- Under the deal, Alaska Airlines will acquire Hawaiian Airlines for $18 per share in cash
- The airlines say the deal will open up more destinations in the US and worldwide
- The deal, however, is reminiscent of JetBlue's attempt to acquire Spirit Airlines, which was defeated with an antitrust lawsuit in federal court.
Alaska Air has entered into an agreement to acquire Hawaiian Airlines for $1.9 billion, including $900 million of the airline's net debt.
According to Sunday's announcement, Alaska Airlines will acquire Hawaiian Airlines for $18 per share in cash.
The airlines say the deal will open up more destinations in the Pacific region, the continental United States and globally.
The deal is expected to generate high single-digit earnings growth for Alaska Airlines within the first two years, with no expected material impact on long-term balance sheet figures.
“This combination is an exciting next step in our journey together to deliver a better travel experience for our guests and expand options for travelers on the West Coast and Hawaii,” said Ben Minicucci, CEO of Alaska Airlines.
Alaska Air has entered into an agreement to acquire Hawaiian Airlines for $1.9 billion, including $900 million of the airline's net debt
The combined organization will be based in Seattle, while Honolulu will become a major hub for Alaska Airlines
The combined organization will be based in Seattle under Minicucci's leadership, and Honolulu will become a major hub for Alaska Airlines.
Last year, Frontier Airlines and Spirit Airlines negotiated a merger that fell through, paving the way for JetBlue to acquire Spirit.
however, the The Justice Department filed an antitrust lawsuit in Massachusetts federal court in March.
The lawsuit alleges that JetBlue's plan to spin off Spirit and absorb its aircraft, routes and employees into its own operations would harm consumers who rely on Spirit's low fares to afford air travel.
“We argue that if this merger goes through, it will limit choice and increase ticket prices for passengers across the country,” Attorney General Merrick Garland said at a news conference.
“And we further argue that the impact of this merger will be particularly damaging to travelers who rely on so-called ultra-low-cost airlines to fly.”