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Aloha Airlines and Workers Reach Agreement

Aloha Airlines and the International
Association of Machinists and Aerospace Workers (AFL-CIO) (IAM) District
Lodge 141 jointly announced today that they have reached an agreement on a
new 52-month contract effective January 1, 2005, and runs through April
30, 2009. The IAM District Lodge 141 unit represents about 2,250 employees,
including ticket agents, reservations agents, commissary, clerical, ramp,
cargo and contract services workers.

The two parties have agreed not to release details of the new contract.

“This vote of confidence by this IAM unit tells our community and
traveling public that the largest of our employee groups is committed to
the future of our Company,” said David A. Banmiller, Aloha’s president and
chief executive officer.

“Our members have shown their willingness to do what is necessary to move
our Company forward,” said Randy Kauhane, assistant general chairman of
the IAM District Lodge 141.

IAM District Lodge 141 joins ALPA Council 80 in agreeing to new contracts.
Together, these two bargaining units represent two-thirds of Aloha’s
approximately 3,700 employees.