Alaska Airlines buying Hawaiian Airlines

[terracore]

https://www.investing.com/news/stock-mar...on-3248239

(Reuters) - Alaska Air (NYSE:ALK) said on Sunday that it has entered an agreement to acquire Hawaiian Airlines for $1.9 billion, which includes $0.9 billion of Hawaiian Airlines net debt.

Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, the two companies said, adding that the transaction will unlock more destinations and expand access throughout the Pacific region, continental United States and globally.

The deal is expected to generate high single digit earnings accretion for Alaska Airlines within the first two year, it said.

The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.

[ChunksterK]

According to this article https://www.cnn.com/2023/12/03/business/...index.html both airlines will keep their brands while operating under the same corporate umbrella with Alaska's current head as the combined CEO.

I've seen Hawaiian Air mentioned in more than one business analysis article as a target for acquisition, so now it's happening. I'm told that the mainland routes are Hawaiian's main revenue source with the interisland component being an accessory of sorts. Is that true? If so, will Alaska's management be willing to continue to devote resources to it in the face of cutthroat competition from Southwest? Interesting times.

[terracore]

https://newsroom.hawaiianairlines.com/re...west-coast

Good summary

"Increased loyalty program benefits: The transaction will connect Hawaiian Airlines’ loyalty members with enhanced benefits through an industry-leading loyalty program for the combined airline, including the ability to earn and redeem miles on 29 global partners and receive elite benefits on the full complement of oneworld Alliance airlines, expanded global lounge access and benefits of the combined program’s co-brand credit card."

The Alaska Airlines mileage program is one of the best in the industry, Hawaiian's is (was) one of the worst.

[macuu222]

I wonder if Hawaiian's widebody aircraft will continue to fly to west coast destinations or be replaced with smaller Alaska planes?  If it did change their aircraft.. then they could use the widebody for nonstop east coast destinations like DC, Orlando, Chicago etc and expand service in Asia and the South Pacific.

[MyManao]

Being on team Aloha, and one who never flew otherwise until they were run out of Dodge, Hawaiian's always been the second best to me.. and more recently not favoring other than Mokulele to do my commuting back 'n forth to/from Maui, I really don't feel much one way or the other about the changes coming to Hawaiian/Alaska but did notice the following in today's NY Times.. who's more salient point is..

If there’s one lesson we’ve learned from the recent history of the airline industry, it’s this: The bigger airlines get, the worse they become. The prices get higher, the seats smaller, the service ever snarkier.

And is more fully stated at the following link..

https://www.nytimes.com/2023/12/04/opini...erger.html

And, since it seems we really don't know the details of the proposed merger, yet, I can assume those working the PR campaign would say otherwise.. but hey.. seeing how it really is a business of schlepping cattle back 'n forth it's hard to imagine otherwise.

[TomK]

I doubt this will make much difference to inter-island travel, but do think it will benefit those who fly to the mainland and beyond, especially if it gets Hawaiian involved in Oneworld.

[TomK]

There's an interesting article on Big Island now about the potential merger:

"If the merger goes through, the company will be governed by Alaska’s corporate headquarters in Seattle. It also would become the first largest U.S. airline, operating about 1,400 daily flights to 138 destinations with a fleet of 365 narrow and wide body airplanes. Currently, only about a dozen of those routes overlap, Minicucci said during the news conference.

And through the Oneworld Alliance, which Alaska joined in 2021, travelers could reach more than 12,000 destinations. Oneworld partners include British Airways, Qatar Airways, Japan Airlines, Qantas and Finnair."

https://bigislandnow.com/2023/12/10/big-...-hawaiian/

Everything is speculative at this point, but there is an opportunity to make things better for those wanting to visit the mainland or beyond while hopefully making inter-island travel affordable - at least keeping a competitor like South West in the islands will maintain competition for local flights who aren't a Oneworld partner.

[HiloJulie]

"If the merger goes through, the company will be governed by Alaska’s corporate headquarters in Seattle. It also would become the first largest U.S. airline, operating about 1,400 daily flights to 138 destinations with a fleet of 365 narrow and wide body airplanes. Currently, only about a dozen of those routes overlap, Minicucci said during the news conference."

I am having a hard time grasping the bolded statement.

I fail to see how the combined Alaska/Hawaiian Airline being the "first largest US Airline" under any measurement statistic.

[TomK]

It doesn't make sense, but sort of glossed over it because you have to when reading local media. It's not a quote so it's what Big Island Now wrote. I suspect you either delete the word "first" or "largest" and it it might make more sense. I've not checked the facts with either word missed out, but I think the point is there will be more options for those wanting to fly off-island if it happens.

[Obie]

It's supposed to read "5th largest" not 1st.