Hawaiian Holdings Shareholders Greenlight Merger with Alaska Air Group

In a significant development for the aviation industry, shareholders of Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines, have cast a decisive vote in favor of merging with Alaska Air Group, Inc., the entity behind Alaska Airlines. The vote took place at a shareholder meeting on February 16, where a “substantial majority” demonstrated their support for the merger plan that promises to reshape the competitive landscape of the airline sector.

Peter Ingram, President and CEO of Hawaiian Holdings, highlighted the shareholder approval as a pivotal step towards finalizing the merger with Alaska Air Group. This move reflects the shareholders’ confidence in the strategic benefits of combining the strengths of Hawaiian Airlines and Alaska Airlines.

Leading shareholders of Hawaiian Holdings, including Exchange Traded Concepts LLC, BlackRock Advisors LLC, Vanguard Fiduciary Trust Co, The Vanguard Group, Inc., Magnetar Financial LLC, and Morgan Stanley Investment Management, Inc., together holding just under 53.5% of the total stock, played a key role in the approval process. Their endorsement underscores the broad-based support for the merger within the investment community.

Announced in December 2023, the merger agreement stipulates that Alaska Air Group will acquire Hawaiian Holdings at USD18 per share, valuing the transaction at approximately USD1.9 billion, in addition to assuming about USD900 million of Hawaiian’s debt. This strategic consolidation awaits further approval from US regulatory bodies and satisfaction of other customary closing conditions.

Amid a stringent regulatory environment, as evidenced by the US Department of Justice’s recent interventions in airline mergers and alliances, this merger has attracted attention for its potential impact on market dynamics. Ben Minicucci, CEO of Alaska Air Group, has distinguished the Alaska-Hawaiian merger from other high-profile cases by emphasizing the complementary nature of both airlines’ business models and networks, arguing that the merger would enhance consumer choices and foster competition.

As the merger process advances, the formal results of the shareholder vote are pending final confirmation by an independent inspector of elections, marking the next step in the culmination of a merger that aims to create a stronger, more competitive airline capable of serving a broader range of destinations and providing enhanced services to passengers.