AIRLINE NEWS.

AirTran Airways launched on June 22 2004 a four-day sale featuring four fare tiers on four travel periods for flights to all 45 destinations with fares starting as low as $34 each way. These special fares are available for purchase June 22 through June 25, 2004, are good for travel through November 2, 2004, and are not valid for travel on Fridays and Sundays. Like all AirTran Airways fares, prices included in this sale are one-way tickets and do not require a roundtrip purchase or a Saturday night stay. Travelers may purchase these sale fares at http://www.airtran.com, through travel agents or via AirTran Airways' reservations system at 1-800-AIR-TRAN. For Spanish, call 1-877-581-9842.

AirTran Airways reports that its first Boeing 737-700 aircraft flew its first revenue flight on June 17 2004. Flight 303 took off at 9:30 am (EDT) from Hartsfield-Jackson Atlanta International Airport in route to Denver International Airport. AirTran Airways just took delivery of the aircraft a week ago when the aircraft made its inaugural flight from Seattle to Atlanta following a celebration at Boeing Field. This aircraft is the first of 100 ordered by AirTran Airways in July, 2003. "Not only do the Boeing 737s boast remarkable fuel efficiency, they will also allow us to serve longer-haul markets. Combined with the dependability of our Boeing 717 fleet, the increased flexibility and greater range of the 737s enables AirTran Airways to solidify our position as an industry leader well into the future," said Robert L. Fornaro, AirTran Airways' president and chief operating officer.

The Italian government agreed on June 22 2004 to guarantee a short-term bridge loan in a bid to stave off bankruptcy at the state-controlled airline Alitalia. The announcement was made at the end of a Cabinet meeting at Premier Silvio Berlusconi's office in Rome.

Aloha Airlines in September 2004 is adding a daily nonstop between Las Vegas and Honolulu and another between Sacramento and Kahului, Maui, bringing its daily total of nonstops between the Continental U.S. and Hawaii to 10. Tickets will go on sale June 18 for travel starting Sept. 7. The carrier began serving Las Vegas in February 2001 with one-stop service from Honolulu on its Honolulu-Oakland route, and in April 2003 did a similar one-stop extension to its Kahului-Burbank route to add Sacramento. After Sept. 6, however, Aloha is eliminating service to Phoenix and nonstop service between Burbank and Kahului, as well as its short-haul flights between Oakland and Las Vegas, Burbank and Las Vegas, and Burbank and Sacramento. The airline says it is re-accommodating travelers with reservations after those dates. www.alohaairlines.com

Aloha Airlines will begin nonstop flights this fall from Honolulu to Las Vegas, and from Maui to Sacramento. Tickets go on sale on June 18, and flights will inaugurate on Sept. 7. The airline currently serves Las Vegas as a beyond point to its Honolulu-Oakland service, and to Sacramento on its Maui-Burbank flights. Traffic to these cities is now sufficient to promote direct flights. It also said that it will continue to operate two daily nonstops this fall from Oakland to Honolulu, and one daily flight from Oakland to both Maui and Kona. After Sept. 6 204 it will eliminate service to Phoenix and the nonstop flight between Burbank and Maui. It also will drop service between Las Vegas and both Oakland and Burbank, and between Burbank and Sacramento.

Aloha Airlines is increasing the number of passenger seats on its 10 Boeing 737-200 inter-island aircraft by replacing 12 first class seats with 21 coach seats. The airline expects to complete the conversion program by mid-July. This modification affects only the carrier?s flights within Hawaii; it retains first class seating and service on all its transpacific and West Coast flights provided on its long-range Boeing 737-700 fleet. In tandem with the seating switch, the carrier says it is boosting its inter-island schedule by 28 percent for the summer season, beginning June 10. As for inter-island first-class bookings, Aloha has stopped accepting such bookings for travel after June 30 and says passengers who?ve paid for first-class inter-island seats for travel after June 30 will be entitled to refunds. www.alohaairlines.com

American Airlines is adding flights to 50 cities this week in preparation for a busy summer season. AA also just began serving three new routes from Los Angeles to San Salvador, between Chicago and Sacramento, and between San Francisco and Maui. On July 3 2004, it will add seasonal weekend service from New York LaGuardia and Dallas/Fort Worth to Nassau. Most of the markets are seeing the addition of one or two new flights per week. But cities such as Cancun; San Pedro Sula, Honduras; Kingston, Jamaica; Punta Cana, Dominican Republic; and Honolulu will see five or six new flights a week.

