Hawaiian Airlines stockholders today approved a proposed merger between the local company, which dates back to 1929, and Alaska Airlines.
Hawaiian Holdings Inc., the parent company of Hawaiian Airlines, announced the results of the vote after hosting a virtual special stockholder meeting at 11:30 a.m. During that meeting, stockholders of record were able to vote and ask questions online.
Hawaiian Holdings said in a statement, “A substantial majority of the holders of Hawaiian’s stock voted in favor of the merger, according to preliminary results from the special meeting held earlier today. Hawaiian will file the final voting results, as tabulated by an independent inspector of elections, on a Form 8-K with the U.S. Securities and Exchange Commission.”
Hawaiian Airlines President and CEO Peter Ingram said in the statement, “Stockholder approval of our transaction with Alaska is an important milestone toward combining our airlines. Together, we will bring stronger competition to the U.S. airline industry, deliver more value to our guests and the communities that we serve, and provide greater job opportunities for our employees.”
According to an SEC filing, stockholders were asked to consider and vote on a proposed agreement and plan of merger with Alaska Airlines. Also, they were expected to vote on the compensation payable in connection with the merger to certain named Hawaiian executive officers.
The Hawaiian shareholders’ approval vote was critical as it was required for the deal to move forward. If the merger is approved, Hawaiian shareholders are set to receive a premium of $18 in cash per share. Hawaiian Holdings closed at $14 a share today.
An Alaska Airlines spokesperson said in a statement, “We’re pleased the Hawaiian Airlines shareholders see the value of this combination, which expands benefits and choice for guests in Hawaii and across the West Coast. You can learn more about the benefits at localcareglobalreach.com.”
The boards of directors for both air carriers on Dec. 2 approved Alaska Airlines’ purchase of Hawaiian Airlines in a $1.9 billion deal, which includes $900 million in Hawaiian debt. The proposed merger, which is expected to take 12 to 18 months to close, was announced Dec. 3
The merger also requires approval from competition authorities, including the U.S. Department of Justice and state attorneys general. These steps could prove challenging as the Biden administration has taken a tough stance against airline industry consolidation.
