On Sunday, Alaska Airlines and Hawaiian Airlines announced a plan to merge in a deal that has line Alaska Airlines buying Hawaiian Airlines for $1.9 billion.
“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai‘i travelers,” said Ben Minicucci, Alaska Airlines CEO in a statement.
Peter Ingram, Hawaiian Airlines President and CEO said, “Since 1929, Hawaiian Airlines has been an integral part of life in Hawai‘i, and together with Alaska Airlines we will be able to deliver more for our guests, employees, and the communities that we serve.”
What does this mean for travelers?
While many details are still unknown, and some are likely to change before the deal officially goes through (a 12 to 18-month process) here are some of the highlights of this weekend’s announcement, from a message sent to customers on Sunday evening by Alaska’s Ben Minicucci:
The brands will remain: The Virgin America name was retired after it was purchased by Alaska Airlines. But Alaska Airlines says it plans to keep the Hawaiian Airlines brand on airplanes, at airports, and elsewhere. “It will exist alongside the Alaska Airlines brand, supported by a single operating platform and industry-leading loyalty program,” Minicucci said in his statement.
There will be more destinations: The deal will bring a combined network of 138 destinations, including non-stop service to 29 international destinations such as Tokyo, Seoul, Sydney, and Auckland, as well as over 1,200 global destinations through the oneworld Alliance, Alaska notes in its statement. The combined airline will have a fleet of 365 narrow- and wide-body airplanes, according to Alaska.
Headquarters to remain in Seattle: The new combined organization will be based in Seattle and headed by Alaska Airlines CEO Ben Minicucci, but Honolulu will become a new key hub.
What about ticket prices? There is where this deal could have a downside. “Competition between airlines is the single biggest cause of cheap flights,” notes Going’s Scott Keyes, “A merger between these two airlines—whose route maps have dozens of flights that overlap—would result not in more cheap flights for consumers, but fewer.”
How do the flight attendants feel about this?
On Sunday, the Association of Flight Attendants-CWA, AFL-CIO (AFA), which represents over 6,800 Flight Attendants at Alaska Airlines and 2,200 Flight Attendants at Hawaiian Airlines, released a statement:
“Our first priority is to determine whether this merger will improve conditions for Flight Attendants just like the benefits the companies have described for shareholders and consumers. Our support of the merger will depend on this.
“As a practical matter, our union Constitution and Bylaws provides a detailed process for this review with AFA leadership from each airline. Mergers take time – this will not happen overnight. Our union will continue to press forward in negotiations at Alaska Airlines. Alaska Flight Attendants, joined by Hawaiian Flight Attendants, will be on the picket line on Dec. 19 as holiday travel takes off.”
