Aloha Airlines has found a powerful partner in its effort to survive the inter-island fare war launched last year by Mesa Air Group's go!, agreeing to transfer a minority equity stake to United Airlines as part of an expanded partnership announced on May 4.

The size of the stake was not announced, but the companies did say that it "could expand over time." UA, which did not pay cash for the stake, also will take a seat on the nine-member Aloha board, the chairman of which is former Continental Airlines Chairman and CEO Gordon Bethune.

According to the airlines and a number of analysts and press reports, the deal includes a broader codeshare arrangement under which Aloha will place its code on all UA flights between the US mainland and Hawaii as well as its daily Honolulu-Tokyo Narita service.

Coordinating marketing, leveraged purchasing power, facility sharing and potential fleet enhancement are among other perks of the deal, which should be a boon to an airline whose inter-island market share has fallen 2.5 points to 38.7% since go! launched last summer. Through the first nine months of 2006, privately held Aloha had lost US$33 million.

"The beauty of this for Aloha is that we will benefit from the financial and worldwide marketing strength of one of the world's largest airlines," President and CEO David Banmiller said. For UA, supporting Aloha during a difficult period will enable it to maintain feed for its transpacific flights.