Alaska and Hawaiian Airlines CEOs Elaborate on Merger Details

Alaska and Hawaiian Airlines CEOs discuss $1.9 billion merger, promising more routes and perks for travelers.

Ben Minicucci, CEO of Alaska Airlines, and Peter Ingram, CEO of Hawaiian Airlines, toured Hawaii, engaging with the business sector and numerous Chambers of Commerce to elaborate on the proposed merger worth $1.9 billion between their companies.

The merger awaits approval from regulatory bodies.

The CEOs highlighted that the union would offer expanded routes, additional lounges, and enhanced benefits.

"Now, leveraging a broader network, you can redeem those miles more effectively. Choosing miles from OneWorld amplifies our loyalty program's value significantly for our Hawaiian guests,” Ingram explained. "With Alaska’s extensive network, nearly all their destinations will become accessible to us, including major cities we currently don't serve with direct flights."

"Elite status recognition will elevate to the highest tier, granting access to Alaska's and all 700 OneWorld alliance lounges globally," added Minicucci.

OneWorld is an international alliance comprising over a dozen airlines.

Alaska Airlines views the merger as a strategy to better vie with the four major airlines.

Both airlines acknowledge the merger is in preliminary phases, with details like merging reservation systems and staff alignment to be addressed.

"The merger will significantly boost our operations in Honolulu, aiming to expand our offerings, not just maintain them," Minicucci stated. "Merging networks will create synergies, leading to greater growth opportunities. Our Honolulu operations will remain substantial, though the exact structure and the integration of back-office functions, where there's overlap, are to be determined. We commit to transparent communication throughout this process."

Minicucci assured that a recent incident involving an Alaska Airlines jet would not affect the merger process. Alaska and United Airlines are the sole U.S. users of the Boeing 737 Max 9 model involved.

Ingram mentioned, "The regulatory review by federal authorities is expected within the next six months. Our focus now is on planning for integration, but actual consolidation activities are on hold until approval."