Alaska Airlines announced yesterday the purchase of Hawaiian Airlines in a deal valued at $2.6 billion. The transaction, which will be paid entirely in cash, will make Alaska Airlines the fifth-largest airline in the U.S.
The purchase of Hawaiian Airlines will make Alaska Airlines an even bigger presence in the airline industry. The company already operates flights to 87 different destinations in the U.S., Mexico, and Canada, and will add an additional nine destinations when it acquires Hawaiian Airlines.
Alaska Airlines Chairman and CEO Brad Tilden said in a statement: “This acquisition of Hawaiian Airlines is a critical step in our customer-driven growth strategy and reinforces our commitment to providing our customers with more options to reach their favorite places. For Hawaiian Airlines, this transaction will create long-term stability and the opportunity to reach beyond Hawaii to expand our presence in the U.S. and internationally.”
This major transaction will also put Alaska Airlines in a position to compete with the larger airlines, such as Delta and United. With the addition of Hawaiian Airlines’ Airbus A330-200, Alaska Airlines will now be able to offer flights to Asian destinations, such as China, Japan, and South Korea.
The transaction will also give Hawaiian Airlines customers access to additional benefits, including the frequent-flier programs of both airlines. Customers will also be able to take advantage of the combined network of more than 2,200 daily flights.
Alaska Airlines has made a significant investment in the future of the airline industry with this acquisition. The company is well-positioned to take advantage of the increasing demand for air travel and provide travelers with more options and amenities.
Alaska Airlines says it expects to close the transaction by the end of the year, subject to customary closing conditions. With the acquisition of Hawaiian Airlines, Alaska looks to be an even more significant player in the airline industry.