Alaska Air Agrees to Buy Hawaiian Airlines

Alaska Air announced Sunday that it has reached a deal to buy Hawaiian Airlines for $18 a share, making the deal worth about $1.9 billion. Both companies' boards already have agreed on the terms of the sale, CBS News reports, which is on track to close within 18 months. Alaska's CEO Ben Minicucci will run the operation, which will be based in Seattle, the companies said. Minicucci said in a statement that the combination will provide more travel options for West Coast and Hawaii travelers.

The airlines will keep their separate names, per Axios, but share a loyalty program. Honolulu will be a hub for both, and the airlines said they intend to keep the union workforce in Hawaii. To take effect, the deal, which includes $900 million in Hawaiian Airlines debt, will require regulatory approvals as well as an OK by shareholders of Hawaiian Holdings, the parent company of Hawaiian Airlines. Minicucci said negotiations have gone on for months, per CNN. Both CEOs said the decision to keep the two brands reflects respect for the airlines' legacies. Alaska Airlines' statement pointed out that Alaska and Hawaii are "uniquely reliant upon air travel"—many cities the airlines serves are not connected by roads. (More airline industry stories.)