Alaska Airlines and Horizon Air 2007 Annual Report Download - page 10

Delivering more than we promise
Frequent travelers on Alaska and Horizon have come to expect something special in the delivery of our
core promises. Because our employees genuinely care about people, our customers are rarely
disappointed. I’m proud of what our people do day in and day out and want to share just a couple of
examples with you.
Tommy, one of our younger passengers, was
flying with his family from Orlando to Seattle
to undergo treatment for systemic juvenile
rheumatoid arthritis. During the trip he met
Alaska Flight Attendant Diane Euting. Right
away, Diane saw an opportunity to make the
best of a trying time for a family very far from
home.
Diane called a store near the hospital and
arranged for food and flowers to be waiting for
them upon their arrival. During their stay, she
collected games, books and a DVD player for
their use, arranged for Tommy’s three siblings
to come to Seattle so they could be together
as a family, and kept tabs on Tommy’s
progress throughout the summer.
Recently, a Horizon flight from Los Angeles to
Eugene was canceled and all the passengers
were re-routed on other flights. A few of the
bags had to be sent on a different flight that
arrived later, including the bags belonging to
two men who were scheduled to play golf the
next day on the coast, a couple hours’ drive
from Eugene. Unfortunately, the luggage
arrived too late for delivery to the two golfers
before they had to leave.
Aware that one of the bags contained needed
medication, Eugene Customer Services
Manager Mel Frost-Gorman got up Sunday
morning and drove her own car to the coast to
deliver them personally.
Diane and Mel are just two of the many Alaska and Horizon employees whose genuine compassion and
care for people go beyond what is expected and truly make a difference to the people we serve.
Shareholder Returns
In September 2007, our board of directors
authorized a $100 million stock buy-back. At the
end of February 2008, we completed that
program, which resulted in the repurchase of
about 10 percent of our outstanding stock. In
March, we announced a second buy-back
program, this time for $50 million. Given our
strong cash position, we can think of no better
way to demonstrate our belief in the long-term
value of our company. And there is nothing we
could do in today’s environment that has more
impact for our stockholders than buying back our
stock at today’s prices.
What’s Ahead?
To say that the combination of record high oil
prices and a softening economy will make 2008
a very challenging year for the airline industry is
an understatement. At this point, experts are
predicting that the industry could post results
ranging from a modest profit to a loss on par
with the post-9/11 downturn.
But we are optimistic.
Market forces will inevitably bring revenues and
costs back in line with each other. In the
meantime, our healthy balance sheet, young,
fuel-efficient fleets, strategic alliances, solid
brand reputations and, above all, the exceptional
customer experience our people provide, put us
in a very good position not only to weather the
current economic storm but to keep our
promises in the process.
Sincerely,
William S. Ayer
Chairman, President and CEO
Alaska Air Group
April 4, 2008
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