American Airlines announced today that its AmericanConnection partner will increase the number of daily departures from five to six operating between St. Louis Lambert Airport and Denver starting Aug. 1 2004. Additionally, a seventh daily flight will be added between Lambert and Philadelphia beginning Aug. 1, and a fourth nonstop daily flight will be added between Lambert and Milwaukee beginning Sept. 8. AmericanConnection carrier Chautauqua Airlines will operate 44-seat Embraer 140 jets on the new flights.

America West Airlines announced June 21 that it will provide new service to New Orleans and Houston, as well as additional flights to Detroit and San Diego from its Las Vegas hub. Beginning Sept. 9, one nonstop flight will operate three days a week to New Orleans and beginning Oct. 18, the airline will operate one daily nonstop flight to Houston. Also on Oct. 18, America West will initiate a second daily nonstop to Detroit, along with an additional daily flight to San Diego.

Atlantic Southeast Airlines (ASA) this month is marking its 25th anniversary of passenger service with customer and employee celebrations throughout the Southeast. The celebration begins Thursday with the delivery of a special-edition, 70-seat CRJ700 regional jet from Bombardier Aerospace in Montreal.

ATA's "Easy Days Sale" is making travel between select destinations more affordable with fares starting at $49 (off-peak, each way based on a 21- day advance round-trip purchase). Tickets are available for purchase today until midnight (E.D.T.) on June 25, 2004, for travel through November 17, 2004.

Celebrate the Fourth of July by breaking free from high fares. ATA's "Go Fourth Sale" offers nationwide travel on Independence Day from as low as $39 (each way). Tickets may be booked now through midnight (E.D.T.) July 4, 2004, and travel must occur on July 4, 2004.

British Airways last week introduced a new improved food service in Club Europe. The move coincides with the completion of a refurbishment of the Heathrow T1 executive lounges including the addition of a premium class check-in area, self-service check-in kiosks, and an exclusive security channel. Whilst the full English breakfast will remain a popular choice the airline will introduce a new continental breakfast option and a hot panini on its midrange European flights to destinations such as Frankfurt, Geneva and Lyon. On longer short haul flights, including Stockholm, Barcelona and Lisbon, customers will be offered two hot meal choices for dinner and lunch, plus a further salad option for those wanting a healthier meal. As well as improved quality and choice, customers will also notice a change of presentation with menu cards, white linen tablecloths and new round china plates, replacing the existing 'airline' style dish. www.ba.com

China Southern Airlines www.cs-air.com/en has launched new Urumqi- Dushanbe and Urumqi-Kashi-Islamabad service. The new Boeing 757 service to Dushanbe, available every Monday, will promote the commercial exchange between Xinjiang and Tajikistan and the development of tourism industry of the two regions. It also symbolizes the continued bridge- building between Xinjiang and the global marketplace. Additionally, service to Islamabad is the first international route from Xinjiang which operates every Tuesday and Saturday with a flight time of approximately three hours.

Delta Air Lines and China Airlines are expanding their present code share agreement so that passengers traveling between the United States and Taiwan will have one additional gateway choice for flights between the two countries. Delta will place its code on flights offered by Delta's code share partner China Airlines between Seattle and Taipei beginning June 22, 2004.

