Alaska Air Group announced on Sunday that it has agreed to acquire its rival Hawaiian Airlines for $1.9 billion, a deal that would create a dominant carrier in the Hawaii market and expand its network to Asia.

The transaction, which faces regulatory scrutiny, would pay $18 a share for Hawaiian and assume $900 million of its debt. Hawaiian has suffered from the Maui wildfires, competition from Southwest, and slow recovery of travel to and from Asia amid the pandemic.

The combined company would operate under a single platform, but keep both brands. It would have a fleet of 365 planes serving 138 destinations, including Hawaiian’s long-haul routes to Asia. The deal is expected to close in 12 to 18 months, subject to approval by regulators and Hawaiian’s shareholders.

Ben Minicucci, CEO, Alaska Airlines, said, “Our two airlines are powered by incredible employees, with 90+ year legacies and values grounded in caring for the special places and people that we serve. This is an exciting next step in our journey to elevate the travel experience and expand options for guests”.

Peter Ingram, CEO, Hawaiian Airlines, said, “Since 1929, Hawaiian Airlines has been an integral part of life in Hawai‘i, and together with Alaska Airlines we will be able to deliver more for our guests, employees and the communities that we serve. Together, we can bring our authentic brands of hospitality to more of the world while continuing to serve our valued local communities.”

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