Under the agreement signed today, the two carriers will broaden a long-standing relationship to achieve mutual benefits in the areas of marketing, expense reduction and operating efficiencies.

The airlines have been moving ahead on a wide variety of initiatives since the signing of a letter of intent on May 3, 2007. 

The two companies envision additional savings in the areas of fuel procurement, the sharing of facilities at airports and potential integration of ground services performed by third parties, and will further explore efficiencies to be gained in such areas as catering, maintenance and telecommunications to name a few.

The new agreement calls for the carriers to expand their existing code-share agreement.  The new code-share routes are scheduled to go into effect in 45 days.

“Expanding our relationship with Aloha benefits our customers by providing more options for traveling to Hawaii, one of the most important travel destinations, and across carriers,” said Jake Brace, United’s executive vice president and chief financial officer.   “When our customers benefit, our employees and shareholders benefit as well.
 

“Our enhanced relationship with United allows Aloha to tap the marketing strength of one of the world’s largest and best-known airlines,” said David A. Banmiller, Aloha’s president and chief executive officer. “This close working relationship will bring long-term benefits for our shareholders, our employees and above all, our customers, who will have greater opportunities to earn and redeem miles and travel seamlessly on United’s routes to and from and within the State of Hawaii.”

United and Aloha have been marketing partners since 1993. The two have long participated in a code-share agreement that enables United’s passengers to book interisland flights on United Airlines-numbered flights that are operated by Aloha Airlines.  In addition, frequent-flyer members in the United Mileage Plus program and AlohaPass program can earn and redeem miles for travel on either airline.

Because of the various significant contributions being made, United Airlines will be granted a minority equity position in Aloha Airlines and one seat on Aloha’s board of directors.  The two airlines will remain independently owned and operated.

About Aloha Airlines

Founded as Trans-Pacific Airlines in 1946, Aloha Airlines has been in continuous service to Hawaii for more than 60 years. Aloha is one of Hawaii’s largest employers and provides 700 flights a week between the main Hawaii airports of Honolulu, Kahului, Lihue, Hilo and Kona. In addition, Aloha flies to the Islands from Oakland, Orange County, Sacramento, San Diego, Las Vegas and Reno. Aloha is also Hawaii’s largest provider of air cargo and contract aviation services. Aloha Airlines is a subsidiary of privately held Aloha Airgroup, Inc. More information can be found at alohaairlines.com.

About United Airlines

United Airlines (NASDAQ: UAUA) operates more than 3,600 flights a day on United, United Express and Ted to more than 210 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 855 destinations in 155 countries worldwide. United's 55,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com.