Alaska Airlines to acquire Hawaiian Airlines for $ 1.9 billion

04 Dec 2023 CW Team

Alaska Airlines declared that it intended to acquire Hawaiian Airlines for $ 1.9 billion, solidifying its status as the nation's fifth-largest carrier, pending regulatory approval.

It was stated in a joint press release that, under the terms of the agreement, both brands would persist, and the finalization of the deal could take up to 18 months.

The merged airlines were projected to possess a fleet of 365 narrow and widebody aircraft, serving 138 destinations.

Seattle-based Alaska Airlines, primarily operating in the western United States, would designate Honolulu as its second main hub.

As per the two companies, residents of Hawaii would enjoy expanded services to the continental United States, and the merger would establish "new connections to Asia and throughout the Pacific for travellers across the US."

Both airlines cater to regions "uniquely reliant upon air travel," namely the Pacific archipelago and Alaska.

The companies affirmed their unwavering commitment to Hawaii, ensuring robust service between islands.

Hawaiian Airlines CEO Peter Ingram mentioned in the statement, "With the additional scale and resources that this transaction with Alaska Airlines brings, we will be able to accelerate investments in our technology while maintaining the Hawaiian Airlines brand."

The certainty of federal regulatory approval for the acquisition remained uncertain. In recent years, US airlines, facing intense competition and financial pressures, have sought consolidation strategies despite undergoing federal antitrust scrutiny.

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