What will happen at Hawaiian Airlines in the next year as it awaits acquisition. Beyond the data points to the heart of the matter.
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65 thoughts on “Could Hawaiian Airlines Survive Without Alaska Deal? A World Of Emotion And Change.”
What will happen at Hawaiian Airlines in the next year as it awaits acquisition. Beyond the data points to the heart of the matter.
Hawaiian Airlines is our favorite airline, and we fly it annually, sometimes more than once a year from SFO to the islands. We really hope for the best in the merger for employees, customers like we are and everyone for the long term. Please, all that are involved, do what is best for the company in the long term. Thank you.
And British Airways, Aer Lingus, Iberia are all owned by IAG. KLM is owned by Air France. There’s a lot of brand equity in Hawaiian Airlines. Alaska is, I’m sure, savvy to that and will keep the brand. Given HA’s recent woes related to infrastructure, and Alaska’s strengths there, one might postulate that Alaska’s acquisition is JIT. Better it’s now while the HA brand is still strong than by a corporate raider (think TWA) who would dismember it.
Well said David. Hawaiian’s recent issues are all going to be behind them by combining AK’s strengths with what has made Hawaiian such a great airline. Covid, runway 8L closure, NEO teething problems, Japans slow recovery from Covid and call center/website issues left them with 900 million debt. All that gets put in the rear view mirror and the AK/HA version of Hawaiian returns to the airline it was pre Covid…back then, the stock hit $60!
So I have BOTH Hawaiian Miles and Alaskan Miles, now what?
In addition, can we now use Alaska Lounges at LAX? Further, Terminal location Changes?
There are some people trying to float the idea that this merger may have a problem with the DOJ with anti trust issues, that’s a weak perspective. They quote Spirit/JetBlue…apples and oranges. No correlation as it doesn’t reduce competition, it enhances it…that said if AK/HA serves MKK and LNY (as has been reported) it’s a slam dunk, the merger cannot be turned down as doing so would reduce essential air service to two communities in dire need of better service. More and more this AK/HA merger is showing new signs of brilliance for both airlines.
Hi John.
Your perspective is always interesting. We asked a Southwest pilot about his take on the acquisition today and he too said it’s a good move. His only regret was that it wasn’t Southwest who had gotten Hawaiian.
Aloha.
Now that would have have had DOJ/anti trust issues (eliminating inter island competition)! Not to mention labor problems. Frontier employees fought off a SWA attempt at merging because the Frontier employees wanted no part of SWA’s history of the arrogance SWA demonstrated when they merged with AirTran. They were the polar opposite of how AK is handling this. SWA likely would have been “Yee Haw, we won!” and simply absorbed what they wanted into SWA and discarded the rest and Hawaii would be left with an inter island operation run from Texas, if approved. The labor problems would have been insurmountable. One more example of how uniquely brilliant AK approached this deal.
I’m quite fond of Hawaiian Airlines. When I fly to Hawaii (usually Oakland-Lihue), I don’t even bother to shop around. I belong to their mileage plan, and I finally got a Hawaiian Airlines credit card. I love the culture of the staff, on both the mainland side and island side, and the culture aboard the planes. They seem to do their best to make flying fun again (yes, it used to be fun). However, I also belong to Alaska’s mileage plan and have flown them recently when I needed to go to Mexico. I have no complaints about Alaska Airlines, but their culture is not as distinctly flavored as HA’s.
The interest payments on $900m in debt made it tough and unlikely for Hawaiian to be profitable. COVID and the Asian market lockdown coupled with the lockdown protocol by the state of Hawaii crushed Hawaiian airlines (And many businesses in the state). Just to cover the interest payments on the debt had to be enormous.
For me, Hawaiian was the airline we took to Hawaii most often. For many who took pride in an airline that preceded Hawaii joining the union this loss likely hurts. And, wishful thinking or not, HAL will likely disappear entirely in several years. Alaska might, as well.
For me, the bigger losses were specific aircraft. First, it broke my heart when the 747 and soon, the 757 were gone. Many airlines have fallen (merged) in my lifetime, but I just hope Alaska keeps the non-stop from Ontario. If not, I will fly as many widebodies as possible from, probably San Diego.
