Businessweek

Alaska Air Group, Inc., through its subsidiaries, provides scheduled air transportation for passengers and cargo throughout the United States, Canada, and Mexico. The company’s subsidiaries include Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon), which during 2011, provided air service to approximately 24 million passengers and flew to 100 destinations. The company offers a frequent flyer program, the Alaska Airlines Mileage Plan, where members can earn and redeem miles on Alaska, Horizon, and a network of 15 airline partners worldwide, including Delta Air Lines and American Airlines in the United States. Mainline The company offers north/south service within the western United States, Canada and Mexico, and passenger and dedicated cargo services to and within the state of Alaska. The company also provides long-haul east/west service to Hawaii and 13 cities in the mid-continental and eastern United States, primarily from Seattle. In 2011, the company carried approximately 18 million revenue passengers in mainline operations. As of December 31, 2011, Alaska’s operating fleet consisted of 117 Boeing 737 jet aircraft. Regional In 2011, the company’s regional operations carried approximately 7 million revenue passengers, primarily in the states of Washington, Oregon, Idaho and California. As of December 31, 2011, Horizon’s operating fleet consisted of 48 Bombardier Q400 turboprop aircraft. Suppliers The company’s suppliers include Boeing and Bombardier. Seasonality The company’s profitability is lowest during the first and fourth quarters, for the year ended December 31, 2011, due principally to lower traffic. It increases in the second quarter and then reaches its highest level during the third quarter as a result of vacation travel, including increased activity in the state of Alaska. The company added flights to leisure destinations in Hawaii and Mexico to reduce the effect of seasonality. Environmental Matters The company is subject to various laws and government regulations concerning environmental matters and employee safety and health in the U.S. and other countries. U.S. federal laws that have a particular effect on the company include the Airport Noise and Capacity Act of 1990, the Clean Air Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, and the Comprehensive Environmental Response, Compensation and Liability Act, or Superfund Act. The company is also subject to the oversight of the Occupational Safety and Health Administration (OSHA) concerning employee safety and health matters. The U.S. Environmental Protection Agency, OSHA, and other federal agencies have been authorized to create and enforce regulations that have an impact on the company’s operations. History Alaska Air Group, Inc. was founded in 1932.