The story
Founded by Linious McGee in 1932, in Anchorage.1
Early years (1932–1945)
McGee Airways, a precursor to Alaska Airlines, was established by Linious "Mac" McGee and flew its first service between Anchorage and Bristol Bay. Service was unscheduled, with flights taking off when passengers, a load of cargo, or mail needed passage.
The airline struggled financially during the Great Depression. Too many airlines were in Anchorage at the time, with not enough demand to support them. As a result, the airline underwent multiple mergers. The first of these mergers was in 1934, when McGee sold his namesake airline for US$50,000 (equivalent to $1,203,358 in 2025) to Star Air Service, an airline also located in Anchorage. This allowed McGee to enter the mining industry. With a fleet of 15 aircraft, Star Air Service was a dominant airline in Alaska, but the airline continued to struggle financially because of high maintenance costs for its wood-and-fabric planes.
In 1937, McGee came back to the airline and opened a liquor store, and the airline began flying liquor to remote Alaskan communities. That year, Star Air Service purchased Alaska Interior Airlines and was incorporated as Star Air Lines. Star was again sold later that year to a group of miners.
In 1938, federal regulation began when Congress created the Civil Aeronautics Board (CAB), which awarded the airline most of the routes that it wanted in Alaska, but the coveted route between Seattle and Fairbanks was awarded to Pan American Airways.
In 1941, Star Air Service was purchased by Raymond Marshall, a businessman from New York City. In 1942, the airline purchased three other airlines in Alaska, including Lavery Air Service, Mirow Air Service, and Pollack Flying Service. They also purchased a hangar at the Anchorage airport. In 1942, the airline's name was changed to Alaska Star Airlines.
When the United States entered World War II in December 1941, Alaska Airlines faced a shortage of pilots. During the war, the airline lacked funds and equipment, and pilots were often forced to buy fuel for their planes out of their own pockets. The company, which was frequently subjected to lawsuits, also went through many different presidents during this time. In 1943, Alaska Airlines purchased the Lockheed Model 18 Lodestar, its first multi-engine aircraft. That same year, the company's stock was traded for the first time on the American Stock Exchange.
The name Alaska Airlines was adopted on May 2, 1944, having narrowly beaten a competitor who was applying for the name. In the 1940s, Alaska's headquarters were in Anchorage.
Expansion after World War II (1945–1949)
In 1945, Alaska Airlines hired its first stewardesses. In 1947, James Wooten became president of the airline and began an effort to expand the company. Under his leadership, the airline purchased many surplus military aircraft from the government that had been used during World War II. The airline purchased Douglas DC-3s, Douglas DC-4s, and Curtiss-Wright C-46 Commandos. Alaska Airlines was the first carrier certified to operate DC-3s on skis.
Read the full text
Alaska Airlines' large charter business made it profitable, and the airline moved its base of operations to Paine Field, an airport, in Everett, Washington, north of Seattle. It kept a branch office in Anchorage. Despite its success, Alaska Airlines' worldwide charter business was short-lived. In 1949, the CAB tightened its regulations and placed heavy fines on the airline, shutting down the charter service completely for safety violations, and president James Wooten left the company. Also in 1949, Alaska Air began operating five Bell 47B helicopters to support oil exploration on the North Slope thus becoming the first airline in Alaska to operate rotary-wing aircraft.
In 1949, the airline was a major participant in an effort by the newly established state of Israel to airlift Jews out of Yemen to Israel in what became known as Operation Magic Carpet. C-46 or DC-4 aircraft were used for the nearly 3,000-mile flight, made necessary to avoid overflying Arab nations. Planes flew from Eritrea to Aden, then along the Gulf of Aqaba to Tel Aviv. After unloading the refugees, crews then immediately continued to Cyprus, afraid to stay on the ground in Tel Aviv for fear of being bombed. Some 49,000 Yemenite Jews were airlifted by Alaska Airlines and other carriers without a single loss of life.
New leadership (1950s)
Alaska Airlines started the 1950s without its worldwide charter business and operations restricted to the state of Alaska. In 1950, it purchased two smaller Alaskan airlines, Collins Air Service and Al Jones Airways.
