Alaska Air acquires Hawaiian Airlines in a $19 billion deal
Alaska Air to acquire Hawaiian Airlines, a strategic move for $19 billion
Alaska Air (ALK) announced on Sunday its acquisition of Hawaiian Airlines (HA) for $1.9 billion. Alaska Airlines CEO Ben Minicucci expressed excitement about the deal, stating that it brings together two airlines with strong regional loyalties. He also highlighted that the merger will provide customers in both states with a wider range of domestic and international travel options.
The agreement, projected to take nine to 18 months, will allow both companies to retain their brands, a decision made in reverence to the nearly century-long legacy of both airlines and the communities they cater to, according to Minicucci and Hawaiian Airlines CEO and President Peter Ingram.
"In Alaska Airlines, we are becoming part of an airline that has a longstanding presence in Hawaii, and possesses a complementary network and a shared commitment to service," stated Ingram. "With the increased scale and resources that this deal with Alaska Airlines brings, we will be able to expedite investments in our guest experience and technology, all while upholding the Hawaiian Airlines brand."
Minicucci, set to become the CEO of both airlines, praised the decision as being in favor of consumers and allowing for stronger domestic competition against United, Delta, Southwest, and American airlines, which currently hold 80% of the market share.
The agreement follows JetBlue Airways CEO Robin Hayes testifying in federal court in November in an antitrust lawsuit filed by the Justice Department and the attorneys general from six states and the District of Columbia over JetBlues proposed $3.8 billion acquisition of Spirit Airlines.
This is a developing story. It will be updated.
