Ayer Steps Up As Alaska Airlines CEO

Alaska Airlines, the ninth-largest U.S. carrier, late last month announced a series of executive promotions, including William Ayer to the CEO post. Alaska is the sixth major domestic carrier within the past 12 months to name a new top executive.

Ayer, who will continue serving as the carrier's president, replaces John Kelly, who remains chairman, CEO and president of parent company Alaska Air Group. Kelly also now will focus on strategic planning, finance and government affairs.

In a 20-year career at Alaska and sister carrier Horizon Air, Ayer has held executive positions in finance, customer service, operations, sales, marketing and planning. He takes the helm after Alaska Air Group announced a fourth-quarter net loss of $36.4 million and a full-year loss of $39.5 million, significantly better than most major carriers. The carrier last week also announced January traffic improved year over year, its first monthly gain since Sept. 11.

"We are in the process of implementing our Seattle strategy," Ayer told BTN, citing new nonstop service to both Denver and Boston. "But in 2002, 91 percent of our available seat miles still will be in the north-south route system on the West Coast. We do not plan to get that big on the East Coast." Overall, Ayer expects Alaska's capacity to increase 7 percent to 8 percent this year. "Given the fact that we dropped less, it is reasonable to think we'll come back sooner," he said, referring to recovery prospects.

Additional priorities involve technology solutions, including a streamlined airport experience. Regarding one of the industry's most discussed topics, the complexity of airline pricing, Ayer said, "In the few places where we have the ability to set fares, we try to have a simple fare structure. The big gap between business and leisure fares alienates many business travelers and we'd like to avoid that."

In other news about airline leaders, UAL Corp. CEO John Creighton, after three months on the job (BTN, Nov. 12, 2001), announced a management realignment that includes president Rono Dutta directing all sales and revenue-generating activities. Dutta will lead the new Strategic Initiatives Group focused on returning United Airlines to profitability. UAL earlier this month reported a 2001 full-year net loss of $2.1 billion.

"These management changes centralize all operational responsibilities in one organization and all revenue-producing operations in another organization," said UAL Corp. CFO Jake Brace.

Frontier Airlines, chief rival at United's Denver hub, last week said current president and COO Jeff Potter on April 1 also will take on CEO duties shed by founder and still chairman Sam Addoms.