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Alaska Air to Acquire Hawaiian Airlines in $1.9 Billion Deal

The combined organization is set to have its headquarters in Seattle, led by Minicucci, with Honolulu becoming a key hub for Alaska Airlines.

Women's Tabloid News Desk
Women's Tabloid News Desk
Alaska Air has announced its acquisition of Hawaiian Airlines for $1.9 billion, inclusive of Hawaiian Airlines’ $900 million net debt, marking another instance of consolidation in the US airline industry. The agreement involves Alaska Airlines purchasing Hawaiian Airlines at $18.00 per share in cash. The companies highlight that this transaction will open up additional destinations and enhance access across the Pacific region, continental United States, and globally. The deal is projected to deliver a high single-digit increase in earnings for Alaska Airlines within the initial two years, without a significant impact on long-term balance sheet metrics. The newly merged entity will have its headquarters in Seattle under the leadership of Minicucci, and Honolulu is slated to become a crucial hub for Alaska Airlines. “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,” said Ben Minicucci, Alaska Airlines CEO. This development occurs amid the aviation sector’s reliance on strong demand to offset inflationary pressures, such as elevated ticket prices due to increased labor and fuel expenses, negatively affecting profitability. The International Association of Machinists and Aerospace Workers (IAM), a union representing 600,000 employees in manufacturing and aerospace, has pledged to safeguard the rights of its members at both carriers throughout and after the acquisition. In October, Alaska Air had revised its full-year profit outlook downwards, citing escalating expenses. This adjustment reflected the broader trend among major US airlines grappling with the impact of rising fuel prices, which cast a shadow on their overall financial outlooks.

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