Alaska Airlines Finalizes $1.9 Billion Acquisition of Hawaiian Airlines, Promises Consumer Protections

Alaska Airlines has completed its $1.9 billion acquisition of Hawaiian Airlines, following an agreement with the U.S. Department of Transportation. The airlines confirmed on Tuesday that they will uphold essential Hawaiian routes and implement consumer protections for a duration of six years.

In August, the Justice Department opted not to block the merger, which was initially announced in December. Alaska Airlines, the fifth-largest domestic airline in the U.S., merges with Hawaiian, the tenth-largest carrier. Alaska CEO Ben Minicucci expressed optimism about the deal, stating it would enhance competition and consumer access, while also expanding Alaska’s fleet capabilities with Hawaiian’s wide-body airplanes.

“This merger provides us with more tools to strategically deploy our aircraft across our network,” Minicucci remarked, emphasizing the goal of optimizing operations for the combined entity. The airline anticipates achieving at least $235 million in annual synergies by the third year post-merger.

Under President Joe Biden, the Justice Department has taken a strong stance against airline consolidation. Earlier this year, JetBlue Airways and Spirit Airlines abandoned their proposed $3.8 billion merger after a U.S. judge blocked it due to antitrust concerns. Additionally, the Justice Department successfully challenged a joint venture between American Airlines and JetBlue known as the “Northeast Alliance.”

As part of their agreement, Alaska and Hawaiian will protect the value of frequent flyer rewards, maintain existing service on critical Hawaiian routes to the continental U.S. and inter-island regions, ensure competitive access at Honolulu airport, and offer travel credits or frequent flyer miles for airline-related disruptions.

Following the acquisition, Hawaiian Airlines’ stock will be de-listed, ceasing trading on the Nasdaq, while Alaska Airlines will continue to trade under the ALK ticker symbol on the New York Stock Exchange.