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Topline Alaska Airlines will buy Hawaiian Airlines for $1.9 billion, the companies said Sunday, in a deal that would bring Alaska Airlines closer to the big four Airlines: American, Delta, Southwest and United. Alaska Airlines Embraer ERJ 170-200 LR arrives at Los Angeles International Airport on October 19, … [+] 2023. (Photo by AaronP/Bauer-Griffin/GC Images) GC Images Key Facts The deal includes $900 million in Hawaiian Airlines’ net debt and amounts to $18 per share in cash, the companies said in a press release. The combined company will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci, who called the deal an opportunity to “expand options for West Coast and Hawaii travelers.” Hawaiian residents will be able to access three times the number of North American destinations through the combined airline, which will fly to 138 destinations, including non-stop flights to 29 international locations, the companies said. The deal comes after Alaska Air Group cut its full-year profit outlook in October amid rising labor expenses, higher fuel prices and softening consumer demand. Surprising Fact With its purchase of Hawaiian, Alaska Airlines will control an 8 percent share of the domestic airline industry—but could drop from the No. 5 airline, where it is now, to No. 6, behind JetBlue Airways, but only if JetBlue’s effort bid to buy Spirit Airlines is approved. Key Background Alaska Air has grown to become the fifth largest airline group in North America, but still holds far less market share than United, Southwest, Delta and American. It acquired Virgin America in 2016 for $2.6 billion, winning a bidding war with JetBlue. Earlier this year, Virgin Group won a trademark dispute with Alaska Air when a London judge ruled it is required to pay Virgin Group approximately $8 million in minimum royalties every…

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Filed under: News - @ December 3, 2023 11:06 pm