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Alaska Air Group completes merger with Hawaiian Airlines amid brand preservation concerns

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Alaska Air Group completes merger with Hawaiian Airlines amid brand preservation concerns
Policy
Webp sprague
Joe Sprague, CEO at Hawaiian Airlines | Hawaiian Airlines

The Alaska Air Group completed its $1.9 billion acquisition of Hawaiian Airlines on September 18, 2024, making it one of the largest airline groups in the United States. The merger combined Alaska Airlines’ narrowbody fleet with Hawaiian’s widebody aircraft, including Airbus A330s and Boeing 787s, expanding long-haul capabilities for the group.

The deal included the assumption of nearly a billion dollars in debt and valued Hawaiian Airlines at about $18 per share—a significant premium over its previous share price. The acquisition came as a lifeline for Hawaiian Airlines, which had struggled during the COVID-19 pandemic due to travel restrictions.

With the merger, Alaska and Hawaiian now operate about 40% of all flights between Hawaii and the contiguous United States, according to AP News (https://apnews.com/article/alaska-airlines-hawaiian-merger-bbdc69e39a7b33f5bcaab41d09a0f5eb). Both airlines are expected to join the oneworld alliance and launch a joint frequent flyer program in October 2025. At that time, all HawaiianMiles members will be converted to Alaska Airlines Mileage Plan accounts.

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Concerns have emerged among loyal customers about whether the Hawaiian brand will eventually disappear following integration into Alaska’s operations. Alaska Airlines has stated there are no immediate plans to drop the Hawaiian name. This assurance comes as Alaska continues to pay an annual $8 million royalty to Virgin Aviation TM Ltd and Virgin Enterprises Ltd until 2039—part of a trademark dispute stemming from its earlier acquisition of Virgin America in 2016.

After acquiring Virgin America for $4 billion, Alaska phased out the Virgin America brand by 2020 but retained certain features such as mood lighting and premium seating on some aircraft until their retirement in 2023. Despite discontinuing use of Virgin branding, courts ruled that royalty payments must continue.

The expanded airline group operates hubs across Anchorage, Los Angeles, Portland, San Diego, San Francisco, Seattle-Tacoma (Alaska), Honolulu, and Kahului (Hawaiian). Some confusion has arisen as flights operated by Hawaiian aircraft now sometimes fly under Alaska flight numbers—for example between Washington State and Asia—leading some observers to speculate about further blending or reduction of distinct brands.

Alaska recently announced plans to launch direct Boeing 787 service from Seattle-Tacoma International Airport to Rome using aircraft operated by Hawaiian but branded as Alaska Airlines. This marks a shift toward international long-haul routes for Alaska using widebody jets acquired through the merger.

Hawaiian Airlines is set to receive up to twelve Boeing 787-9 aircraft by 2028; several initial deliveries will enter service with Alaska’s mainline fleet. This allows expansion into new international markets including Tokyo Narita Airport and Incheon International Airport (Seoul), with additional routes planned for Rome Fiumicino Airport and Barcelona-El Prat Airport starting May 2026.

Hawaiian maintains an international network serving destinations such as Fukuoka, Osaka Kansai, Tokyo Haneda (Japan), Pago Pago (American Samoa), Papeete (French Polynesia), Rarotonga (Cook Islands), Sydney (Australia), and seasonal Auckland (New Zealand) flights—all primarily operated with widebody aircraft except Rarotonga served by an A321neo. The carrier also operates some of the longest domestic U.S. flights between Honolulu and Boston Logan International Airport.

While Hawaii remains central for both carriers—with more than 180 daily domestic and international flights—the merged group is working toward obtaining single operating certification from the Federal Aviation Administration later this year. Jim Sanders has been appointed Head of Hawaii operations; he previously served as SVP Technical Operations at Hawaiian Airlines.

Joe Sprague, CEO of Hawaiian Airlines, emphasized ongoing commitment: "Hawaii will always be the home of Hawaiian Airlines," adding support for staff who uphold its legacy in air service throughout Hawaii.

Cargo revenues have also grown since the merger; Q2 results showed a 34% increase year-over-year according to Air Cargo News (https://www.aircargonews.net/airlines/freighter-operator/alaska-air-group-cargo-revenues-soar-on-hawaiian-acquisition/). Of $139 million generated in cargo revenue during that period, approximately 90% was attributed directly to assets gained from acquiring Hawaiian—including ten Airbus A330-300P2F freighters flying for Amazon Air plus increased passenger belly cargo capacity on Asia-Pacific routes.

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