SEATTLE, Wash. — Alaska Airlines announced it officially purchased Hawaiian Airlines for $1 billion.
The announcement comes one day after the federal government removed the last major obstacle.
The U.S. Department of Transportation said it would allow the deal on the condition that the carriers maintain the value of their frequent flyer programs and preserve several key routes.
Alaska will also assume about $900 million in Hawaiian debt.
The airline says it will keep Hawaiian as a separate brand, which eliminates the need to repaint planes.
With a deal inked, Honolulu officially has become the company’s second-largest hub behind Seattle.
“While nothing significant changes to the guest experience immediately, guests can start experiencing meaningful benefits of this combination very soon,” Alaska Airlines announced in a news release.
In the coming weeks, passengers will be able to transfer miles between Alaska and Hawaiian loyalty accounts, buy tickets for flights on both airlines using both websites, and a new travel program will be rolled out exclusively for people who live in Hawaii.
“Among Alaska, Hawaiian, and Horizon Air, we have more than 230 years of history flying guests and serving communities,” said CEO of Alaska Air Group Ben Minicucci.
“I know we will build on that legacy and become stronger together – providing the excellent operation guests have come to expect, expanding options to seamlessly travel nearly anywhere in the world, and securing the financial stability and value that inspires investment.”
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