Alaska Air Group, parent of Alaska Airlines, on Sunday reached an agreement to buy Hawaiian Airlines in a $1.9 billion deal including debt.
The combined company would keep both airlines' brands while integrating into a single operating platform.
The company would be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci. A leadership team will be established to focus on integration planning, Alaska said.
Alaska will pay $18 in cash for each share of Hawaiian, whose stock closed Friday at $4.86. The deal also includes $900 million in Hawaiian debt, which the airlines said brings the acquisition's total value to $1.9 billion.
The acquisition, approved by the boards of both airlines, is conditioned on approvals from regulatory authorities and Hawaiian Holdings shareholders (which is expected to be sought in the first quarter of 2024). The deal is expected to close in 12 to 18 months.
The combined airline would be in the Oneworld alliance, which includes American Airlines, British Airways, Qantas and Cathay Pacific.
Alaska said the airlines would combine to offer service to 138 destinations, including nonstop service to 29 international destinations in the Americas, Asia, Australia and the South Pacific.
Alaska said Honolulu would be a hub and that it intends to maintain "robust" interisland service in Hawaii. Combined, the airlines would "enable greater international connectivity for West Coast travelers throughout the Asia-Pacific region with one-stop service through Hawaii," Alaska said.