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Alaska Air to buy Hawaiian Airlines in $1.9 billion deal
The US airline market is consolidating again.
While JetBlue’s planned takeover of Sprit Airlines get heavy scrutiny, Alaska Air Group just announced a planned acquisition of Hawaiian Airlines.
It values the transaction at around $1.9 billion, inclusive of 900 million of Hawaiian Airlines net debt.
“This combination is an exciting next step in our collective journey,” said Ben Minicucci, Alaska Airlines CEO.
“We are fully committed to investing in the communities of Hawaii and maintaining robust Neighbor Island service that Hawaiian Airlines travelers have come to expect.”
Hawaiian Airlines has been flying since 1929.
“In Alaska Airlines, we are joining an airline that has long served Hawaii and has a complementary network and a shared culture of service,” said Hawaiian CEO Peter Ingram.
Alaska Airlines and Hawaiian Airlines carry a combined 54.7 million passengers annually.
The Alaska Airlines and Hawaiian Airlines brands will continue while integrating into a single operating platform.
Subject to regulatory scrutiny, there will be increased connectivity across a combined network, with service to 138 destinations including nonstop service to 29 international destinations.
These span the Americas, Asia, Australia and the South Pacific.
When the airline acquisition is completed, Honolulu will become a key Alaska Airlines hub.
The transaction will also combine loyalty programs for members of both airlines.
Alaska Airlines Group expects about $235 million of run-rate synergies with the airline acquisition.
The combined business will be led by Alaska Airlines CEO Ben Minicucci and based in Seattle.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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