Alaska Airlines contract to reduce state's bill.

• Author: Pilkington, Steve
• Position: TRANSPORTATION

Air travel is a necessity in Alaska. With about the same limited population and highway miles as Vermont--but enough geography to accommodate the Green Mountain State 60 times over--Alaska officials spent more than $35 million on airline tickets last year transporting essential state employees and Medicaid beneficiaries.

But officials expect to shrink that bill significantly in the foreseeable future.

Recently, Gov. Frank H. Murkowski's administration signed a contract with Alaska Airlines that will cut certain state employee fares in Alaska.

"We have a responsibility to apply sound business principles to managing travel to save the state money," said Administration Commissioner Raymond Matiashowski. "We have worked closely with the airline's senior managers and the attitude has been positive and...