A critical issue may be surfacing on the proposed Alaska-Hawaiian merger related to the future of certain flights, which are a critical lifeline for tourists and residents alike.
A critical issue may be surfacing on the proposed Alaska-Hawaiian merger related to the future of certain flights, which are a critical lifeline for tourists and residents alike.
First the DOJ interisland concern is valid. It is a must that interIsland flights stay the same
Example I have to go to Oahu from Maui for Medical reasons and business often.
Limited flights cannot happen.
Effects all us residents here.
Economy of Islands already threatened.
And the Airlines must remain with same names and service that would be a requirement which can be met. If Alaska does not agree? No deal.
And without a deal Hawaiian Airlines will be protected.
The goverment will protect the Airline under chaper 7 reorganization. It has happened before.
HA is the most important Airline in Hawaii to the residents of the Islands, more then tourist.
Franklin: The government doesn’t “protect” any debtor in bankruptcy court. That’s not the way it works. Chapter 7 means the airline is liquidated and ceases to exist. Chapter 11 reorganization is a possibility. And some HA employees have pointed out that the airlines has been through it twice before. Frankly, it’s pathetic if that becomes the strategy cause it’s not a promising sign for HA’s future.
But you know what’s better that filing for chapter 11? Merging with Alaska, a suitor that’s never filed for bankruptcy and has demonstrated an ability to run a financially sound operation & an ability to compete effectively with the “Big Four” airlines, particularly Delta & Southwest.
The HA board and its shareholders all agree: This merger should happen. It’s in the best interest of Hawaiian Airlines. And the Hawaiian Airlines brand can actually Survive.
What a mess – we’ve been flying Hawaiian since the mid 70’s annually and personally I’m not happy about this takeover/merger. Hawaiian’s financial issues not withstanding I have found Alaska’s service a bit wanting. They don’t have the same “Aloha” spirit. However the loss of the inter-island service or even a reduction would be terrible for both the residents and for tourists alike. The effect could be catastrophic for all the businesses that are supported by Hawaiian flights today!
It was only after retirement that I moved to the “south 48 states, or “Outside” as Alaskans say. Before that I lived in Nome, Alaska.
I remember the “bruhaha” and frustration 25 years ago when the former Alaska Airlines management floated a proposal to remove the Eskimo likeness from the horizontal stabilizer of Alaska’s planes. Alaska’s current leadership has proven its great respect for native peoples. Jim E
We had another airline which everyone had forgotten. And, Hawaiian Airlines ran them out of the market. “Aloha Airlines”
Just to clarify…HA and AQ were very competitive with each other and when the airlines were deregulated they faced an onslaught of new competition which hurt them both…HA did a better job expanding and surviving than Aloha…..the final straw was GO Airlines that entered the market with money losing fares to try and break in(sound familiar?)…they actually illegally gained access to HA and AQ’S books with a fake offer of purchase before entering the market. HA sued and won, AQ did not but should have. They ran out of money. HA did not “put them out of business”.
A lot of this is relying on very specific theories with no real value. Alaska operates many routes at a loss, I’m not gonna say much but continuing the inter-island flying is not a concern for them.
Would DOJ really let HA go into bankruptcy???
Unthinkable.
Hoping for the best…and not really prepared for the worst.
It’s not DOJ’s job to design a successful merger. That’s the two merging companies’ job. If they can’t do it, DOJ will say no and the market will decide Hawaiian Airlines’s fate.
Seems like what would be best for Hawaii is to have a local, Hawaiian airline that was profitable and sustainable. I get that Alaska would add some “economies of scale” but don’t you think Alaska is going to cut Hawaiian Airlines considerably in order to meet its investment goals? And if Alaska can fix Hawaiian, why can’t a good management team at Hawaiian also do the same. Seems like there’s enough space for Hawaiian to run independently if they were well led, supported by our local leaders, and really embraced by our local communities. Hasn’t Hawaii had enough of outsiders making promises to fix things?
Awaiting the decision with baited breath….
Hi guys- goood discussion of some Alaska-Hawaiian post merger options. For interisland service, Keep in mind that Alaska Air already operates a sigificant fleet of Embrear ERJ175 s through its subsidiary Horizon Air. And Horizon already operates a commuter-like service between a number of Alaska, Washington and Oregon cities. Supporting these Horizon operations, Alaska has established a number of crew and maintenance bases. For example, Alaska operations between Anchorage and Nome & Kotzebue are supported by its Anchorage crew and maintenance base.
Jim E
Exactly. Regional jets work. Horizon also operates turboprops and they also work. Getting the right aircraft on each route is essential. 737 Max ain’t it!
AS through it’s wholly-owned (since 1986) subsidiary Horizon Airlines retired its last turboprop, the Q400, internally referred to as the “Q” on January 26, 2023.
Currently, Horizon operates an all jet fleet of 44 Embraer 175’s, with an additional 6 on order.
