Alaska Airlines has reached an agreement to buy Hawaiian Airlines, the company announced Sunday.
Alaska Air Group, Inc. will pay $18 per share – a transaction value of approximately $1.9 billion – for Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines.
The boards of directors of both companies have agreed on the deal, which is expected to be finalized in 12 to 18 months, according to a statement from the airlines.
The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.
“This combination is an exciting next step in our collective journey to deliver a better travel experience for our customers and expand options for travelers on the West Coast and Hawaii,” Minicucci said in a statement.
The airlines said the move would preserve both brands and unlock more travel destinations for travelers. The combined company will offer service to 138 destinations, including non-stop service to 29 major international destinations in the Americas, Asia, Australia and the South Pacific, the release said.
Earlier this year, travel site The Points Guyas the third best airline in the United States, after Delta Air Lines and United Airlines. Hawaiian Airlines took sixth place.
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