CNN —Alaska Air (ALK) on Sunday announced it will buy Hawaiian Airlines (HA) for $1.9 billion.
“This is a fantastic deal that bring two airlines that have amazing loyalties in our regions together,” said Alaska Airlines CEO Ben Minicucci in a news conference, adding that the merger will give customers in both states expanded domestic and international choices.
The deal, which is forecast to take nine to 18 months, will see both companies keep their brands, a unique decision that Minicucci and Hawaiian Airlines CEO and President Peter Ingram say was made out of respect for the nearly hundred-year legacy of both airlines and the communities they serve.
“In Alaska Airlines, we are joining an airline that has long served Hawai‘i, and has a complementary network and a shared culture of service,” said Ingram.
“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.”Minicucci, who will become the CEO of both airlines, heralded the move as pro-consumer will allow for more robust domestic competition with United, Delta, Southwest and American airlines, which currently own 80% of the market share.
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