Alaska Airlines Boss Settles Into Dream Job Kelly Brings Polished Style, Fresh Approach To Air Carrier Trying To Rebuild Its Niche

Working as a ticket agent for an airline wasn’t exactly what John Kelly had in mind when he was fresh out of college 28 years ago. He wanted to RUN an airline.

The University of Puget Sound business grad settled for a ticket-sales job with Continental Airlines, confident that he’d eventually trade in the airport counter for an executive suite.

It didn’t take long. In less than two years, the ambitious rookie was a manager with Continental and later was appointed to higher-level sales and marketing positions in Seattle, Houston and Los Angeles. He’s been climbing ever since.

Last February, Kelly, 51, landed what he calls “the best job in America” - chairman, president and chief executive officer of Alaska Airlines and its parent, Alaska Air Group.

As a man who thrives on change, he wasted no time turning things around.

He opened a March leadership conference by informing Alaska’s 450 managers that he intends to “get rid of management.”

Kelly, who has been described as a “born Irish salesman,” explains that he won’t eliminate their jobs but will challenge them to lead employees instead of managing them.

In his first few months as Alaska’s new chief, Kelly’s top priority was to put his imprint on the company and build up relations with pilots, flight attendants, maintenance workers, sales clerks and concessionaires.

“He’s a breath of fresh air,” one employee says of Kelly, describing his manner as more like that of a talk show host than a stodgy CEO.

After several weeks of meeting with employees, Kelly made the rounds of securities analysts, then launched his campaign to convert managers into leaders.

“We want to tap into the 7,000 brains that we have here instead of having one or two or five people making all the decisions,” says Kelly, who encourages the use of mental puzzles and other innovative problem-solving techniques.

Next on Kelly’s agenda is conquering the West Coast and getting the word out that Southwest Airlines is not the only low-cost carrier around.

Kelly has survived two deacdes in an industry where careers can flame out at any moment.

He credits his longevity to keeping a balance between his professional and personal lives.

Although he works 11- to 12-hour days, often eating cereal at his desk, Kelly tries to practice his father’s credo: “Work to live, don’t live to work.”

Kelly has spent the past 25 years changing and growing. Although he enjoyed the 9-year stint at Continental Airlines that took him to Los Angeles and Houston, Kelly always wanted to return to his Seattle-area roots to raise his daughter, Shannon, now 22.

“Every time I came back to visit the folks, this place got greener and the sky was bluer and more beautiful,” Kelly says.

His career with Alaska began in 1976, when he was appointed assistant vice president for sales, an executive position he had wanted since the day he graduated from college.

Kelly has been on the fast track at the Seattle-based carrier since he started with the company.

When Alaska Air Group purchased Horizon Air in 1986, Kelly, then Alaska’s marketing chief, saw another career opportunity.

“I was champing at the bit,” he says of seeking the job of president and CEO at Horizon.

He got the post in 1987 and led Horizon through seven profitable years.

Two years later, he was appointed to the Alaska Air Group board of directors and was given the added title of chairman of Horizon Air in February 1991. He continues in that capacity today.

After nearly a decade of heading Horizon, Kelly was ready for a new challenge. He found it in November 1994 when Alaska’s chief operating officer, Pat Glenn, retired. Former Chairman Ray Vecci, who had worked with Kelly for 20 years, brought him back to Alaska to help guide the carrier back to profits.

But just as Kelly was settling into his new role as Alaska’s No. 2 executive, Vecci was abruptly fired.

Neither Kelly nor Vecci will discuss the firing, but those familiar with the decision said it took both executives by surprise.

Kelly, who was asked not to attend the board meeting in which Vecci was ousted, was notified later that he was Alaska’s new CEO.

Kelly jokes that he can “live happily ever after” now that he has reached the top of Alaska Airlines’ career ladder.

But, in the same breath, he says he’ll never retire and is considering writing a book. “Who knows?” he adds. “Maybe I’ll run for president of the United States.”