Alaska Airlines to acquire Hawaiian Airlines, creating the fifth-largest US airline

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Alaska Airlines and Hawaiian Airlines have agreed to a definitive deal where Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, totalling around $1.9 billion, including Hawaiian Airlines’ net debt. This move will expand the fifth-largest U.S. airline to a fleet of 365 aircraft, offering travelers access to 138 destinations through their combined networks and over 1,200 destinations through the oneworld Alliance.

The merger will maintain the distinct identities of both airlines, leveraging a single loyalty programme. The partnership aims to strengthen service in Hawai‘i, particularly for residents with expanded Continental U.S. access and new connections to Asia and the Pacific. Honolulu will become a strategic hub, enhancing international connectivity through Hawai‘i.

This collaboration seeks to offer a broad range of options for consumers, integrating high-value fare choices from Alaska Airlines with the international and long-haul products offered by Hawaiian Airlines. The combined network will significantly increase travel options for passengers across the U.S. West Coast, the Continental U.S., and the Pacific region.

The transaction emphasises job retention and growth, committing to union-represented workforce expansion in Hawai‘i and investing in local communities. It also promises advancements in environmental sustainability, building upon both airlines’ commitments to environmental stewardship.

The deal is expected to undergo regulatory approvals and shareholder consent, with a projected closing time of 12-18 months. Alaska Airlines’ CEO Ben Minicucci will lead the combined organisation based in Seattle. The merger anticipates delivering significant immediate and long-term benefits for employees, consumers, and the communities served by both airlines.

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