Hawaiian Airlines and Machinists Union Reach Accord

HONOLULU, October 1, 2001 -- Representatives of Hawaiian Airlines, Inc. (AMEX and PCX: HA) and the International Association of Machinists and Aerospace Workers (IAM), the airline's largest union group, announced today that they have reached tentative agreement on a new contract for the airline's 1,700 mechanics, airport and accounting staff represented by the IAM.

Provisions of the new 43-month agreement, subject to ratification by the union's membership, become effective October 1, 2001.

Paul J. Casey, Hawaiian Airlines vice chairman and chief executive officer, said, "Despite the serious challenges we currently face in the marketplace, we've reached what I consider to be a very favorable agreement that recognizes the value we place on our employees represented by the IAM with increases in pay and benefits that are comparable to those received by our other union groups early this year."

The IAM negotiating committee was unanimous in recommending approval of the tentative agreement.

"This is a fair contract, one that leaves our members much better off and also allows the company some flexibility to navigate the difficult times ahead for all airlines," said Randy Kauhane, Assistant General Chairman, District Lodge 141 of the IAM.

The collective bargaining agreement between Hawaiian and its IAM unit became amendable on February 28, 2000, along with contracts with the company's four other labor unions. Negotiations with IAM were initiated in January of 2000.

Hawaiian Airlines reached agreement on new contracts with its pilots' union, the Air Line Pilots Association (ALPA); its flight attendants' union, the Association of Flight Attendants (AFA); and its dispatchers' union, the Transport Workers Union (TWU) that went into effect on January 1, May 1, and July 1, 2001, respectively.

Additional information on Hawaiian Airlines is available on the airline's Web site at www.hawaiianair.com.