Alaska Airlines to acquire Hawaiian Airlines

Representing two of the US's geographic extremities, the two airlines are rooted in the last two states to enter the union, both of which are heavily reliant on air travel.

Alaska Airlines and Hawaiian Airlines are set to combine, with the former carrier to acquire HA for US$1.9 billion.

The agreement, which has been approved by both boards, will pay Hawaiian stockholders $18 per share in cash, and is inclusive of US$900 million of HA net debt.

The combined company will be headquartered in Seattle – Alaska’s current headquarters – and will maintain both brands, which will be supported by a single loyalty offering.

Alaska, the fifth-largest airline in the United States, and Hawaiian, the 10th, will together reach 138 destinations through its combined networks, and more than 1,200 destinations through the oneworld Alliance, which HA was not previously a part of.

Honolulu will become a key hub for the combined airline, which said its commitment to Hawaii “remains steadfast”, including maintaining robust neighbour island air service.

The company will be the fifth-largest airline group in the United States, with a fleet size of 365 aircraft and an orderbook of 165 units.

“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai‘i travelers,” said Alaska Chief Executive Officer Ben Minicucci, who will lead the combined organisation.

“We have a longstanding and deep respect for Hawaiian Airlines, for their role as a top employer in Hawai‘i, and for how their brand and people carry the warm culture of aloha around the globe.

“Our two airlines are powered by incredible employees, with 90+ year legacies and values grounded in caring for the special places and people that we serve.”

Hawaiian President & Chief Executive Officer Peter Ingram added the additional scale and resources the transaction will brings will able the airline to accelerate investments in its guest experience and technology.

The transaction is expected to close in 12-18 months, and is conditioned on required regulatory approvals by Hawaiian shareholders, which is expected to be sought in the first quarter of next year.

Subscribe To travelBulletin