UPDATE: 11 a.m. Alaska Air Group, the parent company of Alaska Airlines, announced today that Hawaiian Airlines President and CEO Peter Ingram will step down immediately following the completion of its $1.9 billion transaction with Hawaiian Airlines and an interim Honolulu leadership team will guide the closing of the merger.
Joe Sprague, Alaska Airlines’ current regional president of Hawaii/Pacific, will be named the new Hawaiian Airlines CEO and will lead the interim leadership team overseeing Hawaiian’s operations while Alaska pursues a single-operating certificate.
After the certificate is granted, the airlines will function as a single operation with two public-facing brands, Hawaiian Airlines and Alaska Airlines.
Sprague will oversee all aspects of Hawaiian Airlines’ operations until the FAA finalizes Alaska’s request for a single operating certificate — a process made possible by the U.S. Department of Transportation’s approval of the airlines’ application to combine and operate international routes under one certificate.
Justin Doane, Hawaiian’s vice president of labor and people relations, will continue to support Hawaiian labor relations.
However, if the DOT had denied the joint application that Alaska and Hawaiian made on July 15, the airlines could not have combined.
When the DOT announced that the merger was moving forward today, it said in a statement that it had secured “binding, enforceable public-interest protections from Alaska Airlines and Hawaiian Airlines prior to the close of their merger.
After it completes the financial terms of the deal, Alaska Air Group Inc., the parent company of Alaska Airlines, will also commonly own and control Hawaiian.
In their application, the airlines said that they planned to keep “both the Alaska and Hawaiian brands, retaining consumer choice while offering integrated and seamless loyalty benefits and customer service.” Hawaiian Airlines has a history that goes back to 1929.
Alaska Airlines and its regional partners serve over 120 destinations across the U.S., Belize, Canada, Costa Rica, Mexico, the Bahamas and Guatemala.
UPDATE: 11:00 a.m. me.
Following the completion of its $19.9 billion transaction with Hawaiian Airlines, Alaska Air Group, the parent company of Alaska Airlines, announced today that Peter Ingram, President and CEO of Hawaiian Airlines, will resign immediately. An interim Honolulu leadership team will oversee the merger’s closing.
The new CEO of Hawaiian Airlines will be Joe Sprague, who is currently the regional president of Alaska Airlines for Hawaii and the Pacific. He will also serve as the head of the temporary management group that will oversee Hawaiian’s operations while Alaska seeks a single operating certificate.
Under two different operating certificates, the airlines will function as a single entity up until that point, with two distinct airline operations. Following the certificate’s issuance, the airlines will operate as a single business under the Hawaiian Airlines and Alaska Airlines public brands.
When Alaska requests a single operating certificate from the FAA, a process made possible by the U.S. government, Sprague will be in charge of all Hawaiian Airlines operations. S. The airlines’ application to consolidate and run international routes under a single certificate was approved by the Department of Transportation.
In a statement, Sprague said, “We have a once-in-a-generation opportunity to combine two incredible companies with over 90 years of service and community connection, as well as aligned values.”. Working with these capable leaders from Hawaiian Airlines to guide the company’s operations, people, and brand through this change while upholding our dedication to safety and service is an immense honor. “.
Other important players on the Hawaiians’ temporary Honolulu leadership group are as follows:.
Executive vice president for administration Shannon Okinaka.
Human resources senior vice president Robin Kobayashi.
Jim Landers is the senior vice president responsible for technical operations, which includes flight operations, maintenance and engineering, and system operations control center.
Vice president of airport operations and in-flight, Lokesh Amaranayaka.
>> Terry Hill, director of managing safety.
Directress of brand and culture, Alisa Onishi.
Daniel Chun, Alaska Airlines’ regional vice president for Hawaii.
Jim Landers, Hawaiian’s vice president of maintenance and engineering, will continue to receive reports from Hawaiian’s operations leaders, Bob Johnson, vice president of flight operations, Beau Tatsumura, vice president of maintenance and engineering, and Tom Zheng, vice president of technical operations, business planning, and services. The vice president of labor and people relations at Hawaiian, Justin Doane, will keep up his support for labor relations there.
Previous Reporting.
The $19.9 billion proposed merger between rival airlines Alaska and Hawaiian Airlines has received approval from the U.S. s. The Department of Transportation made the announcement today that it was authorizing the airlines to merge and run international routes under a single certificate, which is a prerequisite for offering air travel as a combined carrier.
The clearance, which offers traveler protections, was granted approximately one month after the U. S. The Justice Department’s Hart-Scott-Rodino Act formal review period for the proposed merger has come to an end. Section 7 of the Clayton Act, which forbids mergers and acquisitions that might significantly reduce competition or establish a monopoly, is enforced by the DOJ.
