BUSINESS & ECONOMY

Alaska Air to buy Hawaiian Airlines for $1.9 billion

Dec 3, 2023, 4:00 PM | Updated: May 28, 2024, 11:03 am

Alaska Airlines airplane takes off from the south runway at the Los Angeles International Airport, ...

Alaska Airlines airplane takes off from the south runway at the Los Angeles International Airport, Thursday, March 2 in Los Angeles. Alaska Air (ALK) on Sunday announced it will buy Hawaiian Airlines (HA) for $1.9 billion. (Ric Tapia/AP)

(Ric Tapia/AP)

Originally Published: 03 DEC 23 14:30 ET
Updated: 03 DEC 23 15:55 ET

(CNN) — Alaska Air (ALK) on Sunday announced it will buy rival Hawaiian Airlines (HA) for $1.9 billion.

The acquisition was the culmination of “several months” of negotiations, according to Alaska Airlines CEO Ben Minicucci. It will include $900 million in Hawaiian Airlines debt.

“This is a fantastic deal that bring two airlines that have amazing loyalties in our regions together,” said Minicucci in a news conference, adding that the merger will give customers in both states expanded domestic and international choices.

The deal, which is forecast to take between nine and 18 months, will see both companies keep their brands, a unique decision Minicucci and Hawaiian Airlines CEO and President Peter Ingram say was made out of respect for the nearly 100-year legacy of the two airlines and the communities they serve.

Both states are “uniquely reliant upon air travel,” Alaska Airlines said in a news release Sunday. The airline currently serves 19 cities, many of which are not connected by roads.

The merger will also shape Honolulu into the company’s second-largest hub, “enabling greater international connectivity for West Coast travelers throughout the Asia-Pacific region with one-stop service through Hawaii,” according to the news release.

Alaska Airlines’ fleet will expand from about 300 to 365 planes, and serve a total of 138 destinations, including “non-stop service to 29 top international destinations in the Americas, Asia, Australia and the South Pacific,” the company said in the release.

Given Alaska’s membership in the Oneworld international airline alliance, Hawaiian Airlines loyalty customers will have access to improved benefits such as lounge access, an enhanced credit card loyalty program and the ability to earn and redeem more miles.

“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 Ingram. “With the additional scale and resources that this transaction with Alaska Airlines brings, we will be able to accelerate investments in our guest experience and technology, while maintaining the Hawaiian Airlines brand.”

Minicucci, who will become the CEO of both airlines, heralded the move as “pro-consumer” will allow for the nation’s fifth-largest airline to compete more robustly with United, Delta, Southwest and American Airlines, which currently own 80% of the domestic market share.

The deal comes after JetBlue Airways CEO Robin Hayes testified in federal court on November 6 in an antitrust lawsuit filed by the Justice Department and the attorneys general from six states and the District of Columbia over JetBlue’s proposed $3.8 billion acquisition of Spirit Airlines.

The-CNN-Wire
™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

Related: Breeze Airways to add new Ogden flights, restoring airport’s commercial service

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business & Economy

FILE- A large soft drink with a plastic straw from a McDonald's restaurant is shown in Surfside, Fl...

Associated Press

Trump pushes for plastic straws, declares paper ones ‘don’t work’

WASHINGTON (AP) — President Donald Trump is moving to reverse a federal push away from plastic straws, declaring that paper straws “don’t work.” Trump signed an executive order Monday, saying: “It’s a ridiculous situation. We’re going back to plastic straws” The move by Trump — who has long railed against paper straws, and whose 2019 […]

23 hours ago

Freshly-made pennies sit in a bin at the U.S. Mint in Denver on Aug. 15, 2007....

Jill Colvin, Associated Press

Trump says he has directed US Treasury to stop minting new pennies, citing rising cost

President Donald Trump says he has directed the Treasury Department to stop minting new pennies, citing the rising cost of producion.

1 day ago

The U.S. Capitol is seen, Saturday, Feb. 1, 2025, in Washington. (AP Photo/Carolyn Kaster)...

Allessandra Harris Gurr

Privilege tax may be added to the Point of the Mountain

A proposed bill may bring a privilege tax to the Point of the Mountain development.

2 days ago

Hiring sign is displayed at a health service center in Chicago, Tuesday, Jan. 21, 2025....

Paul Wiseman, Associated Press

US employers added just 143,000 jobs last month, jobless rate slips to 4% to start the year

WASHINGTON (AP) — U.S. employers added just 143,000 jobs last month, but the jobless rate slipped to 4% to start 2025 and the government revised November and December payrolls higher. The first job report of Donald Trump’s second presidency suggested that he inherited a labor market that is solid but unspectacular. Economists had expected about […]

5 days ago

FILE - A Chevron logo is shown at a gas station in San Francisco, Oct. 23, 2023. Gas prices in Utah...

Alton Barnhart

Utah gas prices increased by two cents amid tariff concerns

Utah gas prices have ticked up from last week due to the threat of tariffs, according to the Energy Information Administration. 

5 days ago

FILE - U.S. President Donald Trump, left, and Canadian Prime Minister Justin Trudeau talk prior to ...

Mariah Maynes

How will Trump tariffs impact consumers? It depends, but here are estimates

Economists agree that Trump tariffs could have consequences for the economy and American wallets.

7 days ago

Sponsored Articles

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

A surprise gift, wrapped and ready to bring holiday cheer! Whether for Christmas, a birthday, or an...

Western Nut

10 Holiday Gift Ideas to cover everyone on your list

This guide is for you if you need holiday gift ideas that will make a lasting impression. 

Alaska Air to buy Hawaiian Airlines for $1.9 billion