Alaska Airlines is making its mark in Hawaii, appointing a new leadership team in Honolulu to accelerate its strategic growth plans. The airline’s commitment to the Pacific region is further solidified by its recent merger with Hawaiian Airlines, a move that’s expected to bring significant changes to the industry.
On September 17, Alaska Airlines announced that Joe Sprague, president of Hawaii/Pacific, would assume the role of interim CEO of Hawaiian Airlines. This appointment comes as the two airlines work towards securing a single Air Operator’s Certificate (AOC) from the Federal Aviation Administration (FAA), a crucial step in finalizing the merger. Sprague, with his vast experience in aviation, having spent over three decades at Alaska Airlines, including serving as president of Horizon Air, will oversee Hawaiian Airlines during this transitional phase.
The merger, which recently cleared its final regulatory hurdles, has been met with both excitement and scrutiny. While the Department of Transportation (DOT) granted approval on September 17, it came with nine conditions aimed at protecting consumers and ensuring compliance with commitments. These conditions mandate the combined entity to maintain or exceed capacity levels on key routes, continue serving rural and underserved communities, and guarantee fair access to Honolulu International Airport for new airlines. Additionally, the merger requires Alaska Airlines to align Hawaiian Airlines’ customer service standards with its own and to maintain interline agreements and participation in essential air service (EAS) programs.
The integration extends beyond operational changes, encompassing the loyalty programs of both airlines. Alaska Airlines has committed to merging its Mileage Plan with Hawaiian Airlines’ HawaiianMiles, ensuring a 1:1 conversion rate for members and maintaining their status levels. This merger will also preserve the validity of miles earned through HawaiianMiles, ensuring their continued value.
While the combined market share of Alaska Airlines and Hawaiian Airlines will hover around 8%, it remains smaller than the market share held by larger U.S. airlines like United (16%). However, the merger is expected to bring increased efficiency and service improvements to the Pacific region. The DOT, under the leadership of Secretary Pete Buttigieg, has emphasized its commitment to protecting consumers during the merger process. The Department has secured binding commitments to ensure continued service for rural communities, maintain fair access to key airports, and safeguard passengers from potential cost increases or service reductions. The DOT will actively monitor compliance with these commitments over a six-year period, requiring Alaska Airlines to provide annual reports on its progress.
This merger represents a significant development in the Pacific airline industry. It promises enhanced efficiency, improved services, and expanded reach for both airlines, while simultaneously emphasizing the importance of consumer protection and fair competition in the aviation market. The coming months will see the full integration of the two airlines, culminating in a new chapter for air travel in the Pacific region.
