March 5, 1997

John Kelly, President
Alaska Airlines
P.O. Box 68900
Seattle, Wa 98168

Dear Mr. Kelly,

We are disturbed at the low level of service Alaska Airlines provides between Anchorage and southeast Alaska, especially to Juneau. The ticket prices are exorbitant. It is cheaper to fly from Anchorage to the East Coast than to Juneau. The discount requirements are so difficult to meet that they are useless. It is clear to us that the lack of competition in southeast Alaska is allowing Alaska Airlines to charge maximally and serve minimally.

We also noted that your recent announcement of service from Seattle to Sakhalin merely mentioned that Anchorage would be a stop over enroute. It did not say that you were providing Anchorage - Sakhalin service. It seems that Alaska is becoming more and more incidental to Alaska Airlines.

Many of us want an airline that bears our state's name to conduct itself like we matter to its existence. This is not the way the Alaska Airlines of today is behaving.

We are considering several proposals involving invitations for "no frill" operators to come into this market, utilizing charter operators for Anchorage to Juneau service during the legislative session, as well as incentive awards to induce competition. We are also considering a formal resolution asking Alaska Airlines to relinquish the name of our state from its corporate identification.

Alaskans don't deserve to be treated so poorly by a company we helped build from nothing over the past thirty years. Before we proceed with these actions, we would like to know what your perspective is.

John Cowdery, Chairman
International Trade & Tourism Committee Finance Committee

Gene Therriualt, Co-Chairman
International Trade & Tourism Committee Finance Committee

Scott Ogan, Co-Chairman
House Resources Committee House Resources Committee

Bill Hudson, Co-Chairman
House Resources Committee House Resources Committee

Ivan Ivans, Chairman
Community & Regional Affairs Committee

Mark Hodgins, Chairman
Oil & Gas Committee

Richard Foster, Chairman
Finance Transportation Subcommittee

Jerry Sanders, Chairman
Economic Development Committee

Terry Martin, Member
Finance Committee

Vic Kohring, Member
Finance Committee

Bev Masek, Chairman
Military & Veterans Affairs Committee

Joe Ryan, Member
Labor and Commerce Committee