Hawaiian Airlines 767

Hawaiian/Alaska Deal Verdict Sparks Wild Volatility

The importance surrounding the potential Alaska/Hawaiian Airlines merger has everyone on edge as the DOJ decision looms. With stock prices fluctuating dramatically, Hawaii and the airline industry brace for the impact of what will be a game-changing deal.

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45 thoughts on “Hawaiian/Alaska Deal Verdict Sparks Wild Volatility”

  1. At first I was against this merger. Both are good airlines and I thought it was in our interest for them to compete.

    But looking at Hawaiian airlines financial position I now favor the merger. If Hawaiian airlines goes under it will have severe repercussions on our state. Better to have the merger go through and keep the inter Island flights going b

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  2. This is bad for Hawaii.

    Virgin America
    Jet America

    And consider what Alaska has done with Horizon. This company has forgotten its roots. The people of Hawaii deserve better!

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      1. You are correct Manic…Alaska stands as having the best track record of fairness in mergers and maximizing opportunities for everyone involved..there is always frustrated people in every merger, some of them are quite bitter and unhappy…. Research the real story how Alaska treated Jet America and you’ll see how silly Harry sounds……Alaska is the polar opposite of USAir or SWA in a merger…..bodes very well for this one.

  3. What the heck is going on if they approve Alaska Airlines and Hawaiian airlines merger they should also approve Sprint airlines, and JetBlue merger who got paid and the DOJ’s Approve Alaska and Hawaii airlines it’s not difference this is a scam. The DOJ is They’re playing the people That’s what your The commentators should be writing about Also, sprint airlines should sue the DOJ if they do approve the merger with Alaska airlines and Hawaii There should be an investigation who’s getting paid commentary.

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    1. They’re extremely different scenarios. The Hawaiian/Alaska merger is good for everyone in Hawaii and it doesn’t hurt the other airlines. The latter being the most important difference between the two merger situations.

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  4. So, Justice asks for a 10 day delay?
    For what? Justice is well aware of HA’s deteriorating financial condition.

    Some have speculated that Justice wants AS to handover a big portion of their SEA gates in addition to remedies throughout the Hawaiian islands.

    Time is running out for Hawaiian.

    Both Jet Blue and Spirit have reduced flying, deferred aircraft orders and employee layoffs as their merger was denied.

    If the merger is not approved at Hawaiian, this simply will mean a bankruptcy filing and a probable cessation of routes and services.

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  5. Hope for the merger & most of all…Alaska gets rid of Hawaiian’s customer service staff from overseas. They are the worst ever!

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  6. I support the merger because it could provide HA with improved call center and IT services, which Alaska already excels in and HA desperately needs. These enhancements could bring back long-time HA travelers that are frustrated and have already moved over to Alaska as their preferred choice for travel.

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  7. There are a few proponents of this deal who are very vocal here. The same names post here, clearly trying to influence public opinion.

    This merger has short term benefits for Hawaii travelers, but longer terms is *not* a good idea for Hawaii travellers, future fares, our local community, local employment. Alaska is a good company, but it should remain as a competitor.

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    1. Simple fact is Alex, Hawaiian is now saddled with 1 billion in expensive debt through little fault of their own. SWA is still predatory, Japan travel is slow to recover (Hawaiians previously most lucrative market) and HA simple doesn’t have the size to absorb the hits they have taken. Combining with Alaska as the agreement is structured could be great for the community and for the employees…… The loss of jobs and hit to the local economy a Chapter 11 would produce would not be good for anyone. Not sure why you need to attack someone with a different perspective??

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      1. “Hawaiian is now saddled with 1 billion in expensive debt through little fault of their own.” Did you forget the poor management that botched the tech upgrade, invested in unreliable planes, and granted massives raises which are now bankrupting Hawaiian Air?
        Those who disagree with you are not attacking you; they are commenting in the comment section, which I thought was the point.

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      2. This is a red herring.

        Hawaiian’ current CEO, Peter Ingram, stated clearly and publicly after the merger announcement, that Hawaiian does not need this deal for survival.

        What gives?

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      1. They reorganize, discharge some debt and hopefully get back on track. If it comes down to it, chapter 11 bankruptcy doesn’t mean they shut down.

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  8. Aloha,
    I’m actually impressed with the level of self interest on display here. A money losing vortex is being defended with “save the jobs”, “save my frequent flyer miles”, “but but it will be a monopoly”, all of which give no consideration to the business case at hand. That being said, I do not understand the alleged “business case” myself, but jobs, miles and market share do not factor in, given a billion dollars of debt, the price of which just doubled.
    Mahalo

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  9. With the potential of Breeze/Frontier (Spirit/Allegiant?) sniffing around Hawaii routes, there’s plenty of competition. I see lower fares on United almost daily. Besides, bigger picture – which sorely Hawaii lacks foresight, this is actually a good thing for locals and employee’s.

