Alaska Airlines and Horizon Air 2007 Annual Report Download - page 123

GROUND FACILITIES AND SERVICES
Alaska and Horizon lease ticket counters, gates,
cargo and baggage space, office space, and
other support areas at the majority of the
airports they serve. Alaska also owns terminal
buildings in various cities in the state of Alaska.
Alaska has centralized operations in several
buildings located at or near Seattle-Tacoma
International Airport (Sea-Tac) in Seattle,
Washington. These include a five-bay hangar and
shops complex (used primarily for line
maintenance), a flight operations and training
center, an air cargo facility, an information
technology office and mainframe computer
facility, two office buildings, and corporate
headquarters complex. Alaska also leases a
stores warehouse, and office spaces for a
reservation facility and for various administrative
functions in Kent, Washington. Alaska’s major
facilities outside of Seattle include a regional
headquarters building, an air cargo facility and a
hangar/office facility in Anchorage, as well as
leased reservations facilities in Phoenix, Arizona
and Boise, Idaho. Alaska uses its own
employees for ground handling services at most
of our airports in the state of Alaska. At other
airports throughout our system, those services
are contracted to various third-party vendors.
Horizon owns its Seattle corporate headquarters
building. It leases an operations, training, and
aircraft maintenance facility in Portland; line
maintenance stations in Boise, Pasco and
Seattle; and temporary hangar facility in Spokane
for Q400 modification work.
ITEM 3. LEGAL PROCEEDINGS
Grievance with International Association of
Machinists
In June 2005, the International Association of
Machinists (IAM) filed a grievance under its
Collective Bargaining Agreement (CBA) with
Alaska alleging that Alaska violated the CBA by,
among other things, subcontracting the ramp
service operation in Seattle. The dispute was
referred to an arbitrator and hearings on the
grievance commenced in January 2007, with a
final hearing date in August 2007. We expect a
decision from the arbitrator in the first half of
2008.
Other items
The Company is a party to routine litigation
matters incidental to its business and with
respect to which no material liability is expected.
Management believes the ultimate disposition of
the matters discussed above is not likely to
materially affect the Company’s financial position
or results of operations. This forward-looking
statement is based on management’s current
understanding of the relevant law and facts, and
it is subject to various contingencies, including
the potential costs and risks associated with
litigation and the actions of judges and juries.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
None
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ŠForm 10-K