Rod: We always take the Airbus from SAN to HNL to OGG. That is really a comfortable ride. I would be very sad if they discontinued that.
Following the problems of HA here on BOH it seemed that HA was floundering in a sea of post COVID misfortunes and needed help. It seems this merger will make both airlines stronger and able to forge ahead in the Pacific rim markets which is the future. Now if the state of Hawaii gets it act together at HNL we’ll be set into this century for future travelers. Stay tuned
We go to Kauai frequently and over the last 20 years we have traveled to the Islands around 40 times. We have always loved the on board experience with Hawaiian. The people are wonderful. However, we have had problems with flight changes and our experiences with the reservation system since the upgrade began have been horrendous. Once you get people on the phone they do all they can to show the Aloha spirit but its hard to do when you spend multiple hours while they try to complete a transaction. We have been avoiding booking with Hawaiian when we can since then. Maybe after the merger we will go back and see if the system is better and the Aloha has been retained.
I don’t believe Ingram! Hawaiian has been losing millions ever since they emerged from COVID and since then, all they have been doing was spending more money. They gave their pilots a huge pay raise and bought two more 787s.
All needed to keep pilots (and thus keep flying its airplanes- the market dictates that, it is hard to get pilots to come to such an expensive state and compete against other airlines for pay, especially relative to the cost of living, Hawaiian pilots are still paid less than other legacy airlines, Alaska 737 pilots are paid a little more than HA 321 pilots) and keep the company competitive, those were long term decisions for the health of the company (including the 787 which Boeing gave them a deal to sway them from the A350) as was the expansion and diversification into Cargo with the Amazon deal as cargo flying is more stable than passenger and that was a big lesson from COVID.
JC, you’ve made some spot on posts here..I’ll add to to this one. Going forward AK/HA will be able to offer as a career choice for perspective pilots TransPac and likely Europe Widebody (787) flying, Inter island and Intra Alaska flying, Domestic 737 and an Amazon Widebody freight operation that has the potential to grow to to 60 A330 freighters and a quick upgrade to Captain. AK/HA will likely be the best option for career opportunities for prospective pilots compared to DAL/AA/UAL ….they have hired extensively and can no longer offer a quick upgrade. There are a lot of hidden gems in this deal.
Absolutely Right! Spend, spend, spend and hope for the best. Lose money and spend more money never works!
Let’s face it, Hawaiian is a regional airline trying to compete like a national one. They have been in over their head for a long time. This is just what is needed for them to continue and Thrive!
They do regional type work, namely interisland, supporting underserved areas that rely on the passenger and cargo movement, however they are not just regional, nor are they trying to compete to be a national airline, they are international. Alaska is similar in the regional flying supporting underserved areas of Alaska that rely on cargo and passenger movement. Beyond that Alaska has not done widebody or significant international flying outside of the Americas. Hawaiian does everything Alaska Airlines does and then some, this is Alaska buying instant growth into areas in which it has never flown before, relying on Hawaiian’s existing experience in widebody long haul international flying.
Back in late 2017 Hawaiian Air’s turnaround CEO Mark Dunkerly left the company just when the scepter of the Southwest Hawaii market entry was hanging over the company. The stock price started reversing. I couldn’t help but think how Peter Ingram was left alone with a ship in a very stormy environment. Just like in Hollywood movies, and in Silicon Valley startups, you always need a team to manage such critical situations, don’t you? So, yes, Hawaiian very much could survive. There is no question. Peter said so himself. But it would probably require Mark Dunkerly’s return. Not impossible. Look at what just happened at Open AI? If that happens, I might just volunteer time to look at the IT issues and see if not something could be done:-)
100%…add to the Southwest entry the COVID shutdown in Asia and the state of Hawaii and that almost did Hawaiian airlines in, they are just now starting to come out of that hole. I think it is ironic that the 2 companies Southwest was trying to put out of business are merging, and they are a big part of the reason that is happening.
