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The deal will create the fifth-largest airline in the US with a combined fleet of 365 airplanes serving 138 destinations and giving Alaska Airlines access to lucrative Asian markets. Furthermore, loyalty benefits for Alaska and Hawaiian customers may increase significantly with enhanced lounge access with Oneworld alliance partners and the co-branded credit card as co-branded benefits are enhanced for Alaska and Hawaiian customers. Alaska expects this transaction to generate double-digit earnings accretion within its first two years of operation, excluding integration costs and returns beyond its cost of capital by year three, providing Alaska Airlines access to lucrative Asian markets.

This agreement, approved by both airlines' boards, should close within 12-18 months if approved by U.S. regulators who take a tough stance against airline combinations that could increase passenger fares. President Joe Biden's Justice Department is trying to block JetBlue Airways' proposed $3.8 billion acquisition of Spirit Airlines as the government considers such moves anticompetitive.

Alaska Air will pay $18 per share in cash, taking on $900 million of Hawaiian's debt as part of the deal. The combined company will continue with both brands while headquartered in Seattle, under Minicucci, who will become CEO of both airlines. According to Minicucci, this merger would result from expanding nonstop flights between Hawaii and the mainland US and tripling the number of North American destinations from Hawaii.

Both airlines are well known for providing exceptional customer service and are committed to supporting Hawaii. Together, they will offer a unique network in the US with a shared culture of caring and innovation; jobs will also be preserved while "maintaining robust Neighbor Island service," as stated by each company.

Alaska will benefit from this merger by increasing its presence in the Pacific region while also being able to fly to more cities within the continental US, giving it a better chance at competing against larger airlines like Delta, United, and Southwest. According to both companies, they will be more aggressively competing for premium and economy passengers - key segments for business success.

Association of Flight Attendants-CWA, representing 6,800 Alaska and 2,200 Hawaii flight attendants, applauded the deal as being pro-consumer and expanding choices for Hawaii residents and visitors. The union, which will remain representative of flight attendants in the combined company, pledged to guarantee employees a living wage and job security. It also promised to work with the companies to secure its members' career advancement and geographic mobility opportunities. In the coming days, the union's executive council will meet to review this transaction and recommend how best to proceed. By customary closing conditions and to gain shareholder approval for approval. A proxy statement will be distributed.