Against all odds, Alaska Airlines passed the DOJ review period without being blocked from acquiring Hawaiian Airlines. The merger-adverse DOJ’s unexpected silence after multiple delays has fast-tracked the merger, setting the stage for what will be a seismic shift in Hawaii air travel. With many questions still unanswered, this surprising turn of events is sure to keep everyone on the edge of their seats.
I’m curious where you found the information that Alaska plans to preserve the value of HawaiianMiles at a one-to-one ratio when they become Alaska Mileage Plan miles?
The State of Hawaii should shut down again. Maybe they can bankrupt or get a few more “local” companies to get sold.
Wonder what the Vegas odds are that within “x” number of years the name “Hawaiian Airlines” will be gone.
No odds as the Hawaiian Air name will stay for a long time similar to Longs Drugs when they got bought out by CVS
It will be interesting to see how Southwest responds to this merger. It wouldn’t surprise me in the least if SWA cuts back both Trans-Pac and Interisland capacity as a result of this merger. All in all, I’m happy that the merger will take place. Both AS and HA are good for the people of Hawaii and our visitor industry.
I haven’t been following this closely, but I wonder what changes are in store for Hawaiian Airlines.
They’ve always been the best option for flying to the islands—great service, the only airline with an in-flight entertainment system, and the complimentary mai tai and sandwich (even if the sandwich wasn’t anything special) made the experience unique. Plus, until recently, they didn’t nickel-and-dime passengers over carry-ons and seat selections.
I’ve flown with United and Alaska Airlines several times, but they never seemed to offer anything special, and the lack of an entertainment system was a real downside on such long flights. And of course, neither of them had that aloha spirit.
I also remember always feeling a little emotional hearing Israel Kamakawiwo’ole’s “Somewhere Over the Rainbow.” Didn’t Hawaiian use to play that upon arrival? Or am I just imagining it?
“This suggests that, from the DOJ’s perspective, the merger does not pose significant antitrust concerns, or at least none that require immediate intervention”
Or as I stated previously DOJ staff waited to the last minute to review merger package which led to asking for extensions then finally saying screw it looks good to me. Get it off my desk.
Especially the DOJ director no matter who’s elected President he or she will be out of a job, so looks good to me.
Hi Richard..yes exactly! 😉👍..John👣🏊🏄🌴🌊
When Alaska airlines took over Virgin America they ruined the service along the west coast.
I hope they don’t do the same to Hawaiian
I thank that is good news for Hawaii travelers. Without the merger I think Hawaiian was not going to make it. That would mean lots of mainland to Hawaii and inter island flights would be gone.
Lived in Spokane 1992-2023. Alaska is the dominant airline in the Northwest US and Alaska, and generally well regarded in those areas-where it serves a lot of relatively small towns/cities over very large geographic areas with frequent poor weather conditions . Although Hawaiians may see Alaska as a “long distance” airline bringing people to HI, it has a very long history of serving small areas in the above geography really well, which should reassure locals a bit about its ability to maintain inter-island service. Many Alaskans and Northwesterners view it as by far their best airline and go out of their way to fly it longer distances. Also has a highly regarded points and frequent flyer system which Hawaiian Airlines customers will have accessible. Hawaiian Airlines could have a far worse partner in almost any other US airline than Alaska. Incidentally I am Not an Alaska employee.
OK BOH, after all of the articles about why the buyout wasn’t going to happen it is time to admit that you didn’t know what you didn’t know. You seriously got a lot of people’s shorts in a knot with your articles instead of just saying let’s see what happens and leave it at that. Hawaiian Airlines is about to become a part of a much larger organization which opens up the possible usage of their miles for travel to a lot of different places on other airlines.
Aloha BOH, thanks for your reporting. Where did you find Alaska making the commitment that Hawaiian Miles would transfer 1:1 to Alaska? In a press release?
Industry insiders may recall that when SWA entered the market they hung a large ceramic shark painted in their colors attempting to eat two smaller fish painted in HA and Alaska colors in their Oakland offices. They thought they could throw their weight around in Hawaii and destroy local jobs. Have to wonder what they are thinking now as HA/AS will be a formidable combination and an airline that SWA will struggle even more with. Karma anyone? Will they even stay in Hawaii given the one billion dollars it’s cost them so far and now doesn’t have a small airline they can try and put under and takeover their market share?
Hopefully this means customer service will be brought back to US. And we no longer have to struggle & be on the phone for hours.
I believe Alaska provides good customer care services.
The reality here is this is most likely a last minute bailout as Hawaiian Airlines (love them or leave them) most likely is yet another of the many great airlines to succumb to the brutal airline business. I could spend the next half hour naming great airlines that (had admirable folks working for them) are now extinct in this dog eat world of companies that have gone by the wayside. No matter the good, the reality is, business is business, and if the good folks get to go along for the ride so much the better…these are companies that have to make a profit or go away. I sure hope this works out for the fine folks that have given everything for HA
To your point Moon, HA was the last airline standing since deregulation. Every other airline from the pre deregulation era either merged with someone to survive or disappeared altogether. Alaska seems smart enough to at least keep Hawaiian and all that it brings to the table intact.
