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Alaska Airlines Buys Hawaiian Airlines for $1.9 Billion

Alaska Airlines Buys Hawaiian Airlines for $1.9 Billion

BY FRANCO GROBLER 12/04/2023 AGO 34 COMMENTS

Alaska Airlines and Hawaiian Airlines have announced that they have entered into a conclusive agreement to merge the two airlines. The deal is valued at $1.9 billion, including $0.9 billion of Hawaiian Airlines net debt.

 

Alaska Airlines and Hawaiian Airlines | Photo: Twitter

 

The Merger

 

Alaska Airlines will pay $18.00 per share in cash. The combined airline will be the fifth-largest in the United States, with a network of over 130 destinations. The merger will generate $235 million in annual synergies and contribute to Alaska Airlines' earnings within the first two years. The deal is subject to regulatory approval and is expected to close in 12-18 months.

 



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For Hawaiian Airlines, the merger will provide access to Alaska Airlines' extensive network in the Pacific Northwest and Western United States. It will also give Hawaiian Airlines a stronger financial position, allowing it to invest in new products and services.

 

Photo: Dalton Hoch | AeroXplorer

 

Impact 

 

The merger is expected to impact employees and communities in Alaska and Hawaii positively. The merger is expected to create new jobs and provide employees with more opportunities for career development. 

 

Overall, this merger is a great advancement for the aviation industry. This merger will provide the companies involved and passengers who travel with these airlines with more choices and better services. 

 

Photo: Jacob Smith | AeroXplorer

 

Alaska Airlines: The Legacy

 

Alaska Airlines is an airline with wild stories and an even wilder history. For this story, we'll have to go back to 1932, when Linious "Mac" McGee founded McGee Airways in Anchorage, Alaska. With a single three-passenger Stinson. Alaskan Airlines started small but grew at a rate unlike any other. 

 



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McGee's spirit and great pilot skills quickly made him a pioneer in the Alaskan aviation industry. His early routes connected isolated communities, transporting miners, mail, and essential supplies.

 

A Stinson V-77 Reliant aircraft in Anchorage, Alaska in 2010 | Photo: Flickr

 

Eventually, in 1934, McGee merged his airline with Star Air Service, forming the largest airline in Alaska at the time. This airline was named Star Air Lines and continued to expand its network, reaching major cities like Fairbanks, Nome, and Juneau. In 1944, Star Airlines filed amended articles of incorporation, officially switching the name to Alaska Airlines.

 

A Sikorsky S-38 in Oshkosh, Wisconsin in 2006 | Photo: Wikimedia Commons

 

Hawaiian Airlines: The Spirit of Hawaii. 

 

Meanwhile, in the sun-drenched Hawaiian Islands, an airline started to form called Inter-Island Airways, which took flight in 1929, making waves in the aviation industry of Hawaii. With a fleet of two Sikorsky S-38 Amphibians, the airline was focused on connecting the islands, ferrying passengers and cargo between Honolulu, Hilo, and Lihue.

 



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Inter-Island Airways quickly gained trust among the local people, who embraced the convenience and efficiency of air travel. In 1941, Inter-Island Airways underwent a major transformation, becoming the now-known Hawaiian Airlines.

 

Photo: Seth Johnson | AeroXplorer

 

Hawaiian Airlines continued to expand its network by connecting more islands and introducing larger aircraft, such as the DC‑3, which helped the airline grow to where it is today. 

 

Commitment

 

Alaska and Hawaiian Airlines have a rich history filled with amazing stories of innovation and commitment to their passengers. Facing major challenges over the years, both airlines have overcome and prospered, showing their greatness and willingness to serve. 

 

Photo: Logan Fransted | AeroXplorer

 

With the two airlines entering this agreement, we must see how history will mold this new endeavor between the two companies.

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Franco Grobler
Passionate aviation enthusiast from South Africa dedicated to bringing you articles on the latest aviation news, I aim to inspire and inform. I am set on embarking pilot training in 2024 to soar to new heights in the aviation world.

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