Hawaiian Air stock sank 10% further today on negative merger sentiment. That while Southwest faces government scrutiny on safety incidents. An unimaginable future: Hawaii travel without both Hawaiian and Southwest Airlines.
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51 thoughts on “DOJ “Unlikely to Approve” Hawaiian/Alaska Deal + Southwest’s Tailspin Risks Hawaii Travel”
I would expect Alaska to pare down or exit inter Island flying completely if it is not quickly profitable. I also expect Alaska to cease flying the transpacific routes and eliminate the Hawaiian brand regardless of what they say they intend to do. Alaska isn’t going to buy a money losing airline and continue to lose money. They want to eleminate Hawaiian, not be it’s savior.
Personally, I am not that excited about the merger since
Alaska is committed to a single aisle Boeing fleet.
My favorite plane is the A 330 wide body with the 2 – 4 -2 layout.
You should be excited about the merger
Not sure how much longer Hawaii can sustain the entire onslaught of tourism disruption. The airline insecurity is just part of incredibly insufficient oversight of the tourism in the state. First and foremost, there are the inherent conflicts between the HTA (changes leadership every 18 months), HVCB (had entrenched leadership for 18 years) and the various committees of the legislature. There is also the runaway interests of Hawaii’s hoteliers, who command a powerful lobbying operation, while at the same time directing visitors to vacation rentals (they are trying to eliminate) due to ultra high hotel pricing. Outrageous accommodations taxes & fees are no help. Rental vehicle pricing drives visitors to despair. And now Hawaiian Airlines is in jeopardy of complete failure, while Southwest is severely cutting back services and raising prices. Visitors, especially annual visitors, are letting it be known they will not be coming back. Where is the leadership and solutions?
Best solution, don’t go to Hawaii for a few years, I’ve gone at least once a year for the past 8 years and close to every other for about 15 years before that.
But I won’t be going next year due to the prices doubling this summer over what I normally pay. Instead I will take my wife and kids to Europe for the next few summers at least and if the prices continue to go up then Hawaii might be canceled all together.
If we let the airlines charge more and pay for it we will all end up paying more. Avoid travel to the places where travel is rising and take control back from the airlines.
Using HA’s stock price as an indicator of this deal going through or not is foolish when several stocks plunged over the last 2 days due to profit taking.
Today HA’s stock has rebounded is that now an indicator the deal is going to be approved?