Alaska Airlines announced that it had completed its merger with Hawaiian Airlines, with the former buying the latter in an all-cash deal for $1 billion on September 18.
The sum does not include Hawaiian Airlines’ debt, which Alaska Airlines will assume, taking the total transaction value to $1.9 billion.
Nevertheless, while the initial merger announcement said that Alaska Airlines would keep the Hawaiian Airlines brand, historically, Alaska Airlines had also retired the Virgin America brand in 2019.
Completing the merger
Alaska Airlines, which will be the surviving entity following its acquisition of Hawaiian Airlines, said that the merger will expand guests’ access to domestic and international destinations, including through the former’s membership in the 
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Ben Minicucci, the chief executive officer (CEO) Of Alaska Air Group, which is now comprised of Alaska Airlines, Hawaiian Airlines, and Horizon Air, said that this was a historic day for the company.
“Alaska and Hawaiian share tremendous pride in connecting communities with award-winning service, and we look forward to inviting more guests on board to experience what makes both brands unique.”
Minicucci shared the sentiment that he hoped that the combined airline would provide the excellent operation and service that customers have come to expect, with the merger expanding options to seamlessly travel nearly anywhere in the world.
The CEO concluded that the deal also secured the long-term financial stability and value that should inspire investment in the group.
Gaining approval
The Department of Justice (DOJ) and Department of Transportation (DOT) approved the merger on August 20 and September 17, respectively, paving the way for the two airlines to join forces under a single entity.
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Alaska Airlines said that the two airlines would now work with the Federal Aviation Administration (FAA) to obtain a single air operator’s certificate (AOC). In the near future, the two airlines will continue operating separately, which includes separate reservation systems, loyalty programs, and websites.
However, the plan is to combine these things into one, including the pair’s loyalty programs, Mileage Plan and HawaiianMiles.
Fate of the Hawaiian Airlines brand?
At the same time, Alaska Airlines’ announcement about the finalization of the merger emphasized that the Hawaiian Airlines brand would live on.
“Maintaining both industry-leading Alaska Airlines and Hawaiian Airlines brands will enable guests to continue experiencing the remarkable service and hospitality, operational excellence and premium products for which both airlines have been consistently recognized.”
When Alaska Airlines announced its merger with Virgin America in 2016, it did not promise to keep the brand for a long time. Instead, its press release read that it had planned “to continue to operate the Virgin America fleet with its current name and product for a period of time while it conducts extensive customer research to understand what fliers value the most.”
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The fate of the Virgin America brand was sealed on March 22, 2017, when Alaska Airlines outlined the future of its brand and onboard experience.
In a statement titled ‘Alaska and Virgin America: Creating an airline people love,’ Alaska Airlines said that after months of research and conversations with its customers, it had made the difficult decision of retiring the Virgin America brand in 2019.
Commenting on the decision, Richard Branson, the founder of the Virgin Group, said that it was a sad but “some would say baffling” day.
However, unlike the Virgin America brand, Hawaiian Airlines has been together with the islands of Hawaii for almost 100 years, becoming a part of the local identity, with the airline celebrating the local culture given the opportunity, including the launch of its first Boeing 787-9 flights.
During an investor call shortly after the merger was announced in December 2023, Minicucci remarked that maintaining the two airlines’ brands was an exciting idea.
“The importance of these histories and value of these brands is too great not to preserve. Once combined, we look forward to providing a broader and more valuable network to guests throughout the United States and internationally.”
The Alaska Air Group CEO added that Hawaiian Airlines has been an integral part of Hawaii since 1929, adding that the merger will enable greater investments into the passenger experience while preserving “the best” of the Hawaiian Airlines brand.
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Publish date : 2024-09-18 04:18:00
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