Alaska Airlines Makes $50 Million Voluntary Contribution to Employee Pension Funds

Alaska Airlines has made a voluntary contribution of $50 million in cash to four defined benefit pension plans covering 7,300 employees in its airport, dispatch, maintenance, management and pilot work groups.

Combined with a $71.9 million voluntary contribution made early this year, the airline has strengthened its defined benefit pension plans by nearly $122 million in 2006.

"The success of our transformation plan in returning Alaska Airlines to profitability helps ensure we meet our promise of secure retirements for our employees," said Bill Ayer, Alaska’s chairman and chief executive officer.

Alaska Airlines has made more than $316 million in voluntary cash contributions to its defined benefit pension plans since 2001. At the end of 2005, the airline’s defined benefit pension plans were funded at 69 percent of future benefit obligations, placing them among the most secure in the airline industry.

Under current pension funding rules, the airline was not required to make a contribution in 2006.

Alaska Airlines and sister carrier, Horizon Air, together serve 89 cities through an expansive network throughout Alaska, the Lower 48, Canada and Mexico. For reservations visit alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at alaskaair.com/newsroom.

SOURCE: Alaska Airlines