Many of you may have already received emails from both airlines. Today (December 3), Alaska Airlines and Hawaiian Airlines announced that they will merge.
Under the agreement, Alaska Airlines will acquire Hawaiian Airlines for $18 per share, with a total transaction value of about $1.9 billion, including $900 million in debt.
In a joint statement, the two airlines said the merger will allow them to compete more effectively across the U.S. and globally, while expanding destinations and strengthening the combined airline’s position on the West Coast.
Both airline brands will continue to exist on “a single operating platform.” The airlines also said they will share one loyalty program. At this point, it is still unclear which parts of the two brands and operations will remain separate, which parts will be combined, and how the different brands will function as one integrated operating entity. In a presentation to investors, the airlines projected about $235 million in annual synergies.
Alaska Airlines Mileage Plan and Hawaiian Airlines HawaiianMiles will also be combined. The conversion ratio has not yet been announced, but it is expected to be 1:1. Right now, applying for the Barclays Hawaiian Airlines credit card can earn you a 60,000-mile welcome bonus. If those miles can be converted into Alaska Airlines miles after the merger, that could be quite valuable. The main risk to this deal is whether antitrust regulators at the FTC will try to block it, so if you are concerned about that, you may want to wait and see for a while.