Alaska Airlines to Acquire Hawaiian Airlines for $1.9 Billion

Alaska Airlines and Hawaiian Airlines are set to combine after the former announced it will acquire the latter for approximately $1.9 billion, inclusive of $900 million of Hawaiian Airlines net debt. “The combined company will unlock more destinations for consumers and expand choice of critical air service options and access throughout the Pacific region, Continental United States and globally,” the lines said in a joint statement.

The carriers will remain separate brands under a single operating platform. It will also “make air travel accessible to a wide range of consumers across a range of cabin classes, including greater choice between Alaska Airlines' high-value, low-fare options and Hawaiian Airlines' international and long-haul product on par with network carriers.”

Travelers will have direct access to a total of 138 destinations, including non-stop service to 29 international destinations in the Americas, Asia, Australia and the South Pacific, plus combined access to over 1,200 destinations through the carriers’ oneworld Alliance. For travelers to and from Hawaii, the combination will triple the number of destinations throughout North America that can be reached nonstop or via one stop from the islands. In addition, Honolulu will become an Alaska Airlines hub, enabling greater international connectivity for West Coast travelers throughout the Asia-Pacific region with one-stop service through Hawaii.

The airlines also promised increased union-represented jobs, investment in local communities, perpetuation of culture and sustainable initiatives as part of the combination.  The deal is expected to close in 12 to 18 months. The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.

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