SEATTLE — Alaska Air Group has agreed to acquire Hawaiian Airlines in a $1.9 billion deal, which includes debt.
The combined company will keep both airlines’ brands. Alaska will pay $18 in cash for each share of Hawaiian and will also assume $900 million in Hawaiian debt, bringing the total value of the acquisition to $1.9 billion.
The combined airline will join the oneworld Alliance and offer increased connectivity to 138 destinations. It will also triple the number of destinations that can be reached within one stop in North America for travelers from Hawaii.
The companies have stated that they will maintain Honolulu as a key hub and are committed to the growth of the union-represented workforce in Hawaii.
The deal is subject to approval from the boards of both companies, the shareholders of Hawaiian Holdings, and U.S. regulators. The Biden administration has been resistant to airline industry consolidation due to concerns about higher fares.
The average domestic airline fare out of Seattle during the spring was $409.93, while the average fare out of Honolulu was $367.94.
The Alaska and Hawaiian companies anticipate the deal will be finalized within 12 to 18 months.