Alaska Airlines is set to purchase Hawaiian Airlines in a $1.9 billion transaction, the two parties announced in a joint press release this morning. The deal will make Alaska Airlines one of the largest carriers in the United States and the largest carrier of passengers to and from the Hawaiian islands.
Alaska Airlines CEO Brad Tilden lauded the move, claiming that this strategic purchase of Hawaiian Airlines was “a smart business decision” for the company that will create an even larger network of coastal flights connecting the mainland with Hawaii. Alongside this, the press release also states that the two companies plan to invest approximately $2 billion in aircraft, airport infrastructure, and other modifications that will benefit their passengers and operations alike.
This acquisition comes after years of speculation and rumors about the potential purchase of Hawaiian Airlines. Hawaiian Airlines had been in financial difficulty due to rising operating costs and lower demand stemming from economic impacts of the COVID-19 pandemic. Alaska Airlines swooped in at the right time and agreed to purchase Hawaiian Airlines through a cash tender offer of $2.5 billion.
The move will no doubt have a huge impact on the air travel industry in the United States. For travelers, this means more choice when it comes to selecting flights, whether they are to and from the mainland or to the islands of Hawaii. In addition to the cash tender offer, the deal also includes an additional $250 million in finance and lease agreements for both Alaska and Hawaiian Airlines, completing the $1.9 billion deal.
Alaska Airlines now has more than 700 daily departures from 15 hub and gateways throughout the mainland United States. Hawaii carriers will also benefit from Alaska Airlines’ strong international network, with a total of 108 cities served by the carrier. The combination of these two major carriers is expected to create even better experiences and greater value for their passengers, both current and future.