Delta Air Lines celebrates 75 years of serving customers on June 18 2004 with events in Atlanta. "Delta and Atlanta have become almost synonymous. Together we have shared nearly seventy-five years of growth and progress," said Jerry Grinstein, Delta's Chief Executive Officer. "We thank our employees, customers and the entire Atlanta community for their support and loyalty to Delta throughout the years. We look forward to extending our close relationship with the people of this city for a long time to come." Delta's presence in Atlanta has grown from one flight that carried five passengers in 1930 to the largest single airline hub operation in the world. Delta now offers customers nearly 1,000 daily nonstop flights to 190 cities in 30 countries from Atlanta's Hartsfield-Jackson International Airport. With more than 32,000 employees in the Atlanta area, Delta is the single largest private employer in Georgia. Delta's economic impact on the Atlanta region exceeds $12 billion.

Delta Air Lines will begin nonstop service between Atlanta and Belize on December 11 2004. Delta will offer customers one round-trip, nonstop flight on Saturday only between its Atlanta hub and Belize using single- class, 150-seat Boeing 737 aircraft. Delta is also increasing its service between Atlanta and Providenciales, Turks & Caicos, to year- round, daily service starting Sept. 15. The airline had previously offered seasonal, Saturday-only service to the city. Located on the Caribbean coast adjacent to Mexico and Guatemala, Belize is known for its tropical forests, mountains, Mayan temples, and scuba diving. Belize is home to the longest barrier reef in the Western Hemisphere, and the people of Belize have protected approximately 40 percent of the country as parks and natural reserves.

Delta Air Lines is offering its SkyMiles Medallion members more choice and customization through a new and expanded slate of Medallion threshold benefits for 2005. Members earning 40,000, 75,000 or 125,000 Medallion Qualification Miles (MQM) by the end of the 2004 calendar year will be able to select from a varying menu of benefits that may include: Up to 45,000 bonus miles Silver or Gold Medallion status for a friend or family member and bonus miles for themselves, Crown Room Club day passes Discounted SkyChoice awards, Up to a 150 percent mileage bonus for qualifying flight activity in the first quarter of 2005. For example, members with 2004 year-end balances of 75,000 to 124,999 MQM will be able to choose one of the following benefits: 25,000 bonus miles; Silver Medallion status for a friend or family member and 5,000 bonus miles for themselves; one Economy Class SkyChoice award valid for travel within or between the continental United States, Alaska and Canada for the reduced amount of 25,000 miles; or, a 100 percent mileage bonus for qualifying flight activity in the first quarter of 2005.

Eva Air of Taiwan, through a partnership with Expedia, now allows customers to book car rentals and hotels directly from its Web site. Eva is the first Asian airline to join Expedia's WWTE program. The technology provided gives the airline's clients access to Expedia's inventory while maintaining the Eva Air brand and look and feel of www.evaair.com

Frontier Airlines has declared June 22 2004 as "Frequent Flyer Day", to honor all of its most loyal customers. As part of a ceremony held today at Frontier's Denver (DEN) hub, the airline honored its Top Five frequent flyers, who together have flown over one million miles on Frontier. In addition, the airline celebrated signing its one millionth EarlyReturns member recently. To honor its top five members, Frontier provided each with a free trip for two to Ixtapa, Mexico, including accommodations at the all-inclusive Intercontinental Hotel's Presidente Ixtapa Resort http://www.ichotelsgroup.com/h/d/ic/1/en/hd/zihha?irs=null, located on the beautiful beach of Playa del Palmar.

Frontier Airlines will begin new service between its Denver International Airport (DEN) hub and Nashville International Airport (BNA) Sunday, June 20, 2004. The two daily non-stops between Denver and Nashville will utilize Frontier's new 114-seat Airbus A318 aircraft, with 33 inches of legroom and 24 channels of LiveTV.

