In a strategic move set to reshape the airline industry, Alaska Air Group, Inc. and Hawaiian Holdings, Inc. announced a definitive agreement that will see Alaska Airlines acquire Hawaiian Airlines for US$18.00 per share in cash. The landmark deal, valued at approximately US$1.9B, includes the assumption of Hawaiian Airlines’ net debt, totaling US$0.9B.
The merger is poised to unlock a myriad of destinations for consumers, expanding the critical air service options and access throughout the Pacific region, Continental United States, and globally. Alaska Airlines and Hawaiian Airlines, both deeply rooted in the 49th and 50th U.S. states, share a commitment to their employees, guests, and communities, making this partnership a consolidation of values.
“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,” according to Ben Minicucci, Alaska Airlines CEO.
The combined company aims to create a stronger growth platform and enhance competition in the U.S. aviation sector, with a particular focus on long-term job opportunities, community investment, and environmental stewardship. As part of the agreement, the two airlines will preserve their distinct brands on a unified operating platform, safeguarding the unique service and hospitality for which they are renowned.
The strategic benefits of the merger include an expanded product offering, increased travel options, and a strengthened loyalty program. The combined airline will maintain the industry-leading Alaska Airlines and Hawaiian Airlines brands, providing passengers with a diverse range of cabin classes and price points.
“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,” said Peter Ingram, Hawaiian Airlines President and CEO.
The transaction is expected to triple the number of nonstop or one-stop destinations from Hawai‘i to North America, enhance international connectivity through the Oneworld Alliance, and establish Honolulu as a key hub for Alaska Airlines, facilitating greater international connectivity throughout the Asia-Pacific region.
For Hawaiian Airlines employees, the merger promises growth in union-represented jobs, a strong operational presence, and increased opportunities for career advancement and competitive benefits. The companies pledge to continue and expand workforce development initiatives and invest in local communities, emphasizing their commitment to Hawai‘i’s economic and cultural vibrancy.
Environmental stewardship remains a key focus, with Alaska Airlines reinforcing its commitment to sustainability. Both airlines actively participate in efforts to advance the market for sustainable aviation fuel (SAF) and are dedicated to reducing carbon emissions and promoting responsible tourism.
The transaction agreement has received approval from both boards and is now subject to regulatory approvals, shareholder approval from Hawaiian Holdings, Inc. (anticipated in the first quarter of 2024), and other customary closing conditions. The closing is expected within 12-18 months, with the combined organization headquartered in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci. A dedicated leadership team will oversee integration planning, ensuring a smooth transition for both airlines and their stakeholders.