Alaska Air buys Hawaiian Airlines for $1.9 billion – Kommersant
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Alaska Air announced the acquisition of Hawaiian Airlines for $1.9 billion, including debt of $0.9 billion. The merger has already been approved by the boards of directors of both air carriers and will be finalized subject to approval by the relevant regulators.
Under the terms of the agreement, Alaska Air will pay $18 for each Hawaiian Airlines share, which is about 4 times Hawaiian Airlines’ stock price at Friday’s close. Shares of Hawaiian Airlines, founded back in 1929, have fallen significantly in price over the past 12 months: due to forest fires in the Hawaiian Islands, rising fuel costs, and problems with the recall of aircraft engines on some of the airline’s aircraft, the shares have lost 65% of their value. In the first 9 months of the year, Hawaiian Airlines had a net loss of $159.3 million.
After the merger of the companies, their total fleet will be 365 aircraft. The companies operate on 138 destinations, including Hawaii itself, which is one of the most popular routes in their network.
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