Mokulele Airlines announced a substantial expansion of its service with the operation of up to four 70-seat jets that would operate between Honolulu, Kona and Lihu'e.

The company said it will enhance its current flight offerings on Nov. 19 with Embraer 170 jets operated under a new airline service agreement with Indiana-based Republic Airways. The jets operated by Republic subsidiary Shuttle America will be configured with four first-class seats and 64 coach seats.

In doing so, Mokulele will elevate itself into more direct competition with Hawaiian Airlines and go! and fill some of the interisland flight capacity that was lost when Aloha Airlines abruptly shutdown in the spring. Mokulele Airlines currently has a fleet of seven 208B Cessna Grand Caravans and operates 56 daily departures to seven cities in Hawai'i.

Republic will invest $150 million in the venture and Mokulele will double its workforce to 400 from 200, airline executives said at a news conference. About half of the new hires are former Aloha Airlines employees.

"I am extremely confident that the people of Hawai'i will appreciate the expanded network choices and quality service this agreement makes possible," said Mokulele Airlines CEO Bill Boyer.

The Advertiser earlier this month reported Mokulele was in talks with Republic. The company briefed Gov. Linda Lingle on the venture.

"We welcome this agreement between Republic Airways and Mokulele Airlines," Lingle said in a news statement.

"This is very good news for the economy while providing the people of Hawai'i an additional choice in interisland service. This agreement also means new job opportunities, and that is very welcome news for our residents."

Mokulele said the new partnership opens up job opportunities for displaced aviation industry professionals who lost their jobs when several airlines shut down operations on the islands earlier this year. "We encourage former Aloha Airlines and ATA employees to apply for jobs with Mokulele," Boyer added.