United Airlines in early May moved to strengthen its transpacific network by acquiring a minority stake in Hawaiian carrier Aloha Airlines.
The two carriers also agreed to expand their codesharing pact to include Aloha's flights between Hawaii and both Japan and the US mainland. United and Aloha have codeshared for several years on flights within the islands. The two airlines indicate that they may also begin sharing facilities and joint purchasing.
Aloha chief executive David Banmiller says the size of the investment is confidential, but the agreement provides United parent UAL with the option of expanding its stake and gives it a seat on the Aloha board. Aloha, like larger hometown rival Hawaiian Airlines, has been locked in a costly fare war with go!, a new inter-island carrier launched last year by Mesa Air Group.
Banmiller says the United deal "sends a strong signal about the stability of Aloha". The UAL investment is not a cash transaction, but Banmiller says it may allow Aloha to replace its Boeing 737-200s with some of the 737-500s that United will retire.
Aloha currently operates a fleet of 16 737-200s and eight 737-700s.
Source: Airline Business
