Alaska Airlines has reached a deal to buy Hawaiian Airlines, the company announced, Paralel.Az reports citing CBS News.

Alaska Air Group, Inc. will pay $18 a share — a transaction value of approximately $1.9 billion — for Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines.

The boards of both companies have agreed on the deal, which is expected to close in 12-18 months, according to a statement from the airlines.

The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.

"This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai'i travelers," Minicucci said in a statement.

The airlines said the move will preserve both brands and unlock more travel destinations for flyers. The combined company will offer service to 138 destinations, including non-stop service to 29 top international destinations in the Americas, Asia, Australia and the South Pacific, the statement said.

Earlier this year, travel website The Points Guy ranked Alaska Airlines as the third best airline in the U.S., after Delta Air Lines and United Airlines. Hawaiian Airlines took sixth place.