Hawaiian Airlines shareholders on Friday approved the acquisition of Hawaiian by Alaska Airlines for $1.9 billion. The deal includes $900 million in Hawaiian debt.
The deal has already been approved by the boards of both companies. It will need approval from the U.S. Justice Department, which recently blocked JetBlue Airway’s acquisition of low-cost carrier Spirit Airlines.
Alaska CEO Ben Minicucci has said he does not see a similar challenge for Alaska and Hawaiian because they don't have as many overlapping routes.
The Antitrust Division of the DOJ is in the process of reviewing the Alaska-Hawaiian deal. The division requested additional information and documentary material from the airlines, according to airline filings on Feb. 7.
If the merger happens, Hawaiian shareholders would receive $18 per share, much higher than what Hawaiian was trading for before the acquisition announcement.
Hawaiian hit a 52-week low of less than $4 in late October before the deal news sent it to nearly $15 in late December 2023.
When the merger was announced on Dec. 3, Minicucci said the two brands would remain the same, coexisting under one company — an unusual move in an industry where waves of acquisitions have led to four big brands dominating the U.S. market.
"There's a lot of wait and see to make sure we really do, and, you know, that's fair, and that's appropriate to make sure that we continue to uphold that commitment," said Diana Birkett Rakow, senior vice president for public affairs and sustainability at Alaska Airlines, previously on The Conversation.
Until the deal closes, respective miles and statuses will remain unchanged. However, once the transaction closes, the loyalty programs will merge.
The companies have said they are committed to preserving union jobs. But Minicucci said there would be layoffs, and he hoped it would be minimal. He noted there will only be one CEO.
If all goes as planned for the airlines, they expect to complete the transaction sometime between December 2024 and May 2025.
