SEATTLE (AP) — Alaska Air Group has agreed to buy Hawaiian Airlines in a $1.9 billion deal including debt.
The airlines announced the agreement Sunday.
Alaska will pay $18 in cash for each share of Hawaiian, whose stock closed Friday at $4.86.
The deal includes $900 million in Hawaiian debt.
The acquisition still needs the blessing of U.S. regulators, which have shown resistance to more consolidation within the airline industry out of fear it could lead to higher airfares.
Alaska and Hawaiian are both leading carriers between Hawaii and the U.S. mainland, which could raise worries about the combination hurting competition.