Aloha finalizes expanded deal with United
Aloha Airlines and United Airlines said yesterday they have finalized an expanded partnership deal that calls for strengthened cooperation between the two carriers in the Hawaii and trans-Pacific markets.
The airlines, which signed a letter of intent in May, said the agreement will broaden a long-standing relationship to achieve mutual benefits in marketing, expense reduction and operating efficiencies.
Although the carriers said no money changed hands in the agreement, it also calls for United to receive a minority equity stake in Aloha and one seat on Aloha's board of directors.
Aloha and United, who have been marketing partners since 1993, said the new agreement will expand their existing code-share agreement with the new code-share routes scheduled to go into effect in 45 days. Code shares allow airlines to sell seats on each others' flights.
The two airlines said the new agreement is expected to produce additional savings in fuel procurement, the sharing of facilities at airports and potential integration of ground services performed by third parties. Aloha and United also said they will explore efficiencies in such areas as catering, maintenance and telecommunications.
The agreement "allows Aloha to tap the marketing strength of one of the world's largest and best-known airlines," said David Banmiller, president and chief executive of Aloha. "This close working relationship will bring long-term benefits for our shareholders, our employees and, above all, our customers, who will have greater opportunities to earn and redeem miles and travel seamlessly on United's routes to and from and within the state of Hawaii."