Alaska Airlines and Horizon Air 2009 Annual Report Download - page 119

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Alaska also leases a stores warehouse, and
office space for a customer service and
reservation facility in Kent, Wash. 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, Ariz.
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 as well
as line maintenance stations in Boise, Spokane,
Pasco, Eugene, Los Angeles and Seattle.
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) 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. In February 2010, the
arbitrator issued a final decision. The decision
does not require Alaska to alter the existing
subcontracting arrangements for ramp service in
Seattle. The award sustains the right to
subcontract other operations in the future so
long as the requirements of the CBA are met.
The award imposes monetary remedies which
have not been fully calculated, but are not
expected to be material.
Other items
We are a party to routine litigation matters
incidental to our business and with respect to
which no material liability is expected.
Management believes the ultimate disposition of
these matters is not likely to materially affect our
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
23
ŠForm 10-K