Alaska Air Group has agreed to buy rival Hawaiian Airlines in a $1.9 billion deal, setting up another potential regulatory battle in the second proposed airline merger in less than two years.
Alaska would pay $18 a share for Hawaiian and would take on $900 million of its debt, the companies said Sunday. Shares of Hawaiian Airlines closed on Friday at $4.86, giving the company a market cap of about $250 million. They’re down nearly 53% this year.
The airline has struggled with challenges including the Maui wildfires, increased competition from Southwest, which has ramped up service in Hawaii in recent years, and a lagging recovery of travel to and from Asia after the pandemic. Hawaiian has posted net losses in all but one quarter since the start of 2020, while Alaska and other carriers have returned to more solid financial footing as the pandemic waned.
“What we saw here was a unique opportunity in time at the valuation that we saw Hawaiian at,” said Shane Tackett, Alaska Airlines’ CFO, in an interview. He said the deal would also enable the combined companies to become a “market leader” in the premium-travel Hawaii market.
Carriers have faced strong opposition from President Joe Biden’s Justice Department in their efforts to combine to better compete with larger rivals. Earlier this year, the DOJ won a lawsuit to break up a regional partnership in the Northeast between JetBlue Airways and American Airlines.
The Justice Departments also sued to block JetBlue Airways‘ proposed acquisition of discount carrier Spirit Airlines. A trial is expected to wrap up in the coming days.
Four airlines — American, United, Delta and Southwest — control about 80% of the U.S. market. Hawaiian and Alaska said they expect the transaction to close in 12 to 18 months, subject to approval by regulators and Hawaiian’s shareholders.
The Association of Flight Attendants-CWA, which represents cabin crews at both airlines said it would evaluate the deal.
“Our first priority is to determine whether this merger will improve conditions for Flight Attendants just like the benefits the companies have described for shareholders and consumers,” the AFA said in a statement. “Our support of the merger will depend on this.”
The combined company will be based in Seattle, where Alaska Airlines is headquartered, and led by CEO Ben Minicucci.
The two airlines said they will keep each carrier’s brand but operate under a single platform, combining into a 365-airplane fleet covering 138 destinations.
Prior to pursuing Hawaiian, Alaska Airlines acquired Virgin America for $2.6 billion in 2016. Alaska operates Boeing 737s and it spent years whittling down Virgin’s fleet of Airbus planes to streamline its fleet. Purchasing Hawaiian would bring a complex mix of Boeing and Airbus jets, both narrow-body and wide-body planes under Alaska’s roof.
“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,” Hawaiian CEO Peter Ingram said in a news release.
The combination will allow Alaska Airlines to triple nonstop or one-stop flights from the Hawaiian islands to destinations throughout North America. It will also bring Hawaiian’s long-haul flying to and from Asia under Alaska’s umbrella. Hawaiian last year struck a deal to fly converted-cargo planes for Amazon.
Alaska Airlines said the deal should bolster earnings within the next two years with at least $235 million of “run-rate synergies.”
“We are fully committed to investing in the communities of Hawai’i and maintaining robust Neighbor Island service that Hawaiian Airlines travelers have come to expect,” Minicucci said in the statement.
WATCH: Maui tourism still not back to full strength since wildfires
Alaska Airlines has reached a deal to buy Hawaiian Airlines, the company announced Sunday.
Alaska Air Group, Inc. will pay $18 a share — a transaction value of approximately $1.9 billion — for Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines.
The boards of both companies have agreed on the deal, which is expected to close in 12-18 months, according to a statement from the airlines. The deal still needs the approval of U.S. regulators as well as Hawaiian Holdings, Inc. shareholders.
Regulatory approval is not a guarantee. Earlier this year, a federal judge ruled JetBlue and American Airlines needed to end their partnership, saying the alliance weakened competition and hurt consumers. The Justice Department is also trying to block JetBlue’s proposed acquisition of Spirit Airlines.
Alaska Air Group reached a deal in 2016 to buy Virgin America. Alaska Airlines later dropped the Virgin America name and logo.
Under the terms of the new deal between Alaska Airlines and Hawaiian Airlines, the combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.
“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai’i travelers,” Minicucci said in a statement.
The airlines said the move will preserve both brands and unlock more travel destinations for flyers. The combined company will offer service to 138 destinations, including non-stop service to 29 top international destinations in the Americas, Asia, Australia and the South Pacific, the statement said.
