Cash Awards Total Nearly $54 Million For 2011

In the midst of airline bankruptcies and labor disputes, it was apparently a pretty good year for employees of Alaska Air Group. The company paid annual bonuses totaling $53.8 million Wednesday to nearly all of its 12,800 employees for exceeding the company's 2011 operational and financial goals. The bonus of about 6.7 percent of annual pay, or more than three weeks pay for most workers, is in addition to $1,000 in bonuses, on average, that each employee earned last year for achieving monthly on-time and customer satisfaction targets. The combined monthly and annual bonuses amounted to nearly $72 million.

"We received several top honors during the past year, including being named the most on-time major airline in North America for the second year in a row and winning our fourth straight J.D. Power award for customer service," said Brad Tilden, Alaska Air Group's CEO-elect and president of Alaska Airlines. "We earned these awards because of the hard work and dedication of our people. I want to thank them for their focus on running a safe and on-time operation, and for their commitment to our customers."

Nearly $33 million in annual bonuses — 61 percent of the total — is being paid to some 6,300 Alaska Airlines and Horizon Air employees in the Puget Sound area. Another $7.6 million is being paid to employees in the Portland, Ore., area while $5.3 million is going to workers throughout the state of Alaska.

"We're pleased to reward our employees for their outstanding efforts and hope these bonuses bring an added economic stimulus to businesses in the communities we serve," Chief Financial Officer Brandon Pedersen said.

Bonuses in Alaska Air Group's Performance Based Pay Plan are determined by meeting specific company-wide goals for safety, customer satisfaction, cost control and profit that are approved annually by the board of directors. Annual bonuses have averaged 5 percent since the plan was formed in 2003.

FMI: www.alaskaair.com