…what “HA” Gone Will Mean for Hawaii Tourism, Alaska Airlines, Southwest Airlines & The Aloha Spirit
The acquisition of Hawaiian Airlines by Alaska Air marks a major milestone in the aviation industry.
What about flying to Paradise?
With this deal, Alaska Air aims to expand its reach and establish a stronger presence in the lucrative Hawaiian market, also connecting Hawaii with new large domestic and international markets.
This strategic move will allow Alaska Air to tap into the growing tourism industry in Hawaii, attracting both leisure and business travelers.
The acquisition is expected to bring synergies and operational efficiencies, benefiting both airlines and their customers.
Together, Alaska Air and Hawaiian Airlines will create a formidable force in the Pacific region, offering enhanced connectivity and a wider range of travel options.
Alaska Airlines will pay $18.00 per Hawaiian Airlines Share, making it a 1.9 billion Dollar sale for an airline that many said is the spirit of Aloha, and represents the magic of Hawaii, its culture, and hospitality.
Will the magic in the air be all lost gradually in another giant airline merge?
Alaska Airlines will acquire Hawaiian Airlines in a $1.9 billion deal, the companies announced today.
Hawaiian Airlines And Alaska Airlines boards approved this deal. Now it is to regulatory approvals.
The deal is expected to close in the first quarter of 2024, but it will take up to a year to align all aspects of this merger. The combined organization will be based in Seattle.
The CEO of Alaska Airlines
CEO Ben Minicucci, the CEO of Alaska Airlines will be in charge of this new merged airline.
He explains on his LinkedIn
At Alaska Airlines, our purpose is creating an airline people love. For me personally, I can honestly say that I love this airline for what it stands for, what we do, and how we do it. We have an amazing group of people who live our values every day and distinguish our company from so many others.
Alaska Airlines + Hawaiian Airlines: Local Care, Global Reach. Our two airlines are powered by incredible employees, with 90+ year legacies and values grounded in caring for the special places and people that we serve. This is an exciting next step in our journey to elevate the travel experience and expand options for guests.
Alaska Airlines and Hawaiian Airlines have an image
Both Alaska Airlines, but more so Hawaiian Airlines are known for enhanced cabin service on their routes, but the special Hawaiian hospitality will be difficult to make Alaska style.
“We have a longstanding and deep respect for Hawaiian Airlines, for their role as a top employer in Hawaii, and for how their brand and people carry the warm culture of aloha around the globe.”, Minicucci said.
Peter Ingram, Hawaiian Airlines’ president, and CEO, responded: “Since 1929, Hawaiian Airlines has been an integral part of life in Hawaii, and together with Alaska Airlines we will be able to deliver more for our guests, employees, and the communities that we serve.
The Hawaiian Airliines old Monopoly
Hawaiian Airlines had an almost monopoly on the interisland market in the Aloha State, when Aloha Airlines went out of business.
Hawaii, Island Air closed in 2017 it had a stand in the business and visitors industry for 37 years. 13% of the Interisland Airline traffic with codeshare and frequent flyer program agreements on United Airlines.
Hawaiian Airlines has always been the real elephant in the Hawaii aviation room. They already had a share of more than 80% in 2017 of all interisland flights when Island Air was operating.
After Hawaiian Airlines survived Aloha Airlines years before and kept growing, kept increasing ticket prices, and many insiders think helped to push the popular Superferry as the only ferry service between Hawaiian islands out of the market, it became the monopoly in the Hawaiian interisland air market for a while.
When Aloha Airlines later Island Air and Superferry were gone it meant a big gain for Hawaiian Airlines, higher airfares until COVID hit, and fewer choices for the visitors and kamaaina to keep the islands together as one State.
Southwest Airlines enters Hawaii
In 2019 this monopoly was destroyed when Southwest Airlines entered the market bringing a new option for travelers. Southwest Airlines aggressively expanded travel to many alternative US Mainland markets for Hawaii and interisland.
SOURCE: Hawaiian Airlines Gone!