Alaska Airlines has agreed to acquire Hawaiian Airlines in a deal valued at $1.9 billion, the two US-based carriers announced on Sunday (3 December).
Both airlines will retain their customer-facing brands, while integrating into a single operating platform “behind the curtain”, explained Alaska Airlines CEO Ben Minicucci during a call with investors.
“Simply put, we are acquiring a hub in a premium global leisure market that has the potential to approach Seattle in size,” added Minicucci.
Honolulu would become a key hub for the combined company, which would be “second only to Seattle”, according to Alaska Airlines’ CFO Shane Tackett. There will be expanded services from Hawaii to the continental US, as well as new connections to Asia and throughout the Pacific.
The proposed combination will expand Alaska Airlines, currently the fifth-largest US carrier, to a fleet of 365 aircraft and create a combined network of 138 destinations. It will also offer more than 1,200 destinations through the Oneworld alliance, of which Hawaiian would become a member.
Hawaiian customers also will have access to flights made available through Alaska's partnership with American Airlines, known as the West Coast International Alliance, which began in 2020.
The Alaska-Hawaiian transaction has been approved by both company boards, according to Alaska.
Hawaiian shareholders are expected to vote on the merger during the first quarter of 2024. The acquisition is set to be completed in the next 12 to 18 months, pending government approval and other conditions being met.