I think it’s called Karma Jay……
I’m a loyal Alaska Airlines flyer and I welcome the merger with Hawaiian Air! I see benefits for both companies. Many Alaskans view Hawaii as their beach escape!! Me, included!!
Well, we fly Alaska and Hawaiian airlines the most often, and have never flown any other airline besides Hawaiian to or from Hawaii. And I loath Southwest. Alaska’s online booking system is great, and would be a huge upgrade to Hawaiians. I hope to believe that for Alaska some of the value of this deal is the branding associated with Hawaiian Airlines and that is a huge incentive to maintaining distinct operations. If what was announced actually comes to fruition it might be great. However, I’m not holding my breath and part of me hopes the government kills the deal. But, if Hawaiian is struggling that bad, do they survive without this? If not, those of us who love Hawaiian are all screwed anyways.
My concern is what will happen to the airline points to both Alaska an Hawaiian Airlines
They will be merged into one world and you’ll have an increased number of options to spend them. Personally as an American Airlines Executive Platinum, I’m stoked that I’ll be able to fly Hawaiian and earn AA miles and also have status recognition. Of these airlines, I’ve found Alaska to have the nicest/warmest flight attendants, followed by Hawaiian, and lastly American. I’m hoping some of the Alaska Corporate Culture will rub off on the Hawaiian Airlines Employees, with Alaska continuing to embraces our Aloha Spirit. I’m not sure of the internal differences between Alaska and Hawaiian, but I’ve noticed the differences as a passenger. I think with the correct culture, that our natural Aloha Spirit will have an opportunity to shine.
Well, this is a significant ‘bummer’. I’d like to know the specifics on the merger agreement, particularly what Hawaiian’s status is going to be after merging. This reminds me of the ‘disappearance’ of PSA, California’s airline, many years ago when U.S. Air took them over. It was a fun airline to fly, the ‘stews’ were friendly and accommodating, and of course the seats were better. After the merger, it’s like PSA never existed. Wonder what’s going to happen to the “Hawaiian Airlines” brand name. And, for those of us with the HA/Barclays credit card, all those ‘points?’ Stand by!
Everyone should stop hyper-ventilating over the proposed merger between Hawaiian Airlines and Alaska Airlines. With Lina Khan in charge of the FTC, this anti-competitive merger, with absolutely no upside advantages for the traveling public, has as much chance of surviving as a snow ball in hell.
I believe it will save Hawaiian Airlines as they are a small airline fighting monumental challenges that even a large airline would have a tough time surviving. Making Hawaiian stronger and giving it staying power is a plus in my book. Look what happened to Aloha. It’s the way of the world, grow or die.
BOH,
I forgot in my last post. But wasn’t the deal with Amazon designed to save the airline? Or is that not such a great deal. Or is that Alaska’s real motivation?
Mahalo
Hi Rod.
Yes, Amazon was designed to improve and diversify the income stream. Probably not save the airline.
Aloha.
I think a bigger issue than the 717 replacement is this: will Hawaiian switch to all 737s from the mainland? If they do, bye-bye HA.
And, for us, if they dump the non-stop from Ontario, we’ll be looking for other airlines from LAX (please no) or San Diego.
Don’t the acquired airlines disappear, over time, in airline mergers? Could Alaska rename the airline to include Alaska and Hawaiian in a new name???
Like Alaiian, Alaskaiian, Hawaiiska, 4950?
If you look on page 18 of the Alaska Air Group Investor Presentation, they directly say that the 717 “…could eventually be replaced by the 737”
Rob and Jeff, your title says it all, “A World of Emotion” surrounds this for the people that know and love Hawaii and it’s Flagship Airline. The perfect storm of Covid, predatory fare wars, Runway closures, slow recovery of Japan market, NEO teething problems and technology issues racked up racked up 900 million of debt. While I’m sure HA could have survived, Alaska brings everything HA needs to thrive going forward. The brand and it’s legacy will survive and the potential for the future is far greater for all than if HA stayed independent or worse….merged with a AA or DAL and suffered complete lose of it’s identity…Alaska appears to be doing this right.