Airport Recovery Plan: FlyHealthy@SEA
Port of Seattle Commission
May 12, 2020

Lance Lyttle, Aviation Managing Director
Julie Collins, Aviation Customer Experience Director
1

COVID-19 Paradigm Shift:
Evolving Customer Expectations:
Airport will be safe/clean
People who choose to travel are healthy
No crowds will be allowed to gather
People working at the airport are healthy
Working with collaboration and urgency to advance consistent solutions
2

FlyHealthy@SEA: Goals
Restore customer confidence in air travel
Ensure confidence for airport-wide employees, tenants and
contractors
Maintain a safe and healthy airport environment
Renew enthusiasm for travel
Return passenger volumes and economic vitality
Achieving the FlyHealthy@SEA goals will require a multi-faceted and multi-phased approach.
The first sentence in the SEA brand position statement, "At SEA, we demonstrate a shared passion for the well-being of
customers", will drive our actions and messages.
3

FlyHealthy@SEA: Three-Prong Approach
Airport and          National and International
Airline Industry         Industry Focus (e.g. ACI-led
Recovery/Resumption of Service
Coordination         Task Force)


POS Port-Wide Recovery
Steering Committee
FlyHealthy@        POS Corporate    Sub-Groups (Facilities,
Coordination         Technology/Systems, People)
SEA                  POS Economic Dev. Recovery
Plan
Restoring Customer
Confidence

FlyHealthy@SE
A Subcom-
mittees


4

Aviation Division Organizing Structure:



5

Arrival & Transportation           Ticketing                Security
Parking                                                                                     TSA
Ground Transportation                               Airline and Baggage Check In           CBP
Public Transit                                                                                        Expedited Screening Programs



Nursing Suites and Children's Play Area
Restrooms, Hold Rooms and Airline Lounges
Accessibility Services, Power Charging Stations and Seating
Baggage Claim      Janitorial Services for                                     Airport
& Beyond          Airport Services & Amenities                     Dining & Retail

5/9/20

FlyHealthy@SEA: Promoting Healthy Habits
Providing a healthy travel experience requires collaboration and
consistency across the airport.
Improving our facilities
Revising our policies and practices
Informing our customers and employees
7

IMPROVING OUR FACILITIES
Laurel Dunphy, Director
Aviation Operations



8

FlyHealthy@SEA: Initial Actions
Increased cleaning frequency & strength of products
Installed over 200 hand sanitizers
Physical distancing in security queues, shuttles, and
non-hold room/dining seating
Temporarily relocated airport wide employee parking
Installed sneeze guards at cashiers in parking garage
Encouraged touchless (credit card) transactions
Enhanced digital signage



9

FlyHealthy@SEA: by June 1
Terminal and Landside Signage
Floor Markings / Stickers
Spacing after security screening
Signage on seating, stanchions
Additional public announcements
International communication



10

FlyHealthy@SEA: In-Progress
Sneeze Guards
Touchless Restroom Enhancements
Spacing at Ticket Counters for Physical Distancing
Development of Dining & Retail COVID-19
Business Plans
Coordination & support for all operators
Future Considerations:
Train Station Closures (B & C Concourse)
TSA Divestiture Bin Sanitation

11

FlyHealthy@SEA: Exploring Touchless Solutions
Touchless Travel Innovation
Facial recognition
o Mature technology
o Wide industry support
Capacitive sense devices
o Touch screen alternative
Voice recognition
o Replaces touch screens
o Leveraging home assistants
NFC & RFID transceivers
o Smartphone required

12

REVISING OUR POLICIES & PRACTICES
Wendy Reiter, Director
Aviation Public Safety & Security



13

FlyHealthy@SEA: Health Issues
Continue close engagement with public health entities re:
evolutions in COVID-19 knowledge (transmission, symptoms)
Partner with other airports, airport trade associations, and public
agencies (e.g. Transportation Security Administration, Customs &
Border Protection, Centers for Disease Control & Prevention,
Federal Aviation Administration) to identify, develop and
consistently execute potential health-related actions and policies
Coordinate with SEA Partners (airlines, tenants and businesses) to
evaluate emerging health-related issues (Met on 5/8)
14

FlyHealthy@SEA: Health Issues
Evaluate emerging health-related issues:
Face Coverings: worked with POS corporate departments and AV departments to
assess; reviewed policy options with Port Commission Aviation Committee on
4/30 and SEA Partners on 5/8;
POS has announced face coverings requirement at SEA for all public-facing
employees, the public, and passengers starting on May 18
Limited Terminal Access: airports in several states (e.g. New York, California) have
temporarily limited access to passengers and employees; reviewed policy options
with Port Commission Aviation Committee on 4/30 and SEA Partners on 5/8; no
strong objections were surfaced; review with POS commission on 5/12
15

