Alaska Airlines to Reorganize Management
20 Agosto 2004 - 11:52PM
PR Newswire (US)
Alaska Airlines to Reorganize Management SEATTLE, Aug. 20
/PRNewswire-FirstCall/ -- Alaska Airlines today began offering a
voluntary severance package to management employees as a precursor
to a reorganization that will eliminate about nine percent of its
management positions between now and spring 2005. Alaska
anticipates a reduction of up to 150 employees resulting in
permanent annual savings ranging between $5 and $10 million. "The
reasons for the reorganization are to speed decision-making and to
improve communication and accountability," said CEO Bill Ayer in a
memo to all management employees. Ayer said the aim is to improve
execution by eliminating some of the layers of management that
served the airline well in a different era, but now must meet a
tougher standard in view of the changes and challenges facing the
industry. Ayer said an outline of the overall management
restructuring has been mapped out. It will be adjusted in September
prior to implementation depending upon how many management
employees voluntarily choose to leave. "We recognize the key role
that employees have played over the years and, for those who leave,
we want to make the transition as smooth as possible," Ayer said.
"So we've crafted a generous severance package, one that compares
favorably to any offered since 9/11 triggered 100,000 layoffs at
other airlines." The voluntary program is being offered to all
management personnel. Acceptance of applications, as well as the
timing of the departure of personnel, will be based upon the needs
of the company's operations. Among the features: Two weeks of pay
for each year of service; a bonus of between $3,000 and $15,000
depending on length of service; one year of healthcare coverage;
and travel benefits for the employee and eligible dependents.
"Since 9/11, and especially since we unveiled our broad-based
Alaska 2010 repositioning plan last summer, we have looked -- and
will continue to look -- at every possible way to strengthen this
airline to compete successfully over the long-term," Ayer said. The
management reorganization will not affect any of the airline's
current routes and services. Alaska Airlines is the nation's ninth
largest carrier. Alaska and its sister carrier, Horizon Air,
together serve more than 80 cities in Alaska, the Lower 48, Canada
and Mexico. For more news and information, visit the Alaska
Airlines Newsroom on the Internet at http://newsroom.alaskaair.com/
. DATASOURCE: Alaska Airlines CONTACT: Lou Cancelmi,
+1-206-392-5170, or Sam Sperry, +1-206-392-5038, both of Alaska
Airlines Web site: http://www.alaskaair.com/
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