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Hawaiian Holdings (HA) Arm Eyes Defunct Airlines' Assets
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Shares of Hawaiian Holdings (HA - Free Report) have gained 9.8% since its erstwhile competitor Island Air ceased operations on Nov 10. Island Air had filed for bankruptcy protection in October due to financial woes.
Naturally, the exit of Island Air has strengthened Hawaiian Holdings’ foothold in the region. Now, Hawaiian Holdings’ subsidiary — Elliott Street Holdings — has reportedly agreed to buy the operating certificate and other assets of Island Air for $750,000. Of the total consideration, $45,000 will be shelled out by the company for buying the defunct carrier’s operating certificate. The amount would immediately be utilized to pay Chapter 7 administrative expenses. The purchase price for other assets of Island Air like ground-service equipment is $30,000.
However, the transaction has to be cleared by Robert Faris — judge in the federal bankruptcy court. According to reports, preliminary approval pertaining to the sale has already been granted by Faris. Final hearing on the issue is scheduled for Jan 5, 2018.
The sale, on materialization, would allow the carrier “to assume oversight of operations currently provided under contract by Empire Airlines”. Even if Island Air's assets are ultimately purchased, we believe Hawaiian Holdings should be mindful of competition intensifying in Hawaii as Southwest Airlines (LUV - Free Report) has announced its intention to fly to the region. Naturally, investors would await updates on the issue.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Airline industry are Gol Linhas Aereas Inteligentes S.A. and Deutsche Lufthansa AG (DLAKY - Free Report) . While Gol Linhas sports a Zacks Rank #1 (Strong Buy), Deutsche Lufthansa carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Gol Linhas and Deutsche Lufthansa have surged more than 200% and 100%, respectively, in a year.
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Hawaiian Holdings (HA) Arm Eyes Defunct Airlines' Assets
Shares of Hawaiian Holdings (HA - Free Report) have gained 9.8% since its erstwhile competitor Island Air ceased operations on Nov 10. Island Air had filed for bankruptcy protection in October due to financial woes.
Naturally, the exit of Island Air has strengthened Hawaiian Holdings’ foothold in the region. Now, Hawaiian Holdings’ subsidiary — Elliott Street Holdings — has reportedly agreed to buy the operating certificate and other assets of Island Air for $750,000. Of the total consideration, $45,000 will be shelled out by the company for buying the defunct carrier’s operating certificate. The amount would immediately be utilized to pay Chapter 7 administrative expenses. The purchase price for other assets of Island Air like ground-service equipment is $30,000.
However, the transaction has to be cleared by Robert Faris — judge in the federal bankruptcy court. According to reports, preliminary approval pertaining to the sale has already been granted by Faris. Final hearing on the issue is scheduled for Jan 5, 2018.
The sale, on materialization, would allow the carrier “to assume oversight of operations currently provided under contract by Empire Airlines”. Even if Island Air's assets are ultimately purchased, we believe Hawaiian Holdings should be mindful of competition intensifying in Hawaii as Southwest Airlines (LUV - Free Report) has announced its intention to fly to the region. Naturally, investors would await updates on the issue.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Airline industry are Gol Linhas Aereas Inteligentes S.A. and Deutsche Lufthansa AG (DLAKY - Free Report) . While Gol Linhas sports a Zacks Rank #1 (Strong Buy), Deutsche Lufthansa carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Gol Linhas and Deutsche Lufthansa have surged more than 200% and 100%, respectively, in a year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>