GOVERNOR ERNIE FLETCHER PARTICIPATES IN GROUNDBREAKING FOR CHAUTAUQUA AIRLINES MAINTENANCE HANGAR

Facility expected to bring over 300 well-paying jobs to Kentucky

Frankfort, Ky. - Governor Ernie Fletcher participated in a groundbreaking today to celebrate construction of the Chautauqua Airlines maintenance hangar at the Louisville International Airport. The new 60,250 square foot facility is expected to employ more than 300 people with an average annual salary in excess of $34,000. Construction of the hangar is scheduled for completion in December 2005.

"I want to thank Chautauqua Airlines for bringing this tremendous economic development opportunity to the greater Louisville area," said Governor Ernie Fletcher. " Three hundred well-paying jobs will have a significant impact on the quality of life for numerous families. The priority of my administration is to provide more opportunities for the workforce of Kentucky."

Chautauqua Airlines, a wholly-owned subsidiary of Republic Airways Holdings, provides regional jet service for Delta Air Lines, United Air Lines and US Airways and is the only regional airline to partner with 4 major airlines. The airline was selected as Regional Airline of the Year by Regional Air Transport World and Regional Airline World in 2004.

"This new Louisville maintenance center, when completed, will support our company's growing operation. Louisville is an important piece of our regional jet strategy and its convenient location allows us to support three of our four airline partners," said Warren R. Wilkinson, Vice President Government Affairs & Corporate Communications for Republic Airways Holdings. "We appreciate the support and cooperation of the Commonwealth of Kentucky, the City of Louisville, Greater Louisville Inc. and The Louisville Regional Airport Authority in making the development of this hangar a reality."

Louisville currently serves as a maintenance and crew base for the airline, utilizing a temporary facility at the Signature Flight Support. This new facility will increase the number of aircraft the airline can work on in Louisville overnight 300 percent from 2 to 6 aircraft. In addition, Louisville serves as a large crew base for the airline with up to 8 Chautauqua Airlines aircraft overnighting in Louisville. Six aircraft will be maintained nightly in this new facility.

"Louisville International Airport is one of the primary engines powering our community's economy and the Chautauqua Aircraft Maintenance Facility will help keep us moving forward," added Phil Lynch, Vice Chairman of the Louisville Regional Airport Authority. "It also affirms the wisdom of our community leaders when they launched the airport expansion in 1988, without which the land on which Chautauqua is building would not be available today."

The Kentucky Economic Development Finance Authority (KEDFA) approved Chautauqua Airlines for up to $7.8 million in tax incentives over a 10 year period under the Kentucky Jobs Development Act (KJDA), a program aimed at increasing employment in the Commonwealth.

Chautauqua Airlines offers scheduled passenger service on more than 700 flights daily to 76 cities and 32 states, the District of Columbia, Canada and the Bahamas through code sharing agreements with four major U.S. airlines. Chautauqua Airlines currently operates a fleet of 116 Embraer regional jets, including ERJ-145s, 15 ERJ-140s, 17 ERJ-135s and 16 Embraer 170s. All of its flights are operated under its major airline partner brand, such as AmericanConnection, Delta Connection, United Express and US Airways Express.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2003 totaled more than $1.56 billion with the creation of just over 13,800 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at http://www.thinkkentucky.com/.