Alaska Airlines has been given the green light to acquire Hawaiian Airlines after the latter’s stockholders approved the deal that is set to boost cargo within the combined business. Seattle-based Alaska Air Group and Honolulu-headquartered Hawaiian Holdings entered into a definitive agreement for the acquisition in December last year. Both brands will remain separate. A majority of stockholders voted in favour of the deal, said Hawaiian.
“Stockholder approval of our transaction with Alaska is an important milestone toward combining our airlines,” said Hawaiian Airlines president and 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.”
The combined company aims to expand the choice of passenger and cargo service options and access throughout the Pacific region, continental US, and globally. For Alaska Airlines, cargo and “other” businesses make up 3% of revenue. For Hawaiian, 7% of revenue is from cargo and “other” business.
In October last year, Hawaiian Airlines commenced service of its A330-300P2F (passenger to freighter) contract business for e-commerce giant Amazon.
The airline received the first of 10 converted freighters earmarked for Amazon Air operations in July last year.
Hawaiian plans to introduce the 10 aircraft over the next 1.5 years.
Alaska Air Cargo currently has three 737-700Fs and one 737-800BCF (Boeing Converted Freighter) in its fleet. The airline is also due to add a second 737-800BCF this year.
Alaska’s acquisition of Hawaiian remains subject to regulatory approvals. Completion of the deal is expected within 12 to 18 months of the initial December announcement.