FlyHealthy@SEA: Health Issues
Evaluate Emerging Health-Related Issues:
Health Screenings/Temperature Checks: discussed with POS Commission Aviation
Committee on 4/30 and 5/8. Commissioners urged staff to aggressively pursue
short-term implementation of temperature checks at SEA until a long-term and
consistent national approach is established.
Near-Term and Long-Term Considerations
Conducting Temperature Checks in the Long-Term:
Establish an efficient and consistent process at all U.S. airports
Implementation by a federal agency would ensure consistency
Several industry trade associations, including Airlines 4 America, believe the TSA
should add temperature checks to the existing security screening process
16

FlyHealthy@SEA: Health Issues
Establishing Near-Term Temperature Check Process at SEA:
Discussed on 5/8 with SEA Partners (airlines, tenants and businesses); established a
SEA Partners task force to develop protocols and determine logistics for temperature
checks at SEA in the near-term until a consistent, national approach is established;
Review initial SEA Partners task force findings with full group on 5/29;
Reaching out to health entities (e.g. health contractors?, public health entities?, WA
National Guard?) who could administer in the short term
Determining required space and potential locations for the screenings
Identifying key legal, financial and privacy issues for clarification (e.g. FAA policy
guidance)
Exploring ways to leverage existing airport partner employee screening efforts
Collaborating with airports in Hawaii and Paine Field, as well as with airlines, where
temperature screenings are occurring or soon to occur
17

Healthy Travel
Innovation
Temperature sensors
o Accuracy varies widely
o Policy & process required
Ultraviolet light cleaning
o Effective, yet caution required
Physical distance sensors
o Enforcement challenges
Health Certificates
o Smartphone implementations
o Potential privacy issues
18

FLYHEALTHY@SEA: NEXT STEPS &
RECOMMENDATIONS
Julie Collins, Director
Aviation Customer Experience



19

FlyHealthy@SEA: Next Steps:
Implement face coverings requirement at SEA (starts 5/18)
Continue implementation of initial physical distancing projects  6/1 milestone
Fully execute the FlyHealthy@SEA communications plan including website updates, etc.; fully
inform customers re: required face coverings policy on 5/18; highlight completion of physical
distancing projects, signage and travel tips by 6/1; distribute a weekly update starting 5/15
that can be shared internally and externally; encourage travelers to only fly if healthy;
Advance work to establish near-term health screening (temperature checks) at SEA; provide
detailed progress update by 6/1, including implementation timeframe;
Develop best practices, share information and collaborate with public health officials, airlines,
other airports, trade associations, SEA Partners, etc.;
20

FlyHealthy@SEA: Recommendations
Compress Port of Seattle decision-making steps:
Aviation Managing Director is "empowered to issue policies deemed
necessary for the safety and well-being of airport users." (Port of Seattle
Rules & Regulations Number 5)
Utilize streamlined decision-making process with Executive Director, Port
Commission President and Aviation Managing Director;
Provide ample communication about emerging issues and decisions (e.g.
weekly FlyHealthy@SEA update starting 5/15  broadly distributed and
available on the POS website, regular commission meeting updates, etc.)
Incorporate reports at commission meetings from SEA Partners regarding
their efforts to address COVID-19 and to restore traveler confidence.
21

FlyHealthy@SEA

Questions?
Every Day, Elevate

22

COVID-19
Presentation to Port of Seattle
May 12, 2020

Executive Summary

For the U.S. airline industry demand has evaporated, with over 316 million people in the
U.S. subject to stay-at-home orders as of April 20, and the road to industry-wide recovery
long.
We saw demand begin to decline significantly in late February, and March 11th was the
first day customer cancels surpassed bookings. Since then, Alaska Airlines has been in a
state of near zero-demand, with a direct focus on building liquidity and dramaticallyOur safety principles and considerations
reducing our cash burn rate to zero by year-end.
Alaska Airlines is looking at four factors to plan in an uncertain demand environment of
unknown duration.
Alaska Airlines maintains a relentless focus on employee and guest safety with many
new enhancements put in place already and more under consideration.

State of the airline industry

A4A passenger 95%
A4A carriers
Net booked
volumes have
are averaging
passengers
fallen                                                   17              have fallen 95%
in the week ending April 26.               passengers per domestic flight            YOY in the week ending April 26.

