Sky high deal: Alaska Airlines to buy Hawaiian Airlines for almost two billion dollars
Honolulu is set to become a key hub for the combined airline with expanded service for residents of Hawai’i to the Continental United States and creating new connections to Asia and throughout the Pacific for travellers across the United States.
As part of the deal, both brands will remain and Alaska Airlines will acquire Hawaiian Airlines for US$18.00 per share in cash, for a transaction value of approximately US$1.9 billion, inclusive of US$0.9 billion of Hawaiian Airlines net debt.
The carriers say the transaction is expected to enable a stronger platform for growth and competition in the United States, as well as long-term job opportunities for employees, continued investment in local communities and environmental stewardship.
According to the carriers, they will preserve both beloved brands on a single operating platform and protect and grow union-represented jobs and economic development opportunities in Hawai’i, with a combined network that will provide more options and added international connectivity for travelers through airline partners including, the oneworld Alliance.
The deal is also expected to see Hawaiian Airlines join the oneworld Alliance.
“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,” said Alaska Airlines CEO, Ben Minicucci.
“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-plus 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 Neighbour Island service that Hawaiian Airlines travellers 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,” he said.
Hawaiian Airlines President and CEO, Peter Ingram, is excited about the future for the 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,” he said.
“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,” Ingram said.
The combined airline will maintain both industry-leading Alaska Airlines and Hawaiian Airlines brands while integrating into a single operating platform, enabling the remarkable service and hospitality of each to be enjoyed by passengers with continued excellence in operational reliability, trust and guest satisfaction for which both companies have been consistently recognized.
The transaction will also connect Hawaiian Airlines’ loyalty members with enhanced benefits through an industry-leading loyalty program for the combined airline, including the ability to earn and redeem miles on 29 global partners and receive elite benefits on the full complement of oneworld Alliance airlines, expanded global lounge access and benefits of the combined program’s co-brand credit card.