The Alaska-Hawaiian Airlines Merger
On December 3rd, 2023, Alaska Airlines announced its agreement to acquire Hawaiian Airlines in a deal of $1.9 Billion. Through this agreement, the Alaska Air Group can expand its network over the Pacific, strengthening international connectivity while being a part of the oneworld alliance.
Alaska and Hawaiian are two airlines that share many similarities: they are rooted in the 49th and the 50th states of the U.S., respectively, which are especially reliant on air travel to be accessible due to their remote location. The merger would assert the Alaska + Hawaiian group as the dominant leader over the Pacific west coast.
Note: Through this merger, Hawaiian Airlines will keep its brand, but will be operating as a “subsidiary” of Alaska Air Group.
Interconnected Network
This merger would allow customers flying with Alaska Airlines to access Hawaiian’s transpacific network (as shown in its route map above), allowing its customers to fly all the way to Japan and South Korea.
On the other hand, this merger would allow Hawaiian Airlines customers to access the Mainland U.S. easier, through Alaska Airlines’ continental west coast hubs (SEA, LAX, SFO, SAN, and PDX). Under the Alaska Air Group, Hawaiian Airlines would also benefit from being a part of the oneworld alliance, partnering with 13 member airlines that fly to more than 1,000 airports worldwide.
The Perfect Time
After being hit with the Coronavirus pandemic in 2020, Hawaiian Airlines saw a dip in tourist volume to Hawaii. As the pandemic faded away, the passenger volume was struck again by the Maui wildfires in 2023. Losing approximately $300 million each year, this is the perfect opportunity for Alaska to purchase and expand its network in Hawaii, considering that Hawaii has always been a main focal point of Alaska Airlines.
Proudly All Boeing?
If we take a glance at Hawaiian Airlines’ fleet, we see that it operates 18 A321neos, 24 A330–200s, and has 12 787–9s on order. In January of 2023, Alaska Airlines finally became Proudly All Boeing again, after selling its A321neos and retiring the rest of its A320s. It’s very likely that once Hawaiian merges with Alaska, its A321neos will be sold, its A330s will be retired, and its order of 787–9s will be canceled for fleet simplification purposes.
Note: Alaska Airlines initially acquired the aforementioned A320 family aircraft from its merger with Virgin America.
Potential Consequences of the Merger
There’s always a downside to every merger. The Biden Administration warned that the west coast airfare may increase due to the decrease of competition. However, this should not be worried about, because the big three airlines all have hubs on the west coast. American has LAX and PHX; Delta has LAX, SLC, and SEA; and United has LAX, SFO, and DEN. These airlines have routes flying to Hawaii as well.