Our safety principles and considerations
Net booked                                       $
U.S. carriers                               U.S. airlines
revenues have                          are collectively
fallen101%    burning 10B
have grounded 3k

year-over-year                             each month                   aircraft (49% of the year-end 2019
fleet), with hundreds more planned

We've seen load factors & bookings plummet
Load factors              Bookings & cancellations
86%      ~4 million guests/month
90%
80%
70%                                                    March 2020
60%                                                                                        2.5m
50%                                                                                                                        2.4m
40%
30%
20%                                                  10%
10%
April 2020                  1.8m                   1.2m
0%
0.4m
SEA Day Pre- and Post- COVID outbreak: A comparison
March              April
Guests    Flights    Seats    Banks
Missing Bookings
April 2019    32,538       307       39,839        5              Cancellations
April 2020     1,890        99        11,672        2              Flown + Booked Passengers

After a strong start in Q1 and reaching target debt levels, profit turned on
its head. Attention now focused on liquidity and cash burn
Started the year having paid down 75% VX
acquisition debt, achieving target debt-to-cap
January-February were strong, but those profits
were lost with the downturn in March
March cash burn = $400M  now reduced to
$260M per month
Executive pay reductions, no overtime, parked
airplanes, etc.
Must bring costs down significantly in Q2: to
cash burn of $200M in June & $0 by YE
Received $992M in grant + loan from CARES Act,
that covers 70% of payroll. Restrictions include
maintaining employment levels through Sept
30th, among others
Demand will ultimately improve  how much
& pacing is unclear

For business planning, we are looking ahead to Q4 and 2021+.
Four factors for return to travel.

Travel           Shelter-in-place
Travel bans
Restrictions     14-day quarantine

Struggling      Increasing unemployment
Business impacts
Economy
Travel           Fear
Postponing planned travel
Concerns
Reasons       Changed behavior
Video conferencing
for Travel         Less discretionary income

After crisis response & immediate actions to preserve oxygen (liquidity),
now focused on reducing costs and cash burn to extend longevity & build
our future.
1.   We know this pandemic, both the public health and economic crises, will have a
significant long-term impact on aviation. After 9/11 it took 3 years for passenger
volumes to recover and more than 7 years after the global financial crisis.

2.   Weathering this challenge successfully will require structural and fundamental changes
in our business to address cost structure in a lasting lower capacity and demand
environment.

3.   We are deeply committed to keeping our employees informed  including if reductions in
industry capacity must mean reductions in workforce later this year  and are incredibly
grateful for everything they're doing to get through this crisis.

4.   Safety remains our #1 value. We're glad to work with the government, industry, and Sea-
Tac airport on approaches to support employees, guests, and partners in the wake of
COVID-19.

Our relentless commitment to safety, to "next-level care" for
guests when you're ready to fly

for our guests                                 for our employees
Waiving change/cancel fees for 1 year after purchase for tickets purchased      Communicating a strong "stay at home if sick" message and an app for
through May 31; through Dec 31 for tickets purchased before Feb 26.             our agents to self-evaluate their symptoms.
Requiring masks or face coverings during airport and flight experience.          Requiring masks for all employees who cannot social distance. Each
Masks will be provided for guests who forget one.                                 employee will be provided 2 branded fabric masks.
Offering extra space during check-in and boarding ("Mind your Wingspan")        Providing hand sanitizer and optional gloves.
and inflight by restricting middle and aisle seats through June 30, 2020.
Spacing at counter workstations to provide social distance.
Enhancing cleaning on aircraft after every turn in L48 and AK hubs,
Cleaning airport space, break rooms, office buildings, and other guest or
including use of electrostatic sprayers to disinfect every part of the cabin.
employee spaces.
Hospital grade HEPA filters onboard remove 99.95% of airborne particles
Limiting contact by temporarily pausing recycling and limiting onboard
inflight and replace cabin air every 3 minutes.
service.
Limiting onboard service and recycling temporarily to reduce contact.
Scanning temperatures of flight attendants and pilots and assessing
Emphasize app use, print-at-home, and non-contact check-in, boarding          symptoms prior to flights.
pass and bag tags.
Trialing voluntary temp checks as a guest resource in SEA with
new technology to assist self-monitoring for symptoms of COVID-19.

Approaches to mitigate risk of COVID-19 will continue to evolve; key
principles and considerations guide our approaches and commitment
Industry largely aligned on actions; considerations remain
on timing, cost and longer-term safety. We view COVID-
19 precautionary measures as temporary, will continue
to share best practices, evolve approaches, and
periodically evaluate their continuance.
Our approaches are designed & reviewed in consultation
with UW infectious disease medical experts.
Continue open lines of communication with unions toOur safety principles and considerations
support guest and employee safety
Health screening of traveling public in response to
COVID-19 is a governmental function; TSA best
positioned to conduct temperature checks.
Mask use should be universal in the airport for now             https://www.youtube.com/watch?v=L2p8pLOzKyc