What's happened
Alaska Airlines has completed its acquisition of Hawaiian Airlines, marking a significant consolidation in the U.S. airline industry. The deal, valued at $1.9 billion, includes assuming $900 million in Hawaiian debt and promises to maintain service levels and consumer protections. This merger positions Alaska as the fifth-largest U.S. airline by revenue.
Why it matters
What the papers say
According to the New York Times, Alaska Airlines' CEO Ben Minicucci expressed optimism about the merger, stating, "This is something that makes sense for the future of Alaska." However, analysts like Savanthi Syth from Raymond James caution about potential execution risks, highlighting concerns over Hawaiian's weak earnings and the complexities of merging operations. The Independent notes that the Justice Department did not challenge the merger, contrasting with its opposition to JetBlue's acquisition attempts. Axios emphasizes the consumer protections included in the deal, which aim to ensure service continuity and loyalty program integrity.
How we got here
The acquisition follows Alaska's previous purchase of Virgin America in 2016 and comes amid a trend of airline consolidation. The deal received approval from both the Justice and Transportation Departments, contrasting with recent rejections of other airline mergers.
Common question
-
What Does the Alaska Airlines and Hawaiian Airlines Merger Mean for Travelers?
The recent acquisition of Hawaiian Airlines by Alaska Airlines marks a significant shift in the airline industry. With a deal valued at $1.9 billion, this merger raises important questions for travelers regarding benefits, changes to frequent-flyer programs, and overall service continuity. Here’s what you need to know about how this merger could impact your travel plans.
More on these topics
-
Hawaiian Airlines is the largest operator of commercial flights to and from the U.S. state of Hawaii. It is the tenth-largest commercial airline in the United States, and is based at Honolulu, Hawaii. The airline operates its main hub at Daniel K.
-
Alaska Airlines is a major American airline headquartered in SeaTac, Washington, within the Seattle metropolitan area. It is the fifth largest airline in the United States when measured by fleet size, scheduled passengers carried, and the number of destin
-
In folk belief, spirit is the vital principle or animating force within all living things. As far back as 1628 and 1633 respectively, both William Harvey and René Descartes speculated that somewhere within the body, in a special locality, there was a ‘
-
Peter Paul Montgomery Buttigieg is an American politician, former military officer, and combat veteran who has served as mayor of South Bend, Indiana since 2012.
-
American Airlines, Inc. is a major American airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the world's largest airline when measured by fleet size, scheduled passengers carried, and revenue passenger mile.
-
United Airlines, Inc. is a major American airline headquartered at Willis Tower in Chicago, Illinois. United operates a large domestic and international route network spanning cities large and small across the United States and all six continents.
-
The United States Department of Justice, also known as the Justice Department, is a federal executive department of the United States government responsible for the enforcement of the law and administration of justice in the United States, and is equivale