As Hawaii tourism continues to evolve so rapidly, travelers and industry observers alike are left wondering why Southwest Airlines hasn’t taken step to reshuffle its Hawaii routes and flight schedule. The ongoing scrutiny by the Department of Justice (DOJ) over the Alaska-Hawaiian Airlines deal, combined with the latest rankings for the top U.S. airlines for 2024, shed fascinating light on what may be influencing Southwest’s strategic decisions.
Airline rankings and a Southwest Hawaii pause.
We noted WalletHub’s recently released rankings of the best U.S. airlines of 2024 in light of our Hawaii situation. Alaska Airlines was the top airline, praised for reliability, comfort, and overall service quality. In sharp contrast, Southwest Airlines turned up at very the bottom of the list, due to a myriad of issues including mishandled baggage and lower safety measures.
Is Alaska Airlines impacting Southwest’s cautious approach to the competitive Hawaiian market, especially as we all wait and watch for next week’s DOJ news on the Alaska-Hawaiian Airlines deal?
The DOJ’s watchful eye on Hawaii.
The Department of Justice’s examination of the Alaska Airlines and Hawaiian Airlines deal has significant implications for the airline industry and for Southwest in particular. With Alaska Airlines rated highly for its reliability and comfort and Hawaiian Airlines such a prominent player here, the DOJ’s decisions will, no matter which way they go, reshape the competitive landscape of Hawaii flights.
Southwest’s strategic hesitations.
Southwest Airlines, savvy in many ways, is currently grappling with a variety of issues, like customer acceptance of its biggest remake in a half century, and may wisely be taking a cautious wait-and-see approach. The airline’s recent issues and the importance of the upcoming DOJ decision have likely informed its decision to delay significant changes in Hawaii.
Unlike Alaska Airlines, which is aggressively positioning itself in the market after assuming a prominent place in Hawaii over 15 years ago, Southwest is waiting, possibly due to concerns about incurring further negative impacts on its reputation, operations, profitability, and more.
Hawaii still represents a lucrative yet highly competitive market for airlines. Potential regulatory action for or against the Alaska-Hawaiian deal will provide opportunities or create challenges for the other airlines, including Southwest.
Don’t Mess with Alaska Airlines.
Alaska Airlines has built a formidable reputation, especially for its size, as a leading U.S. carrier known for its generally exceptional customer service, reliability, and innovative, industry-leading strategies and technology. Consistently ranked at or near the top in various evaluations, including WalletHub’s 2024 rankings, Alaska has set a high bar for operational excellence and customer satisfaction.
Not only that, but their Oneworld alliance membership, and consistent investments make them a tough competitor, even for behemoth Southwest. Airlines aiming to challenge Alaska in its core markets, like Hawaii, which represents about 20% of Alaska’s flights, must be prepared to keep pace.
Upcoming impact on Hawaii travelers.
For travelers, developments could mean changes in flight availability, pricing, and more. If the Hawaiian/Alaska deal is consummated, we expect there to be retraction of Southwest’s presence in Hawaii, especially interisland.
Another Southwest pause: no Hawaii red-eyes, yet.
Another aspect of Southwest Airlines’ delay in reshuffling its Hawaii ops is the absence of red-eye flights, which has been a notable gap in their service for many years. Despite strong demand for the service, to improve aircraft utilization, and to benefit some travelers seeking overnight flights for better convenience, Southwest has yet to introduce these options although it did announce other red-eye flights last week.
Hawaii red-eye flights are in the pipeline and could be implemented soon, adding flexibility and options for some Hawaii-bound passengers. These will await while Southwest determines their next moves in Hawaii and how to then integrate red-eye flights effectively.
Elliott management’s ongoing critique of SW.
Elliott Investment Management, a significant shareholder, has continued to voice dissatisfaction with Southwest’s current strategy. They criticized this week’s revenue-enhancing initiatives, including seat assignments and premium seating, as “too little, too late.”
Elliott said that these changes, proposed by the same leadership they deem responsible for Southwest failures, are inadequate. They argue that SW leadership has consistently failed to meet customer preferences, leading to poor financial and operational performance. Elliott is advocating for new leadership to drive substantive improvements and restore the airline’s competitive edge.
Looking ahead in Hawaii flights.
As the situation develops, travelers and industry observers alike are keenly awaiting the next moves. Southwest Airlines’ strategy in Hawaii, influenced by its current challenges and the Alaska-Hawaiian DOJ news, will be a critical factor to watch.
We welcome your input!
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Southwest will expand dramatically in Hawaii when boeing gets thier crap together and delivers the Max 7’s
When Southwest start it was said they would be out of business in 6 months! We know that’s not true.
Getting there computer systems updated will do alot. They are a player everywhere. Assigned seating cost money so prices will go up. Hope the leg room remains the same. Better Than anyone’s economy class.
SWA continues to lose money even while total revenue is increasing.
Their hesitation suggests a lack of confidence by upper management.
I disagree with Jim. First, we are not Indonesia. Here in the USA we like predictability and structure. We like to plan out that’s how the USA life is- organized and structured compared to much of the world. I didn’t say perfect – it’s the way American life has been adopted. Your strategy would not allow for most Americans to plan their Hawaii vacation which is expensive as it is. If they are a family of 3+ it’s not as easy to wing it last minute. Your version again caters to those that are solo tourists not families. To those that have flexible work schedules not the average skilled worker that didn’t have a flex schedule. The more one travels outside of the USA the more one appreciates the simple logistics our country adopts. Your version doesn’t democratize air flying. Really airlines need to run their companies like businesses and do Nicole and dimming. It’s getting old.
Sw Should use a modified model used by some Indonesian airlines. The earlier you book, the higher the fare. But you get to pick the best seats. The fares drop until the day of departure, so the plane flies full. But you take the leftover middle seats etc. This is fair to everyone, no pig pile scramble ar the airport.
Very interesting. How long have these Indonesian airlines been using this pricing strategy? Are these Indonesian airlines making money with the pricing strategy?