SEATTLE--(BUSINESS WIRE)--Aug. 31, 2001--Alaska Airlines and the Air Line Pilots Association announced today the ratification of an agreement that extends the contract between the carrier and its 1,453 pilots by two years and provides an across the board pay increase.

In addition to extending the contract's amendable date to April 30, 2005, the agreement provides an 11.05 percent pay increase effective this year, followed by a 5 percent increase in 2002 and 4 percent increase in 2003 and 2004.

"This is a win/win for everyone," said Bill Ayer, president of Alaska Airlines. "The airline benefits by retaining a common rate of pay for all pilots and by the stability that comes with an extended contract, and pilots receive immediate and future pay increases."

The agreement was the outgrowth of the talks between Alaska and ALPA over rates of pay for the airline's new Boeing 737-900 aircraft. A grievance settlement required mid-term negotiations and arbitration to determine the rate of pay for 737-900 pilots at the time that aircraft entered service. In May 2001, an arbitrator ruled that 737-900 pilots should be paid more than other Alaska pilots -- 11.05 percent now, followed by an additional 5 percent in 2002.

For training, scheduling and operating efficiencies, Alaska had sought to maintain its longstanding practice of paying all pilots a common rate for the Boeing MD-80 and 737-type aircraft.

"The arbitrator's decision left all of us feeling like an opportunity had been lost," Ayer said. "So we quietly went back to the table to see if we could produce an outcome everybody felt good about. This agreement maintains the common rate that has worked so well for us over the years, and it ensures that our pilots are competitively compensated relative to our position in the industry."

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