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First True Low Cost Carrier in New Zealand

PRESS RELEASE

May 02, 2007 Christchurch, New Zealand: The Kiwijet Airline Company Limited is pleased to announce its proposed operations as the first true low cost carrier (LCC) in New Zealand.

kiwijet is planning to launch all jet Boeing 737-300 domestic services in December 2007 between Auckland, Christchurch, Dunedin and Invercargill. Our plan is to offer kiwiclass seating for 140 passengers with a single priced fare structure and free seating. This concept is an entirely new twist on the low cost airline business models of current and previous airlines. It is our mission that soon “all Kiwis will fly”

Our plan closely resembles the Southwest Airlines business model in the USA, and we will offer a full range of amenities such as free wine and beer as well as a generous free baggage allowance not offered by Air New Zealand or Qantas. Other unique offerings will include ‘Moonlight Special’ fares on late night flights between AKL/CHC and CHC/AKL where only cabin baggage will be allowed with the customer. This concept will enable us to accommodate post and parcels in the cargo hold of the aircraft. Moonlight Special service will offer the absolute lowest fare between the two cities, and seats will be sold on a first come first served basis.

We are also considering other perks such as complimentary transfers to the city centres of Christchurch and Auckland as well. Our long term plans will include some limited non contested transtasman routes such as Wellington-Canberra, Auckland-Newcastle, Christchurch-Hobart and Rotorua-Sydney for example.

We believe that a growing population within the country as well as an influx of tourism especially from Asia and North America will sustain our operations for many years to come. Sales and marketing will be focused through internet and top up card sales with revolutionary new technologies such as paying for tickets through a text message or purchasing a fare card at the local petrol station. These cards are widely used in the USA with Southwest, American and US Airways and cater primarily to an 18 – 49 year old demographic. Our products will offer the consumer great flexibility with one price for all.

Our Chief Executive Officer Patrick L. Weil is a veteran of the US airline industry for over 29 years. Mr. Weil was one of the original consultants to advise Easyjet in the UK in June 1995 prior to its launch in November of that year. In 1992 Mr. Weil was Director of Customer Service for the highly successful US low cost carrier Air Tran Airways prior to its merger with Valujet Airlines in late 1995.

We will dramatically change the way an airline is structured by cross utilizing staff to cover inflight and ground positions. Other staff will be required to cover various positions in a cross utilized manner as well. By applying these concepts we can staff the company with roughly half the staffing levels of other carriers, and still achieve high productivity through a profit sharing scheme. We will offer substantially higher entry level pay scales than other airlines to attract the very best staff candidates in New Zealand to join our team.

We feel that the time is right to move forward with our plans, and we are considering bidding for the acquisition of an existing airline in New Zealand to expedite our entry into service.

Our website will be available from September so please check back for updates at www.kiwijet.net

ENDS

See... Kiwijet Media Overview (PDF)

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