Hawaiian Airlines Open to Alternative Proposals If Alaska Airlines Merger Falters
Hawaiian Airlines, headquartered in Honolulu, has indicated its openness to considering other buyout offers should the proposed USD 1.9 billion merger with Alaska Airlines, based in Seattle, not materialize. This detail emerged from a December 18, 2023, SEC filing, which included prepared responses to employee inquiries about the impending merger.
The filing highlighted that, while the Hawaiian Airlines board is open to alternative offers in the best interest of its shareholders, the current focus remains on the agreement with Alaska Airlines. This proposed merger, supported by Hawaiian’s board, is pending shareholder and regulatory approvals.
The document primarily addresses employee concerns regarding the impact of the Alaska Airlines takeover on Hawaiian Airlines’ workforce and operational conditions. It reassures employees that their pay and benefits will remain unchanged until the transaction is finalized, a process expected to take 12-18 months from the board’s initial approval. The combined entity aims to offer competitive compensation, benefits, and expanded career opportunities.
Post-merger, Hawaiian Airlines is set to become a wholly owned subsidiary of Alaska Airlines, with Honolulu serving as a regional headquarters. The airlines will continue to operate independently until the takeover is sanctioned, after which they will unify under one air operator’s certificate, transitioning Hawaiian employees to Alaska Airlines.
The filing also addresses job security concerns, particularly for union-represented positions in Hawaii, emphasizing Alaska Airlines’ commitment to maintaining and expanding these roles.
Regarding fleet planning, decisions on the composition have yet to be finalized. However, the focus will be on operational efficiency and customer experience. Speculation from ch-aviation suggests a potential replacement of Hawaiian’s B717-200s with B737 MAX aircraft ordered by Alaska Airlines. Pilot allocations to fleet types will be governed by the terms of the joint collective bargaining agreement, with the merger expected to create new opportunities for pilots.
Hawaiian Airlines also noted that while current contracts with ground handling contractors and other vendors will continue until the transaction closes, the future of these agreements under Alaska Airlines’ control remains uncertain.
This development in the Hawaiian Airlines-Alaska Airlines merger highlights the dynamic nature of the airline industry, with significant implications for employees, fleet management, and operational strategies.