Frontier Airlines announced on June 17 2004 its intention to expand its Mexico service by offering nonstop service to Cancun (CUN). Following Frontier's recent announcement that it received approval for flights from Cancun to Salt Lake City (SLC) and Kansas City (MCI), announcement, if approved, could bring the total number of Frontier cities with nonstop service to/from Cancun to six. The Company has filed an application with the U.S. Department of Transportation (DOT) for authorization to serve Cancun, Mexico from Nashville International Airport (BNA) three times a week, Austin-Bergstrom International Airport (AUS) once a week and it has reapplied for service to/from Lambert- St.Louis International Airport (STL) for service three times a week.

Independence Air will begin low-fare service Westchester County Airport (HPN) June 23 2004 with five daily, non-stop flights to Washington Dulles International Airport and to Columbia Metropolitan Airport (CAE) and to Norfolk International Airport (ORF) and to Portland International Jetport (PWM) with daily, non-stop flights to Washington Dulles International Airport, In addition, Independence Air will be adding easy connections from White Plains to 22 cities across the country. All flights are now available for sale on the Independence Air website at http://www.FLYi.com. All fares are sold one-way and a Saturday night stay is NOT required for any fare. Seat assignments can be reserved at the time of booking and flights are not overbooked.

JetBlue Airways New York's low-fare carrier, begins on June 17 2004 its inaugural service to Santo Domingo, in the Dominican Republic. The carrier now serves the Dominican Republic's capital city with one daily nonstop flight from New York City's John F. Kennedy International Airport.

Northwest Airlines announced on June 17 2004 new nonstop jet service between its WorldGateway at Detroit and two destinations, Northwest Arkansas Regional Airport and Rochester, Minn. Two daily flights between Detroit and Northwest Arkansas Regional Airport, which serves the Fayetteville and Bentonville, Ark., areas, will be offered beginning Sept. 13 2004. One daily flight between Detroit and Rochester will begin the same day.

Southwest Airlines Chief Executive Officer, Jim Parker, announced plans on June 17 2004 to add new nonstop flights and enhance existing nonstop flights in many Southwest Airlines markets. Parker made the announcement during a news conference onboard Southwest's 400th plane to enter its fleet. The Company celebrated the major milestone by flying the brand new Boeing 737 to New York for a media event. "Southwest Airlines is accepting delivery of several new aircraft this Fall which will be utilized to support this tremendous growth," said Parker. "Southwest Airlines' Customers have exhibited high demand, and these new flights will give our Customers more options."

United Airlines thanks the governments of the People's Republic of China and the United States on June 18 2004 for their collaborative effort, resulting in a new agreement liberalizing air services between the countries. Under the new agreement, United plans to apply for authority to launch daily, nonstop service between Chicago O'Hare International Airport (ORD) and Shanghai's Pudong International Airport (PVG). The new agreement provides United the opportunity to apply for additional nonstop service to China, as well as increases the carrier's code-share rights to China with Air China and Star Alliance members.

United Mileage Plus members who take two qualifying roundtrips on United from Los Angeles (LAX) to their choice of three popular East Coast cities - Boston (BOS), New York (JFK) or Washington, D.C. (IAD) by Nov. 15, 2004, can take along someone special for free on an upcoming trip. The earned companion ticket will be valid for future travel in United Economy on United, United Express or Ted between LAX and all 52 nonstop destinations in the 48 contiguous United States or Canada.

U.S. Airways said on June 18 2004 it would cut fares and restrictions on flights from Washington, D.C.'s two airports as it competes with low- cost airlines in the region. As an extension of its successful "GoFares" program, the airline is offering lower prices on 22 routes from Ronald Reagan National and Washington Dulles International airports to cities such as Las Vegas and Orlando.

US Airways rolled out its new low GoFares in the Washington, D.C., market on 22 routes initially from both Dulles and Reagan airports. The fares start at $79 for advance purchases to Fort Lauderdale, Raleigh/Durham, Myrtle Beach and Orlando. Last-minute purchases start at $84 and never go higher than $499 one way. US Airways is slowing unveiling this new simplified fare structure, starting with Philadelphia in April. It is offering double Dividend Miles when booked through an agent, and triple of booked at usairways.com.