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                                                                    EXHIBIT 99.1

                                ALASKA AIR GROUP

                                      NEWS


CONTACT: Lou Cancelmi
         206/433-3170

FOR IMMEDIATE RELEASE                                             August 7, 1996


                   ALASKA AMENDS STOCKHOLDER RIGHTS AGREEMENT

         SEATTLE -- Alaska Air Group, Inc. announced today that its board of
directors has adopted an amended and restated stockholder rights agreement
designed to protect stockholders from coercive takeover tactics. The amended and
restated agreement replaces the company's current rights plan that expires in
December 1996. The rights are similar to those adopted by many public companies.

         In making the announcement, the company said it is not aware of any
effort to gain control of the company. The rights will be exercisable only if a
person or group acquires 20% or more of Alaska Air Group's common stock or
announces a tender offer that would result in ownership by a person or group of
20% or more of the common stock. Details of the rights are outlined in the
company's filings with the Securities and Exchange Commission.

         "The rights are designed to assure that all of Alaska Air Group's
stockholders receive fair and equal treatment in the event of any proposed
takeover of the company," said John F. Kelly, chairman, president and chief
executive officer. "The rights are not designed to prevent an acquisition of the
company, but rather to provide adequate time for the board and stockholders to
evaluate the fairness of a proposal."

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                     P. O. Box 68947, Seattle, WA 98168-0947