Mokulele Airlines Receives $7.5M Further Investment From Republic Airlines

Mokulele Airlines has opened its new corporate
headquarters and maintenance facility at Honolulu International Airport, one
day after Indianapolis-based Republic Airways increased its majority stake in
the airline.


Mokulele

Mokulele and Republic officials held a grand opening for
the new facility on the south side of Honolulu International Airport. The complex
which houses both Mokulele executive offices and reservations operations
becomes the new headquarters for the airline.

Meanwhile, Republic officials said they have invested an
additional US$7.5 million in Mokulele, raising Republic’s stake to 89 percent
in the airline.

Republic and Mokulele formed a partnership last fall,
with Republic providing four Embraer 170
jets and crew, along with an $8 million loan. In March, Republic took a 50
percent ownership stake in Mokulele and replaced its chief executive officer
after Mokulele fell behind on loan payments. Republic now has nearly $20
million invested in Mokulele, said Bryan Bedford, chairman, president, and CEO
of Republic.

Separately, Republic yesterday said it has completed its
acquisition of privately held Midwest Airlines for $31 million in cash and
debt. Republic officials said Midwest will continue to operate as a branded
carrier.

Republic Airways Holdings also has made a bid to buy the
parent of Frontier Airlines, which is operating under bankruptcy protection.
While a court has approved that deal, Southwest Airlines recently made a rival
bid for Frontier. An auction is expected to be held in August.