Alaska Air revealed on Sunday its plans to acquire Hawaiian Airlines for $1.9 billion, marking the end of months-long negotiations.
The deal, inclusive of $900 million in Hawaiian Airlines debt, aims to unite two carriers deeply rooted in regional loyalties, providing customers in both states with expanded domestic and international travel options.
During a news conference, Alaska Airlines CEO Ben Minicucci expressed excitement about the merger, emphasizing its potential to enhance services for customers.
The acquisition, expected to take between nine and 18 months, will maintain the individual identities of both airlines, a decision made to honor the nearly 100-year legacy of each and the communities they serve.
Both Alaska and Hawaiian Airlines play pivotal roles in states heavily dependent on air travel, particularly as they serve 19 cities, many of which lack road connectivity.
The merger positions Honolulu as the second-largest hub for the combined entity, offering improved international connectivity throughout the Asia-Pacific region.
As a result of the acquisition, Alaska Airlines’ fleet will grow from approximately 300 to 365 planes, serving a total of 138 destinations, including non-stop flights to 29 major international destinations.
Aligned with Alaska’s membership in the Oneworld international airline alliance, Hawaiian Airlines loyalty customers are set to enjoy enhanced benefits, including improved lounge access, an upgraded credit card loyalty program, and increased opportunities to earn and redeem miles.
Peter Ingram, CEO and President of Hawaiian Airlines emphasized the shared culture of service and complementary networks with Alaska Airlines.
The additional scale and resources from the merger are expected to accelerate investments in guest experiences and technology while preserving the distinctive Hawaiian Airlines brand.
Minicucci, who will assume the role of CEO for both airlines, positioned the move as “pro-consumer,” enabling the nation’s fifth-largest airline to compete more robustly with industry giants like United, Delta, Southwest, and American Airlines, currently holding 80% of the domestic market share.
However, the acquisition may face scrutiny from antitrust authorities, reminiscent of recent legal challenges in the airline industry.
Minicucci refrained from commenting on the timing of the acquisition, stating, “We’ll let the lawyers deal with that issue,” when questioned by reporters.
