Alaska Airlines will buy Hawaiian Airlines for $1.9 billion in an agreement announced Sunday.

In a press release, the two companies said the deal will “unlock” more destinations for air travelers and give consumers more choices in the Pacific, the mainland and around the world.

The two companies said the deal, which must be approved by the U.S. Department of Justice and others, would better position them for growth and competition “as well as long-term job opportunities for employees, continued investment in local communities and environmental stewardship.”

Both brands will remain intact “on a single operating platform,” according to the press release. The companies said the agreement would protect union jobs and create economic opportunities in Hawaii.

Hawaiian Airlines CEO Peter Ingram said the all-cash transaction would “deliver significant, immediate and compelling value to our shareholders.” Alaska is buying Hawaiian for $18 a share.

Hawaiian, which has been in service for 95 years, is the island state’s biggest and longest-serving airline. It offers about 150 daily interisland flights as well as nonstop flights between Hawaii and 15 U.S. gateway cities. The airline also connects Honolulu and American Samoa, Australia, Cook Islands, Japan, New Zealand, South Korea and Tahiti. It employs some 7,000 people.

“We expect to remain a top employer in Hawaii, maintaining and growing the 5,800 union-represented positions over time,” Alaska Airlines CEO Ben Minicucci said Sunday in a call with investors.

As a result of the deal, Hawaii residents will triple the number of North American destinations that can be reached nonstop or via one stop within the islands.

Minicucci gave an example of how service might improve for Hawaii residents. As it is, he said, a Hawaii resident cannot fly to Washington, D.C., on Hawaiian Airlines’ network. But that would be easy in the combined network, he said.

The combined operation would be better able to compete with the “Big Four” airlines, he said, which control about 80% of the domestic market.

“So I think this is a pro-consumer combination,” he said. “It’s pro-competitive.”

The companies promised to maintain a “robust” neighbor island service and to expand air cargo capacity.

“Maintaining neighbor island service is a priority for us,” Minicucci said. In Alaska, he said, the airline flies to 19 communities, only three of which have roads.

“We know how to do that,” he said. “We’re going to bring that expertise and knowledge with us.”

Honolulu, meanwhile, would become a strategic hub for Alaska. Travelers from the West Coast would be able to travel to the Asia-Pacific region with only one stop in Honolulu. The two airlines’ network consists of 138 destinations, including 29 in the Americas, Asia, Australia and the South Pacific.

The two companies would set up a loyalty program for the combined airline.

The new entity would maintain operations and a regional headquarters in Hawaii and would continue to invest in Hawaiian’s programs promoting regenerative tourism and the Hawaiian language and culture.

The agreement includes Alaska taking on some $900 million in Hawaiian’s debt.

Both companies’ boards have approved the deal, according to the press release. It still must win approval by shareholders of Hawaiian Holdings, Inc., who are expected to consider it in the first quarter of 2024. The deal would close in 12 to 18 months, according to the press release.

The Association of Flight Attendants, the union representing cabin crew at both carriers, said in a press release that the Department of Justice must approve the merger, and that there’s no set timeline for that.

“Nothing will happen overnight. But right now we must stick together because the airlines are very clear about how this will benefit shareholders, consumers, and employees but together we can claim clarity in black and white for our jobs and the improvements we can expect,” the association stated in the press release.

The union said its first priority would be to decide whether to support the merger.

“The combined company will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci,” the carriers’ press release said.

In the investor call, Minicucci said the airlines had not yet spoken to federal regulators, but believe that it will be received well. The airlines would have 1,400 flights each day, but only overlap in 12 markets, he said.

“So from a competitive standpoint, I think that lands really, really well,” he said.

Hawaiian Airlines has been in operation since 1929. Together, the two airlines carry 54.7 million passengers a year.

U.S. Rep. Ed Case of Hawaii said in a statement that it was difficult to accept that a company so associated with Hawaii would be purchased by an airline based outside the state.

“But if this is going to and needs to happen to maintain Hawaiian’s contributions to our state, Alaska Airlines is a promising partner,” he said.

He said that upcoming state and federal review of the deal should assure “full, binding and transparent commitments” to back up the airlines’ promises.

“As a longtime fan of both Alaska Airlines and Hawaiian Airlines, I’ll be watching closely to see how this transaction pans out,” Alaska-based management consultant Scott McMurren said in an email.

“I’m particularly interested in the further development of Honolulu as a trans-Pacific hub,” he said. “There is a strong bond between Alaska and Hawaii. This new company should strengthen the connections between the 49th and 50th states.”

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“Hawaii’s Changing Economy” is supported by a grant from the Hawaii Community Foundation as part of its CHANGE Framework project.