The Hawaiian Airlines Airbus A330 mixmotive has recently been in the spotlight as Alaska Airlines announced an agreement to acquire Hawaiian Holdings. This move comes amid increasing mergers and acquisitions in the airline industry due to cost pressures and rising fuel prices.
The deal, which is valued at $1.9 billion, will see Alaska Airlines acquiring Hawaiian Airlines for $18.00 per share in an all-cash transaction. The merger is expected to result in $235 million in run-rate synergies within two years of closing the deal.
The transaction has been met with mixed reactions, with some analysts questioning the compatibility of the two airlines’ fleets. Alaska Airlines, known for its all-Boeing fleet, will be adding Hawaiian Airlines’ fleet of Airbus A330 aircraft, which may present operational challenges.
Despite these concerns, the deal has been seen as favorable for Hawaiian Airlines shareholders, with the acquisition price representing a 2.7x premium over the current share price. However, it’s worth noting that Hawaiian Airlines has faced operational challenges, including lost revenue due to fires in Maui and issues with its Airbus A321neo fleet.
The deal is expected to close within 12-18 months pending regulatory approval and approval from Hawaiian Holdings shareholders. While the acquisition price may seem fair, the compatibility of the two airlines’ fleets remains a point of contention.
