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B8 - The Terrace Standard, Wechnesday, October 12,2005. ,

Ptawkair
: * Creditor Arrangement Act (c

_ We have supported ocal:charities, brought jobs to the north, pumped millions of dollars into the local economies
while at the same‘tim prvi the. pompetnve force to fo being you lower airfares. a,

. a | “For the past five years awkair has been committed to providing a truly ur unique re ional air service based i in Terrace, BC. a 7

Absolutely. Hawkair continues to‘op
Every’ ticket, including reward tickets

19:
is caliea the Plan of ‘Arrangement. ‘Once Hawkair' S creditors and the Court.
accept th ‘Plan of Arrangement, it is said to be confirmed and Hawkair rr
emerges from:CCAA:as a reorganized company. — Py at, eS

_. Why did Hawkair file. ine

‘As 'Hawkair has made’ clear. Fan the 3) Ii months, and p. tically si since
» July 31, the airline’s'business. ‘model is broken.: The situation continues to
deteriorate as a result of existing liabilities with our aircraft vendors and
escalating fuel and insurance costs. Despite cutting ¢ overhead by reducing -
* of our fleet from 5 to 3 aircraft and downsizing our payroll by nearly.
38% we cannot overcome the significant cost.and liquidity challenges —
faced by the airline and therefore decided to file for CCAA.

- 12. Will witiees be longe or for;
hg print b inp aay a

3... Does this mean Hawkair i is going ‘out of business?

~ Absolutely not. It is business as ‘usual. ‘The. purpose of CCAA.is to preserve |
and strengthen Hawkair's business so that we can ‘compete successfully.
and return to profitability. We expect tode just that. Many’ companies.”

that have filed for reorganization have @ strengthened: thelr businesses «

~ and are performing well today. :.

The restructuring \ will have 101 c
factors that may cause ‘flight delays.

0

4. - Does Hawkair have enough. cash to stay i in business? . ; ee °

© fe Yes. Hawkair has strong cash flow and is focused on serving its core ° and this will not t change. During ut restructuring. and id Beyond,

» . business which is Terrace, Prince Rupert, Ft. St. John and Dawson Creek. 7 a Bs ~~... Hawkair will continue to provide our customers with safe and —
With the ability to delay payment to our creditors for.the existing debit, : a _~ :well-maintained aircraft, and our staff will continue to adhere
we have sufficient funds.to stay in business. Hawkair has taken dramatic oo es 8 to the highest level, of safety training. Be
, oS steps towards sustainability and towards building a more e efficient, ee
| Hower costainfing: Soo 16. will ticket. prices increase? |
; oes Te Ticket s will titi .
5. When will Hawkair emerge from CCAA? ce oe P rices will remain competitive.
. While there are no assurances, we expect to complete the restructuring a “17, ds Hawkair cutting back on staff

's on : on a “fast track” basis and fan emergence from cCAA as soon as ossible. .
os P ge p and will this impact service?

‘Is H awkair exiting any markets or canceling any routes?” ae *  Hawkair has been taking measures over the past year to reduce
Hawkair practices disciplined ongoing capacity and fleet management employ ee numbers to more adequately reflect demand. We confirmed —

_in September that we are accelerating our transformation into a more |
been progressively adjusting capacity over the past several weeks in view

bo ]e ae __ of reduced demand and that capacity for the balance of Fall 2005 is reduced Qu payroll approximately thirty-eight percent ars with capacity

_ by 15 per cent as compared to last year. We also confirmed at that time that = - . reductions due to reduced demand, we do not anticipate any change
further capacity adjustments to be instituted as developments | warrant. Gn customer service levels to our customers.

7. Will my ticket be honored 7 a 18. Where can | obtain further information
throughout the restructuring process? + aout your restructuring? . ;
Yes.. We will honor all tickets throughout the restructuring period just ~~ = ‘Please visit our website (www.hawkair.ca) and select the icon

as before. Our customers are.our number one priority and we are taking .

“Hawkair Restructures” to receive updates on our progress.
‘every step necessary to ensure you the. highest quality of service. _ a P Progress

8. Will Hawkair refund my ticket(s)? Oo oe
Our policy on refunds remains in place. In other words, if you purchased - _ ms -

_. a refundable ticket and wish to take advantage of your option to refund it,
_we will honor our obligation to provide you a refund. © .

\

\

Tom Beshr, General Manager

an

www. hawkair. a
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