Alaska Airlines completes $1.9 billion acquisition of Hawaiian
Alaska Airlines Completes Acquisition of Hawaiian Airlines #
Alaska Airlines has finalized its $1.9 billion acquisition of Hawaiian Airlines after reaching an agreement with the U.S. Department of Transportation.
The airlines have agreed to maintain key Hawaiian routes and adopt consumer protections under a six-year agreement. This merger combines the fifth-largest domestic U.S. airline with the tenth-largest carrier.
The CEO of Alaska Airlines stated that the deal would benefit competition and consumers, expanding access to both networks and giving Alaska access to Hawaiian’s fleet of wide-body airplanes. He emphasized the flexibility this provides in deploying airplanes across their entire network, aiming to deliver the best results for the combined entity.
The airline expects to achieve at least $235 million in run-rate synergies by the third year.
This merger comes amid a climate of increased scrutiny on airline consolidation. Earlier this year, a proposed merger between two other airlines was scrapped after being blocked on anticompetition concerns. Additionally, a joint venture between two major airlines for flights in and out of New York City and Boston was successfully challenged.
As part of the agreement, Alaska and Hawaiian have committed to:
- Protect the value of frequent flyer rewards
- Maintain existing service on key Hawaiian routes to the continental United States and inter-island regions
- Ensure competitive access at the Honolulu airport
- Provide travel credits or frequent flyer miles for disruptions that are the fault of the airline
Hawaiian Airlines’ stock will be de-listed and cease trading on the Nasdaq. The combined organization will continue to trade under the ALK ticker symbol on the New York Stock Exchange.