SEATTLE--(BUSINESS WIRE)--June 14, 2001--Alaska Airlines (NYSE:ALK) broke ground today on the $33 million remodel and expansion of the airline's maintenance hangar at Seattle-Tacoma International Airport.

The project, which will be completed in two phases by fall 2002, will add more than 100,000 square feet of workspace at the existing office/hangar complex, which is located at the south end of the airport.

"This project represents a significant investment in the future of our maintenance and engineering division," said Bill Ayer, Alaska's president and chief operating officer. "In addition to improving the work environment, it will allow us to bring all maintenance and engineering functions in the Seattle area under one roof."

In addition to the construction of new workspace, approximately 70,000 square feet of existing hangar and office space will be remodeled.

Phase one of the project, which is scheduled for completion this fall, will add 18,500 square feet above the existing parts storage and avionics component shops that connect the old hangar (built in 1966) to the newer hangar (built in 1985).

The centerpiece of the second phase will be construction of a three-story wing on the hangar's southeast side totaling 83,500 square feet. The first and second floors of the addition will house parts storage, support shops, locker rooms, an expanded lunchroom and maintenance support offices. The third floor will house engineering, training, maintenance support offices and senior management.

The project master plan and initial design of phase one was provided by The Austin Company. Architectural design for the second phase was provided by ECH Architecture of Seattle. M.A. Mortenson Company is the General contractor.

--30--APS/se*