Alaska Airlines has announced its plan to acquire rival Hawaiian Airlines for $1.9 billion, concluding "several months" of negotiations, according to Alaska Airlines CEO Ben Minicucci.
CNN reported that the acquisition includes $900 million in Hawaiian Airlines debt. A press release on Sunday said Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash.
Alaska Airlines and Hawaiian Airlines Join Forces
"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 Ben Minicucci.
The combined entity aims to enhance consumer options and air service access across the Pacific, the Continental United States, and globally.
Minicucci expressed enthusiasm about the collaboration, emphasizing the commitment to providing an improved travel experience for guests and expanding options for West Coast and Hawaii travelers.
He acknowledged the respect for Hawaiian Airlines' legacy, brand, and role as a top employer in Hawaii. The merger seeks to preserve both airlines' legacies and cultures, safeguard union-represented jobs, and stimulate economic development in Hawaii.
Additionally, the alliance is anticipated to offer increased international connectivity through airline partners, including the oneworld Alliance.
Hawaiian Airlines CEO Peter Ingram's Statement
Hawaiian Airlines President and CEO Peter Ingram expressed optimism about the collaboration, emphasizing the complementary networks and shared service-oriented culture.
He noted that the transaction would enable accelerated technology investments and guest experience while maintaining the Hawaiian Airlines brand. The deal is expected to bring significant, immediate, and compelling value to Hawaiian Airlines shareholders through an all-cash transaction.
"In Alaska Airlines, we are joining an airline that has long served Hawai'i, and has a complementary network and a shared culture of service," Ingram noted.
"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," he added.
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