SEATTLE, Apr 18, 2003 (BUSINESS WIRE) -- With a handful of unsettled issues decided this week by an arbitrator, Alaska Airlines and the Aircraft Mechanics Fraternal Association have concluded a new, two-year contract covering the airline's 2,240 aircraft technicians and fleet service employees. The contract became amendable in December 2002.

The arbitrator awarded a 5 percent increase for technicians and 4 percent increase for fleet service employees for the term the contract. Technicians at steps 1 through 4 received a slightly greater increase.

The award adopts the new enhanced defined-contribution pension plan for new employees and provides current employees the choice -- the same as for some other work groups and management -- to move into the same enhanced defined-contribution plan or remain in their existing defined-benefit plan. The award also resolved several issues concerning employee license premiums and severance pay as well as other work-rule and contract issues.

All other points of the contract had been ratified previously.

Alaska's technicians are responsible for all work in the specialized aircraft equipment shops, maintenance bases, company buildings and equipment. The fleet service employees are responsible for the cleaning and arranging of aircraft interiors.

Alaska Airlines is the nation's ninth largest airline with more than 11,000 employees. The Seattle-based airline serves more than 50 destinations in the United States, Canada and Mexico.

Alaska Airlines
Jack Walsh, 206/901-8753
Jack Evans, 206/433-3134

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