Hawaii Interisland Flights - Yenra

Precipitous Drop in Air Travel Prompts Aloha to Reduce Interisland Schedule

Hawaii

In response to an immediate drop in demand for domestic and international air travel following last week's terrorist attacks on the United States, Aloha Airlines will reduce its interisland flight schedule effective Monday, September 24, by 26 percent.

Aloha's new schedule will offer 113 daily interisland flights instead of the current 150.

The scaled-down interisland schedule will result in a reduction of personnel throughout the Company. The exact number of affected personnel is not yet known.

"The decline in air travel following last week's terrorist hijackings, coupled with the high cost of newly mandated security requirements, have placed the nation's airline industry in a state of financial crisis," said Glenn R. Zander, Aloha's president and chief executive officer. "The situation is critical and we can only hope it does not worsen."

Reduced load factors make it economically unfeasible to continue Aloha's jet service on Maui-Kona and Maui-Hilo routes. In the interim, until stronger demand arises, Aloha's sister airline, Island Air, will provide service on 37-seat DASH-8 aircraft between Kapalua/West Maui and Kona, and Kapalua/West Maui and Hilo.

Aloha will continue to utilize all five of its Boeing 737-700s on its transpacific flight service to Oakland, Orange County and Las Vegas.

"Hawaii is our home and we are committed to doing all we can to promote tourism to Hawaii and help our State's economy," Zander said.

Aloha will operate its Boeing 737-200 ETOPS flight service to Central Pacific destinations and maintain its cargo business, with daytime freighter and overnight Boeing 737-200QC (Quick Change) aircraft at current levels.

Due to the number of operational factors beyond its control -- including imposition of stringent and continually changing new security measures for all airlines -- Aloha is suspending its Aloha Airlines Guarantee program, effective immediately.