SF Gate: Alaska Air execs take pay cuts while seeking union concessions

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Friday, June 27, 2003 (AP)
Alaska Air execs take pay cuts while seeking union concessions



   (06-27) 10:38 PDT SEATTLE (AP) --
   Top executives of Alaska Airlines say they will take substantial pay cuts
while seeking worker concessions to return the West Coast regional carrier
to profitability.
   Chief executive William J. Ayer told union leaders this week that he will
cut his own pay by 20 percent, Jack Walsh, Alaska Airlines spokesman, said
Friday.
   Three other executives -- George Bagley, executive vice president of
operations; Gregg Saretsky, executive vice president of marketing and
planning, and Bradley D. Tilden, chief financial officer, will take 15
percent cuts, Walsh said.
   According to documents filed with the Securities and Exchange Commission,
Ayer's salary, bonus and other compensation totaled $475,644 last year. He
has since been promoted to chairman of Alaska Air Group, parent
corporation of Alaska and Horizon Airlines.
   Bagley's total compensation last year was $359,418, Saretsky received
$324,463 and Tilden got $318,262.
   The company previously announced that five unions representing Alaska
Airlines employees have been asked to accept pay cuts and work rule
changes.
   The company has achieved or will soon realize cost cuts that total $120
million in savings, Ayer wrote in a letter posted on Alaska Airlines'
employee Web site.
   The airline believes it may have identified another $75 million in cuts.
But it still wants to achieve another $112 million in savings by working
with its unions to adjust wages, standardize health and retirement
benefits across the company and identify other ways to make the airline
more efficient, Ayer wrote.
   Other cost-cutting measures Alaska Airlines is considering include
eliminating first-class seating, free meals and marginal routes, Ayer said
in his letter.
   The airline has not been profitable for three years amid an industry slu=
mp
and wants to reduce expenses by about 15 percent, to 7.25 cents per
available seat mile, excluding fuel costs, by 2005.
   Several larger airlines have persuaded employees to accept pay wage cuts
during bankruptcy or under the threat of bankruptcy.

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Copyright 2003 AP

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