Visitors and Hawaii’s travel industry are preparing for a potential cultural clash as the merger between Hawaiian Airlines and Alaska Airlines progresses.
Visitors and Hawaii’s travel industry are preparing for a potential cultural clash as the merger between Hawaiian Airlines and Alaska Airlines progresses.
It is beyond my understanding why the discussion and negotiations swirlling about the proposed Alaska Air/Hawaiian Air merger have been somewhat void of any consideration of cross-cultural considerations. As a former 20-plus years Alaska resident who spent many years and miles flying in and around Alaska, I learned first-hand just how much Alaska Airlines has always cared about Alaskans, particularly Alaska natives, thkough I was an “Outsider” (a person eminating from elsewhere, mostly the “lower 48” states). My best example is my former Alaska neighbor’s son from a wonderful Eskimo family and who grew up as a playmate to my sons and who now is an Alaska Airlines line pilot. This is why I consider Alaska Airlines to be part of my family. Nowhere else in my experience have I ever considered corporate employees as extended family. Different but true. In my family’s recent travels we see our former neighbor flying around the Alaska system. If this seems like family, it is!
That’s a great point Jim, one more great example of what makes this merger unique. These are two airlines that not only greatly compliment each other with their respective route structures and shared experiences of being the high quality survivor competing with much larger carriers, they have strong cultural similarities as the local carrier that has always been there for their respective home States. The fact that a Seattle based Airline can be the local carrier in Alaska bodes well for Hawaii and the Pacific legacy Hawaiian brings to the table. This was the only merger combination that could have worked for Hawaiian, be interesting to see if goes as it should.
Every BOH reader can now push their chips to the middle of the table and weigh in. Here’s my bet: Hawaiian becomes the budget alternative to Alaska. That doesn’t mean flights will be cheaper on Hawaiian than they are now. Alaska will up their level of service and seating choices and raise rates accordingly. It has already started -Exit rows from the mainland are now pricier than Premium. Hawaiian may see operational streamlining as redundancies are eliminated, but I just don’t see their fleet as malleable as Alaska’s. Let’s meet here in two years and see who was closest.
I’ll see your bet and raise it Maleko, I say the Hawaiian/ Alaska combo will be a unique brand that offers superior service across the entire system.
It will be known as the quality alternative to the big four regardless of which carrier you choose. The synergies of the two will make both even better. Gonna be very interesting whatever happens!
Alaska airlines aquired Horizon Airlines which is a Portland regional carrier years ago. Horizon flys to Seattle,Reno, and I think a few locations in California. They are still around and participates in some of the short flights out of PDX that Alaska books. They are still around and has never changed their name. I guess this is a different situation than Virgin Airlines.
I heard on the news that Alaska has around 50 homeless in or around Anchorage a year. They will offer a one way ticket to anywhere in the states up to 279 dollars to relocate in saving the cost of 300 a month that it costs the state to house and feed them. Wait till the flight ANK-HNL is available and see how many homeless Hawaii gets a month in keeping these individuals from passing away in the -40 degree temperates at night. Alaska State gets deals by Alaska Airlines so maybe we will see snow machines on the beaches too. Hawaii state assistance here I come.
Hopefully, nothing more than a nuisance, but United has filed an objection to the merger. Also, a question: any insight regarding Alaska deep-sixing the Philippines call center…and the Airbus A321 and A330 maintenance facility?
Mahalo for BoH best in class Hawaii information.
Oh, come on.
The only “culture” that matters is a culture that makes a profit. Virgin America didn’t have it. Hawaiian doesn’t have it. Why would you buy a money-loosing airline and keep the culture that led the stockholders to sell it?
Alaska will definitely keep the Hawaiian brand because it makes sense. Nobody’s going to buy a ticket on a plane from Seoul to Honolulu that has an Eskimo on the tail. Likewise, while the Alaska brand is valuable on the West Coast, nobody’s going to fly from Washington, New York, or Boston to Hawaii on a plane with an Eskimo on the tail.
Interisland was already a losing proposition before Southwest came. If it weren’t, United would have done it years ago. Southwest only made it worse by flooding the market with seats because they rotate aircraft back to the maintenance, rather than establish a Hawaiian maintenance base to service a sub-fleet that gets the daylights beat out of it
In addition, I would submit that far more important than simple balance sheets is the synergies that combining these two airlines create. Management of both companies seem sincere in preserving Hawaiians legacy and experience. In answer to the few angry ex VA folks that have chimed in, this merger has few similarities to that merger. Hawaiian’s image and experience in the Pacific is a very powerful marketing tool and will give AS/HA a strong advantage in whatever they decide to do in the Pacific. They can continue to dominate inter island and benefit immensely when the Asia traffic finally returns as well as have an advantage in any new market they enter. “If” they do as they appear to be planning, maximize what Hawaiian brings to the table, they stand to be one of the industries merger success stories.
