EXHIBIT 99.1



                              EXHIBIT A TO SCHEDULE 13G
                                           
                      ITEM 7 DISCLOSURE RESPECTING SUBSIDIARIES
                                           
                                           
    The person filing this report, Merrill Lynch & Co., Inc., a Delaware
corporation with its principal place of business at World Financial Center,
North Tower, 250 Vesey Street, New York, New York ("ML&Co."), is a parent
holding company pursuant to Section 240. 13d-1(b)(1)(ii)(G). The relevant
subsidiaries of ML&Co. are Merrill Lynch, Pierce, Fenner & Smith Incorporated
("MLPF&S"), Merrill Lynch Group, Inc. ("ML Group"), Princeton Services, Inc.
("PSI"),  Merrill Lynch Asset Management L.P. (d/b/a) Merrill Lynch Asset
Management ("MLAM").  No single subsidiary's interest relates to more than 5% of
the class of securities reported herein. 
    
    MLPF&S, a Delaware corporation with its principal place of business at
World Financial Center, North Tower, 250 Vesey Street, New York, New York, is a
wholly-owned direct subsidiary of ML&Co. and a broker-dealer registered pursuant
to the Securities Exchange Act of 1934. MLPF&S is the beneficial owner of 2.95%
of the common stock of Alaska Air Group Inc.

    ML Group, a Delaware coporation with its principal place of business at
World Financial Center, North Tower, 250 Vesey Street, New York, New York, is a
wholly-owned direct subsidiary of ML&Co. and a parent holding company pursuant
to Section 240.13d-1(b)(1)(ii)(G). ML Group may be deemed to be the beneficial
owner of 0.38% of the common stock of Alaska Air Group Inc. by virtue of its
control of its wholly-owned subsidiaries PSI.

    PSI, a Delaware corporation with its principal place of business at 800
Scudders Mill Road, Plainsboro, New Jersey, and a wholly-owned subsidiary of ML
Group, may be deemed to be the beneficial owner of  0.38% of the common stock of
Alaska Air Group Inc. by virtue of its being the general partner of MLAM.

    MLAM, is a Delaware limited partnership with its principal place of
business at 800 Scudders Mill Road, Plainsboro, New Jersey and is an investment
adviser registered under Section 203 of the Investment Advisers Act of 1940. 
MLAM may be deemed to be the beneficial owner of 0.38% of the common stock of
Alaska Air Group Inc. by virtue of its acting as investment advisor to private
accounts and investment companies registered under section 8 of the Investment
Company Act of 1940.
    
Pursuant to Section 240.13d-4, ML&Co., MLPF&S, ML Group, PSI, MLAM, disclaim
beneficial ownership of the securities of Alaska Air Group Inc. referred to
herein and the filing of this Schedule 13G shall not be construed as an
admission that any such entity is, for the purposes of Section 13(d) or 13(g) of
the Securities Exchange Act of 1934, the beneficial owner of any of the
securities of Alaska Air Group Inc. other than in the case of ML&Co. and MLPF&S,
securities of Alaska Air Group Inc. held by MLPF&S in proprietary accounts.