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Alaska Airlines (ALK+2.82%) said Wednesday that it has officially acquired Hawaiian Airlines (HA), marking the largest merger of U.S. carriers in eight years.
“This is a historic day for Alaska Airlines as we officially join with Hawaiian Airlines,” Alaska Air Group CEO Ben Minicucci said in a statement. “Alaska and Hawaiian share tremendous pride in connecting communities with award-winning service, and we look forward to inviting more guests on board to experience what makes both brands unique.”
The $1.9 billion merger had appeared to be soaring to success last month, after the review period for Department of Justice (DOJ) antitrust regulators to investigate the deal ended without a lawsuit. An attempt to block the deal had seemed somewhat likely, after the DOJ successfully blocked the $3.8 billion merger between Spirit Airlines (SAVE) and JetBlue Airways (JBLU+3.08%) which would have merged the U.S.’s sixth- and seventh-largest carriers. Alaska is the fifth-largest airline in the nation.
Seattle-based Alaska said it and Hawaiian will now work to secure a single operating certificate from the Federal Aviation Administration, which will let operate as one carrier. Hawaiian will be led by Joe Sprague, formerly Alaska’s president of the Pacific region, until the airlines receive the certificate.
In the meantime, the airlines will continue to operate as separate carriers with no immediate changes to loyalty programs or reservation systems. Miles earned in both Alaska and Hawaiian’s programs will be “secure and more valuable than ever,” the airlines said and will be transferable between the plans.
The combined entity will employ more than 33,000 workers across North America, Asia, and the Pacific. Honolulu will become Alaska’s second largest hub and a regional headquarters, while the Seattle hub will continue to be its largest.
Alaska Air Groups stock sank 1% in pre-market trading Wednesday. Hawaiian Airlines stock will cease trading on the Nasdaq Wednesday.