Though the airline had grown much under the ownership of Raymond Marshall, the CAB forced him out in 1951 due to continuing financial troubles. Marshall had owned Alaska Airlines with the intent of getting money for himself and he was not concerned about the long-term stability of the company. In 1951, the CAB awarded Alaska Airlines with a temporary certificate allowing them to operate on routes from the Alaskan cities of Anchorage and Fairbanks to Seattle and Portland in the contiguous United States. This award became permanent in 1957.
In 1952, the CAB appointed Nelson David as president, and he began to improve the financial stability of the airline. By 1957, with the carrier in a better financial situation, David left and Charles Willis Jr., became the company's new president and CEO. Willis was a highly decorated naval aviator in World War II, founder of his own cargo airline, Willis Air Service (1945–1949), and a former political operative for President Eisenhower. Willis introduced several marketing gimmicks that set the airline apart from other ones of the day; namely, under his leadership, Alaska Airlines became the first to show inflight movies. The company began service with the Douglas DC-6, the airline's first pressurized plane, enabling flights above clouds and weather disturbances. On these DC-6s, the airline introduced "Golden Nugget" service, which included an on-board saloon and piano.
Jet age (1960s)
In 1961, competitors began introducing jets on routes Alaska Airlines flew. To counter this competition, Willis negotiated with aircraft manufacturer Convair to purchase a Convair 880 jetliner with no money down, for use on routes between Alaska and the contiguous United States. The company introduced the new jet aircraft in 1961. In 1966 the company received its first Boeing 727-100 jets. They removed the Convair 880 from the fleet as a financing condition by Boeing concerning the purchase of the 727 jetliners. Several of Alaska's first 727s were series 100C models, which could be operated as all-cargo freighters, an all-passenger configuration or as mixed passenger/freight combi aircraft.
In the spring of 1967, greatly increased passenger loads required a quick addition of fleet aircraft. Alaska purchased a Convair 990 jetliner, formerly operated by Brazilian air carrier Varig as PP-VJE, which then became Alaska Airlines N987AS. This aircraft remained in service along with an increased fleet of Boeing 727-100s. They were joined by stretched Boeing 727-200s which became Alaska Airlines' signature aircraft for the next 25 years. It became the first carrier to fly the Lockheed L-100 Hercules L382 model, the civil version of the military C-130 cargo turboprop, which was used to transport oil drilling rigs to Alaska's North Slope and later to Ecuador.
Alaska also owned Lockheed Constellation propliners including two Lockheed L-1649A Starliners from 1962 to 1968, and three L-1049's which were used for Military Air Transport Service operations. Smaller prop and turboprop aircraft were operated, including the Convair 240, de Havilland Canada DHC-6 Twin Otter and Super Catalina amphibian aircraft as well as two versions of the Grumman Goose amphibian aircraft, one with piston engines and the other model is a conversion to turboprop engines which the airline called the "Turbo-Goose". The Catalina and Grumman amphibian seaplane aircraft joined the fleet when the airline acquired local southeast Alaska operator Alaska Coastal Airlines in 1968.
During this time, Alaska Air faced some tough competition from other airlines, such as Northwest Airlines, Pan Am, and Pacific Northern Airlines, an Alaska-based air carrier operating Boeing 720 jetliners that was acquired by and merged into Western Airlines in 1967. Northwest and Pan Am at different times operated Boeing 747 wide-body jetliners on their services to Alaska with Northwest flying Seattle–Anchorage nonstop with the jumbo jet and Pan Am flying Seattle–Fairbanks nonstop with the 747. To set itself apart from the competition, Alaska Air turned to some cheap but imaginative gimmicks such as having safety instructions read as rhymes, staging fashion shows in the aisles, and having bingo games on board while en route.
In December 1962, Air Guinée signed a contract with Alaska Airlines, which had Alaska Airlines providing management expertise, in addition to two Douglas DC-4s. The deal would have had Alaska Airlines contracting with the airline over seven years. The contract ended after six months, leading to the United States Agency for International Development paying a US$700,000 debt owed by the Guinean airline to Alaska Airlines.
In 1965, Alaska Airlines turned over some routes between small Alaskan communities, and some smaller aircraft, to Wien Air Alaska. This allowed Alaska to focus on more heavily travelled routes and allowed them to sell off smaller aircraft.
