United, Aloha to Expand Existing Partnership

United Airlines and Aloha Airlines revealed tentative plans to expand an existing partnership which would give United a minority stake in Aloha Airlines and a seat on its board of directors. United said its stake “could expand over time.”

Aloha spokesman Stu Glauberman said the two carriers have signed a letter of intent to expand their existing partnership and provide the minority stake in a non-cash transaction.

Mr. Glauberman said Aloha would benefit because the deal would expand code sharing between the airlines and would allow the possibility of joint marketing, joint use of facilities, joint purchasing to reduce costs, cost-sharing on expenses and Aloha acquisition or use of United aircraft.

Glauberman also said the deal would equally expand Aloha’s presence in the GDSs, since, for example, its code would be on United’s Hawaii and Japan flights and the airline’s name would show up when agents search for flights on those routes.

Aloha and United have been marketing partners since the early 1990s and already code share on Aloha’s inter-island routes. Also, frequent flyers in the Aloha Pass and United Mileage Plus programs can earn miles in either program and redeem them for travel on either airline.