequent Q &A with Bill Ayer about his new role will appear in the Feb. 21 edition of Alaska’s World).

Greg: So why now, John?
John:
Well, age 59 is actually about two years later than I had originally planned, but with the upheaval following 9/11 it made sense to stick around until things were more settled. But the fact is, I’ve been a CEO at either Alaska or Horizon for the past 15 years. That’s a long time, and, as I said last year, I truly believe that it’s important for the health of an organization to have periodic changes in leadership. It encourages new thinking and different perspectives.

Greg: I know there’s also a personal side to the story, right?
John:
Yes, my wife, Maggi, has been struggling with an eye problem for the past four years, including two cornea transplants in her right eye. The eye is currently showing signs of rejecting the last transplant, so the battle continues. Tragically, she lost sight in that eye a year ago, but it’s important to get this current problem solved. So our collective priorities, time, and attention need to be focused on getting her well.

Greg: She has a lot of friends from the days when she worked here who I know wish her all the best.
John: Thanks, Greg. We’re blessed to have great friends at both Alaska and Horizon.

Greg: You’ve mentioned numerous times over the years how important it is to have the right people coming up through the ranks so they can eventually carry the proverbial torch. By retiring, are you saying you’ve achieved the crowning goal in putting together a great team for the future?
John:
Exactly. It’s very rewarding to look at the leadership teams we have at both Alaska and Horizon. These are creative, thoughtful people with great business acumen and judgment. And I really can’t say enough good things about Bill. He’s an exceptional leader. I might add that I’m also quite proud of the quality of the people we’ve added to our Board of Directors over the last few years — it’s a very solid group with a wide-range of experiences and perspectives.

Greg: After you retire, will you stay on as a member of the Board of Directors?
John:
As tempting as it might be because Alaska and Horizon have been such a huge part of my life over the last 27 years, it’s really best if I step aside altogether. The trend in corporate America today is that the outgoing chairman make a clean break so the new person isn’t burdened with the sense that someone’s looking over his or her shoulder. By most accounts, it’s a practice that seems to be working well across industry sectors.

Greg: A complete separation after so many years. What’s that going to feel like?
John:
That’s the hardest part about this. It’ll be tough to leave the day-to-day hustle and bustle and all the great friends we have here. But on the other hand, Maggi and I won’t exactly be sitting by the fire with a blanket over our knees. For starters, we’ll be taking up full-time residence in Phoenix, where we bought a home last year, and where I’ll probably spend some time working with old friends who run a couple of businesses in the area. I’ll also sit on various corporate boards.

Greg: So what happens between now and May?
John:
Much of my work over the last year has been devoted to government affairs and finance. The job now is to fully transition those duties to Bill over the coming months. Plus, this time will give me an opportunity to say goodbye to the folks at Alaska and Horizon who have made everything possible.

Greg: Last question. You and Bill Ayer have worked closely for many years. Talk about Bill’s leaderships skills and why they’re a good fit for Alaska.
John:
Bill has really proven himself at Alaska over the last eight years and at Horizon before that. He’s a student of the industry and of business generally, he knows that the quality of our people drives our success, and he’s as level-headed and genuine as anybody you’ll ever meet. The months and even years ahead figure to be very dynamic, but Bill has what it takes to make sure Alaska not only survives, but thrives. I have every confidence in him — and I mean that from the bottom of my heart.


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