Moody's: Alaska's acquisition of Hawaiian will increase its leverage while improving Hawaiian's refinancing prospects
Moody's Investors Service said that Alaska Air Group, Inc.'s ("Alaska") Baa3 issuer rating is unaffected by the agreement announced on December 3rd in which Alaska will acquire Hawaiian Holdings, Inc. (Caa1 negative) for $18 per share. The companies have valued the transaction at $1.9 billion, inclu...Alaska Air Group operates two airlines, Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon). The company's operation also includes McGee Air Services, an aviation services provider. The company has three segments: Mainline, which includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the United States., and in parts of Canada, Mexico, and Costa Rica; Regional, which includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchase agreements (CPA); and Horizon, which includes the capacity sold to Alaska under CPA.
Hawaiian Holdings is a holding company. Through its wholly-owned subsidiary, Hawaiian Airlines, Inc., the company is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands, between the Hawaiian Islands and certain cities in the United States, and between the Hawaiian Islands and the South Pacific, Australia, New Zealand and Asia. The company provides non-stop service to Hawai'i from various United States gateway cities and also provides daily flights between the Hawaiian Islands. In addition, the company operates various charter flights. The company's flight operations are based in Honolulu, HI. The company operates scheduled flights with various ad hoc charters.
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