Dec 3 Reuters Alaska Air Group Inc said on Sunday it would acquire Hawaiian Holdings Inc for 1.9 billion, including debt, placing a bet on a troubled airline with lucrative routes as U.S. antitrust regulators fight consolidation in the sector.

Alaska Air said it would pay 18 per share in cash, close to four times Hawaiian39;s closing price on Friday. The whopping premium reflected how battered Hawaiian39;s shares were. The Maui wildfires, high fuel costs and jet engine recall issues at some of Hawaiian39;s Airbus SE planes contributed to heavy losses and a 65 share price drop in the last 12 months.

The deal is bound to attract antitrust scrutiny as U.S. regulators challenge JetBlue Airways Corp39;s proposed 3.8 billion acquisition of Spirit Airlines Inc in court.

Antitrust enforcers have been suspicious of mergers between small airlines despite 80 of the U.S. aviation sector controlled by four players United Airlines, American Airlines, Delta Air Lines and Southwest Airlines. They were successful in getting JetBlue in July to abandon a threeyearold alliance with American Airlines.

The tieup with Hawaiian would give Alaska Air, valued at 5.1 billion, control of more than 50 of the market for Hawaii flights, to one of the world39;s most popular tourist destinations.

This is where people want to come spend time and vacation and have weddings and anniversaries. This is something that we believe that will remain strong for years to come, Alaska Air CEO Ben Minicucci said…