Alaska Air Group (ALK) is buying Hawaiian Holdings (HA) in a $1.9 billion deal. Both CEOs, Alaska Airlines’ Ben Minicucci and Hawaiian Airlines’ Peter Ingram, join Yahoo Finance Live to discuss the nature of the merger and what it will mean for customers.
As Minicucci explains, the two airlines have networks that complement each other, saying the merger not only “provides so much opportunity” for both employees and customers, but will also make Alaska a “clear market leader” in Hawaii.
In a more nonstandard move, Minicucci says the two brands will remain separate as part of a “dual-brand strategy.” Both airlines will maintain individual identities from a “customer-facing” perspective, but internally, there will be one system—including one loyalty program.
The deal still faces regulatory approval, with both CEOs confident they will get it. As Ingram notes that there is “not a lot of overlap,” —considering the target markets that each companies have—noting only “a dozen overlap routes.” Ingram insists that the merger will go through due to its “pro-consumer, pro-competitive” nature, and will “add competition for the big four network carriers.”
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