Alaska Air Group, Inc. (NYSE: ALK), and Hawaiian Holdings, Inc. (NASDAQ: HA) today announced that they have entered into a definitive agreement under which Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, for a transaction value of approximately $1.9 billion, inclusive of $0.9 billion of Hawaiian Airlines net debt.
In the wake of the announcement many customers are wondering: Where does that leave them?
Hawaii News Now reports that Peter Ingram, the CEO and president of Hawaiian Airlines, answered some of those questions in a statement released Sunday. He sought to reassure customers that there will be no changes for now as the merger deal is expected to 12 to 18 months to get all required approvals.
He also said that Hawaiian Air will retain its Hawaii brand — and Honolulu hub.
Will loyalty benefits change?
Details aren’t clear, but Ingram did say there will be a shared program with “enhanced benefits.”
He said the new program will offer the ability to earn and redeem miles on 29 partners, “receive elite benefits from the full complement of Oneworld Alliance airlines,” and get lounge benefits.
What about impacts to service?
Hawaiian says the deal will offer customers access to a wider range of destinations — 138 in all.
That includes non-stop service to 29 international destinations.
He also pledged a “continued commitment” to robust inter-island service and excellence in customer satisfaction and operational reliability.
So what’s next?
It will be “business as usual” for now.
“While there is a lot to be excited about, today is just day one,” he said. “There are approvals that are required to complete this combination, which we expect to occur in the next 12-18 months.”
He added that until the merger is finalized the two airlines will operate independently.
“We look forward to sharing reliable, hospitable service across our network — now and into the future,” he said, adding that booking can still be made on the Hawaiian Air website and app.
When asked of any changes to Hawaiian’s service to American Samoa due to the merger Alex da Silva, Hawaiian Airlines spokesman told KHJ News, “This transaction is all about bringing together complementary domestic, international, and cargo networks to enhance competition and expand choice for consumers.”
