Organization: Alaska Airlines

Year: 2020

Whereas: Whereas, we believe in full disclosure of Alaska Air Group's (AAG) direct and indirect lobbying activities and expenditures to assess whether its lobbying is consistent with its expressed goals and in stockholders' best interests.

Resolved: Resolved, the stockholders of AAG request the preparation of a report, updated annually, disclosing:1.Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.2.Payments by AAG used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.3.AAG's membership in and payments to any tax-exempt organization that writes and endorses model legislation.4.Description of management's and the Board's decision-making process and oversight for making payments described in sections 2 and 3 above.For purposes of this proposal, a grassroots lobbying communication is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. Indirect lobbying is lobbying engaged in by a trade association or other organization of which AAG is a member.Both direct and indirect lobbying and grassroots lobbying communications include efforts at the local, state and federal levels. Neither lobbying nor grassroots lobbying communications include efforts to participate or intervene in any political campaign or to influence the general public or any segment thereof with respect to an election or referendum.The report shall be presented to the Governance and Nominating Committee and posted on AAG's website.

Supporting Statement:AAG spent $3,870,000 from 2016 - 2018 on federal lobbying.1 This does not include state lobbying expenditures, where AAG also lobbies but disclosure is uneven or absent. For example, AAG spent $149,000 lobbying in Washington for 20182 and $464,383 on lobbying in California from 2010 - 2018.3AAG serves on the board of Airlines for America (A4A), which spent $15,133,100 on lobbying for 2017 and 2018.4 A4A's lobbying over passenger facility charges5 and against Massachusetts sick leave law6 has attracted media attention. AAG is also a member of the Aerospace Works for Washington, which lobbied against efforts to make $8.7 billion in Washington state aerospace tax breaks dependent on maintaining minimum employment levels in the state.7 AAG does not disclose its memberships in, or payments to, trade associations, or the amounts used for lobbying.We are concerned that AAG's lack of lobbying and trade association disclosure presents reputational risks. For example, AAG believe its success in part depends on its ability to develop relationships with customers by providing exceptional customer service and low fares, yet A4A successfully lobbied against legislation to mandate 'reasonable and proportional' baggage and change fees.8 As stockholders, we believe that companies should ensure there is alignment between their own positions and their lobbying, including through trade associations. 1 https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2018&id=D0000238192 https://pdc-lobbyist-app.s3-us-gov-west-1.amazonaws.com/paperl3s/image.5_61.pdf3 http://cal-access.sos.ca.gov/Lobbying/Employers/Detail.aspx?id=1143606&view=activity&session=20174 https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2018&id=D0000005455 https://www.travelweekly.com/Travel-News/Airline-News/PFC-redux6 https://www.courthousenews.com/airlines-call-out-massachusetts-sick-leave-law/7 https://www.reuters.com/article/us-boeing-incentives/boeing-lobby-group-team-up-to-defend-8-7-billion-in-state-tax-breaks- idUSKBN14U23V8 https://www.reuters.com/article/us-usa-airlines/u-s-airlines-score-win-as-congress-drops-reasonable-fee-rules-idUSKCN1M20NO