TO: Mara Ransom & Mathew Bazley, SEC Staff DATE: April 30, 2004 On April 28, 2004 at 11:46 AM, I received a telephone call from Mr. Stephen Walsh of the New York Stock Exchange. Mr. Walsh's call was in response to a telephone message I had left earlier at his office. We discussed the circumstances surrounding the challenger proxy solicitation at Alaska Air Group in 2003 and 2004. I informed him that we had not yet filed a definitive form of proxy. However, we would inform him and the exchange as soon as that happened. I asked him about the NYSE position regarding our contested election in 2004. He told me that the exchange had not changed its position in the last year. It would not classify our solicitation a "contest" which under its rules would prevent its members from voting the "Broker Vote" for management's candidates for election to the board of directors. I asked Mr. Walsh about the NYSE's Rules at 402.00 and 402.06 (A) (3) (last Modified 5/16/2003) which states the conditions under which a member organization may vote without customer instructions RULE 452. Specifically how the exchange could claim that they had not and would not acknowledge that item (3) of rule 452 applied when we had in fact informed them that a "contested" solicitation had been declared by the company, the challengers and the SEC. His answer was to simply repeat that the exchange would not consider our challenge to fall under its definition unless we qualified under its interpretation of its rule which essentially says we would have to pay for a printing and mailing to all shareholders whose shares are held by the client brokers, banks and etc. of the exchange, and agreed to pay an additional unspecified fee for undefined "reasonable clerical expenses." I pointed out to Mr. Walsh that we intended to operate an Internet-only contest and that we would electronically inform the exchange and all the clients of the exchange via electronic means and this was the only fair, practical, and economic means available to us as small shareholders. I told Mr. Walsh that it was our opinion that along with the many other restrictions on who can and who cannot buy securities, that we believed all investors should be required to maintain a working Internet email address by which they would receive all communications regarding their investments. Further, that this is very reasonable when tens of millions homes in America have Internet access, and the number coming online is increasing exponentially. Any citizen is free to avail themselves of their local public library, which provides free access to the Internet where free email accounts are available. This new system would reduce the costs to companies by billions of dollars a year by eliminating massive printings and mailings that only a few shareholders bother to read. Why not post it on the Internet fence and let those who care to know choose to read it for themselves. Why should shareholders be forced to pay an unjust tax of the cost to maintain an antiquated proxy system? I expressed to Mr. Walsh that the NYSE was, in my opinion, missing out on a great opportunity. I suggested the NYSE should take over the responsibility of providing, operating, and maintaining a free-to-all-investors electronic polling place with electronic universal proxy statements and electronic universal ballots. Further, that this new system should replace all horse and buggy methods of the previous century from a time when only a small portion of the population had telephone service, and could only be communicated with by U. S. Mail. From the sounds emanating from the telephone I could only conclude that Mr. Walsh had no desire to make any verbal comment on that issue. Mr. Walsh pointed out to me that the NYSE had made some rule changes regarding prohibiting its members voting on issues regarding compensation. Mr. Walsh can be contacted at (212-656-6240). He may be sent a Facsimile transmission of a written document at (212) 656- 2839. Sincerely, Richard D. Foley ///////////////////////\\\\\\\\\\\\\\\\\\\\\ May 13, 2004 JOHN CHEVEDDEN 2215 Nelson Avenue, No. 205 Redondo Beach, CA 90278 310-371-7872 FX: 202-942-9525 6 Copies Office of Chief Counsel Division of Corporation Finance Securities and Exchange Commission 450 Fifth Street, NW Washington, DC 20549 Ladies and Gentlemen: This is to respectfully request the view from the Staff on whether the presentation and discussion of ballot items regarding directors standing for election, company compensation plans for shareholder approval and rule 14a-8 shareholder proposals is required to be presented and discussed immediately after each ballot item is introduced in the formal part of the annual meeting and thus before the random question and answer session. I believe that rule 14a-8 requires that shareholder proposals be introduced, presented and discussed in the formal part of the annual meeting before the random question and answer session. From reports of previous company annual meetings, discussion of each ballot item is not allowed at the time each item is introduced by the meeting chairman. To the contrary, discussion is postponed until the random question and answer session. Thus the ballot items must compete in a haphazard order with non-substantive issues such as the quality of coffee. It does not seem to be an orderly manner to conduct an annual meeting by announcing a ballot item followed by a de facto announcement that all discussion will be conducted 30-minutes later--provided