Monday, December 4, 2023
Alaska Air Group, and Hawaiian Holdings, jointly declared today the execution of a definitive agreement wherein Alaska Airlines will acquire Hawaiian Airlines at $18.00 per share in cash, totaling approximately $1.9 billion, inclusive of Hawaiian Airlines’ net debt of $0.9 billion. The unified entity aims to broaden travel options, enhance critical air service, and increase access across the Pacific region, the Continental United States, and globally. The transaction is anticipated to create a more robust growth platform, fostering competition in the U.S., and offering long-term employment prospects, community investments, and environmental stewardship.
Both rooted in the 49th and 50th U.S. states, Alaska Airlines and Hawaiian Airlines share a profound dedication to their employees, guests, and communities. The amalgamation seeks to build upon the legacies and cultures of these airlines, maintaining both renowned brands on a single operational platform. The commitment is to protect and augment union-represented jobs, encourage economic development, and ensure continued service excellence.
The combination of Alaska Airlines and Hawaiian Airlines is poised to provide increased options for consumers, with expanded networks and greater choices for the 54.7 million annual passengers. The preservation of both brands, a diverse product offering, and complementary networks will result in enhanced travel experiences and connectivity. The strategic hub in Honolulu will amplify international accessibility, and loyalty program benefits will extend through an industry-leading program.
The integration is anticipated to deliver substantial benefits for employees and communities in Hawai’i, focusing on job growth, operational presence, career opportunities, and workforce development initiatives. The commitment to environmental stewardship will continue, aligning with Alaska Airlines’ path to net zero by 2040.
The transaction, approved by both boards, is contingent on regulatory approvals, shareholder consent, and customary closing conditions, with an estimated closing timeframe of 12-18 months. The combined organization, led by Alaska Airlines CEO Ben Minicucci, will be headquartered in Seattle, with a dedicated leadership team focused on seamless integration planning.
BofA Securities, PJT Partners, Barclays, and Wilson Sonsini Goodrich & Rosati, Professional Corporation are serving as financial and legal advisors for the transaction. Additional details about the acquisition can be found on the joint website localcareglobalreach.com, as well as investor.alaskaair.com and news.alaskaair.com.
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