Alaska Air Group, Inc. – ‘10-Q’ for 3/31/05 – EX-18.1

On:  Friday, 5/6/05, at 4:34pm ET   ·   For:  3/31/05   ·   Accession #:  891020-5-145   ·   File #:  1-08957

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Quarterly Report   —   Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    295K 
 2: EX-10.1     Material Contract                                    146    526K 
 3: EX-18.1     Letter re: Change in Accounting Principles             1      9K 
 4: EX-31.1     Certification per Sarbanes-Oxley Act (Section 302)     2±    10K 
 5: EX-31.2     Certification per Sarbanes-Oxley Act (Section 302)     2±    10K 
 6: EX-32.1     Certification per Sarbanes-Oxley Act (Section 906)     1      7K 
 7: EX-32.2     Certification per Sarbanes-Oxley Act (Section 906)     1      7K 

EX-18.1   —   Letter re: Change in Accounting Principles

EX-18.1
TOC
↑Top
Previous
Next
↓Bottom
Just 1st
 
EXHIBIT 18.1                                                                    

LETTER FROM KPMG LLP REGARDING CHANGE IN ACCOUNTING PRINCIPLE                   

May 6, 2005                                                                     

Alaska Air Group, Inc.                                                          
Seattle, Washington                                                             

Ladies and Gentlemen:                                                           

We have been furnished with a copy of the quarterly report on Form 10-Q of      
Alaska Air Group, Inc. (the "Company") for the three months ended March 31,     
2005, and have read the Company's statements contained in Note 2 to the         
condensed consolidated financial statements included therein. As stated in Note 
2, the Company changed its method of accounting for major airframe and engine   
overhauls from the capitalize and amortize method to the direct expense method. 
Under the new accounting method, overhaul costs are recognized as expense as    
maintenance services are performed. Also, as stated in Note 2, the Company      
believes that the newly adopted accounting principle is preferable because it   
eliminates the judgment and estimation needed to determine overhaul versus      
repair allocations in maintenance activities. Additionally, the Company's       
approved maintenance program for the majority of its airframes now focuses more 
on shorter, but more frequent, maintenance visits that result in a higher       
portion of the work being repair activity. Management of the Company also       
believes that the direct expense method is the predominant method used in the   
airline industry. In accordance with your request, we have reviewed and         
discussed with Company officials the circumstances and business judgment and    
planning upon which the decision to make this change in the method of accounting
was based.                                                                      

We have not audited any financial statements of the Company as of any date or   
for any period subsequent to December 31, 2004, nor have we audited the         
information set forth in the aforementioned Note 2 to the condensed consolidated
financial statements; accordingly, we do not express an opinion concerning the  
factual information contained therein.                                          

With regard to the aforementioned accounting change, authoritative criteria have
not been established for evaluating the preferability of one acceptable method  
of accounting over another acceptable method. However, for purposes of the      
Company's compliance with the requirements of the Securities and Exchange       
Commission, we are furnishing this letter.                                      

Based on our review and discussion, with reliance on management's business      
judgment and planning, we concur that the newly adopted method of accounting is 
preferable in the Company's circumstances.                                      

Very truly yours,                                                               

(signed) KPMG LLP                                                               

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing		Date		Other Filings
Filed on:		5/6/05
For Period End:		3/31/05		SC 13G/A
		12/31/04		10-K,  5
				List all Filings