there is time after random comments on coffee, meeting directions and company history. This is to respectfully request the view from the Staff. The company annual meeting is May 18, 2004. Sincerely, /s/ John Chevedden Shareholder cc: William Ayer Chairman Alaska Air Group, Inc. (ALK) 19300 Pacific Highway South Seattle, WA 98188 PH: 206-431-7040 FX: 206-433-3379 Keith Loveless, Corporate Secretary PH: 206-392-5218-7218 FX: 206-431-3807 Shannon Alberts, Assistant Corporate Secretary PH: 206-433- 3200, x 25218 FX: 206-392-5807 Steve Nieman, Shareholder //////////////////////\\\\\\\\\\\\\\\\\\\ From: Steve Nieman Date: Mon May 10, 2004 5:38:31 PM US/Pacific To: various parties Subject: Voting Instructions Just Received from Putnam! Howdy All, We finally got a voting procedure (two full business days before the May 13th deadline) for employees at Alaska/Horizon to vote their shares. I plan to overnight mail my proxy card downloaded and printed from www.votepal.com to the EquiServe address below. It is the only way for 401(k) shares to be voted for the Challengers and proposals 11 & 12. You cannot vote 401(k) shares at the stockholders meeting on May 18th. If at all possible--PLEASE VOTE YOUR 401(k) SHARES THIS WAY (IF YOU CHOOSE TO VOTE FOR ANY OF THE CHALLENGER CANDIDATES OR PROPOSALS 11 & 12). We need to establish with the SEC and US Dept's of Labor and Justice that this procedure was woefully inadequate for the proper exercise of worker shareholder rights of almost 1.7 million shares (6.2% of the outstanding total). If you have already voted--you have the right to vote again (last proxy ballot voted counts per SEC rules). Get involved! please! If you value freedom and liberty-- you deserve a lot better from what the "system" has provided you. Also, if you're concerned about your job and pension, retaining the ability to exercise your full rights as a shareholder are critical. Determining who sits on the AAG, Inc. board is included in these rights. There will be lots to do after this year's proxy contest is over. Helping a little right now will go a long way. Thanks much~~Steve Nieman, Richard Foley, Dr. Bob Osborne and Terry Dayton p.s. Please forward this to Alaska/Horizon workers in your address book. That would really help... p.s.s. I think you're going to hear a lot more about what happened here today... ///////////////////////\\\\\\\\\\\\\\\\\\\\ Stephen Nieman 15204 NE 181st Loop Brush Prairie, WA 98606 Tuesday, May 4, 2004 VIA FACSIMILE to 206-392-5807 and Email Peter Kraus Senior Attorney Alaska Air Group, Inc. Box 68947, Seattle, WA 98168-0947 Re: Associated Request In Connection With The Demand For Inspection Of Certain Books And Records Dear Mr. Kraus: Today around 2:00 p.m., myself and Richard Foley joined a conference call arranged by Alaska Air Group with yourself, Shannon Alberts and Bill Gleeson. We discussed your providing us with a written estimate of the cost of supplying me with the shareholders list(s) requested in my April 28, 2004 letter to you. Additionally, we are requesting that you provide us with the estimated cost of putting a link to the Challengers' proxy statement and ballot card on Alaska Airline and Horizon Air's employee and public websites in order that worker 401(k) plan participants and the company's outside stockholders would be empowered to vote on all eight candidates running, as well as all eleven shareholder proposals. Thank you for agreeing to respond to our requests. We would appreciate a prompt response. Sincerely, /s/ Stephen Nieman cc: Richard Foley file www.votepal.com ///////////////\\\\\\\\\\\\\\\\\ Stephen Nieman 15204 N. E 181st Loop Bush Prairie, WA 98606 VIA FACSIMILE April 28, 2004 VIA OVERNIGHT DELIVERY Peter Kraus Senior Attorney Alaska Air Group, Inc. Box 68947, Seattle, WA 08168-0947 FAX: 206-392-5807 Re: Demand for Inspection of Certain Books and Records Encl: Proof of share ownership Dear Sir: The undersigned, a record holder of 980 shares of voting common stock (the "Shares"), par value $.01 per share, of Alaska Air, Inc., a Delaware corporation (the "Company"), hereby demands, pursuant to Section 220 of the General Corporation Law of the State of Delaware, that (1) originals or attested copies of the Company's stock ledger and a list of its shareholders be made available for inspection and copying by the undersigned or his attorneys or agents at the Company's principal place of business during usual business hours no later than May 4, 2004 [five business days from day letter is received by AAG] and from day to day thereafter during usual business hours until the inspection may be completed, or (2) the Company deliver copies of such records to the undersigned at the address shown above, to be updated from time to time thereafter as set forth below: Pursuant to Section 220 of the General Corporation Law of the State of Delaware, the undersigned is entitled to and demands as part of the foregoing: 1. A complete record or list of stockholders of the Company who hold 10 or more shares certified by its transfer agent showing the name and address of each such stockholder and the number of shares of stock registered in the name of each such stockholder as of the most recent date available. 2. All information in or which comes into the possession or control of the Company or its transfer agent, proxy solicitor or other agents, or which can be reasonably obtained from nominees of any central certificate depository system, broker, dealer, bank, clearing agency or voting trustee or any other nominees concerning the number or identity of the actual beneficial owners of the Company's common stock, including any breakdown of any holders in the name of Cede & Co. and any other similar securities depository or nominee. 