Alaska Airlines will acquire Hawaiian Airlines in a $1.9 billion deal, the companies announced today.
Alaska Air Group, Inc. will pay $18 a share for Hawaiian Holdings, Inc., the parent of Hawaiian Airlines. Hawaiian’s stock closed at $4.86 a share on Friday.
The transaction has been approved by both boards, the companies said in a news release this morning. The acquisition requires regulatory approvals, approval by Hawaiian Holdings shareholders, which is expected to be sought in the first quarter of 2024, and other closing conditions. It is expected to close in 12-18 months, the companies said.
The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.
“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 Hawaii travelers,” Minicucci said in the news release. “We have a longstanding and deep respect for Hawaiian Airlines, for their role as a top employer in Hawaii, and for how their brand and people carry the warm culture of aloha around the globe.”
Peter Ingram, Hawaiian Airlines’s president and CEO, said, “Since 1929, Hawaiian Airlines has been an integral part of life in Hawaii, and together with Alaska Airlines we will be able to deliver more for our guests, employees and the communities that we serve
“In Alaska Airlines, we are joining an airline that has long served Hawaii, and has a complementary network and a shared culture of service. 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 airlines said the merger “will expand service and convenience by tripling the number of destinations throughout North America that can be reached nonstop or one stop from the islands, while maintaining robust Neighbor Island service and increasing air cargo capacity.”
Airline officials said in the news release that “Honolulu will become a key Alaska Airlines hub, enabling greater international connectivity for West Coast travelers throughout the Asia-Pacific region with one-stop service through Hawaii.”
Alaska Airlines executives said the airline and and its regional partners serve over 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico with new service to the Bahamas and Guatemala beginning in December.
Hawaiian Airlines is in its 95th year and is the state’s largest carrier, with about 150 daily inter-island flights, and nonstop flights between Hawaii and 15 U.S. gateway cities, and service to American Samoa, Australia, Cook Islands, Japan, New Zealand, South Korea and Tahiti.
The airlines said in the announcement that the merger will:
>> Expand the fifth-largest U.S. airline to a fleet of 365 narrow and wide body airplanes;
>> Make Honolulu a key hub for the combined airline with expanded service for residents of Hawaii to the continental U.S. and creating new connections to Asia and the Pacific for travelers across the U.S.;
>> Maintain a commitment to Hawaii, including “robust” neighbor island service;
>> Maintain and grow a union-represented workforce in Hawaii.
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This breaking news story will be updated as more information becomes available.
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