Alaska Air Expands With $1.9 Billion Acquisition of Hawaiian Airlines

In a bold step intending to bolster its status in the aviation industry, Alaska Air announced on Sunday that it will absorb rival Hawaiian Airlines into its operations for a whopping $1.9 billion. This merger, a result of several months of intense negotiations, is slated to incorporate Hawaiian Airlines’ debt of $900 million.

“In Alaska Airlines, we are joining an airline that has long served Hawaii, 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.”

Peter Ingram, Hawaiian Airlines CEO and President, via CNN

Expected to close within a span of nine to 18 months, this merger will maintain the identities of both brands. This unprecedented decision results from the long-standing respect for the near-century-old legacy of these airlines and their service to the communities. Notably, both Alaska and Hawaii depend significantly on air travel due to their topography and geographical location, a fact recognized in Alaska Air’s recent press release.

Alaska Air, which currently serves 19 cities, many unreachable by road, anticipates the merger to transform Honolulu into its second-largest hub. This development aims to provide increased international connectivity for West Coast travelers throughout the Asia-Pacific region with a convenient one-stop service via Hawaii.

Peering into the future post-merger landscape, Alaska Airlines’ fleet is set to grow, expanding from about 300 to 365 planes. In addition, the service coverage will reach a total of 138 destinations, featuring non-stop service to 29 top international locations across the Americas, Asia, Australia, and the South Pacific.

Loyal customers of Hawaiian Airlines will be pleased to learn that enhanced benefits await them due to Alaska’s membership in the Oneworld international airline alliance. These perks include lounge access, a boosted credit card loyalty program, and increased opportunities to earn and redeem miles.

Assuming the role of CEO for both airlines, Ben Minicucci celebrates this move as pro-consumer. He believes it will equip the nation’s fifth-largest airline to vigorously challenge the likes of United, Delta, Southwest, and American Airlines, currently holding 80% of the domestic market share.

However, this merger may attract regulatory attention from antitrust authorities. The announcement follows close on the heels of a lawsuit by the Justice Department and attorneys general from six states and the District of Columbia, opposing JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines.