Alaska Air’s $1.9 Billion Acquisition of Hawaiian Airlines

CNN
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Alaska Air (ALK) announced its acquisition of rival airline, Hawaiian Airlines (HA) for $1.9 billion.

Alaska Airlines CEO Ben Minicucci confirmed that the acquisition, which includes $900 million in Hawaiian Airlines debt, was the result of “several months” of negotiations.

Minicucci expressed enthusiasm about the deal, stating that it will provide customers in both states with expanded domestic and international choices.

The merger will see both companies retain their brands, a decision made out of respect for the airlines’ legacy and the communities they serve. The completion of the deal is expected to take between nine and 18 months.

Alaska Airlines emphasized the unique reliance of both states on air travel, with many cities served by the airline not being connected by roads.

Additionally, the merger will shape Honolulu into the company’s second-largest hub, enabling greater international connectivity for West Coast travelers throughout the Asia-Pacific region.

The expansion will increase Alaska Airlines’ fleet from 300 to 365 planes, serving a total of 138 destinations, including 29 international destinations.

Membership in the Oneworld international airline alliance will provide Hawaiian Airlines loyalty customers with improved benefits, including lounge access and an enhanced credit card loyalty program.

Hawaiian Airlines’ CEO and President Peter Ingram expressed excitement about joining forces with Alaska Airlines, emphasizing the shared culture of service and the potential for accelerated investments in guest experience and technology.

The move is considered pro-consumer and will enable the fifth-largest airline in the nation to compete more vigorously in the domestic market.

However, the deal could face scrutiny from antitrust authorities following an ongoing antitrust lawsuit involving another airline acquisition.

When pressed about the timing of the acquisition, Minicucci refrained from commenting.