3. All information in or which comes into the possession or control of the Company or its transfer agent, proxy solicitor or other agents concerning the name, address and number of shares of common stock attributable to any beneficial owner or employee of the Company entitled to direct the voting of any Company common stock pursuant to any dividend reinvestment, employee stock ownership, incentive, profit sharing, savings, retirement, stock option, stock purchase, restricted stock or other comparable plan and a copy of the material request form from ADP-Proxy Services. All information in or which comes into the possession or control of the Company or its transfer agent, proxy solicitor or other agents concerning the mechanism by which the beneficial owners or employees of the Company direct the voting of the shares of common stock of the Company pursuant to the plans referred to in this paragraph 3. 4. All information in or which comes into the possession or control of the Company or its transfer agent, proxy solicitor or other agents, or which can reasonably be obtained from brokers, dealers, banks, clearing agencies or voting trustees or their nominees or other nominees relating to the names of non-objecting beneficial owners of the Company's common stock in the format of a magnetic computer tape list and printout in descending order balance (such information being readily available to the Company under Rule 14b-1(b) of the Securities Exchange Act of 1934 from ADP-Proxy Services), including (but not limited to) all lists of such beneficial owners of common stock available to the Company pursuant to Rule 14b-1(b). 5. If any of the information referred to in paragraphs 1 through 4 above is maintained in computerized or other electronic form, such information shall be made available in such computerized or other electronic form, and shall be accompanied by a "hard copy" printout thereof and sufficient information to enable the information to be accessed in such computerized or other electronic form. The undersigned demands that modifications, additions or deletions to any and all information referred to in paragraphs 1 through 5 above be furnished to the undersigned as such modifications, additions or deletions become available to the Company or its transfer agent, proxy solicitor or other agent from the most recent date available as of the date of this demand to the date of the Company's 2004 annual meeting of stockholders (the "2004 Annual Meeting"). The purpose of this demand is to permit the undersigned to communicate with other stockholders of the Company on matters relating to their interests as stockholders, including communicating with such stockholders regarding a contested election" (the "Contested Election") submitted by the undersigned to be voted on by stockholders of the Company at the 2004 Annual Meeting. This demand should receive your immediate attention so that all of the Company's stockholders will have the benefit of information concerning the Contested Election as promptly as possible. This demand is not, and should not be construed as, a request for a list of the Company's stockholders or for a mailing of materials to the Company's stockholders pursuant to 15 C.F.R. ¤ 14a-7, promulgated pursuant to the Securities Exchange Act of 1934. Please advise the undersigned promptly, and in any event on or prior to the expiration of five business days after the date this demand is received by the Company, when and where the items demanded above will be made available to the undersigned and his designated agents. The undersigned can be reached on 360-687-3187 Please sign and date the enclosed copy of this letter to indicate your receipt hereof and return it to the undersigned in the self-addressed, stamped envelope provided. Very truly yours, /s/ Stephen Nieman Alaska Air Group, INC. Received by:____________________________ Name: :____________________________ Title: :____________________________ Dated: _______________________ STATE OF [Washington] ) ) ss: COUNTY OF CLARK ) Before me this day personally appeared Steve Nieman, who, being duly sworn, deposes and says that he is authorized to execute the foregoing Demand for Inspection of Certain Books and Records and to make the demand, designations, authorizations and representations contained therein, and that the facts and statements contained in the foregoing demand for such records are true and correct. ______________________________________ Stephen Nieman SWORN TO AND SUBSCRIBED before me this ____ day of April 28, 2004 __________________________________________ Notary Public __________________________________________ Printed Name of Notary My Commission Expires:_____________________ ////////////////\\\\\\\\\\\\\\\\\ Steve Nieman, Richard D. Foley, Robert C. Osborne M.D. and Terry K. Dayton are soliciting proxies for Alaska Air Group's, Inc. May 18, 2004 Annual Meeting. We strongly advise all shareholders to read the proxy statements. Our proxy statement is available at our web site . Feel free to download and print copies of any materials located there. For any further information, please email or write us at Box 602, Brush Prairie, WA 98606; fax (360) 666-6483; phone 1-866-2VOTEUS (1-866-286-8387).