The deal has closed, and Alaska Air Group, Inc. now owns Hawaiian Holdings, the parent company of Hawaiian Airlines.
From Hawaii residents’ point of view, what’s important now is that jobs based in Hawaii hold steady, access to interisland travel remains abundant and affordable, and competition among airlines for flights to and from Hawaii holds prices at a fair level.
Further, given the benefits to Alaska in making this deal, flyers must demand responsive and efficient customer service and robust consumer protections.
Residents will notice few changes for the next 12 to 18 months, according to Alaska’s regional president Joe Sprague, now Hawaiian Airlines CEO. Selected Hawaiian execs will stay on board for the transition as Alaska works toward a single operating certificate, finalizing recognition as one airline by the Federal Aviation Administration (FAA).
A closer look at Hawaii’s stake in this deal:
Hawaii’s Gov. Josh Green announced on Thursday that state officials worked with the leadership of Alaska Airlines on details of the acquisition, and had “insisted” that Hawaiian’s union jobs be preserved. With about 6,000 union members on Hawaiian’s team, that’s good news. The state must remain vigilant in insisting that the combined airlines remain committed to basing employment for Hawaii’s flights in Hawaii.
The DOT has required that the airlines preserve flight patterns where Alaska and Hawaiian compete, and this also preserves jobs, though some shakeout here over time can almost certainly be expected.
Interisland travel may be the highest concern for the bulk of Hawaii’s residents. Accessible flights between islands are a necessity for islanders who need access to health care, education, business-related travel or to transport cargo.
It’s in Hawaii’s best interest to keep such services healthy, and the federal Department of Transportation (DOT) acted appropriately in requiring that Alaska preserves Hawaiian’s current levels of interisland transport.
That’s a plus for Alaska Airlines too, as Alaska doesn’t fly between Hawaiian islands. Its acquisition of Hawaiian adds to the airline’s competitive standing, and adds value for islanders seeking frequent-flyer benefits.
It’s also good for consumers that Alaska has committed to preserve codesharing agreements — so that both United (allied with Hawaiian) and American (Alaska) loyalists will have access to rewards for interisland flights. Some analysts believe this could change when Hawaiian and Alaska have a single operating certificate, so close attention to the details must be continued as the airlines work with the FAA on this process.
In the near term, retaining interisland flights benefits flyers because it maintains competition with Southwest, which entered the market in 2019. It’s unknown, however, how Southwest will ultimately fare on these routes. If Southwest were to pull back, interisland fares would almost surely rise. Consumers can have a part in this outcome by comparison shopping for fare advantages between the airlines — and using loyalty programs wisely.
As for customer service, integration of websites, reservation systems and loyalty programs will happen later in the transition — but current loyalty members of either airlines will be able to continue as either Alaska or Hawaiian members. All miles earned will be preserved.
Alaska will seek to keep the Hawaiian “brand” alive even after a single operating certificate is granted — an unusual strategy that recognizes the strength of Hawaiian’s 90-year history and tradition of “aloha” — kind and helpful service — which still applies to in-person interactions with Hawaiian staff.
Unfortunately, Hawaiian’s online and call center service don’t meet its interpersonal standards: Often dysfunctional, routinely dropping calls and chat connections and otherwise malfunctioning online, and with a call center that could kindly be described as “chaotic.” Any improvements in Hawaiian’s online/telephone-
based system would be welcome, and a complete overhaul, including a return to Hawaii-based call center operation, would be greeted by cheers of joy.
Finally, Hawaiian Airlines loyalists can cheer on the DOT’s requirement that Hawaiian flights offer the customer protections Alaska now offers, which include free, guaranteed seating together for families and compensation for flight delays or cancellation. The deal includes a commitment to drop Hawaiian’s charge for checked bags to Alaska’s level, too.
Given the protections and commitments required by the DOT, along with the fact that this acquisition amounts to a rescue for Hawaiian, which was struggling, Hawaii can be cautiously optimistic that this deal will be good for flyers, keeping the Hawaiian brand alive while placing both airlines in a stronger position to serve the islands in coming years.