Hawaiian Holdings’ shareholders have voted to accept the $1.9 billion acquisition offer from Alaska Airlines.
The Honolulu-based company said on 16 February that preliminary results of the shareholder vote show “a substantial majority” favour the transaction, which the companies announced late last year.
“Stockholder approval of our transaction with Alaska is an important milestone toward combining our airlines,” says Hawaiian Airlines chief executive Peter Ingram. “Together, we will bring stronger competition to the US airline industry, deliver more value to our guests and the communities that we serve, and provide greater job opportunities for our employees.”
Alaska and Hawaiian, the parent company of Hawaiian Airlines, announced their potential tie-up on 3 December after a whirlwind four-month courting process.
The transaction is valued at $18 per share, and includes Alaska taking on $900 million of Hawaiian’s debt. Alaska Airlines had initially offered $20 per share before the two sides eventually agreed on the final price, as Hawaiian’s share price lost two-thirds of its value during the second half of 2023.
The companies have said they expect the acquisition will close in 12-18 months, with Alaska Airlines’ chief executive Ben Minicucci slated to take the top job at the combined company, pending regulatory approval. Executives at both companies maintain the deal is “pro-consumer [and] pro-competitive” and they are confident that US aviation regulators will agree.
The deal has, however, drawn scrutiny after a US court struck down another potential airline consolidation in January – JetBlue Airways’ $3.8 billion bid for ultra-low-cost carrier Spirit Airlines. Both Alaska and Hawaiian have said that ruling “does not impact our plans”.
