FROM THE OFFICE OF PUBLIC AFFAIRS

April 4, 2005
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Air Transportation Stabilization Board Aloha Airlines Repays ATSB Guaranteed Loan

The Air Transportation Stabilization Board (ATSB) announced today that Aloha Airlines has fully repaid the remaining balance of its ATSB guaranteed loan of $45 million, which was made on December 23, 2002. The loan was backed by a $40.5 million guarantee issued under the Air Transportation Safety and System Stabilization Act. The remaining balance on the loan at the time it was paid off was $24.1 million; the guaranteed portion was $21.7 million.

"The loan guarantee program served its purpose to support Aloha over the past two years when credit was not otherwise reasonably available and the Board is pleased that the company has secured private financing and is now proceeding toward a successful reorganization and exit from bankruptcy," said ATSB Executive Director Mark Dayton.