Alaska Airlines will acquire Hawaiian Airlines in a deal valued at approximately US$1.9 billion after the parent companies of each airline entered into a definitive agreement.
The take-over will expands the fifth largest US airline to a fleet of 365 narrow and wide-body aircraft enabling guests to reach 138 destinations through our combined networks and more than 1,200 destinations through the oneworld Alliance.
“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 travellers,” said Ben Minicucci, CEO of Alaska Airlines.
“We have a longstanding and deep respect for Hawaiian Airlines, for their role as a top employer in Hawai’i, and for how their brand and people carry the warm culture of aloha around the globe. Our two airlines are powered by incredible employees, with 90+ year legacies and values grounded in caring for the special places and people that we serve.
“Since 1929, Hawaiian Airlines has been an integral part of life in Hawai’i, and together with Alaska Airlines we will be able to deliver more for our guests, employees and the communities that we serve,” said Peter Ingram, President and CEO of Hawaiian Airlines.
“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. 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.
“We are also pleased to deliver significant, immediate and compelling value to our shareholders through this all-cash transaction. Together, Hawaiian Airlines and Alaska Airlines can bring our authentic brands of hospitality to more of the world while continuing to serve our valued local communities.”
Passengers travelling throughout the Continental US, US West Coast and across the Pacific will benefit from more choice and increased connectivity across both airlines’ networks, with service to 138 destinations including non-stop service to 29 top international destinations in the Americas, Asia, Australia and the South Pacific, and combined access to over 1,200 destinations through the oneworld Alliance.
The arrangement will see Honolulu become a key Alaska Airlines hub, enabling greater international connectivity for West Coast travellers throughout the Asia-Pacific region with one-stop service through Hawai’i.
From an operational standpoint, Hawaiian Airlines said: “This transaction is all about bringing together complementary domestic, international, and cargo networks to enhance competition and expand choice for consumers.
“With respect to Hawaiian’s operations in the region, nothing changes in the near term while we go through the regulatory process”.
The transaction will also connect Hawaiian Airlines’ loyalty members with enhanced benefits through an industry-leading loyalty program for the combined airline, including the ability to earn and redeem miles on 29 global partners and receive elite benefits on the full complement of oneworld Alliance airlines, expanded global lounge access and benefits of the combined program’s co-brand credit card.
The transaction agreement has been approved by both boards. The acquisition is conditioned on required regulatory approvals, approval by Hawaiian Holdings, Inc. shareholders (which is expected to be sought in the first quarter of 2024), and other customary closing conditions. It is expected to close in 12-18 months. The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci. A dedicated leadership team will be established to focus on integration planning.