Alaska Air Group, Inc. will purchase Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines, for $18 per share, or a total transaction value of about $1.9 billion.
Hawaiian Airlines and Alaska Airlines have struck a purchase agreement, the business said on Sunday.
Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines, will be acquired by Alaska Air Group, Inc. for $18 per share, representing a total transaction value of roughly $1.9 billion.
An announcement from the airlines said that the boards of both businesses have approved the agreement, which is anticipated to close in 12 to 18 months. Both Hawaiian Holdings, Inc. shareholders and U.S. regulators must still approve the merger.
Obtaining authorization from regulators is not a given. Currently, the Justice Department is attempting to thwart JetBlue's planned Spirit Airlines merger.
The combined company will be headquartered in Seattle and run by Alaska Airlines CEO Ben Minicucci, per the terms of the recent agreement between Alaska Airlines and Hawaiian Airlines. Minicucci stated during a merger investor call that of the roughly 1,400+ daily flights, there will only be 12 markets where they overlap. The CEO expressed his opinion that "that lands very well" in terms of regulatory approval.
According to the airlines, this approach will protect both brands and allow passengers to visit more places. According to the announcement, the merged business would provide service to 138 locations, including 29 popular international locations in the Americas, Asia, Australia, and the South Pacific, as well as non-stop travel to those locations.