Earlier this year, travel website The Points Guy ranked Alaska Airlines as the third best airline in the U.S., after Delta Air Lines and United Airlines. Hawaiian Airlines took sixth place.
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Updated: 15 minutes ago Published: 15 minutes ago
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Alaska Airlines will acquire Hawaiian Airlines, Alaska Air Group and Hawaiian Holdings announced on Sunday.
The two airlines have entered into a definitive agreement to merge in a $1.9 billion deal, Alaska Airlines reported in a statement.
This is a developing story and will be updated.
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Dec 3 (Reuters) – Alaska Air (ALK.N)
said on Sunday that it has entered an agreement to acquire Hawaiian Airlines (HA.O)
for $1.9 billion, which includes $900 million of Hawaiian Airlines net debt.
Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, the two companies said, adding that the transaction will unlock more destinations and expand access throughout the Pacific region, continental United States and globally.
The deal is expected to generate high single-digit earnings accretion for Alaska Airlines within the first two years with no anticipated material impact on long-term balance sheet metrics.
“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai’i travelers,” said Ben Minicucci, Alaska Airlines CEO.
The combined organization will be based in Seattle under the leadership of Minicucci, and Honolulu will become a key Alaska Airlines hub.
Alaska Air in October had cut its full-year profit outlook on rising expenses as major U.S airlines felt the pinch from higher fuel prices, putting a dampener on their outlooks.
Reporting by Akanksha Khushi in Bengaluru; editing by Diane Craft and Chizu Nomiyama
Our Standards: The Thomson Reuters Trust Principles.
DALLAS — Today in Aviation, the iconic airline, Pan Am (PA), formally ceased operations in 1991 after more than 64 years of trailblazing aviation.
Captain Mark Pyle, along with First Officer Robert Knox and Flight Engineer Chuck Foreman, commanded the final service of the airline on flight PA436 from Bridgetown (BGI) to Miami International Airport (MIA).
The Boeing 727-221ADV (N368PA) ‘Clipper Goodwill,’ which was received by the airline in May 1982, operated the last flight. This route held significance as it was where the Pan Am story began in 1927, connecting Key West and Havana.
Upon arrival at MIA, the aircraft was greeted with water salutes from airport fire trucks, and the occasion was marked by thousands of Pan Am employees who turned out to bid farewell, resulting in tears streaming down their faces, symbolizing the end of an era.
“Today we see the end of an airline whose name will be forever forged in American history,” said the carrier’s final President and CEO, Russell L. Ray
Pan Am held significance not only as an aviation icon but also as a cultural icon, with its aviation history intricately linked to numerous culturally significant events. The airline played a role in transporting film stars and even featured its Clipper jets in movies. It also served as a means of transportation for presidents and politicians and was involved in humanitarian efforts like ‘Operation Babylift,’ which involved the evacuation of more than 3,000 infants from Vietnam.
Unfortunately, years of mismanagement led to the airline’s gradual decline. As a result, Pan Am was forced to sell off many of its valuable assets, including its Pacific routes to United Airlines (UA) and its renowned Manhattan skyscraper, the Pan Am Building, which was designed by Walter Gropius.
Featured Image: Pan Am operated a large fleet of Boeing 727-200s. Photo: JetPix (GFDL 1.2 or GFDL 1.2), via Wikimedia Commons
An American Airlines passenger was told to remove his “Palestine” sweatshirt to be able to board the flight heading from JFK Airport in New York to Phoenix.
The unidentified passenger said that he was asked to either hide the sweatshirt, turn it inside out, or be removed by law enforcement, according to Business Insider.
The man said that members of the flight crew told him that his sweatshirt was “political.” He added that flight attendants threatened to remove him from the flight.
American Airlines says on its website that passengers are required to “dress appropriately; bare feet or offensive clothing aren’t allowed,” but mentions no policy about clothing perceived as political.
The American-Arab Anti-Discrimination Committee condemned the incident in a statement.
“The choice presented to the passenger—conceal their identity or face potential removal—reflects a distressing disregard for the fundamental rights of individuals to express their cultural and national identities,” the group said. “This incident is emblematic of a larger pattern of discrimination that Palestinians and their supporters often face, highlighting a concerning trend of silencing and marginalizing their voices,”
The airliner told The Messenger they contacted the passenger to know more about the incident and his concerns.
“We strive to ensure all customers have a positive experience throughout their journey on American,” American Airlines added.
