Alaska Air buys heavily indebted Hawaiian Airlines for nearly $2 billion

The deal has already been approved

Alaska Air Group, the fifth largest US airline, is buying Hawaiian Airlines from Hawaiian Holdings, as reported by Interfax, citing a press release from the purchasing company.

In the all-cash deal, Alaska Air will pay $18 per share to Hawaiian Airlines, while the Hawaiian Airlines brand will remain in existence.

The boards of directors of Alaska Air Group and Hawaiian Holdings have already approved the transaction, which will be closed within a year and a half.

Hawaiian Airlines' net debt is about $900 million.