Alaska Air Group has announced a significant acquisition, agreeing to buy Hawaiian Airlines in a deal valued at $1.9 billion, including debt. This strategic move will see the combined entity retaining both airlines' distinct brands, deeply rooted in the U.S.'s 49th and 50th states.
Under the terms of the agreement, Alaska will pay $18 in cash for each share of Hawaiian, a notable increase from Hawaiian's closing stock price of $4.86 on Friday. The deal also encompasses $900 million in Hawaiian debt, bringing the total value of the acquisition to $1.9 billion.
The acquisition has received approval from the boards of both airlines but remains subject to regulatory approvals and the consent of Hawaiian Holdings shareholders. The shareholder vote is anticipated in the first quarter of 2024, with the deal expected to finalize within 12 to 18 months.
Post-merger, the combined organization will be headquartered in Seattle, led by Alaska Airlines CEO Ben Minicucci. A dedicated leadership team will be formed to oversee the integration process. The merged airline will be part of the Oneworld alliance, which includes major carriers like American Airlines, British Airways, and Cathay Pacific.
The merger promises to enhance connectivity, offering access to 138 destinations and significantly increasing the number of destinations reachable within one stop from Hawaii in North America. Both companies have committed to maintaining Honolulu as a key hub and growing their union-represented workforce in Hawaii. Alaska also plans to continue providing robust inter-island service in Hawaii.
This merger represents a major development in the airline industry, combining two networks to create a more expansive and connected air travel experience for passengers.
