Alaska Airlines wanted to buy Hawaiian Airlines. it cost $1.9 billion, and they needed permission from the U.S. government and also got permission after the agreement.
to get this approval Alaska Airlines agreed to some conditions,
- Alaska Airlines continues to fly to the Hawaiian airlines used to fly to.
- They will follow certain rules to protect customers’ rights.
In August, the U.S. government approved Alaska Airlines with Hawaiian Airlines. In the United States, Alaska Airlines is the fifth-largest airline, and the 10th-largest airline is Hawaiian Airlines. This combination was announced in December.
Alaska Airlines CEO believes this will be good for airlines and benefit customers, and it will help Alaska Airlines fly to more places and to use Hawaiian Airlines’ bigger planes.
“It’s just a few more arrows in our quiver on how we deploy airplanes across our entire network,” Minicucci said. “Putting the right airplane in the right market to deliver the best results for the combined entity.”
Minicucci said the airline expects to deliver at least $235 million in run-rate synergies by year three.
Under President Joe Biden, the U.S. government stopped airlines from combining. They stopped JetBlue and Spirit Airlines from merging recently and stopped American and JetBlue from New York and Boston.
between American and JetBlue airlines the Government stopped a deal because it thought it would reduce competition and raise prices for consumers.
To protect the value of frequent flyer rewards, the transportation department has agreed to an agreement with Alaska and Hawaiian airlines. The airlines will offer flights between important cities, ensure competitive access at Honolulu airport, and provide compensation for disruptions caused by the airlines.
Hawaiian Airlines will no longer be listed on Nasdaq. The combined company of Alaska and Hawaiian Airlines will be listed on the New York exchange under the name ALK.
