P.M. BRIEFING : Northwest, Hawaiian Air to Link

Northwest Airlines announced today it is buying a 25% stake in Hawaiian Airlines and taking over the Honolulu-based airline’s route to Australia.

Northwest will pay Hawaiian Airlines and its parent company, HAL Inc., $20 million, which includes $7 million as a secured loan. The deal is subject to government approvals and other conditions, Northwest said.

“The major component of the agreement calls for Northwest and Hawaiian to cooperate in areas of marketing and operations,” said HAL Chairman Tom Talbot. “This will produce major new revenue, significant cost savings and operational efficiencies.”

Besides the Australian route, Hawaiian Air also will transfer to Northwest its operating authority to fly between Guam-Saipan and Nagoya-Fukuoka, Japan.