Hawaiian Airlines To Partner With Reno Air

HONOLULU (December 3, 1996) -- Hawaiian Airlines (ASE and PSE: HA) and Reno Air (NASDAQ: RENO and PSE: RNO) today announced that they have entered into a comprehensive marketing partnership designed to open new markets to direct Hawaii travel and expand the passenger bases of each airline.

The two carriers have signed a "codeshare" agreement to become effective January 7, 1997. The carriers also plan to link frequent flyer programs.

Under the codeshare agreement, Hawaiian will be able to utilize its two-letter airline computer booking code on 20 daily nonstop Reno Air flights linking Reno, San Jose, Albuquerque and Tucson with Los Angeles, where the two carriers' operations are adjacent, providing direct connections to Hawaiian's three daily flights to Hawaii. Other city pairs may be added to the agreement in the near future.

Codeshare agreements are becoming common in worldwide aviation markets. Under these agreements, both carriers market the service.

Hawaiian will benefit by the addition of daily connecting flights from feeder markets under this marketing arrangement, in addition to allowing the airline to offer its customers direct service to additional destinations and additional frequent flyer benefits without incurring costs of expansion. The codeshare will offer Reno Air the enhanced marketing power of Hawaiian's well established product and association with the world's most popular leisure destination as well as direct access to all of Hawaii's major islands.

Bruce R. Nobles, Hawaiian's president and chief executive officer, said the arrangement would benefit Hawaii tourism by opening interior U.S. markets with new direct service.

"This is a partnership that will stimulate incremental visitor travel to Hawaii and further establish Hawaiian as Hawaii's Flagship Airline," Nobles said. "It also offers Hawaii residents new direct service options for their next mainland vacation."

Robert Reding, Reno Air's president and chief executive officer, said "This alliance will enable both Reno Air and Hawaiian Airlines to increase revenues and maintain low costs while providing exciting new destinations to our customers."

Reno, Nevada-based Reno Air currently operates 200 daily scheduled departures to 18 cities in the Western U.S., Canada (Vancouver), Alaska and Chicago O'Hare with 29 MD-80/MD-90 jet aircraft. The carrier has one of the youngest fleets in the industry with an average age of five years.

Honolulu-based Hawaiian Airlines, the nation's 12th largest carrier, currently provides daily service between Hawaii and five Western U.S. gateways (Los Angeles, Las Vegas, San Francisco, Seattle and Portland), using 304-seat McDonnell Douglas DC-10 widebody aircraft. In addition, Hawaiian provides more than 150 interisland flights daily using a fleet of thirteen 139-seat DC-9 jet aircraft.