Throughout the 1960s, Alaska Airlines worked to promote tourism to Alaska by offering charter flights to the continental United States. In an attempt to increase the state's appeal, Alaska Airlines conducted a promotional tour of Japan in 1963. In 1967, as the state of Alaska celebrated its centennial, Alaska Airlines introduced a promotional "Gay Nineties" theme with stewardesses dressed in Edwardian outfits. That year, Alaska Airlines expanded to southeast Alaska with the introduction of service to Sitka. This led to the purchase of two smaller airlines, Alaska Coastal Airlines and Cordova Airlines, in 1968.
Economic hardship (1970s)
In the beginning of the 1970s, Alaska Airlines began Boeing 707 charter flights to Siberia in the Soviet Union. This was the result of three years of secret negotiations between Alaska Airlines and Soviet authorities, in which the US Department of State reluctantly chose not to block the plan for fear of a potentially negative response from the Soviets. The airline gained permission to fly more than two dozen flights in 1970, 1971, and 1972. Alaska Airlines was also operating Boeing 707, Boeing 720, and Boeing 720B jetliners in scheduled passenger service between destinations in Alaska and Seattle during the early and mid 1970s.
Like much of the airline industry at the time, Alaska Airlines was hit with rising fuel and operating costs and was on the verge of bankruptcy. Additionally, revenues were significantly reduced when work on the Trans-Alaska Pipeline System was delayed. The airline's cargo aircraft had played a key role in building the pipeline, but now sat idle. The airline took another blow on September 4, 1971, when a Boeing 727-100 jetliner crashed on landing in Juneau, killing 111 people and resulting in America's worst single-plane crash at the time. Because the airline was struggling financially, Alaska Airlines' board ousted president and CEO Charles Willis. Former board member Ronald Cosgrave succeeded him.
The airline was US$22 million in debt when Cosgrave took over, resulting in major cuts. The airline's cargo business was dropped completely, as were many flights and employees. Cosgrave also sought to improve the airline's tarnished image of "Elastic Airlines", referring to its poor schedule keeping. The logo was changed to an image of a smiling Inuk man, which remains today. Although the exact identity of the man is unknown, some believe it to be the face of either Chester Seveck, a reindeer herder in Kotzebue, or Oliver Amouak, an Inupiat man. Both were Alaskan natives. As a result of these efforts, the airline made a profit in 1973 and continued to be profitable thereafter.
Post-deregulation expansion (1978–1990)
Alaska Airlines was one of only three US carriers that supported the 1978 Airline Deregulation Act, knowing that it would reap significant growth and other benefits from deregulation. After deregulation, the company's real-estate division was spun off into its own company, with Cosgrave becoming its chairman. The leadership of the airline was passed to Bruce Kennedy, a close associate of Cosgrave. Cosgrave allied with Alaska Airlines to purchase competitor Wien Air Alaska. This ultimately failed and resulted in fines for Alaska Air and its leaders for improprieties during the attempted acquisition. Wien Air was liquidated in 1984, and never merged into Alaska Airlines.
At the time of deregulation, Alaska Airlines served ten cities in Alaska and one in the contiguous US—the city of Seattle—and it had only ten planes in its fleet. Immediately after deregulation, the airline began to expand, adding the cities of Portland and San Francisco to its network. Soon later, the airline resumed services to the Alaskan cities Nome and Kotzebue, and it introduced service to Palm Springs, California. Burbank and Ontario were added in 1981. In 1979, Alaska studied the possibility of acquiring and merging with Hughes Air West, but the plan never went through. By 1985, the airline had also added service to Oakland and San Jose in California, Spokane in Washington, Boise in Idaho, and Phoenix and Tucson in Arizona.
Deregulation also brought challenges to the airline. The airline was faced with increased competition and inflation that put tremendous pressure on costs, profits, and salaries. By 1979, competitors Northwest Airlines and Western Airlines were both flying wide-body McDonnell Douglas DC-10 jets on the core Anchorage–Seattle nonstop route. Additional competition came from Wien Air Alaska, which had begun flying nonstop jet service between Anchorage and Seattle. Northwest was operating nonstop DC-10 service on the Fairbanks–Seattle route at this time as well. There were tensions with unions, particularly mechanics and flight attendants. In 1985, the company had a three-month-long strike with its machinists. By June 1985, it was able to end the strike by promising to reduce labor costs and maintain peace with unions. In November 1985, the airline introduced a daily air-freight service called Gold Streak, with service to and from Alaska.
