Alaska Airlines said Sunday it would buy Hawaiian Airlines for $1.9 billion, boosting its position as the nation’s fifth-largest carrier, if it can get regulatory approval.
Both brands will continue to exist under the terms of the deal, which could take up to 18 months to finalize, according to a joint press release.
The combined airlines will have a fleet of 365 narrow- and wide-body aircraft and will reach 138 destinations.
Based in Seattle, Alaska Airlines primarily serves the western United States. Hawaii’s capital Honolulu will become its second major hub.
Hawaii residents will benefit from expanded service to the continental United States, the two companies said, and the merger will create “new connections to Asia and across the Pacific for travelers throughout the US.”
The two airlines both provide service to areas that are “uniquely dependent on air travel” — the Pacific archipelago and the border state of Alaska.
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“The commitment to Hawaii remains strong,” the companies said, including maintaining strong inter-island service.
“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,” said Hawaiian Airlines CEO, Peter Ingram.
Federal regulatory approval of the market is not assured.
U.S. airlines have faced tough competition in recent years, seeking to shore up against financial pressures even as they endure federal antitrust scrutiny.
President Joe Biden’s administration last year blocked an alliance between American Airlines and JetBlue Airways and is seeking to stop JetBlue from buying Spirit Airlines, arguing that the merger may not benefit consumers.
Source: AFP