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Earth Intelligence

04 Dec 2023 — 4 min read

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Red Sea Attacks
Alaska Air Group To Acquire Hawaiian Airlines

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Red Sea Attacks:

A UK-owned vessel was recently struck by a rocket in the Red Sea near Yemen, leading to urgent distress signals. This incident occurred amid heightened tensions in the region, notably following an explosion in the Bab el-Mandeb Strait where drones were reportedly detected, with suspicions pointing towards Yemen as the origin.
The Houthi rebels in Yemen have increasingly targeted ships in the Red Sea. Notably, they have been accused of attacking and seizing an Israeli cargo ship last month and have openly threatened to target any vessels associated with Israel. In response to these growing threats, naval forces from the U.S. and the UK have been actively responding to incidents in the region.
One such response was by the USS Carney, a U.S. Navy Arleigh Burke-class guided-missile destroyer, which, along with other commercial ships, came under attack in the Red Sea. This followed the rocket attack on the UK-owned ship. The Pentagon acknowledged these incidents, stating they were aware of the attacks and would release more information as it became available.
The Houthi rebels have claimed responsibility for these attacks, justifying them as a response to Israeli aggression in the Gaza Strip. They have issued warnings against Israeli or Israeli-affiliated vessels, declaring them legitimate targets in certain circumstances. In a recent development, a U.S. security source reported that the USS Carney had intercepted two drones launched by the Houthis, highlighting the escalating conflict in the region.

Alaska Air Group To Acquire Hawaiian Airlines:

Alaska Air Group Inc. has agreed to acquire Hawaiian Holdings Inc.'s Hawaiian Airlines in a notable $1.9 billion deal. This agreement includes taking on about $900 million of Hawaiian's existing debt. In terms of the purchase price, Alaska Air Group is offering $18 per share in cash, significantly higher than Hawaiian Holdings' closing share price of $4.86 on the preceding Friday.
This acquisition is set to provide a substantial boost to Hawaiian Airlines, which has seen a significant decrease in its stock value this year, dropping by more than 52%. The airline has been grappling with challenges stemming from the slow recovery of tourism from Asia to Hawaii in the aftermath of the Pandemic and Maui fires, as well as intensified competition from other airlines in the Hawaii-to-U.S. market.
For Alaska Air Group, this deal represents a strategic expansion of its operations, adding long-haul flights from Hawaii to various U.S. cities and potentially into Asia. The acquisition of Hawaiian Airlines by Alaska Air Group is poised to create a combined carrier with a more extensive network and enhanced operational capabilities.

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