Alaska Airlines to Acquire Hawaiian Airlines in $1.9 Billion Deal
Hawaiian Airlines and Alaska Airlines have struck a deal under which Alaska Airlines will acquire its rival Hawaiian Airlines for about $1.9 billion. The deal reflects the companies’ efforts to expand their presence along the West Coast.
The purchase values Hawaiian Airlines at $18 per share and includes the assumption of $900 million of the company’s debt. This acquisition was announced in a press release by Alaska Airlines on Sunday, and is expected to close within the next year or 18 months.
The combined company will be headquartered in Seattle, Alaska Airlines’ current base, and will be led by its CEO, Ben Minicucci. The two airlines have stated that they plan to preserve each of their brand identities while operating under a single platform, creating a joint fleet of 365 airplanes that will serve 138 destinations.
Hawaiian Airlines CEO, Peter Ingram, commented, “With the additional scale and resources that this transaction with Alaska Airlines brings, we will be able to accelerate investments in our guest experience and technology, while maintaining the Hawaiian Airlines brand.”
The combination of the two airlines is expected to pave the way for triple the number of nonstop or one-stop flights from the Hawaiian islands to destinations throughout North America. Alaska Airlines stated that the deal is projected to enhance earnings within the next two years and produce at least $235 million in anticipated “run-rate synergies.”
Minicucci emphasized that Alaska Airlines is fully committed to investing in the communities of Hawai’i and maintaining strong Neighbor Island service. The acquisition is expected to significantly affect the travel industry by allowing both airlines to offer better services and more travel options.
The deal comes at a time when the tourism industry in Hawaii is still reeling from the effects of wildfires, as evidenced by a recent CNBC interview with Hawaiian Airlines CEO Peter Ingram on the struggles faced by Maui tourism. The two airlines’ move to combine forces reflects a greater push for a revitalized travel industry that’s committed to providing improved travel experiences for customers.
As the deadline for the closure of the deal approaches, both Alaska Airlines and Hawaiian Airlines are focused on bringing a seamless transition for their customers, thus paving the way for a robust future for both companies in the travel industry.
