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MARKAIR FLIES OUT OF BANKRUPTCY

 ANCHORAGE, Alaska, June 9 /PRNewswire/ -- MarkAir, Alaska's largest airline, announced today that it has received court approval to proceed with its innovative plan to repay creditors in full and emerge from Chapter 11 bankruptcy. With this approval, MarkAir has become one of the few airlines in history to fly itself out of bankruptcy without outside financing while repaying its creditors 100 cents on the dollar.
 "We are obviously pleased with the judge's decision and will move forward immediately to put our plan into effect in the months ahead," said MarkAir President Mike Bergt. "This reorganization not only benefits our creditors and the company, but is also good for the people of Alaska and passengers nationwide, who will continue to receive the exceptional travel value they've come to expect from MarkAir."
 Headquartered in Anchorage, MarkAir is Alaska's sixth largest private employer and an integral part of its transportation infrastructure, serving more than 140 communities throughout the state. MarkAir also offers low-fare service to Seattle, Los Angeles, Las Vegas, San Diego, San Francisco, Portland, Denver, New York, Chicago and smaller cities in the Midwest.
 MarkAir's unique reorganization plan offers unsecured creditors debentures, or promissory notes, which will result in payment of 100 percent of the debt, plus interest, within three to five years. For earlier debt payment, creditors can exchange the debentures for travel vouchers on MarkAir flights, and will be permitted to sell them to third parties such as travel agencies.
 "We learned during this most difficult year in our history not just to survive, but to excel," MarkAir Chairman Neil Bergt said. MarkAir officials estimate its cost per passenger mile is much lower than large national carriers and less than half that of Seattle-based Alaska Airlines, allowing it to continue providing more complete and economical service to the people of Alaska and beyond.
 MarkAir reported a 33 percent increase in sales during the first three months of 1993 compared with the same period a year ago, and in March the company registered its first profit ever during this traditionally low-traffic period in Alaska. Company officials said that the improved operating performance since declaring bankruptcy June 11, 1992, has been due to cost reductions and expansion and increased flights in the lower 48 states.
 David Balfour, MarkAir vice president of sales and marketing, reports wide support of the travel voucher option from both travel agents and creditors. "The creditors can receive immediate cash for their debts, and agents can purchase and use them to attract customers," he said. "This in turn benefits passengers and, in effect, is a win-win situation for all parties concerned."
 In order to regulate the amount of voucher travel, MarkAir's plan calls for up to one-third of the debentures to be exchanged for vouchers in the first year after MarkAir has emerged from bankruptcy, one-third to be exchanged in the second year, and one-third in the third year. MarkAir predicts that approximately 70 percent of the $15 million of debentures will be exchanged in this manner.
 "We are optimistic about the future," said Neil Bergt. "All of us at MarkAir look forward to continuing to provide essential, economical and expanding travel options to passengers nationwide."
 MARKAIR'S CREDITORS FARE BETTER THAN CONTINENTAL'S
 Comparison of Bankruptcy Recovery Plans
 RETURN ON THE DOLLAR
 MarkAir 100 percent + interest
 Continental 4.8 percent
 Airlines(A)
 FORM OF PAYMENT
 MarkAir Cash or travel vouchers
 Continental Common stock of uncertain future value
 Airlines (A)
 NOTE: (A) Plan approved in federal bankruptcy court April 16, 1993.
 -0- 6/9/93
 /CONTACT: Steve Sparkman of MarkAir, 907-266-3609, or Sam Huff for MarkAir, 708-382-7404/


CO: MarkAir ST: Alaska IN: AIR SU: BCY

TM -- NY079 -- 0388 06/09/93 22:53 EST
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Date:Jun 9, 1993
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