Pilots picket Alaska Air meeting

ANCHORAGE — Dozens of pilots in their dark-blue uniforms and caps formed picket lines Tuesday outside Alaska Air Group's annual shareholder meeting, held this year in Anchorage to mark the company's 75th anniversary.

Two years ago, pilots had to take an average 26 percent pay cut. Now that the Seattle-based company is making money, the pilots contend it is time the company gave back.

"We are two years into a contract that was imposed," said pilot Sean Cassidy, 42, of Tacoma, vice chairman of the Air Line Pilots Association. "Since then, we haven't had as much as a cost-of-living increase."

Alaska Air Group, parent of Alaska Airlines and Horizon Air, wants to reach a contract that won't increase costs.

"We want a deal that basically keeps costs where they are today," Chairman and CEO Bill Ayer told reporters.

The company's approximately 1,500 pilots took pay cuts ranging from 19 to 34 percent. Alaska argued successfully for the pay cuts, which were imposed by an arbitrator. The contract became amendable May 1.

Pilots and management began negotiating in January. Several big issues, including pay and retirement benefits, are unresolved, the union said.

Cassidy said the "cost-neutral" contract the company wants means that even if pilots are offered more money, they face other concessions, most likely in work rules, retirement plans, health benefits or job security.

"We feel the way we've been treated since 2005 is not right, it's not fair," he said.

Two groups of about 30 pilots each formed picket lines on both sides of a downtown hotel where shareholders were meeting. One female pilot carrying a baby held a sign that read, "We love our company but we love our families more."

For the first time last year, Alaska Air Group's total revenue exceeded $3 billion, contributing to an adjusted net profit of $137.7 million, according to the 2006 annual report.

Chief Financial Officer Brad Tilden said he expects 2007 also will be profitable.

Ayer said many legacy carriers have emerged from bankruptcy with much lower costs after shedding their retirement plans.

Alaska Air Group's pilot costs continue to be on the high end, Ayer said. Pilots make an average $118,000 a year, according to company officials.