Alaska Airlines to acquire Hawaiian Airlines for $1.9 billion
Alaska Airlines will acquire Hawaiian Airlines, the company announced Sunday.
The airline companies announced they have entered into a deal in which Alaska Airlines will buy Hawaiian Airlines for approximately $1.9 billion.
“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,” Alaska Airlines CEO Ben Minicucci said in a statement.
The merger will take up to 18 months and will be headquartered in Seattle under Minicucci’s leadership, but Honolulu will become a key hub for the airline.
It hopes to build on the more than 90-year histories of the two companies that began in the country’s 49th and 50th states, the release said. The combination hopes to “preserve both beloved brands on a single operating platform.”
According to the joint statement, the investment plans to “maintain and grow” union-represented jobs in Hawaii, including keeping pilot, flight attendant and maintenance bases in Honolulu and other airline operations across the islands.
The companies hope the acquisition will provide more opportunities for career advancement, competitive pay and benefits and geographic mobility for employees.
“With the additional scale and resource 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,” Hawaiian Airlines President and CEO Peter Ingram said in the statement. “We are also pleased to deliver significant, immediate and compelling value to our shareholders through this all-cash transaction."
The release said the $1.9 billion cash investment is approximately $18 per share.
The merger will combine both company’s fleets to reach 365 planes and allow travelers to fly to 1,200 destinations, including new connections to Asia. Hawaiian Airlines loyalty members will earn enhanced benefits through the acquisition, the company said.