Travel Forum / Travel Types / Air Travel / July 2008

July 30, 2008
Dear Ron,
As you are aware, the airline industry is facing unprecedented
challenges. At Alaska Airlines, we are engaged in a comprehensive
review of our business in an effort to reduce costs, while at the same
time continuing to deliver the level of service you have come to
expect. As part of that effort, today we are announcing changes to the
Mileage Plan that are aimed at maintaining the program's viability as
well as its strong value to our members. As one of our valued
customers, we wanted to share these changes with you immediately.

These changes will apply to Mileage Plan awards redeemed on or after
November 1, 2008. Awards redeemed before November 1, 2008 will not be
affected, regardless of travel date.

Award Level Changes

   * The domestic round-trip Coach Saver award that has been
available at 20,000 miles for over 13 years is increasing to 25,000
miles whether redeemed online or through our Reservations office.
   * The current Saver and Peak award levels for Coach and First
Class travel on Alaska Airlines/Horizon Air are increasing with the
exception of intra-state travel.
   * The popular 15,000 mile Intra-Alaska Award has been expanded to
an Intra-State Award, offering travel wholly within one individual
state including AK, CA, ID, MT, OR, or WA. This represents an award
level reduction. First Class Intra-State awards will also be available
at reduced levels.

New Three-Tier Award Levels

   * The previous "Saver" award types will be re-named "Super Saver
Awards." These will continue to offer excellent redemption values but,
as today, with limited availability compared to other awards types.
   * A new middle award level called "Choice" will offer Coach travel
at mileage redemption levels below unrestricted awards, but with much
greater availability than "SuperSaver" levels.
   * "Peak Awards" will become "Full Flex" awards. The new name
reflects the unrestricted nature of these awards.

Partner Award Fee
To offset the high costs associated with redeeming miles on partner
airlines, we will begin collecting a $25 fee for each award booked on
a partner airline. There continues to be no award fee or fuel
surcharge fee for award travel on Alaska Airlines or Horizon Air. The
fee will apply to all awards booked on or after November 1, 2008.

Money and Miles Award changes
The "AS50" Money and Miles award will continue to offer a 50% discount
up to $250 for 15,000 miles round-trip; however, these awards will
only earn 50% of the miles that they earn today. These miles and 100%
of the segments flown will count toward MVP/MVP Gold qualification.
The change will apply to all Money and Miles awards booked on or after
November 1, 2008.

For additional details, including a new award chart, visit
alaskaair.com.

We know how important the Mileage Plan program is to you and truly
appreciate your business. We hope these changes will provide you the
well-deserved opportunity to enjoy the privileges of Mileage Plan
membership for many years to come while preserving the benefits that
have earned Mileage Plan distinction as the industry's leading
frequent flyer program. Thank you for flying with us. We look forward
to earning your continued loyalty.

Sincerely,

Your Alaska Airlines Mileage Plan Team