Alaska Air Buys Hawaiian Airlines for $1.9 Billion

CNN
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Alaska Air (ALK) announced the acquisition of the rival on Sunday Hawaiian Airlines (H.A) $1.9 billion.

According to Alaska Airlines CEO Ben Minicusi, the acquisition is the culmination of “several months” of negotiations. This includes $900 million in Hawaiian Airlines debt.

“This is a fantastic deal that brings together two airlines that have amazing loyalty in our regions,” Minicusi said at a news conference, adding that the merger will provide customers in both states with expanded domestic and international choices.

The agreement is predicted to be taken between Nine and In 18 months, both companies will own their brands, a unique decision that Minigucci and Hawaiian Airlines CEO and President Peter Ingram said honors the 100-year heritage of both companies. Airlines and the communities they serve.

Both states are “uniquely dependent on air travel,” Alaska Airlines said in a news release Sunday. The airline currently serves 19 cities, many of which are not connected by road.

The merger will make Honolulu the company’s second largest hub, “enabling West Coast travelers throughout the Asia-Pacific region greater international connectivity with one-stop service via Hawaii,” according to the news release.

“Alaska Airlines’ fleet will expand from approximately 300 to 365 aircraft, serving a total of 138 destinations, including non-stop service to 29 top international destinations in the Americas, Asia, Australia and the South Pacific,” the company said. liberation

As Alaska’s member of the Oneworld international airline alliance, Hawaiian Airlines loyalty customers will have access to enhanced benefits such as lounge access, an enhanced credit card loyalty program and the ability to earn and redeem more miles.

“At Alaska Airlines, we are joining an airline that has served Hawaii for a long time and has a complementary network and shared service culture,” said Ingram. “With the additional scale and resources 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.”

Minicucci, who is CEO of both airlines, called the move “pro-consumer.” The country’s fifth largest airline currently commands 80% of the domestic market share, competing very strongly with United, Delta, Southwest and American Airlines.

This agreement may be subject to scrutiny by antitrust authorities. It comes less than a month after JetBlue Airways CEO Robin Hayes testified in federal court. An antitrust lawsuit filed by the Justice Department and attorneys general from six states and the District of Columbia over its $3.8 billion acquisition of Spirit Airlines.

When asked about the timing of the acquisition, Minicucci told reporters, “We’ll let the lawyers deal with that issue.”