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The Honolulu Advertiser

Posted at 11:35 a.m., Tuesday, July 3, 2007

Aloha, United provide more details of partnership

BY Rick Daysog
Advertiser Staff Writer

The partnership between Aloha Airlines and United Airlines will lead to substantial cost savings for the local carrier, according to details of the newly formalized agreement.

Aloha also said it has added United Chief Financial Officer Jake Brace to its nine-member board of directors.

"Our enhanced relationship with United allows Aloha to tap the marketing strength of one of the world's largest and best-known airlines," said Aloha Chief Executive Officer David Banmiller.

United announced on May 2 that it signed a letter of intent to acquire a minority stake in Aloha and planned broaden its long-standing marketing ties with the local carrier.

The two airlines said today that they are looking at sharing airport facilities on the Mainland and in Hawai'i, integrating ground services performed by third-party vendors and sharing fuel purchases.

The two carriers didn't provide an estimate on the amount of savings generated by the deal. The two airlines also did not say how large United's stake would be in Aloha but have said previously that the Chicago-based carrier's holdings in the state's No. 2 airline could grow.

Aloha and United have been marketing partners since 1993 under a code-share agreement that lets passengers earn and redeem frequent-flier miles on both airlines.

Reach Rick Daysog at 525-8064 or rdaysog@honoluluadvertiser.com