The Alaska/Hawaiian Deal
A Change In Ownership, Not A True Merger
To cut to the chase and through what will likely be a media-wallow about the evils of a constricting airline system, let’s just hit the bullet-points:
- No significant route overlap with Alaska. Like, only a couple of routes from mainland to Hawaii.
- The two route systems have little in the way of market synergies. They are completely different in scope and traffic base.
- Alaska brings mainly the advantage of combining administrative overhead, reducing the cost structure at Hawaiian.
- Hawaiian faces temporary issues with Pratt & Whitney engines on new Airbus airliners – so do many other airlines.
- Hawaiian under Peter Ingram’s leadership has turned HA into a viable carrier with a carefully-crafted route system optimizing demand for Hawaii vacations.
- No downside for consumers. There are no routes to be cut.
- No major market expansion opportunities due to the combination.
- Hawaiian focuses on one product – Hawaii, which is a very niche market.
- 717 replacement in the near future. A200-300s? Can do inter-island and mainland routes.
- It is a change of ownership and not really a combination of airline route systems. Reportedly, the identities will remain distinct as will the route systems
A positive deal for all involved.
Period
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