Alaska Airlines Purchase Saved Hawaiian

Daniel Fowkes
22 Dec 2023
· Airlines 
Alaska Airlines purchase of Hawaiian Airlines for almost USD 2 billion is being viewed as a saving grace as the Island-based airline may not have been able to sustain its long-term future with intervention from another company such as Alaska per latest comments.

Alaska Airlines’ landmark Hawaiian Airlines purchase is now viewed as a saving grace for the Island-based carrier.

These revelations follow new comments from Hawaiian Airlines executives who responded to concerns and outlined how the business was tracking.

Hawaiian Were Struggling Before Alaska Purchase

A deal between the two companies made headlines worldwide, and the Hawaiian Airlines President and Chief Executive explained more about its circumstances in a letter to staff.

Essentially, the letter acted as a means to resonate that a decision to be purchased by Alaska Airlines can be viewed as a shock. However, the overarching feeling was that a company like Alaska needed to intervene.

Hawaiian says it believes firmly in the strategy outlined by Alaska Airlines and thinks it can still work as its brand under Alaska’s arm. This would mean the Hawaiian brand would stick around, and its iconic culture would remain.

However, interestingly, the belief was that if Hawaiian Airlines had continued operating truly on its own without any consolidation or intervention, things would’ve gotten dire pretty quickly.

Alaska stepping in and making the purchase allows Hawaiian to preserve what is unique about the company while having essential support to continue making this possible.

Without Alaska Airlines, the future of Hawaiian Airlines would’ve been much more uncertain, and without radical changes, a future may have also not been guaranteed.

Behind The Massive Hawaiian Airlines Purchase

Alaska Airlines announced it would acquire Hawaiian Airlines in a deal worth USD 1.9 billion a few weeks ago. The purchase would be a means to combine two high-profile brands while also retaining the core foundation built of both.

The deal will make Alaska Airlines the fifth largest airline in the United States, and its overall group fleet will grow to over 400 narrow and widebody aircraft. Notably, this will soon include the addition of the Boeing 787s.

While these Boeing 787s will operate under the Hawaiian Airlines branding, they’ll ultimately be a fantastic new piece of the puzzle for Alaska regarding fleet deployment across their newly formed Group.

Hawaiian Airlines will begin flying the Boeing 787 Dreamliner in the coming years.

The deal is worth approximately USD 1.9 billion. However, this also included USD 0.9 billion of the net debt accumulated by Hawaiian Airlines over time.

An essential component of the purchase will be the two brands staying separate. This means while Alaska will purchase Hawaiian, the latter’s branding is intended to remain the same.

As a result of the deal, the pair will form an operation that utilises the resources of both companies as best as possible.

The Process To Obtaining Regulatory Approval

Alaska Airlines says the purchase is expected to be formally concluded within 12 to 18 months. However, a critical step to achieving this will be approval from regulators.

Consolidation within the aviation industry has become more present in recent years as airlines look to tie up deals following a turbulent period.

While consolidation within the market presents unique opportunities for airlines, there are concerns about the potential negative implications for the flying public.

As a result, all mergers, purchases, and agreements are carefully scrutinised to determine whether a prospective deal will benefit all parties. Such a purchase of Hawaiian Airlines by Alaska will come under a fine microscope.

Despite this, Hawaiian Airlines’ CEO remains hopeful that getting a deal approved shouldn’t be too difficult as a purchase will see a model that isn’t already visible within the industry formed.

If approved, the expectation is that growth, discovery, and learning will occur as the airlines best understand how to proceed and work together to capture the worldwide market.

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