    There’s too much nose-to-spite-your-face in Hawaii as it is.

    My only real concern is that Alaska absolutely *ruined* Virgin America and the better not screw up the “vibe” and experience on Hawaiian as it is today.

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  10. Should this merger not go through Hawaiian will still be at the mercy of SWA willing to operate at a substantial loss to stay in the market but for how long? If HA is ultimately driven into Chaper 11 it just means they will have a substantial competitive edge ( no longer have to service the 900 million debt load) and even lower costs once the reorganization is complete…..but the employees, stock holders and the consumer will be in for a very bumpy ride…a smaller reorganized airline that SWA will have an even tougher time competing with and it stands to reason they would leave Hawaii altogether. The numbers are out there, SWA has lost one billion dollars trying to compete with HA…can’t keep doing that I would think.

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  11. I believe some cynics are saying the 50% of the Hawaii /mainland travel is somehow a monopoly? …..all mergers create certain route combinations giving the merged airline a strong presence in certain routes, that’s the point of this merger to create a stronger airline. The HA/AS combo will actually only give them 9% of the US market, hardly a monopoly against the big 4. The merger will create stronger, better competition in the marketplace that will create greater consumer opportunities.

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  12. As a shareholder and a paying customer of HAL, I encourage the merger.
    I lost frequent flyer miles when Aloha shut down. I don’t want to lose my HA miles now!
    Petty, selfish moi? No!

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  13. If the merger goes thru and I have to fly from Phoenix to Maui on a single aisle plane I will probably stop going and go somewhere closer like Mexico where I can fly and 2 or 2 1/2 hours on one as I am tall and they are uncomfortable. It would make sense for Alaskan to get rid of all the Hawaiian Airbus planes as they are an all Boeing fleet.

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  14. Doj should reject this deal as its purely anticompetive. Just look at AS domination at sea. So reducing more non as flights doesnt make any sense.

    This deal is as trying to reduce competition on the west coast and esp pnw just like they did with virgin merger.

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    1. Hi Terrydabear~ AS is dominant @ SEA, however, they only control 37.52% of all flights with Delta @ 16.86%, which pales in comparison of both number of flights and percent of control at other major US hubs. Alaska and Hawaii have been treated seperatey in the past given their unqiue operating environments, so DOJ may be weighing that in their decision. If the merger does not go thru and Hawaiian fails, that will spike prices as the number of flights will be dramtically reduced and the other carriers would not be able to fill the void.

      Understand your concerns but I believe there are more postiives to approving the merger, IMHO. Cheers

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      1. I don’t see fares spiking even if Hawaiian falls. Tourism numbers are continuing to fall in Hawaii, and all airlines are reducing frequencies. That’s where some of Hawaiian’s financial problems stem from

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  15. Aloha~ Fingers crossed on this one. Thinking that DOJ may ask to give up some route authority and/or any slots held. As there are no overlapping international routes, feel confident those will stay with the merged airline. This one makes sense when you step back to look at the combined networks vs the big four, but common sense sometimes does not make it past the talking stage. Also, if there any other airline objections, that can sway decisions.

    One detail. The image above is a B767-300 not the Dreamliner. Must had to dig in the archives for that one! All in good fun. Cheers

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    1. One thing that should be noted here is that the new Hawaiian notes can be redeemed within 180 days of the merger for only the original amount plus accrued interest. If the merger goes through, Alaska will likely retire this debt using their credit lines which have a much lower interest rate. That should improve result.

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  16. I’ve flown both Hawaiian and Alaska a lot, and I love them both for different reasons.

    It’s hard to imagine them coming together as one entity honestly, but if it means more destinations, a stronger company and better service, okay.

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  17. What will this mean for local jobs in Hawaii and the culture of Hawaiian Airlines? Thinking that at the least this is going to result in a loss of aloha spirit that has set Hawaiian apart from the others. And at worst, fewer mgmt jobs here and maybe fewer overall jobs.

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    1. The HA employees will likely suffer more if the merger doesn’t go through, so will the consumer. Alaska has been very upfront and committed to keeping the Hawaiian Brand, employees and culture intact. It’s essentially what they are paying for and they seem smart enough to know that’s the most valuable asset they are buying, so why would they not utilize it?
      The people that argue against that perception don’t understand Hawaii, it appears Alaska does.

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  18. Not a fan of airline mergers. These lead to less competition, and prices are already getting ridiculous. I’m worried this will end up hurting us consumers in the long run.

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  19. I for one am excited about the potential merger between Hawaiian and Alaska Airlines! This could mean more flight options and possibly better prices for those of us who travel frequently from Hawaii. Fingers crossed for a positive outcome!

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  20. While domestic investors make money from growth and stock price rises the professionals make money from volatility not growth so this is as good as any other reason to trigger it.

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