Alaska Airlines has agreed to take over Hawaiian Airlines in a deal worth $1.9 billion.
The two carriers carry a combined 54.7 million passengers a year and claim their complementary networks will provide greater choice for passengers.
The deal aims to unlock more destinations for consumers and expand choice of critical air service options and access throughout the Pacific region, continental US and globally, according to a statement.
The combined airline will maintain both brands while integrating into a single operating platform with service to 138 destinations including non-stop flights to 29 international destinations in the Americas, Asia, Australia and the South Pacific, and combined access to more than 1,200 destinations via the British Airways-backed Oneworld Alliance.
Under the agreement, Honolulu will become a key Alaska Airlines hub, enabling greater international connectivity for US west coast travellers to the Asia-Pacific region with one-stop service.
Alaska Airlines chief executive Ben Minicucci said: “This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for west coast and Hawaii travellers.
“We have a longstanding and deep respect for Hawaiian Airlines, for their role as a top employer in Hawaii, and for how their brand and people carry the warm culture of aloha around the globe.
“We are fully committed to investing in the communities of Hawaii and maintaining robust neighbour island service that Hawaiian Airlines travellers have come to expect. We look forward to deepening this stewardship as our airlines come together, while providing unmatched value to customers, employees, communities and owners.”
Hawaiian Airlines president and chief executive Peter Ingram said: “Since 1929, Hawaiian Airlines has been an integral part of life in Hawaii, and together with Alaska Airlines we will be able to deliver more for our guests, employees and the communities that we serve.
“In Alaska Airlines, we are joining an airline that has long served Hawaiii, and has a complementary network and a shared culture of service.
“With the additional scale and resources that this transaction with Alaska Airlines brings, we will be able to accelerate investments in our guest experience and technology, while maintaining the Hawaiian Airlines brand.
“Together, Hawaiian Airlines and Alaska Airlines can bring our authentic brands of hospitality to more of the world while continuing to serve our valued local communities.”