MEDIA RELEASE

HONOLULU/SEATTLE — Hawaii-based Mokulele Airlines and Seattle-based Alaska Airlines have announced Mokulele will join the Alaska Airlines Mileage Plan. Mokulele offers daily inter-island service from Honolulu, Kapalua, Kona, Lanai, Lihue and Molokai. Beginning in early 2009, Mokulele will also offer service to Kahalui and Hilo.

Under the partnership, mileage plan members will earn 500 miles for each segment flown on Mokulele, beginning Dec. 15. Award redemption on Mokulele will be available in early 2009.

“Alaska Airlines mileage plan is one of the best frequent flier programs in the industry, with opportunities to earn and redeem miles on 15 different airline partners,” said Bill Boyer, Jr., president/CEO of Mokulele Airlines. “Those who travel frequently know the importance of frequent flier miles. With the addition of Alaska Airlines, our customers in Hawaii will have several airline options to help make air travel rewarding and affordable.”

“Alaska Airlines prides itself on its ability to provide frequent fliers with some of the best mileage rewards in the world, and we are excited that our members will soon be able to earn and redeem their miles for travel within the islands of Hawaii,” said Gregg Saretsky, executive vice president, flight and marketing for Alaska Airlines. “We’re delighted to welcome residents of Hawaii to the mileage plan and invite them to start earning valuable mileage plan miles whenever they fly between the islands on Mokulele Airlines.”

To launch the new partnership, members will earn double miles for travel on Mokulele (1,000 miles per segment) from Jan. 1 through Feb. 28.

More information about this offer and joining Mileage Plan is available at www.alaskaair.com.

Other Alaska Airlines Mileage Plan partners include American Airlines, Air France, British Airways, Cathay Pacific, Continental Airlines, Delta Air Lines, Era Aviation, Horizon Air, KLM, Korean Air, LAN, Northwest Airlines, PenAir and Qantas.

Alaska Airlines Mileage Plan was named “Program of the Year” at InsideFlyer magazine’s 20th annual Freddie Awards, the most prestigious consumer-generated honors in the travel industry.

The plan offers opportunities to earn miles through a network of partners, including the Alaska Airlines Visa credit and debit cards, Mileage Plan Shopping, Mileage Plan Dining, Safeway, and more than 30 hotel and car rental partners worldwide.

About Alaska Airlines

Alaska Airlines and sister carrier Horizon Air together serve more than 90 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Alaska Airlines ranked “Highest in Customer Satisfaction among Traditional Network Carriers (tie)” in the J.D. Power and Associates 2008 North America Airline Satisfaction StudySM. For reservations, visit www.alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at www.alaskaair.com/newsroom.

About Mokulele Airlines

Mokulele Airlines is a locally owned and operated inter-island airline based in Kailua-Kona. Founded in 1998 as Mokulele Flight Service Inc., it was acquired by current CEO Bill Boyer in 2005. Today, the airline is a scheduled U.S. carrier with commuter services and now jet service operated by Republic Airways. Mokulele also offers volcano tour flights as well as inter-island cargo service. Mokulele Airlines currently has a fleet of two Embraer E170 jets with one arriving in December, a fourth arriving in March and options for two more in summer 2009. Mokulele Airlines has seven 208B Cessna Grand Caravans, including a dedicated freighter, and operates 85 daily departures to seven cities in Hawaii. Mokulele Airlines markets and sells tickets directly to passengers via its Web site www.mokuleleairlines.com. For more information on Mokulele Airlines, contact Christina Peaslee at Loomis-ISC at 808-853-3053 or Christina@loomis-isc.com.