Alaska Airlines has announced in the last few moments that they will be combining with Hawaiian Airlines, in another major consolidation move for the U.S aviation industry.
It is understood that the carrier will acquire the Hawaii-based airline for around $18.00 per share in cash, which is a transaction of $1.9bn.
Without further ado, let’s get into it…
Alaska Airlines & Hawaiian Airlines To Merge…
Commenting on this plan for acquiring Hawaiian Airlines was Ben Minicucci, the CEO of Alaska Airlines:
“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”.
“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.”
“I am grateful to the more than 23,000 Alaska Airlines employees who are proud to have served Hawai‘i for over 16 years, and we are fully committed to investing in the communities of Hawai‘i and maintaining robust Neighbor Island service that Hawaiian Airlines travelers have come to expect.”
“We look forward to deepening this stewardship as our airlines come together, while providing unmatched value to customers, employees, communities and owners.”
Ingram: All About Accelerating Investments…
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Also commenting was Peter Ingram, the CEO of Hawaiian Airlines:
“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”.
“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.”
The Bottom Line…
Such a deal has been approved by both boards of the two airlines, with this deal expected to close in the next 18-24 months, subject to regulatory approval.
This represents big news for the industry as two heavyweights of the West Coast and islands will combine to further assert their position in the market.
All eyes will be on the outcome of the regulatory approval by the U.S DOJ in due course, of which if this combination is approved, passenger numbers will spike to 54.7m per year, which is a significant growth opportunity for both sides.
This remains a developing story.
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