Alaska Airlines announced its plans Sunday to purchase Hawaiian Airlines for $1.9 billion, a move that will still need approval from certain shareholders and U.S. regulators.
While the news came as a surprise to many, the airlines' leaders gathered on Oʻahu to discuss what the merger would mean for travelers, stakeholders, loyalty members and the company's future. Here's what we know so far:
Will the Hawaiian Airlines brand dissolve and become Alaska Airlines?
No. Alaska CEO Ben Minicucci said they decided early on that the Hawaiian brand would remain.
"The one biggest question I have is, 'Ben, how are you going to do a dual-brand, and they're a single platform?' And I just say there is no other choice, we will figure it out because we need to respect the culture and the legacy that's been created here for over 94 years," Minicucci said.
What will happen to my Hawaiian Miles and Pualani Platinum status?
For the next 12 to 18 months until the deal closes, respective statuses will remain untouched. However, once the transaction closes, the loyalty programs will merge together, said Minicucci.
"So if you're an elite member on Hawaiian, we will transfer you to that same status on Alaska Airlines. So the loyalty program will become one," he said.
The details still need to be hashed out, but keeping the branding of each airline (i.e., Pualani Platinum for Hawaiian and MVP Elite for Alaska) could be a possibility. Minicucci compared it to Marriott Bonvoy, the loyalty program that covers Marriott, Sheraton and other hotel brands — a result of when Marriott acquired Starwood Hotels in 2015.
Minicucci was mum about the changes to the Hawaiian Miles card, but the company listed "co-brand cardholder growth" as an opportunity when it was presented to analysts.
Hawaiian and Alaska airline employees found out the same day as the general public. Why?
When changes this large occur in the industry, there are always concerns of insider trading.
"Anytime we have knowledge of a transaction that could affect the value of our stock price, we have to either disclose that or we have to keep it secret and make sure that no one with that knowledge is trading on it," Hawaiian Airlines CEO Peter Ingram said. "So as difficult as it is, we had to keep it secret. This is not something we can have communications about."
Ingram acknowledged that it was a very emotional and difficult day for employees. "I have 18 years with Hawaiian Airlines myself. And if I woke up this morning and this was a big surprise, I can see how that is a shock."
How will interisland travel change?
"We will maintain neighbor islands service so that these air-dependent communities will continue to be served, similar to our commitment to remote communities in the state of Alaska," Minicucci said.
He said only 12 of Hawaiian and Alaska's routes overlap. Alaska currently flies direct transpacific flights to Honolulu, Līhue, Kahului and Kona from several West Coast cities.
However, adding much-needed air service to Molokaʻi and Lānaʻi is still questionable.
"On the on the question on Molokaʻi, I'm just learning that, to be honest," Minicucci said. "I've learned that it is a big deal, based on what I've heard from other folks. So I have to learn the limitations. And Peter was trying to educate me on the limitations of the runway and the aircraft that's required."
Hawaiian Airlines previously operated ʻOhana by Hawaiian on Molokaʻi and Lānaʻi, but it shuttered its prop plane service in 2021, citing financial losses from the COVID-19 pandemic.
Will there be layoffs?
In its announcements, the companies said they are committed to preserving their union jobs. But Minicucci said that there would be layoffs, and he hoped it would be minimal. He noted that there would not be two CEOs.
“We have to go through the process,” Minicucci said. He cited international experience which Alaska does not have, as well as maintenance crews for wide body planes."
"But there's going to be some duplication in roles that we're going to have to address," Minicucci said. "I can't tell you what that number is. But I'm hopeful that the number is not large. “
What approvals are needed to make the decision final?
The deal will need approval from the Justice Department, which has sought to block JetBlue Airway’s acquisition of low-cost carrier Spirit Airlines. Minicucci does not see a similar challenge for Alaska and Hawaiian.
"These are two very complementary networks. So when you actually combine the total number of flights will have 1,400 flights with a combined the two combined airlines, only 12 (routes) overlap over that 1,400. So it's very, very small," he said.
"So the DOJ can say that we're, we're duplicating, we're eliminating service, we're gonna eliminate choice for travelers. We're gonna keep those 12 ... those will exist."
Hawaiian shareholders also need to vote on the deal, which company officials expect to happen in Q1 2024.
Will I still get hot meals on my flight? Will Hawaiian Airlines passengers get Alaska Airlines cheese plates instead?
When asked about amenities, Minicucci said everything still needs to be reviewed.
"We're going to look at every element every touchpoint from a customer perspective, from the website to the app, and what would that look like? So that we can actually execute this dual-brand strategy in the most thoughtful way. The reason we don't have all the answers right now because it hasn't been done," he said.