I would submit the biggest driver in the success of this merger will be the combining of the two labor groups. As USAir/AmWest demonstrated it can be lethal.
HA/AS combines two very similar labor that are the only legacy survivors of the deregulation era without becoming one of the “Big Four”. They have fought similar battles over the years and both groups have a reputation of superior service and a quality product. What bodes well is the high level of mutual respect both groups seem to be exhibiting to the deal(I know many employees of both). We’ll see if that spirit continues to the benefit of both. They need each other to continue being the quality alternative to the big four.
This makes me very sad. I’ve been a Hawaiian airlines flyer for 40 plus years. You know they can say anything now but there’s no way they can integrate the two cultures. Knowing the nativeness of both cultures they’re unique how can successfully integrate two different beautiful cultures just because you want to and say you will? So sorry
Alaska has native Eskimo’s and live in severe cold weather. Hawaii has native Islanders that live in the tropical heat. That is a clash in it’s own so IMO Alaska will be true to it’s roots and aquiring Hawaiian Airlines is just a business ordeal.
I’m flattered by the recognition! However, I don’t think I’m understating the problems that this merger (if it is realized) will cause in terms of culture crashes and integration problems between the two airlines as they try to become one – even as Alaska insists that they will remain two separate brands. Hawaiian is a purely island based institution, and let’s face it. Hawaii isn’t necessarily a part of mainstream reality – by any measure of CONUS GAAP’s. Business wise, personnel policies, or otherwise… AK on the other hand, is a true corporate, profit and efficiency focused concern. The battlefield has been set, the outcome remains to be seen… I truly wish them the best of luck…
Best Regards
Aloha – Alaska will be changing everything over time and won’t be running to two separate airlines, probably keep the Hawaiian name. If Alaska doesn’t buy Hawaiian, Hawaiian will close down. Alaska is the best option to keep Hawaiian running but under Alaska’s terms.
Just to clarify J…what’s at stake is the possibility of C11 reorganization, not Hawaiian Shutting down
I am hopeful that the Aloha spirit and Hawaiian flavor of the flights to and from Hawaii will remain…I did just buy a pareo from TagAloha that was a collaboration with Hawaiian Airlines and I took the magazine home on our flight last week…just in case it’s the end of an era 🙂 I know I will miss the really good pricing on Hawaiian Airlines!
I’m from a very small island in Alaska where Alaska Air had/has a monopoly. Prices were always high, such as 1984 a r/t 2.5 hour flight to Seattle was $600.00, but I do think if anyone understands cultural significance this would be a good merger. AK Air still has Chester on the tale and serves many Alaskan indigenous communities. I hope this would make them feel a sense of kuleana to Hawaii.
Sorry, but if there is a perceived reason there was a clash of cultures with Virgin America was maybe because they were “really not all that,” at Virgin America as much as they thought. Yes there were some that excelled like some excel at most airlines, but in terms of customer service, Alaska far exceeds the Virgin experience in terms of consistency, customer care, and lack of attitude.
Hawaiian seems to have way more the work ethic and customer focus similar to that of Alaska I might add.
My experience tells me there’s no merging cultures…one will dominate. Buckle your seat belts.
Hawaiian Airlines could definitely benefit from a technology upgrade. The botched rollover of the reservations system left a complete mess, along with apps and a website that are vastly inferior to almost all other airlines. That’s not a Hawaiian cultural issue. That’s a core competency issue, which Hawaiian sorely lacks. There’s no shortage of talented people who might have managed a tech upgrade. I suspect it was simply a lack of will or competency among the management ranks.
Another potential benefit would be dumping Hawaiian’s offshore customer service center in favor of a staff empowered to actually solve problems.
If Alaska is smart, they will ensure that cultural issues remain in Hawaiian hands.
I can assure you that those of us that were loyal to Virgin America, often paying more for the experience, will be watching this like a Hawk. Alaska bumbled and ruined that whole acquisition. They overlooked the “younger” professional customers, often with expendable income, was lost on old, stuffy Alaska executives. I promise you this; if they do the same to Hawaiian, which enjoys a similar ridership from the mainland (think Silicon Valley visitors they’re targeting and paying $1000/night hotel rates) there will be similar backlash. I can tell you that I was so dismayed and mad I moved my business/personal travel to United/Hawaiian just to spite Alaska’s gigantic fumble with Virgin.
I like Alaska and Hawaiian Airlines. I hope the merger of two likes doesn’t equal one dislike! Just sayin!
Why Don’t SWA Buy Hawaiian?
Wanna talk about a clash of cultures…
yuck
Rule #1 – Don’t buy other peoples problems.