Hawaiian Airlines Launches Service Down Under

Airline Resumes Growth, Expansion to New Destinations

HONOLULU, May 18, 2004 -- Hawaiian Airlines today brought its award-winning service to Australia, welcoming the arrival this morning of its inaugural flight from Sydney to Honolulu.

“This is an important step for Hawaii and Hawaiian,” said Joshua Gotbaum, trustee of Hawaiian Airlines. “It means Hawaiian is starting to grow again. Australians are world-famous travelers, and tens of thousands will now come to Hawaii at competitive fares on one of the world's finest airlines.”

Hawaiian estimates the Sydney service will generate more than 34,000 visitors to the islands in its first year, producing more than $40 million in visitor spending and $4 million in state tax revenue.

Gotbaum noted that plans are in the works for other destinations in the future, though for competitive reasons none were named. “Hawaiian has the fleet, the people, the management and the skill to bring many more travelers to Hawaii – and will.”

Mark Dunkerley, Hawaiian's president and chief operating officer, commented, “Everyone has pulled together to make Sydney a success for Hawaii and Hawaiian. Hawaii is one of the most attractive destinations in the world for travelers, and Hawaiian – with our award-winning service – offers the best way to bring them here.”

A Boost for Hawaii's Visitor Industry
Hawaiian is providing nonstop, roundtrip service from Down Under four times weekly, adding more than 1,000 seats to Hawaii per week, a 20 percent increase to the levels currently provided by other carriers connecting Australia and Hawaii.

Hawaiian is tapping a travel market that has been underserved for more than a decade, yet consists of the world's sixth largest country, a city, Sydney, with four million residents, and other large cities nearby.

Visitor traffic from Australia has been in steady decline since 1990 when Hawaii received 238,000 arrivals. By 2003, that figure had sunk to 78,000, according to the Hawaii Department of Business, Economic Development and Tourism (DBEDT), the result of major carriers using more long-range jets to bypass Hawaii and fly nonstop from Australia to the West Coast.

Previously, carriers would refuel in Hawaii leading many passengers to use the stopovers as an opportunity to spend time in the islands before continuing with their travel itinerary.

Hawaiian's service will also help stem a trend of diminishing seat capacity from Down Under. In 2003, DBEDT reported that year-over-year seat capacity from Australia declined by 14.3 percent compared to 2002.

Better Departure and Arrival Times Make Travel Much Easier
Unlike other carriers, Hawaiian has scheduled departure and arrival times in both directions that make travel easier and give Australian visitors more of Hawaii for their money. The mid-day Honolulu arrivals also allow for convenient connections to the Neighbor Islands and the West Coast cities that Hawaiian serves.

“Our departure and arrival schedule is the best in the market and allows Australian travelers to make the most of their time in the islands,” said Dunkerley. “They can work a full day, leave that evening, and be relaxing on the beach anywhere in Hawaii that same afternoon.”

Hawaiian's Flight #22 will depart Sydney on Sunday, Tuesday, Thursday, and Friday at 9:20 p.m., and arrive in Honolulu the same day at 11:10 a.m.

Return Flight #21 will depart Honolulu on Monday, Wednesday, Thursday, and Saturday at 1 p.m. and arrive in Sydney the following day at 7:35 p.m. Adjusting for daylight saving time, Sydney is currently 20 hours ahead of Hawaii with travelers crossing the International Dateline.

Hawaiian is operating the Sydney route with its state-of-the-art, fuel-efficient Boeing 767-300ER wide-body aircraft. The twin-aisle B767 features the comfort and convenience of a 2-3-2 seating configuration that offers window or aisle seating to 86 percent of all passengers.

Fast, Convenient Web Booking
Customers can book flights via the airline's web site at HawaiianAir.com. Reservations can also be made by calling Hawaiian toll-free at 1-800-367-5320 from the U.S. mainland or Canada, or through any professional travel agent.

In Hawaii, flight reservations can be made from the Neighbor Islands by calling toll-free at 1-800-882-8811, or from Oahu at 838-1555.

About Hawaiian Airlines
Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Business travelers recently surveyed byCondé Nast Traveler rated Hawaiian Airlines as having the best in-flight service and meals of any U.S. carrier. Hawaiian was recently ranked fourth best in the nation overall by Travel + Leisure.

Celebrating its 75th year of continuous service, Hawaiian Airlines is Hawaii's largest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the mainland U.S. Hawaiian offers nonstop service to Hawaii from more mainland U.S. gateways
than any other airline. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to American Samoa and Tahiti.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (AMEX and PCX: HA). Since the appointment of a bankruptcy trustee on May 16, 2003, Hawaiian Holdings has had no involvement in the management of Hawaiian Airlines and has had limited access to information concerning the airline.

Additional information on Hawaiian Airlines is available at www.HawaiianAir.com.