The war in Gaza sparked mass protests around the world calling for a permanent ceasefire but has also ignited tensions, and in some cases hate crimes, against the Arab and Jewish communities in the U.S.
The nearly two-month Israel-Hamas war began when Hamas killed 1,200 Israelis and kidnapped some 200 others in a string of attacks on October 7.
In retaliation, Israel launched air and ground offensives to eradicate the terror group in Gaza. Israeli bombardments killed 15,200 Palestinian civilians, including more than 4,500 children, according to the Gaza Health Ministry.
At least 200 Palestinians were killed after a temporary ceasefire ended on Friday, according to the Associated Press.
Though it is difficult to obtain an accurate figure of those displaced due to the war, the UN humanitarian agency (OCHA) said that around 1.8 million people of Gaza’s population are internally displaced.
A passenger encountered an unexpected issue while on board IndiGo flight number 5047 from Mumbai to Bengaluru. To his surprise, he discovered that his seat had a missing cushion. Compelled to share his experience, Ananth Narayanan, Founder of Mensa Brands, posted a video on social media, which quickly captured the attention of the people online, amassing over 15,000 views and sparking widespread engagement.
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In his social media post, Narayanan expressed his frustration with the airline, stating, “2 hours late and no seats @IndiGo6E flight 5047! Service really seems to be deteriorating!” The video accompanying his caption revealed not just one, but two seats without any cushions.
The airline, IndiGo, promptly responded to Narayanan’s post in the comments section, apologising for the inconvenience caused. They assured him that a crew member was in contact and although they had attempted to reach him via his registered phone number without success, they were eager to resolve the situation. IndiGo reassured Narayanan, and by extension their customers, of their commitment to a comfortable journey, stating that the flight would soon be ready for take off.
Other passengers and social media users also voiced their concerns and dissatisfaction with the incident. One user pointed out the irony of the airline’s revenue being largely derived from food and beverage sales, yet neglecting the basic necessity of providing seats for passengers to comfortably enjoy those services. The sentiment was clear: such oversights were unacceptable for a reputable airline like IndiGo.
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RYANAIR, easyJet and British Airways are some of the most popular airlines used by Brits heading on a well-deserved holiday abroad.
But there is one airline you won’t have heard of – and is known for being one of the most secretive in the world.
It is only known as “Janet Airlines,” rumoured to stand for Joint Air Network for Employee Transportation, or jokingly Just Another Non-Existent Terminal.
It is used mainly used by government workers or military passengers.
Pilots and cabin crew need to have “top secret government security clearance”.
Sadly normal passengers are not allowed access on the plane, and nobody on the plane is allowed to reveal where they are going or what their job is.
While destinations are classified, it’s known for travelling between Las Vegas and Area 51 in Nevada, with one of the longest airport strips in the world, measuring 12,000ft.
The secret base is rumoured to be home to “crashed extraterrestrial spacecraft” as well as alien lifeforms.
The US Air Force acquired Area 51 in 1955, although it was only acknowledged by the CIA in 2013, following an information request in 2005.
But don’t expect to see the flights on the boards at the airport.
The flights operate from a secret Gold Coast Terminal at Harry Reid International Airport, guarded by armed soldiers.
Passengers may be able to track the flights as they take off, although they drop off the radar before they land.
Images show the unmarked Boeing 737 planes which are white with a red stripe along the middle.
One person wrote on Reddit: “I used to live in Henderson and watch them fly in all the time.
“They would almost always land on 01L-19R regardless of winds to taxi immediately to their terminal, which is separate from the main terminal.
“The thing I loved most about them is when they depart they bank about 30° on turn out at 500-1000ft above the ground.
“It looks absolutely insane every time.”
They also fly to Tonopah Test Range, which is home to a number of stealth aircraft and drones.
Other routes include from Las Vegas to the Naval Air Weapons Station China Lake, US Air Force Production Flight Test Installation, and Wright-Patterson Air Force Base.
And the US Air Force is now looking for a new contractor to operate their aircraft.
The current fleet has six Boeing 737-66Ns, which used to operate for Air China, as well as five twin-engine Beechcraft turboprops.
Back in 2018, Janet Airlines was also recruiting new pilots.
The job posting required a 3,000-hour pilot who had “top-secret clearance” to take on the role.
A little-known airline is also launching hundreds of new flights.
Corendon Airlines is adding new services between UK and Turkey next year, with 27 new weekly flights.
And new airline Global Airlines is to launch cheap transatlantic flights between the UK and the US.
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