I can’t understand how the DOJ driving Hawaiian into bankruptcy could possibly improve any of these worries or concerns.
And, to be clear, that is what we are talking about. Without this deal, HA is basically a corpse like Spirit is now. Another DOJ “mission accomplished”.
But (unlike Spirit) an insolvent HA leaves a local american community is distress. The DOJ would be cutting the nose to spite the face at that point, right?
DOJ isn’t the causing Hawaiian to fail! Period. Approving a bad deal only prolongs the problem. The market will decide.
A well-run regional airline operating the right aircraft will do just fine inter-island.
Hawaiian taking on the likes of SW, AA, UA and DL on mainland flights has failed.
The DOJ is not causing HA to fail. That’s totally correct.
But what I’m saying is that HA was slipping towards failure or at least medium-term insolvency all in its own and without the DOJ having anything to do with it.
ALK’s deal is to purchase HA for hard cash. (It’s not a stock swap merger.) So from HA’s perspective, ALK’s deal sort of bails it out. And if the merger isn’t a good long term combination, or if ALK over paid, that’s really all ALK’s problem.
But if the DOJ blocks the deal, the effect will be that the DOJ sort of kills HA.
Nothing could be further from the truth Jim, HA does very well on the mainland flying. High load factors and better average yields than the big four. The Japan markets slow return is what’s hurting them
Thanks JohnW. Glad to hear that. But they can be taken out of any market they compete in by any of the giants in a heartbeat. Plus they are always last in line when a problem like the geared fan issue on the A321 comes along. Does AK currently operate the A321 or 787?
Aloha Jeff and Rob,
Anything that you’ve seen in your research that Alaska could put some of the regional ERJ-175’s like their regional Horizon aircraft to do the inter island flights? They operate the ERJ-175 as well as the bringing back their retired Q400 twin props?
Hi Dave.
Yes both those and 737 have been mentioned in the interisland mix, but it is anyone’s guess.
Aloha.
Somehow the scare of reduced interisland flights is a red herring. You have to remember where “Alaska” Airlines was born. ALASKA! In Alaska for many decades its predecessor, McGee Air Services, served many small towns (villages) in Alaska. Today Alaska Airlines still flies to places in Alaska like Adak, Barrow, Bethel, Cordova, Dillingham, Fairbanks, Gustavus, Ketchikan and Yukutat. In fact Alaska Air Flights 61 and 66 are called the “Milk Run” as they serve so many small towns. I think they understand the essential nature of interisland flights. Hopefully they will bring the Alaska spirit with them to the interisland flights.
If inter-island service is reduced there might be some other business opportunities for others. Maybe the sea gliders or some other carrier that exists or yet to be created. Of course everything at this point is just speculation.
Good day~ Wow! A lot oif speculation to go thru. Main ponts I would make, 1-HA made from an island hopper to a mainland/international carrier on the backbone of the inter-island network. So not clear AS would cut that back. 2-Carriers will operate independently. 3-As ony represetns 38% of the SEA market, so not clear how thay may be asked to cut back. HNL definelty is of some concern, but you can make the argument that there is enuf competion to keep everyone honest. 4-Continuation of inter-island service just might be the issue that allows the merger to go thru. Cheers
This article contains a lot inaccuracies with regard to Alaska Airlines’ experience with local service. Alaska has operated for years local services very similar to the inter-island routes Hawaiian Airlines operates in both Washington State and the State of Alaska.
My goodness! We need to maintain Hawaiian Airlines control over inter island flights. We could maybe do with fewer flights, but we don’t want to see higher fares, that’s for sure! People on Kauai, particularly, have to go to Oahu for shopping and medical appointments. Leave well enough alone!
If Alaska were to reduce inter – island flights wouldn’t that open that market to new competitors? Would Alaska want to risk that?
Seems to me Alaska’s initial commitment to keep Hawaiian, Hawaiian covers this? The local expertise and name recognition of Hawaiian pretty much smoked an outside airline coming in and trying to break into the market (albeit at great expense) HA by far is the dominant inter island carrier and always will be if AS keeps their promise. Be foolish if they didn’t and certainly no reason why a Seattle based carrier can’t be the local Hawaii carrier just like they are in Alaska. Maybe MKK and LNY service is the issue?
Over the years, HA has forced out competing airlines for inter island service. Mostly from the mainland. Ever since, Aloha ceased, HA has had a virtual monopoly on inter Island service. They ceased operations on Molokai and Lanai, leaving residents to deal with Mokulele which continues sub par service.
Also, remember that HA (and car rental companies) got together with state govt officials to stop an inter island ferry service from operating between the islands. Hawaiian no longer cares about Hawaii residents.
Maleko, Mist people that live in Hawaii would disagree with you. Hawaiian Air is the 7000 employees that mostly live and work in Hawaii and love the islands. Those are the people you are saying “don’t care” about Hawaii. (the ferry was approved illegally by the Lingle Administration and violated environmental laws, that’s what shut it down)