Alaska Air Group to Acquire Hawaiian Airlines for $1.9 Billion
In a surprising move, Alaska Air Group announced on Sunday that it will acquire rival Hawaiian Airlines for $1.9 billion. The acquisition comes after several months of negotiations and will include the assumption of $900 million in Hawaiian Airlines debt.
Alaska Airlines CEO Ben Minicucci spoke at a news conference, calling the deal a “fantastic” one that brings together two airlines with strong loyalty in their respective regions. The merger is expected to provide customers in both states with expanded domestic and international travel options.
The two companies plan to keep their respective brands, a unique decision made out of respect for the nearly 100-year legacy of both airlines and the communities they serve. The deal is forecast to take between nine and 18 months to complete.
Alaska Airlines emphasized the importance of air travel to both Alaska and Hawaii, stating that the merger will shape Honolulu into the company’s second-largest hub, allowing for greater international connectivity for West Coast travelers throughout the Asia-Pacific region.
The merger will also expand Alaska Airlines’ fleet from about 300 to 365 planes, serving a total of 138 destinations, including non-stop service to 29 top international destinations in the Americas, Asia, Australia, and the South Pacific.
Furthermore, given Alaska’s membership in the Oneworld international airline alliance, Hawaiian Airlines loyalty customers will have access to improved benefits such as lounge access, an enhanced credit card loyalty program, and the ability to earn and redeem more miles.
Minicucci, who will become the CEO of both airlines, sees the move as “pro-consumer” and aims to allow the nation’s fifth-largest airline to compete more robustly with industry giants like United, Delta, Southwest, and American Airlines, which currently own 80% of the domestic market share.
However, the deal could face scrutiny from antitrust authorities. The announcement comes less than a month after a similar acquisition by JetBlue Airways was challenged in a federal antitrust lawsuit. When asked about the timing of the acquisition, Minicucci told reporters, “We’ll let the lawyers deal with that issue.”
The acquisition of Hawaiian Airlines by Alaska Air Group signals a significant shift in the airline industry and will undoubtedly have a lasting impact on travelers in the Pacific region.