Alaska Airlines announced that it has officially purchased Hawaiian Airlines for one billion dollars.
The announcement comes one day after the federal government removed the last major obstacle.
The U.S. Department of Transportation said it would approve the deal on the condition that the airlines maintain the value of their frequent flyer programs and retain several key routes.
Alaska will also assume about $900 million of Hawaii’s debt.
The airline says that Hawaiian will remain an independent brand, eliminating the need to repaint the aircraft.
With the signed contract, Honolulu has officially become the company’s second largest hub after Seattle.
“Although there will be no immediate significant change to the guest experience, guests will soon be able to enjoy the significant benefits of this combination,” Alaska Airlines said in a press release.
In the coming weeks, passengers will be able to transfer miles between Alaska and Hawaiian loyalty accounts and purchase tickets on both airlines through either website. A new travel program exclusive to Hawaii residents will also be introduced.
“Together with Alaska, Hawaiian and Horizon Air, we have a history of more than 230 years of flying guests and serving communities,” said Ben Minicucci, CEO of Alaska Air Group.
“I know we will build on that legacy and grow stronger together – by delivering the outstanding operations guests expect, by expanding opportunities to travel easily to almost anywhere in the world, and by securing the financial stability and value that encourages investment.”