This is a win win. for both companies and make no mistake, Alaska needs Hawaiian too, the airline industry is dog eat dog to say the least. Without this merger they faced potential risk’s going forward themselves.
This is very sad news. In fact, the lack of transparency by Alaskan Airlines and the low key let the clock run out attitude by the DOJ is very disturbing. It is reasonable to conclude that some type of deal or set of conditions to be taken, have been reached between Alaskan Airlines, Hawaiian Airlines, the DOJ and the Federal Court. The big concern in all of this is our neighbor Island inter-island air transportation service. This is what is in jeopardy along with all the local jobs. HAL is part of Hawaii history and culture. This too is at risk.
It’s Alaska Airlines, not Alaskan Airlines.
I don’t know how much more transparent you want the airline to be? It cooperated with the Department of Justice, filed numerous public statements with the Securities & Exchange Commission, and indicated it will maintain the HA brand along with all union jobs.
The reality is that HA’s board approved this merger and 98% of HA shareholders (the company’s actual ownership…not some HA employees who think they call the shots) consented to it. It’s a good deal that ensures the HA brand actually survives.
Yes, interisland flying is critical to this state. But asking the DOJ to get involved with a “wish list” of promises involving interisland flying has nothing to do with whether the merger should be challenged. It just isn’t related to the Clayton Act in this circumstance.
I agree, and as someone else pointed out, Alaska has a history of serving small communities in some pretty tough locations, and they do it well. So, personally, I’m not too scared about the inter-island business of Hawaiian going anywhere under Alaska. What will be interesting is what planes they end up flying. Hawaiians current inter-island fleet is pretty old and in need of an upgrade and Hawaiian has/had plans for that pre-merger.
Good news
Once again corporate Alaska Airlines has more than enough money to take over yet another airline, (Virgin America to be the major first).
Stop holding out on a fair, decent and top-rate competitive contract for your FA’s and other staff!
Greed at its finest!
The Alaska FAs rejected a new contract last week that would have increased the payscale, on average, 24% (32% over the life of the contract). You have an interesting definition of “corporate greed.”
VX was the second airline AS purchased, the first was Jet America.
Alaska is a combination of many other small airlines in the past.
Is there any speculation on what will happen with the miles programs? Will they be combined, an option to transfer from 1 to the other (but separate still) or some other scheme?
Good day~ A lot of comments all over the spectrum. Past behavior of the DOJ should not be taken as future performance. Each case is based on it’s merit (I know that may be hard to swallow for anyone who distruts the federal government). Alaska (state) and Hawaii (state) are treated as unique markets given ther geographical location, strategic importance and the need to support transportation for all citizens. Whom better to keep up the local service then Alaska Airlines. A good win for the consumer as the free market is not always an equalizer. Cheers all
Agree with you Mark.
Have been waiting on the mainland for this news in the early morning hours. Overall this is good news so far. Hawaiian Airlines is in serious financial territory and the stronger Alaska will indeed be a lifeline. There is reason to believe that Alaska knows that keeping the Hawaiian Airlines identity is a plus for the future of their company. It’s early in the process regarding finalization of the buyout but if successful it should be a Big win/win for both Airlines and the traveling public as well as the state of Hawaii and the employees.
Aloha to all.
Hi Daryl~ Totaly agree. Having been an airline employee in a prior life and gone thru 2 mergers (PSA >> USAir & USAir >> Piedmont), It can be a rough road. I have a lot of faith that Alaska will do it’s best and recognizes the value of Hawaiian as an on-going entity. This is not a case of buying to get aircraft on the cheap, but rather a consolidation to go up against the big 4 which is why I believe DOJ let it pass thru. Flown thousans of mies on both and can say that have a lot in common. Cheers
Well said Mark!
I remember that PSA/USAir merger back in the day when living in California. You are correct that Alaska Airlines has a history of good stewardship, especially in the 49th state where aviation is the life blood of a huge vast state. This bodes well for Hawaii and its need for a robust interisland commercial airline system. Cheers and Aloha!
Spot on Mark….these are two airlines that are the smallest of the deregulation survivors. They both did it by persevering through some very tough times. This merger creates a unique blend of the Aloha spirit and can do attitude that could be something special indeed.
Auwe…
This is great news and it needed to happen. I believe this will be a lifeline for Hawaiian which is a beloved bellwether Airline worthy of saving for So many reasons that I cannot count beyond being the number one employer in Hawaii. If this is reality, it’s cause for celebration!!
Going to be quite a powerhouse airline serving Hawaii. Great news for the traveling public, the State of Hawaii and the employees of both carriers.
Great news for most – except those that will eventually be found redundant and laid off…
Very true Kala, however, without the merger there was a very real chance of a Chapter 11 reorganization, which also puts jobs at risk, maybe even more….at least now the employees whose jobs are made redundant will have a larger parent airline to possibly transfer elsewhere. The potential for growth this merger brings has been greatly improved for the employees of both airlines…..they need each other.