ALASKA AIR GROUP INC

The Board and its committees engage in a robust Board and committee assessment process each year. This process is designed to elicit candid feedback regarding the areas in which the Board and its committees are doing well and areas in which it could improve. Some of the topics covered in the assessment include: Board and committee structure, size, composition, skills, diversity and succession planning, the effectiveness of board and committee chairs, board strategy and risk oversight, board agenda, meetings and presentations and board interactions with management.

The Corporate Secretary's office reviews and summarizes responses from each director's assessment for the Board Chair, the Governance, Nominating and Corporate Responsibility Committee and each of the committee chairs. The Governance, Nominating and Corporate Responsibility Committee, along with the Board Chair discuss the results of all self-assessments and leads a discussion at the board meeting with all directors on the results. Each committee chair also discusses the results separately with the respective committee.

These results have consistently found that the Board and its committees are operating effectively. If there is a need to address concerns or areas for improvement identified in the self-assessment results, the Board Chair leads a discussion with directors and ensures appropriate action is taken.

Director Orientation and Continuing Education

New directors participate in one-on-one introductory meetings with executive leaders and are given presentations on the Company’s strategic plans, financial statements, safety culture and other key issues.

Directors are encouraged to enroll in continuing education programs on corporate governance and other critical issues associated with their service on the Company’s board.