Alaska Airlines Completes Acquisition of Hawaiian Airlines

Less than one year after the deal was initially announced, Seattle-based Alaska Airlines has completed its acquisition of Hawaiian Airlines.

Over the coming weeks and months, the fallout from the merger will come into effect, and we now know more about what to expect.

Alaska Airlines Completes Acquisition of Hawaiian Airlines

It’s a done deal. Less than one year after the $1.9 billion (USD) deal was initially announced, Hawaiian Airlines has joined the Alaska Air Group, marking the beginning of a partnership that Seattle-based Alaska Airlines says will “reshape the travel industry for years to come.”

According to Alaska Airlines, the first step in the integration process will be to secure a single operating certificate with the Federal Aviation Administration. That’s expected to take place over the next 18 months.

In the meantime, the two airlines will continue to operate as separate carriers with no immediate changes to operations.

They’ll each maintain separate websites, reservation systems, and loyalty programs until later in the integration process.

As part of the deal closing, the US Department of Transportation (DOT) imposed conditions relating to both of the airline’s loyalty programs. Specific rewards protections include:

• No expiration for miles earned under current programs
• Transfer miles at 1:1 ratio
• Maintain value of miles
• Match, maintain, or increase status
• No new junk fees (neither airline can impose change or cancel fees on rewards redemption tickets for travel on carrier-operated flights)

Alaska Air Group CEO Ben Minicucci calls it a historic day for Alaska Airlines saying:

Alaska and Hawaiian share tremendous pride in connecting communities with award-winning services, and we look forward to inviting more guests on board to experience what makes both brands unique. Among Alaska, Hawaiian and Horizon Air, we have more than 230 years of history flying guests and serving communities. I know we will build on that legacy and become stronger together – providing the excellent operation guests have come to expect, expanding options to seamlessly travel nearly anywhere in the world, and securing the financial stability and value that inspires investment.

Alaska’s acquisition of Hawaiian Airlines will give travellers the ability to reach 141 destinations directly, including 29 international markets, and over 1,200 destinations globally through the oneworld Alliance. It will also establish Honolulu as its second largest hub behind Seattle.

Unlike Alaska Airlines, Hawaiian Airlines serves a handful of long-haul international destinations in Asia and Oceania, as well as major cities in the United States. While Alaska Airlines on the other hand primarily flies short- and medium-haul routes to destinations across the US, and to a handful of cities in Mexico and Central America.

According to data from Cirium, an aviation analytics company, Hawaiian Airlines is the largest carrier from Continental US to Hawaii, while Alaska Airlines is the fourth-largest. Now combined, they hold 40% of the seats on these routes, which is more than twice that of the second largest airline United Airlines.

Some more interesting facts about the deal, is that combined, the two airlines boast an impressive fleet of 350 aircraft comprised of the following:

• 2 Boeing 787s
• 24 Airbus A330s
• 18 Airbus A321neos
• 235 Boeing 737s
• 19 Boeing 717s
• 44 Embraer E175s
• 8 dedicated freighters (3 Boeing 737-700, 2 Boeing 737-800 and 3 Airbus A330)

Business as Usual… for Now

While it doesn’t look like there will be any immediate changes to the guest experience, Alaska Airlines says added customer benefits are on the way.

The complementary domestic, international, and cargo networks will be expanding giving guests more choice on the West Coast and throughout the Hawaiian Islands.

In the coming weeks, members of both the Alaska Airlines Mileage Plan and HawaiianMiles reward programs will be able to transfer miles between loyalty accounts to redeem award travel at a rate of 1:1 for no charge.

For example, if you have HawaiianMiles and you’re looking to redeem for a flight on Alaska Airlines or a global partner, you’ll simply transfer the miles to your Mileage Plan account at no charge and book your award travel at alaskaair.com.

In the meantime there’s no change to either reward program, and both retain their full value. There are also plans to introduce a new travel program just for those who live in Hawaii, called Huaka‘i by Hawaiian, which will offer added benefits.

You’ll also soon be able to buy tickets for most Hawaiian flights on alaskaair.com and get tickets for Alaska flights on hawaiianairlines.com. The airline says options to purchase Hawaiian international flights to destinations such as Japan, South Korea, and Australia are just around the corner.

Conclusion

Less than one year after the deal was initially announced, Alaska Airlines has officially acquired Hawaiian Airlines at a price tag of $1.9 billion (USD)

As part of the integration process, over the next 18 months the two airlines will work to secure a single operating certificate with the Federal Aviation Administration. In the meantime, the two airlines will continue to operate as separate carriers.

In the coming weeks you’ll be able to buy tickets for most Hawaiian flights on alaskaair.com and get tickets for Alaska flights on hawaiianairlines.com. As well, members of both the Alaska Airlines Mileage Plan and HawaiianMiles reward programs will soon be able to transfer miles between loyalty accounts to redeem award travel at a 1:1 ratio for no charge.