What will Southwest’s next big Hawaii move be as Alaska is moves towards finalizing its acquisition of Hawaiian Airlines.
“It will be interesting to see how Southwest responds to this merger. It wouldn’t surprise me in the least if SWA cuts back both Trans-Pac and Interisland capacity as a result of this merger. All in all, I’m happy that the merger will take place. Both AS and HA are good for the people of Hawaii and our visitor industry.”
Comment from BOH reader, Channing.
Southwest Airlines, the disruptor in the U.S. airline industry, including Hawaii, originally brought lower fares and customer-friendly policies to the islands. When Southwest arrived five years ago, it was met with high expectations. However, the Hawaii market, including interisland travel, has presented unique challenges that continue to drive ongoing Southwest strategy changes. As the airline navigates these complexities, recent developments suggest that Southwest might be the next big change coming to Hawaii travel.
Could Southwest again reduce Hawaii flights significantly?
As we prepare to settle into the apparent reality of a new and very different Alaska Airlines/Hawaiian Airlines tie-up, it will be Southwest that takes the brunt of the impact from that deal. Competing with Hawaiian Airlines was one thing. And even then, Southwest has been challenged beyond expectations in Hawaii, despite being an airline behemoth.
But now, combining the loyalty and culture of 95-year old Hawaiian Airlines with the savvy, technology-driven and not to be stopped Alaska Airlines, is going to present an entirely different competitive playground for Southwest. Last week United CEO Scott Kirby heaped praise on Alaska (and Delta), as well as his own company. His comment helped elevate Alaska into the top tier airlines.
The likelihood of significant further cutbacks in Southwest Hawaii flights is being widely discussed among those who follow the Hawaii travel industry. How that will shake out should be known in the coming months.
Southwest’s Entry into Hawaii has been challenging.
Southwest Hawaii flights were anticipated to shake up the market, and we wrote about them for ten full years before they began. They offered competition to bellwether Hawaiian Airlines, which was long dominant in west coast and interisland Hawaii travel. However, a myriad of issues starting with Covid, led to changes in Hawaii travel demand and severely complicated the airline’s efforts.
Nonetheless, Southwest remained committed to the Hawaiian market, first expanding its flights. However, the challenges in Hawaii subsequently forced Southwest to make strategic decisions including a cut-back of 50% of Hawaii flights, and there could be further changes ahead.
Read: Southwest Airlines Trims Hawaii Routes By Over 50%.
Strategic adjustments in the Hawaii market.
In response to the challenges of the Hawaii market, Southwest has implemented several key strategies aimed at sustaining its operations and preparing for future growth:
Build a loyal Hawaii customer base. Southwest seeks to thwart Hawaiian Airlines’ loyalty. This process has been painfully slow and costly, however.
Finding the right plane for the job. In Hawaii, that has been challenging with larger than desired planes for interisland, resulting in both less full and less profitable flights.
Southwest Hawaii redeye flights. To better utilize planes, and serve passengers from further afield than the west coast, Southwest will introduce Hawaii redeye flights.
Challenges and competion are unending for Southwest Hawaii.
Despite their best efforts, Southwest continues to face significant challenges in Hawaii, exacerbated exponentially this week by the DOJ in effect approving of the Hawaiian/Alaska deal. While Southwest is far larger than Alaska, the reality is that Alaska is not someone you want to tangle with.
Southwest’s recent troubles suggest that changes are coming, which could also lead to higher costs for Hawaii travelers. The airline has indicated that it may seek to increase fares as it manages rising costs.
Read: The Southwest Effect In Hawaii: Is It Officially Over?
The impact on travelers: A mixed bag.
For Hawaii travelers, Southwest’s presence has generally been a positive development, offering added options and lower fares in competitive markets.
Looking ahead: Southwest’s commitment to Hawaii and the long road ahead.
Southwest’s massive investment in the Hawaii market demonstrated its commitment to becoming a major player in the region. However, the airline continues to face significant headwinds.
As the industry quickly evolves given these changes in the context of Hawaii’s unique and quirky air market, Southwest’s strategies will need much more adjustment. The airline’s ability to adapt to these challenges will determine its future success in Hawaii. In the short-term, travelers can still enjoy the benefits of increased competition, while anticipating potential changes on the horizon.
Southwest Airlines’ experience in Hawaii reflects the complexities of operating in our unique and highly competitive market. While the airline has made significant inroads, it faces unforeseen challenges that require more adjustments. As the next major shifts in Hawaii travel unfold, Southwest’s role will indeed be one we watch closely.
We welcome your comments!
We live a few months at a time in Maui and then return to the mainland for a fews months, all year long. We are older and hate red eye flights as we don’t sleep at all sitting upright, like so many people seem to be able to do.
Therefore, we prefer Southwest and their daytime flights too and from the mainland!!
Southwest gate dominance on the West Coast could prove valuable for all traveling from there. Arizona and Utah have a large Hawaiian travel population. Suppose they upgrade interiors, seating, and food. Remember the West Coast was the Hot spot for Hawaiian travel, when they started bringing all those other states visitors, things went to shit for everyone.
One thing that has been challenging for Southwest is its gate position at HNL. Keep in mind this – the interisland market is one that is like a bus operation – get in, get out for passengers in a quick way. Right now with SWA at the Central Concourse, they are at a disadvantage due to the way that terminal is. The interisland one works for that market better than the main transpacific terminal. Other airlines figured this out before starting operations and made sure that they got space at the HNL interisland terminal. SWA has not been able to make that move and I think that is a hindrance to any future growth for them.
According to airline industry news, that was a deliberate decision by
SWA due to the high value of main terminal gate space .
Even though it makes them lose more money on inter island flights, keeping the inter island flights in the main terminal protects the gate space which gives SWA more flexibility to schedule fights to and from the mainland.
I read the same article, and on the surface with no other factor at play, that makes sense. However, with the new Mauka extension of the Interisland Terminal and that taken over by Hawaiian in whole cloth, I am sure that there is the ability to reassign the old “Aloha wing” of the Interisland terminal to Southwest. After all, Aloha was able to use those gates for both interisland and transpac service using planes that are about the same as the one’s Southwest uses now.