In the 1980s, Alaska Airlines began acquiring McDonnell Douglas MD-80s to replace its aging 727s. Alaska was the launch customer for the MD-83, taking delivery of its first MD-80s in 1985.
Also in 1985, the Alaska Air Group was formed as a holding company for Alaska Airlines. In 1986 Alaska Air Group acquired regional airline Horizon Air, which remained a separate brand from Alaska Airlines. Since then, both airlines have been subsidiaries of Alaska Air Group. In 1987, Alaska Airlines purchased Jet America Airlines. Alaska initially operated Jet America as a separate airline, but this proved economically unviable and Jet America's operations were merged into Alaska's. Alaska discontinued all flights to the Midwest and the East coast formerly operated by Jet America. Additional MD-80s entered the fleet via the acquisition of Jet America Airlines in 1987.
To compensate for a major seasonal imbalance in travel to Alaska (mostly taking place in the summer), the airline introduced service to Mexican resort cities, where most travel takes place in the winter. In 1988, the airline began servicing the Mexican resort cities of Mazatlán and Puerto Vallarta. By the end of the 1980s, 70 percent of Alaska Airlines' passengers flew south of Seattle and the airline served 30 cities in 6 states outside Alaska.
New competition, new technologies (1990s)
The airline began the 1990s with plans to lease 24 Boeing 737-400s from International Lease Finance Corporation (ILFC). The first aircraft was delivered in April 1992.
In 1991, Alaska Airlines added several routes. In the Russian Far East, it added the cities of Magadan and Khabarovsk, as well as service to Toronto, its first Canadian city and the first city east of the Rocky Mountains. Toronto was later dropped in 1992 and the Russian destinations were discontinued in 1998.
As the airline marked its 19th consecutive year of profits in a turbulent industry and racked up many awards for customer service, Bruce Kennedy retired in May 1991 and was succeeded by Raymond J. Vecci.
During this time, Alaska Airlines faced increased competition from low-cost carriers, namely MarkAir. Since it began operating in 1984, competition had been reduced due to feeder agreements with Alaska Airlines. However, after Alaska Air declined to buy the airline in the fall of 1991, competition with Alaska intensified. MarkAir offered low-cost service on the Anchorage-Seattle route and other routes in Alaska, where Alaska Airlines earned almost one-third of its revenues. For the first time in 20 years, it posted a loss of US$121 million.
To save money, the airline canceled two proposed maintenance facilities and deferred a large aircraft purchase worth US$2 billion. Deferred maintenance from this period of cost-cutting would ultimately cause the crash of Flight 261 in 2000, but at the time, this increased the usability of their fleet, and as a result, revenue. The deferred maintenance also cut labor costs, saving the airline money but increasing tensions between the airline and labor unions. The cost reductions produced quick results. In 1993, their losses decreased to US$45 million and they made a US$40 million profit the next year. Eight percent of these revenues were generated by record-setting cargo operations.
Alaska had more competition in 1993 when low-cost airline Southwest Airlines entered the Pacific Northwest by purchasing Morris Air. Alaska Airlines was able to keep its costs down, but it maintained its high level of customer service. The airline promoted itself as "the last great airline" and with the motto "For the same price, you just get more". Analysts felt that Alaska Air needed deeper cost cuts. At the same time, the company had many strikes by the flight attendants' union. Ultimately, Vecci was dismissed in 1995 and replaced with John Kelly, the former Horizon Air CEO. The airline soon expanded West Coast routes to take advantage of an "open skies" agreement between the US and Canada.
Alaska continued to take delivery of new MD-83s during the 1990s, both to meet the demands of a growing route system and to replace its aging and fuel inefficient 727 fleets. Their last 727 was retired in March 1994. The airline's MD-80 fleet peaked at 44 aircraft in 1996.
Alaska Airlines pioneered some new technologies through the 1990s. It added a heads-up guidance system in 1989 to operate better in foggy conditions, becoming the first airline to use this technology. In 1995, the airline became the first U.S. airline to sell tickets on the Internet. By 2000, all the airline's planes carried automated external defibrillators, for use in in-flight emergencies. The airline installed self-service kiosks called "Instant Travel Machines" that printed boarding passes, allowing customers to bypass the traditional ticket counter. An X-ray device, an addition to the unit allowing passengers to check their own baggage was being tested in 1999 at Anchorage.
From Wikipedia’s article on Alaska Airlines, shared under CC BY-SA 4.0.7