Hawaiian Airlines and Ansett Reach Agreement on Restructuring of Aircraft Leases

HONOLULU, May 7 /PRNewswire-FirstCall/ -- Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (Amex: HA; PCX), said today that it has reached agreement with Ansett Worldwide (Ansett), one of its principal aircraft lessors, on a consensual restructuring of the financial terms of the leases for seven Boeing Model 767 aircraft. The agreement is subject to review by Hawaiian Airlines' creditors committee and approval of the Bankruptcy Court.

Hawaiian said it intends to assume the leases as part of its plan of reorganization, and will request an expedited hearing from the Bankruptcy Court to consider approval of the restructuring and the assumption of the leases.

According to John W. Adams, chairman and CEO of Hawaiian, "This agreement, which grew out of management's initial attempts to create a more viable, competitive business model for the airline, is a significant step toward achieving that goal. Since beginning the restructuring process late last year, our discussions with Ansett have been productive.

"We are gratified by Ansett's confidence not only in the future of Hawaiian Airlines, but the timely and successful completion of our restructuring, as well."

Hawaiian Airlines filed its voluntary petition for reorganization under chapter 11 of the Bankruptcy Code on March 21, 2003.

About Hawaiian Airlines

Founded in Honolulu 73 years ago, Hawaiian Airlines is Hawaii's longest- serving and largest airline. The nation's 12th largest airline, it is also the second-largest provider of passenger service between the West Coast and Hawaii.

Hawaiian Airlines currently provides up to 30 nonstop daily flights between nine cities on the U.S. mainland and Hawaii, along with weekly service between Honolulu and American Samoa and Tahiti. The airline also provides charter service between Honolulu and Anchorage, Alaska. In addition, Hawaiian Airlines is participating in the federal government's Civil Reserve Air Fleet, transporting Armed Forces personnel between the U.S. and points in the Pacific and Middle East.

Hawaiian Airlines takes pride in its innovative onboard service programs that highlight and promote the people and culture of Hawaii. The airline has earned numerous international awards for service in recent years, including the 2001 Zagat Survey's award for Best Overall U.S. Airline in the Premier category, and the 2001 Diamond Award for In-Flight Service from Onboard Services magazine. Hawaiian Airlines was rated third highest in Travel & Leisure magazine's most recent ranking of the Top 10 U.S. Airlines.

Additional information on Hawaiian Airlines, including previously issued company news releases, is available on the airline's Web site at www.HawaiianAir.com .

Cautionary Statement

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of the company with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of the company which may cause the actual results of the company to be materially different from any future results, expressed or implied, in such forward-looking statements. Factors that could cause actual results to differ materially from these forward- looking statements include, but are not limited to, the following: the ability of the company to continue as a going concern; the ability of the company to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 case; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 Trustee or to convert the case to a Chapter 7 case; the ability of the company to obtain and maintain normal terms with vendors and service providers; the ability of the company to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 case on the liquidity or results of operations of the company; the ability of the company to fund and execute its business plan; the ability of the company to attract, motivate and/or retain key executives and associates; the ability of the company to attract and retain customers; demand for transportation in the markets in which the company operates; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs; financing costs; the cost and availability of aircraft insurance; aviation fuel costs; security-related costs; competitive pressures on pricing (particularly from lower-cost competitors); weather conditions; government legislation and regulation; consumer perceptions of the products of the company; and other risks and uncertainties set forth from time to time in the company's reports to the U.S. Securities and Exchange Commission.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the various pre-petition liabilities of Hawaiian Airlines and the common stock and/or other equity securities of the Company. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies, and it is possible that the Company's equity will be restructured in a manner that will substantially reduce or eliminate any remaining value. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.

For further information please contact: Keoni Wagner of Hawaiian Airlines, Inc., +1-808-838-6778, wagner@HawaiianAir.com; or Sandra Sternberg of Sitrick And Company, +1-310-788-2850, ext. 4132, for Hawaiian Airlines, Inc.

SOURCE  Hawaiian Airlines, Inc.
    -0-                             05/07/2003
    /CONTACT:  Keoni Wagner of Hawaiian Airlines, Inc., +1-808-838-6778,
wagner@HawaiianAir.com; or Sandra Sternberg of Sitrick And Company,
+1-310-788-2850, ext. 4132, for Hawaiian Airlines, Inc./
    /Web site:  http://www.HawaiianAir.com /

CO:  Hawaiian Airlines, Inc.; Ansett Worldwide
ST:  Hawaii

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8740 05/07/2003 23:21 EDT http://www.prnewswire.com