Alaska Airlines completes $1.9 billion acquisition of Hawaiian (updated)

Hawaiian Holdings

18/09/2024 14:36

(Adds more details, comments from CEO in interview in
paragraphs 3-9)
    By David Shepardson
       Sept 18 (Reuters) - Alaska Airlines  ALK.N  said on
Wednesday it had completed its $1.9 billion acquisition of
Hawaiian Airlines  HA.O  after reaching an agreement with the
U.S. Department of Transportation.
    The airlines on Tuesday agreed to maintain key Hawaiian
routes and adopt consumer protections under an agreement that
will last six years. 
    The Justice Department in August chose not to block the deal
that was announced in December by Alaska, the fifth-largest
domestic U.S. airline, to merge with Hawaiian, the 10th-largest
carrier.
    Alaska CEO Ben Minicucci said in an interview that the deal
would be good for competition and consumers and would expand
access for consumers to both networks and give Alaska access to
Hawaiian's fleet of wide-body airplanes.
    "It's just a few more arrows in our quiver on how we deploy
airplanes across our entire network," Minicucci said. "Putting
the right airplane in the right market to deliver the best
results for the combined entity."
    Minicucci said the airline expects to deliver at least $235
million in run-rate synergies by year three.
    The Justice Department has been aggressive under President
Joe Biden in blocking airline consolidation. In March, JetBlue
Airways  JBLU.O  and Spirit Airlines  SAVE.N  scrapped their
$3.8 billion merger agreement after a U.S. judge blocked the
deal in January on anticompetition concerns following a Justice
Department lawsuit.
    The agency also successfully challenged a joint venture that
American and JetBlue entered into in 2020, called the "Northeast
Alliance," for flights in and out of New York City and Boston.
    The Transportation Department said Alaska and Hawaiian
agreed to protect the value of frequent flyer rewards, maintain
existing service on key Hawaiian routes to the continental
United States and inter-island regions, ensure competitive
access at the Honolulu airport and provide travel credits or
frequent flyer miles for disruptions that are the fault of the
airline.
    Hawaiian Airlines’ stock will be de-listed and will cease
trading on the Nasdaq on Wednesday, Alaska said in a statement. 
The combined organization will continue to trade under the ALK
ticker symbol on the New York Stock Exchange. 

 (Reporting by David Shepardson; Editing by Chizu Nomiyama and
Jonathan Oatis)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))