The airlines could not have merged, though, if the DOT had rejected the joint application that Hawaiian and Alaska submitted on July 15.
The Department of Transportation (DOT) stated in a statement that it had obtained “binding, enforceable public-interest protections from Alaska Airlines and Hawaiian Airlines prior to the close of their merger” when it announced today that the merger would proceed. The safeguards are intended to prevent harm to the general traveling public, rural communities, and smaller airline competitors. They are required for the Department to consider granting the airlines the necessary approvals. “.
“Alaska and Hawaiian are required to preserve support for rural service, guarantee fee-free family seating and alternative compensation for controllable disruptions, guarantee competitive access at the Honolulu hub airport, and lower costs for military families,” the DOT continued. “Alaska and Hawaiian are required to protect the value of rewards.”. “.
U. S. “Protecting the traveling public’s interest in this merger is our top priority,” Transportation Secretary Pete Buttigieg stated in a statement. The DOT’s more proactive approach to the merger review marks a new chapter in the agency’s work to defend passengers and advance a fairer aviation industry in the United States. We have secured legally binding protections that ensure smaller airlines can access the Honolulu hub airport, maintain essential flight services for communities, lower costs for families and service members, and protect the value of rewards miles against devaluation. “.
Important safeguards consist of the following, per the DOT:.
>> Miles accrued under the old combined loyalty program, HawaiianMiles and Alaska Mileage Plan, have no expiration date.
Before the new combined loyalty program launches, members of Rewards can transfer HawaiianMiles miles at a 1:1 ratio to and from Alaska Mileage Plan miles.
The combined airline shall match and maintain status levels and conferred benefits that are equivalent to those of Alaska’s Mileage Plan program, as well as the equivalent status levels that HawaiianMiles members currently hold under the HawaiianMiles program, under the terms of the new combined loyalty program.
>> Any change or cancellation fees on rewards redemption tickets for travel on carrier-operated flights cannot be imposed by the combined airline.
In order to avoid losing customers, the merged airline must continue to provide strong service levels for vital passenger and cargo services between the Hawaiian islands as well as for the vital routes connecting Hawaii to the continental United States.
>> In the tiny, rural towns of Alaska and Hawaii, where Essential Air Service is a lifeline to medical care, education, and financial security, the combined airline must continue to support this service.
>> For service members and their accompanying spouses and children, both airlines will update their customer service plans to include at least one complimentary standard carry-on and two complimentary standard checked bags. If a military order or directive forces service members or their families to reschedule their travel, they will also not charge change fees.
The merger between Hawaii and Alaska, approved on December, is anticipated to be completed soon. 2 by the directors of the two airlines. Thus far, the process has taken roughly nine months and involved lawsuits as well as high-level federal and state reviews.
The merger was approved by the shareholders in Hawaii on February. 16, will receive $18 in cash per share as part of the agreement, which also includes $900 million in debt from Hawaii. This morning, Hawaiian’s stock was trading very close to that level, suggesting to some that investors were confident the deal would close.
It is anticipated that the agreement will improve Hawaiian’s financial situation, which has been difficult since at least COVID-19. Hawaiian recorded a $67.6 million net loss for the second quarter, down from a $12.3 million net loss in the same period last year. This is equivalent to $1.30 per share. In the second quarter, the loss per share was $1.37 after deducting nonrecurring expenses.
Following the fulfillment of the agreement’s financial conditions, Alaska Air Group Inc. Hawaiian Airlines will be owned and managed by Alaska Airlines’ parent company. The 7,400 Hawaiian employees’ thoughts on the merger are still unknown. Union employees are expected to remain employed, but there will likely be changes to the carrier’s senior leadership group.
The airlines can proceed with merging under a single FAA operating certificate now that the DOT has approved their joint application.
The airlines stated in their application that they intended to maintain “both the Hawaiian and Alaskan brands, maintaining consumer choice while providing integrated and seamless loyalty benefits and customer service,”. “.
The history of Hawaiian Airlines dates back to 1929. At roughly 150 interisland flights per day and more than 230 systemwide, it is the biggest carrier in the state. It provides nonstop service between 16 U.S. cities and Hawaii. s. gateway cities, as well as connections to New Zealand, Japan, South Korea, American Samoa, Australia, and the Cook Islands.
Over 120 destinations are served by Alaska Airlines and its regional partners in the U.S. S. Belize, Costa Rica, Guatemala, Belize, Mexico, and the Bahamas.
The merger is anticipated to close quickly, and upon completion, the merged airlines, according to their joint application agreement, “will serve 54.7 million passengers annually and operate to 138 destinations, including nonstop service to 29 top international destinations in the Americas, Asia, Australia, and the South Pacific.”.