Hawaiian Airlines to Eliminate Travel Agent Base Commissions

HONOLULU, June 21, 2002 -- Hawaiian Airlines, Inc., announced today that it will cease paying base commissions to travel agents in the U.S., Canada, Puerto Rico and the U.S. Virgin Islands, effective Monday, June 24, 2002.

The change applies to all tickets, Miscellaneous Charge Orders (MCOs) and Prepaid Ticket Advices (PTAs) issued for travel on Hawaiian's domestic and international flights. The new policy does not apply for tickets purchased outside the U.S., Canada, Puerto Rico and the U.S. Virgin Islands.

“Hawaiian has been among the last airlines to reduce travel agency commissions over the past four years, but with the rest of our industry clearly headed in this direction, we feel it's necessary to take this action to remain cost-competitive,” said John W. Adams, Hawaiian's chairman, chief executive officer, and president.

Hawaiian operates 24 transpacific flights per day between Hawaii and eight western U.S. cities. Its weekly South Pacific service links Honolulu with American Samoa and Tahiti. The company also operates approximately 140 all-jet flights daily between the islands of Hawaii.

Hawaiian is in the process of replacing its transpacific fleet with 16 state-of-the-art Boeing 767-300ER widebody aircraft. The carrier presently has five new B767-300ER jets in service with the full conversion on schedule for completion by mid-2003. Last year, Hawaiian replaced its interisland fleet with 13 new Boeing 717-200 narrowbody aircraft.

Founded in Honolulu 72 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.

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