On December 10, 2024, the newly merged Alaska Airlines / Hawaiian Airlines entity had its first coming out party in the form of an Investor Day presentation in New York. Like a couple that just got married, signed the paper, and got the license, the newly merged entity came out with big smiles and, what turned out to be big plans for the revamping of Alaska Airlines into a major U.S. national and international carrier.
Putting aside the fact that, taking the married couple symbolism, the wife (Hawaiian) didn’t take the husband’s family name (Alaska) because of the continued value of keeping the maiden name, the presentation was the equivalent of a power couple going on TV and telling the world what they plan to do to grow and create new things.
PC: “Hawaiian Airlines A321-200neo at LAX” by BOSSHEP is marked with CC0 1.0.
The whole plan is called “Alaska Accelerate”, of which you know that it’s really the husband’s plan. Okay, enough with the family symbolism.
While a lot of the overarching elements of the plan were laid out in the media, there were a couple of things this humble blogger, having written about a “what if” scenario for Hawaiian should have expanded alone without the backing of a bigger airline, that was noted as similar to what was written in those articles. For instance,
- The Accelerate plan calls for the expansion of Seattle into an international hub for Alaska, using Hawaiian planes. This would be along the same lines as if Hawaiian were to have expanded to the mainland and dominated a specific market (the Politics Hawai‘i article “Could Hawaiian have been Alaska? (Part 1)” identified Las Vegas as being the market).
- Alaska’s $1.9 billion acquisition of Hawaiian was likely the most cost-effective way to expand both airlines simultaneously. As discussed in “Could Hawaiian Have Been Alaska? (Part II, How Much to Be?)”, Hawaiian’s attempt to acquire a continental airline would have ranged from $500 million (for Avelo Airlines) to $15 billion (the lower estimate for acquiring Alaska). With Alaska prepared to invest an additional $1.5 billion in capital expenditures—fueling expansion and further integrating Hawaiian—alongside profit targets that justify the purchase, this outcome stands in stark contrast to the uncertain prospects Hawaiian faced if it had pursued independent expansion.
There were other tidbits beyond the articles that also came up in the Investor Day that this blogger noted in various conversations they had with other folks who also watched the presentation,
- Hawaiian could have improved efficiency by optimizing its operations and increasing aircraft utilization. In its presentation, Alaska identified scheduling efficiencies that could boost Hawaiian’s fleet utilization from 7% (for A330s) to 25% for 787s. It appears Alaska plans to apply its operational playbook to Hawaiian’s fleet (referred to as “metal” in aviation). This playbook includes scheduling flights from Seattle to Hawai‘i throughout the day and including more Hawaiian redeye’s. Notably, Alaska previously operated up to five daily flights from Seattle to Honolulu, a model Hawaiian now seems poised to adopt.
- As part of its shift in transpacific operations, the newly merged airline will move some Hawaiian planes to Seattle and start flying to Tokyo Narita and, later, Seoul. Hawaiian had been struggling on the Narita route from Honolulu for years, which originally aimed to give Japanese travelers more options to get to Hawai‘i. But after COVID and changes in the exchange rate, the route lost money, so it’s no surprise the new owners are looking to shift things around but keep the landing slot while seeking profit with Hawaiian planes.
- Looking at Alaska’s broader strategy, it’s clear they’re tapping into a market that’s been long served by airlines like Northwest and United. Both airlines used Seattle as a hub for flights to Asia—Northwest until Delta took over, and United before it shifted its focus after buying Pan Am’s routes. Alaska isn’t exactly reinventing the wheel but is working to grow Seattle’s position in the Asian market, just like those airlines did.
- Finally, Alaska’s new route to Seoul puts it in direct competition with Delta, which has built up a strong partnership with Korean Air. For years, Delta has used Seoul as one of its key Asian hubs, so Alaska’s move could spark a response from Delta in the months ahead.
PC: PHwSF
There are many more storylines about what this integration means, and what has already been done by Alaska, especially in Hawai‘i interisland service with its Huaka‘i by Hawaiian membership program. And there will be more as the months and years move on.
But one thing is for sure, after all is said and done, “Hawaiian Airlines” as we know it now, is going to look much different to those who grew up flying them.
Politics Hawaii with Stan Fichtman is a recipient of a 2023 Hawaii Society of Professional Journalists award for Best 1-Person Features Blog/1 Person Online Features Site.