Hawaiian Airlines to Cut 73 Jobs Following Merger

Hawaiian Airlines (HA, Honolulu) is set to lay off 73 employees by December 17, 2024, following its parent company Hawaiian Holdings’ recent $1.9 billion merger with Alaska Air Group. The layoffs will primarily impact 57 workers in Hawaii and 16 employees on the United States mainland, with the reductions occurring mainly in duplicative non-contract roles.

Reports indicate that the layoffs were communicated in a letter from Alaska Airlines’ senior vice president, Andy Schneider, to Jade Butay, Hawaii’s director of labor and industrial relations. Schneider noted that employment separations are expected to begin on or about December 31, 2024.

Despite these layoffs, the majority of Hawaiian Airlines’ non-contract workforce has received offers to remain with the new organization for at least six months. Alex da Silva, a spokesman for Hawaiian Airlines, emphasized that “a vast majority of our approximately 1,400 Hawaiian Airlines non-contract employees received a permanent or interim position based in Hawaii with the combined company.” This move is aimed at supporting Hawaiian’s extensive operational presence across the islands and facilitating the integration of both airlines.

The interim job offers extend for at least six months starting from September 2024. The airline hopes to retain most employees for a year or longer, potentially including some in permanent positions. The decisions regarding layoffs and job offers followed several weeks of individual consultations with non-contract employees after the merger was announced. Importantly, unionized positions at Hawaiian Airlines, which make up more than 80% of the workforce, are unaffected by these layoffs.

In addition to the workforce changes, Hawaiian Airlines is also undergoing leadership transitions. Joe Sprague, previously with Alaska Airlines (AS, Seattle Tacoma International), has taken over as Hawaiian’s CEO following the resignation of former president Peter Ingram. The acquisition of Hawaiian Holdings by Alaska Air Group was completed on September 18, 2024, and the two airlines will continue to operate separately for the time being. However, there are plans to eventually integrate their systems while maintaining distinct brand identities.

The merger between Hawaiian Holdings and Alaska Air Group signifies a significant shift in the competitive landscape of the airline industry, particularly in the context of the Pacific region. As Hawaiian Airlines navigates this transition, the focus will be on enhancing operational efficiency and ensuring a smooth integration process for employees and customers alike.

While the layoffs may raise concerns about job security among employees, Hawaiian Airlines is committed to providing opportunities for its non-contract workforce. By retaining a significant portion of its staff and ensuring operational continuity, the airline aims to maintain its service quality and uphold its reputation as a leading carrier in Hawaii and the broader airline market.

In conclusion, the layoff of 73 employees following the merger with Alaska Air Group marks a pivotal moment for Hawaiian Airlines. As the airline adjusts to the new corporate structure, it will be crucial to balance operational efficiency with employee retention, ensuring that it continues to serve its customers effectively while navigating the complexities of the merger.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com