Copa Airlines and AeroRepública announced a strategic alliance that includes Copa's acquisition of an equity stake in the Colombian airline.

AeroRepública, the second-largest airline in Colombia, will continue to operate independently, maintaining its corporate identity and its current workforce, according to officials of each airline. A global trend in the aviation industry, alliances make possible increased passenger benefits while strengthening the participating airlines, the officials explain.

"AeroRepública has an excellent work force and we believe we have an opportunity to strengthen the airline to make it a leading company in Colombian commercial aviation," said Pedro Heilbron, CEO of Copa Airlines. "We are very proud of this alliance and of AeroRepública's achievements of the past few years. Copa airlines will share its experience, technology and other necessary resources to make AeroRepública a world-class company, for the benefit of Colombian and other regional travelers."

Alfonso Ávila, President of AeroRepública, said, "This alliance gives AeroRepública access to new markets and the latest in commercial aviation technology, allowing us to offer increased ? and better ? service to our passengers. Copa Airlines is the ideal strategic partner to develop and consolidate our airline's perations."

Regional integration and globalization strengthens both airlines by taking advantage of complementary routes and markets where each has a major presence. The alliance, which reinforces AeroRepública's position in Colombia, incorporates technical and commercial collaborative agreements for the benefit of the traveling public.

AeroRepública has grown to occupy a leadership position, as results demonstrate; in 2004, the airline transported more than two million passengers, a 29 percent increase from the previous year, and increased its share of jet routes in the market to 35 percent. In 2003, the airline achieved ISO 9001certification for all its processes, guaranteeing the quality of its services.

Copa Airlines (www.copaair.com), flies to 31 destinations in 20 countries in North, Central and South America and the Caribbean from its Hub of the Americas at Tocumen International Airport in Panama City, Panama.

Copa offers flights to 120 other international destinations through codeshare agreements with Continental and Mexicana airlines. Copa and Continental also share a strategic alliance partnership that includes joint participation in Continental's award-winning frequent flyer program.