Hawaiian Airlines stock nearly tripled Monday morning, following Sunday’s announcement that Alaska Airlines has reached a $1.9 billion agreement to purchase Hawaiian.\u00a0<\/p>\n
Hawaiian share prices were trading around $14 by 12:30 p.m. Eastern time, an increase of approximately 190% from Friday’s closing price of $4.86.<\/p>\n
The surge was driven by the deal’s terms, in which Alaska has agreed to pay Hawaiian shareholders $18 per share should the merger close. The companies expect closing within 12 to 18 months, provided that the deal receives approval from the antitrust division of the Department of Justice.\u00a0<\/p>\n
Under the proposed merger, the Hawaiian and Alaska brands would remain distinct, with both being run by the current Alaska Airlines management group out of its Seattle headquarters.\u00a0<\/p>\n
The deal would bring together the Mileage Plan loyalty program of Alaska and HawaiianMiles loyalty program.\u00a0<\/p>\n
Alaska has also committed to maintaining the Hawaiian brand’s interisland service.<\/p>\n
In contrast to Hawaiian shares, Alaska Airlines stock dropped to $33.46 at 12:30 p.m. Eastern time, down around 15.5% compared with Friday’s closing.<\/p>\n