Proposal to Acquire NZ Jetconnect turned down

PRESS RELEASE

June 19, 2007 Christchurch, New Zealand: The Kiwijet Airline Company Limited has received confirmation from Qantas Airways Limited that our proposal to acquire the Jetconnect operation in New Zealand has been turned down.

We received this news directly from Mr. Peter Gregg, Chief Financial Officer of Qantas Limited on Friday June 15, 2007 at 17:00 eastern Australian time. We have also voiced our concerns to Mr. Gregg and Mr. Dixon, Chief Executive Officer of Qantas that a non corporate officer made comments to the media that Jetconnect was not for sale. We believe that Mr. John Borghetti was not authorized to make such a statement and that Kiwijet to his knowledge had not made a proposal to the Qantas board this is just not true. In fact Mr. Dixon had our proposal on May 28, 2007 and it was taken under serious consideration over a three week period.

We would hope that comments of this kind will be dealt with appropriately by the officers of Qantas, as not to have loose cannons making statements regarding its business dealings with other entities in the future.

All this aside Kiwijet will move forward with our plan B. This revised plan to is operate a fleet of 12, 50 passenger ERJ Embraer 145 Regional Jets with the assistance of a US airline currently operating these aircraft. The following markets of Auckland, Wellington, Christchurch, Invercargill, Rotorua, Nelson, Hamilton, Palmerston North and Tauranga will be served initially. We will focus on providing an all domestic jet operation that will be structured to provide feeder traffic to airlines that do not have ties or code shares with the national carrier as well as linking these cities with all jet service for the first time being competitive with the turboprops that currently serve these cities.

Our plan will keep fares simple and basically the same as our previous proposal with the exception that the single fares will be based on “peak” and “off peak” times meaning that “peak” fares will be on flights operating Monday thru Friday from 0700 to 1800 and “off peak” before 0700 and after 1800 Monday thru Friday as well as weekends and bank holidays.
We will still offer a “show and go” standby fare and accommodate 30 kilos of free baggage and free beverages as well.

The timeline for the launch has now been pushed back to the spring of 2008. We have many obstacles to climb over in the meantime and by introducing the Embraer 145’s we will be required by the NZCAA to place these aircraft into New Zealand for the first time which requires three additional months of approvals to place these aircraft on the civil registrar.

As far as our financing, we have retained all of the commitments that were secured in the initial acquisition proposal with an additional forty five million US dollars to finance the company brining the total to sixty five million US dollars.

On September 3, 2007 we will conduct a series of media events in Auckland and Christchurch that will detail the overall scope of Kiwijet including its officers and key personnel.

Many questions have surfaced regarding the ownership of Kiwijet. These questions will be answered as a matter of public record when we submit our application and manuals to the NZCAA for licensing of the carrier.

We look forward to serving the people of New Zealand and its many international visitors by late next year and we thank you for your ongoing support. Tell your MP’s that airline competition is necessary for New Zealand’s future.

ENDS

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

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