In a stunning move, Alaska Airlines has announced plans to buy Hawaiian Airlines in a $1.9 billion deal. According to the business news site Bloomberg, the all-cash acquisition will be finalized in the third quarter of 2021 and will be subject to regulatory approval.
The deal will give Alaska Airlines a major presence in the Hawaiian Islands, offering the company additional connecting opportunities for its passengers. Alaska Airlines is already the most-traveled airline in North America, and the acquisition of Hawaiian Airlines will help to increase that presence.
Alaska Airlines CEO Brad Tilden said of the acquisition, “Hawaiian has built an impressive business over the last four decades and established itself as a beloved brand within the Hawaiian Islands, while operating one of the youngest fleets in the industry.”
Tilden added, “This transaction will integrate two complementary businesses, providing meaningful benefits for customers, employees and shareholders of both companies. We look forward to welcoming the Hawaiian people to the Alaska family and working together to build a stronger Hawaii-born airline that will serve the Islands for generations to come.”
Under the terms of the agreement, Alaska Airlines will pay $2.3 billion, including debt and aircraft purchase agreements, for the acquisition of Hawaiian Airlines. The company will also invest $1.2 billion of new capital into Hawaiian, with an additional option to invest up to $200 million more over the next five years. Tilden singled out the Hawaiian’s people as a primary factor in the deal, stating that the company is uniquely qualified to build on the brand and its customer service-centric approach.
The Alaska-Hawaiian merger is being seen as a positive move for both companies and is sure to bring welcome news to the airlines’ customers.
