The latest move by Alaska Airlines and Hawaiian Airlines to apply for the transfer of international route authorities is stirring conversation. While it may seem like a significant step towards their merger, it’s important to look at this action in context. Here’s why this latest application might not be as impactful as it appears and how it compares to past airline merger attempts.
Is this Alaska/Hawaiian application a strategic move or posturing?
Alaska Airlines and Hawaiian Airlines jointly filed applications to the U.S. Department of Transportation (DOT) Tuesday seeking to transfer Hawaiian’s international route authorities to Alaska. This request also includes an interim exemption to operate under common ownership while maintaining separate operations until a single operating certificate is issued subject to DOJ approval of the acquisition of Hawaiian.
This move mirrors a similar strategy attempted by JetBlue and Spirit Airlines, which ultimately led to a failed deal. The application does suggest some level of confidence, but it doesn’t necessarily bring the merger any closer to approval. It might also be seen as an effort to maintain momentum and create the impression of progress at a critical time. We are now, at most, three weeks away from the Justice Department announcing its intentions with regards to this deal that’s very significant to Hawaii travel.
Implications for Hawaii are very significant.
Potential impacts on Hawaii flights and competition. If the pending merger is approved, Alaska Airlines is expected to consolidate services, potentially reducing some flights including routes to Asia. This could lead to less competition, higher prices, and reduced service options for Hawaiian visitors and residents. The concern here is not just about the merger itself, but about the broader implications for Hawaii’s connectivity and travel dependent economy.
Hawaii officials’ noticeably quiet. There has been little word from Hawaii’s state officials since the initial announcement, which is surprising given the significant potential impact on air service and competition. The silence could be interpreted as a form of approval of the merger, or a lack of engagement on the issue, with residents and visitors still wondering about the future of Hawaii air travel options.
Beat of Hawaii’s coverage of proposed merger.
We have and will continue to extensively cover this proposed merger and its potential ramifications. We have provided detailed analysis and updates on significant developments, and will continue to make this complex issue a priority.
- Tensions Rise, Stock Surges | DOJ Decision on Alaska-Hawaiian Deal Looms.
- Turbulent Times Ahead in Hawaii’s Air Travel Transformation.
- Survival Strategies: What Hawaiian Airlines Can Learn.
- Alaska Speaks Up on Merger + Our Comparative Look at Mileage Rewards.
- What Should You Do With HawaiianMiles Amidst Merger Plans Or Possible Bankruptcy?
- PR Showdown: Airlines Court Hawaii Ahead of Merger Decision.
- Latest News Impacts Merger Prospects For Hawaiian/Alaska Airlines.
Engaging your thoughts on the merger.
What Do You Think? We invite you to share their thoughts on this latest development in the merger progress. Do you believe this application is a sign of real progress, or just another strategic move with little real impact? How do you envision this merger will affect Hawaii travel if it is successful?
Join the Conversation Your insights and opinions are very important as we continue to cover this evolving story.
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It’s an Acquisition folks…not a merger! Two different words and they have different meanings…It’s An Acquisition!
Plan on using my miles for a trip in January to Rarotonga. Hopefully Hawaiian is still going strong by then. Even if they merger is approved everything will change after next year
I am adamant that our Miles be honoured the same.
Very simple, if the merger does not go through, then subtract HA’s flights from the number currently flying to the islands. Other airlines will pick up some of the deficit, but I suspect the net number will be negative. What Will probably be a positive number will be increased costs for travelers booking flights to the state…
Best Regards
I really hope this merger goes through- but I did book a trip using all of my Hawaiian points, just in case!
While the merger may financially save Hawaiian from pending bankruptcy, it will be a bitter pill to swallow if it results in the loss of jobs. The only immediate upside is possibly replacing Hawaiianʻs notoriously unhelpful and basically awful offshore call centers with a more responsive and helpful team.
To your point Drew, if the merger doesn’t go through it could also cost jobs (Chapter 11)…..Alaska’s plan of keeping the Hawaiian brand and it’s people (a huge asset) and inserting their operational strengths with Hawaiians Pacific expertise is what is called a Win/Win deal from my perspective……let’s hope it goes through as planned and both carriers realize they need each other to create the whole new level of service across the Pacific that could happen if done right.
Here’s to hoping merger does happen. Correct me if I’m wrong but if merger does not happen, HA would be forced back into bankruptcy. Wouldn’t new union contracts be terminated? Unhappy employees make for unhappy customers.
I think the big difference between Jet Blue and Spirit merger was Jet Blue absorbing a discount carrier into the Jet Blue model, which would have meant losing a low cost option. There are also a lot more flying options on the east coast.
If HA dissolved how would tens of thousands of people get from island to island? SW could be an option but then they would have a monopoly and prices would obviously go up.
I think comparing this merger with the Jet Blue/Spirit merger is not the same.
Just my two cents gentleman.
Thank you for the reporting. I like many are anxiously waiting for the DOJ.
Kelly
Hi. We are planning a trip to Kauai in early May next year & airfares seem pretty high. Is it best to wait for better fares to be offered later? Thanks for the advice. A S
Hi Andy.
Yes it seems that May is too far out and there are too many unknowns. We were checking San Jose departures based on where we think you are located.
Aloha.
It is more of a legal move so operations can continue if the merger is approved. Hawaiian’s routes get transferred to Alaska. After that transfer, Alaska’s routes which now include both Alaska’s and Hawaiian’s routes get reissued to Alaska Airlines and/or Hawaiian Airlines so the combined carriers, who will be on two seperate operating certificates, can carry on as before until the carriers combine on a single operating certificate with two brands.
I believe you are correct Greg. Essentially the merger will create new opportunities for expansion Internationally as well as domestically.
They have to prepare for that.
I do not concur with the merging of Hawaiian Airlines with Alaska Airlines.
Most especially if flights between Hawaii and Asia are eliminated.
No! Not good for business!
The reason Alaska is doing this is to create new opportunities for growth. Asia will be a booming market in the the future and the merger puts Alaska/Hawaiian in a very good place to capitalize.
AS/HA has huge potential in the entire Pacific basin…huge