Big Island travelers optimistic about airline merger of Alaska and Hawaiian

On Thursday afternoon, Celeste Adrain had just arrived at Ellison Onizuka Kona International Airport and was waiting to get picked up. She flew on a Hawaiian Airlines flight.

“I actually only fly Hawaiian,” the 54-year-old Hilo resident said.

With the surprise announcement on Dec. 3 that Alaska Airlines intends to buy Hawaiian Airlines for $1.9 billion, Adrian was concerned the feel and aloha spirit of the local airline would be lost.

“When I’m flying on the mainland and I get on a Hawaiian flight, it feels like I’m already home,” she said, adding that often she runs into people she knows, especially on inter-island flights.

In the merger announcement, CEOs from Alaska Airlines and Hawaiian Airlines said they were committed to a combined airline that maintains both brands.

Ben Minicucci, CEO of Alaska Airlines, said he started looking at the possibility of buying Hawaiian early in 2023. A few months ago, they approached Hawaiian Airline’s CEO Peter Ingram with the offer.

“We decided that the combination of these two airlines would be a great strategic fit, given our histories, you know, the limited overlap of our routes and the synergies that we could create combining companies,” Minicucci said.

From those first conversations, Ingram said Minicucci and the Alaska team had thought about and already decided that dual branding was an appropriate path forward, which was encouraging to him.

“That really shows the respect and admiration that they have for everything,” Ingram said. “Our team was built over 94 years and all the hard work that our people have put into Hawaiian and will continue to put into Hawaiian, and then the combined airline going forward.”

Alaska Airlines also has built it airlines for nearly as long, at 92 years. It was launched in 1932 by Linious “Mac” McGee.

If the merger goes through, the company will be governed by Alaska’s corporate headquarters in Seattle. It also would become the first largest U.S. airline, operating about 1,400 daily flights to 138 destinations with a fleet of 365 narrow and wide body airplanes. Currently, only about a dozen of those routes overlap, Minicucci said during the news conference.

And through the Oneworld Alliance, which Alaska joined in 2021, travelers could reach more than 12,000 destinations. Oneworld partners include British Airways, Qatar Airways, Japan Airlines, Qantas and Finnair.

Alaska’s network now is primarily domestic and West Coast oriented, with flights to small Alaska towns and cities. Hawaiian does long-haul service to the mainland, Asia and the South Pacific, as well as inter-island flights.

Honolulu also would become a key hub for the combined airline with expanded service for residents of Hawai‘i to the mainland and creating new connections to Asia and throughout the Pacific for travelers across the United States. The plan is also to maintain a “robust Neighbor Island air service.”

Minicucci also plans to learn more about how to provide flights to the remote Hawaiian Islands of Lana‘i and Moloka‘i, with runway restrictions on both islands.

Alaska Airlines currently is known for serving remote villages throughout the 49th state. Over time, the airline has built runways to accommodate the 737 planes to serve the residents in those communities.

“It’s something we’d have to learn and examine and see if it’s possible,” he said.

Amanda Bernier, owner of Hawai‘i Travel with Amanda, has been a travel consultant for 30 years and said she rarely uses Alaska Airlines now when planning travel packages for clients.

“A lot of their flight schedules are wonky because they don’t have the presence at all the airports they need to be in to expand,” she said.

But now, Hawaiian customers will benefit from having triple the number of options for trips to the mainland because of Alaska’s network and partnership with American Airlines.

Bernier also said she is not sure how things will play out because merging airlines usually don’t include dual branding. Usually, she says, it’s one company absorbing the other.

“There’s part of me that thinks it will be confusing for consumers. That’s the downfall of doing that,” she said.

In the announcement, the CEOs said each brand would keep flying on planes with their own distinct paint and logos. The check-in counters and gates also would remain the same.

“It would be a shame if they went Hawaiian-Alaska,” Bernier said, suggesting Hawaiian Airlines by Alaska. “It’s something that doesn’t take away. Build on what they’ve (Hawaiian) established and enhance it but don’t take away the mainstay. We’re such a tight community. Hawaiian has been our airline and there’s a loyalty.”

But she said Alaska is merging with a great airline in Hawaiian, which has an “excellent frequent flyer program. It would be great if they maintained those benefits. … It’s a wait-and-see. Money will be the driving force beyond decisions once the buyout is completed.”

Most airline programs are based on ticket price, whereas Hawaiian frequent flyers accumulate miles with shorter flights, gaining miles-plus status quickly allowing them to have extra perks like standby with no additional costs, priority wait list and first-class upgrades.

In the merger announcement, officials said there would be one combined loyalty program.

Pam Darmall, 59, of Hōlualoa, flew in from Oregon on Alaska Air on Thursday to the Kona airport. When she heard about the merger she was excited and hopeful that it would be a benefit to the travelers.

Darmall flies Alaska all the time when traveling to the mainland. She likes how the airline has always been reliable and prices are good. While searching for flights, she said she nearly always lands back on Alaska.

For inter-island flights, Darmall’s first choice of airline is Hawaiian.

“I love to fly Hawaiian when I can,” Darmall said.

Darmall also hopes Alaska will keep the service of Hawaiian, which has been cultivated over decades.

“People talk about Hawaiian and its Aloha spirit, and that’s why people love flying (with them),” Darmall said. “Aloha spirit is really being treated well and respected, right? I think Alaska does too. I think that they (Alaska ) do have similar leadership.”

The buyout closes within 12 to 18 months. Minicucci said there’s still a long road ahead to navigate the regulatory process, which is good because it will give the companies time to understand how to execute a dual brand strategy.

“No other airline does it so we have to figure out how to do it,” Miniccuci said. “But I’m sure we have smart people and we’ll figure out how to make it as seamless as we can for our guests.”