Hawaiian Reaches Agreement With Largest Union Group

Pact Doesn't Take Effect Until All Contracts Are Revised

HONOLULU -- Hawaiian Airlines and the International Association of Machinists (IAM) District Lodge 141, representing the company's largest and most diverse labor group, have reached a tentative agreement to extend their contract by three years once Hawaiian exits bankruptcy.

The agreement must be ratified by the union's 1,342 members, which includes company employees working in accounting, reservations, customer services, and ramp services. The agreement will not take effect until Hawaiian has in place similar agreements with all of its unions.

“This is an essential step for Hawaiian,” said Joshua Gotbaum, Hawaiian's Trustee. “We cannot exit bankruptcy without new labor agreements, and now two have been negotiated. We are especially pleased to reach an agreement with our largest and most diverse union. Our goal is to negotiate agreements with all of our unions that are fair, that keep Hawaiian competitive, and that let our employees share in the airline's success.”

Randy Kauhane, assistant general chairman of IAM District Lodge 141, commented, “Considering all the turmoil taking place in the airline industry these days, we believe this is a fair agreement with Hawaiian and will recommend that our members ratify it.”

This marks the second labor group with which Hawaiian has reached accord on a new contract. Last month, Hawaiian's dispatchers, represented by the Transport Workers Union, ratified a new three-year contract.

Hawaiian is continuing negotiations with the IAM Mechanics unit, the Air Line Pilots Association (ALPA), the Association of Flight Attendants (AFA) and the Network Engineering Group.

About Hawaiian Airlines
Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Readers of two prominent national travel magazines, Condé Nast Traveler and Travel + Leisure, have both rated Hawaiian as the top domestic airline serving Hawaii in their most recent rankings, and the fifth best domestic airline overall.

Celebrating its 75th year of continuous service, Hawaiian is Hawaii's biggest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities than any other airline. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to Australia, 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 in May 2003, Hawaiian Holdings has had no responsibility for the management of Hawaiian Airlines and has had limited access to information concerning the airline. Additional information is available at www.HawaiianAir.com.