Alaska Airlines has announced its plans to acquire Hawaiian Airlines in a 1.9 billion dollar deal. The deal will be funded through a mix of $2 billion of cash, common stock, and convertible notes, as well as a $1 billion debt assumption previously held by Hawaiian.
The merger is seen as beneficial to both airlines, and is expected to create the largest carrier operating in Hawaii, while increasing the global presence of Alaska Airlines. The combined airline is projected to carry more than fifty million passengers to destinations throughout the U.S., Alaska, Hawaii, Mexico, Canada, and Costa Rica.
Alaska Airlines has said that they will honor Hawaiian Airlines existing loyalty program, and will also offer additional benefits to Hawaiian loyal customers, such as Alaska’s ever-expanding nationwide network. The merger will expand the number of options for inter-island travel, as well as provide customers with a larger selection of routes and destinations.
At the time of the announcement, Alaska Airlines CEO Brad Tilden stated, “Today’s announcement is a transformational shift in the competitive landscape of Hawaii and strengthens our ability to serve our customers throughout the West Coast and beyond.”
The agreement must be approved by Hawaiian shareholders, the U.S. Department of Justice, and the U.S. Department of Transportation. It is expected that the deal will be finalized by the end of the year.
In the end, the Alaska Airlines-Hawaiian Airlines deal is projected to be the largest airline merger of 2021. It is said to provide value to customers, enhance profitability for the merged companies, and bring renewed excitement to the industry. The companies have vowed to prioritize Hawaiian culture and their customer satisfaction, and will no doubt be successful in this newly formed partnership.