Updated: 11:02am
Alaska Airlines’ acquisition of Hawaiian Airlines will not result in any union job losses, and the “vast majority” of its 1,400 non-union employees will be retained to operate the expanded service, executives from both companies say. Stated.
The new company will preserve and refine the Alaska Airlines and Hawaiian Airlines brands, Hawaiian Airlines President and CEO Peter Ingram and Alaska Airlines CEO Ben Minicucci said. he told the Honolulu Star-Advertiser in an interview this morning, shortly after the $1.9 billion deal was announced.
Hawaiian and Alaska “remain competitors” until the shareholder review and regulatory process is completed, Ingram said.
“Nothing changes in terms of how we operate our business on the Hawaii side,” Ingram said. “We have no plans to reduce our activities during that period.”
Minicucci said Alaska Airlines will not cut union workers at Hawaiian Airlines.
“This combination will not eliminate union jobs. Honolulu will become the second largest hub in the Alaska system after Seattle. It will require many non-union jobs,” Minicucci said. , added that exact staffing levels will not be known until a deal is finalized in the next 12 to 18 months. “Going forward, we’re going to need a significant portion of the people who already work here.”
Ingram said a commitment to retaining about 5,800 union jobs and efforts to find a home for 1,400 nonunion workers were “very important” to Hawaiian Airlines management during deal negotiations. Ta.
“While we are very concerned about the potential impact on jobs, what gives us peace of mind going forward is that this lays the foundation for long-term growth,” Ingram said. “None of these decisions are unreasonable,” he said, emphasizing that “none of these decisions are unreasonable.” I still made it. ”
Minicucci said the combined company, which he will run as CEO, will “keep the brands separate.”
“This is a big and unique decision. It makes a lot of sense. Hawaiian has been in business for 94 years and is admired and respected here… They have built a strong legacy… They have tremendous loyalty here,” he said. “We have a strong loyalty to our beloved brands in the Pacific Northwest, so when we think about future integration…this can’t be just one brand…our employees, customers, It has to be a two-pronged brand strategy to ensure successful integration with the community. We really need the majority of the employees we already have today at Hawaiian.”
Existing miles from the Alaska Airlines Mileage Plan and Hawaiian Miles frequent flyer programs will be canceled, Hawaiian Airlines spokesperson Alex da Silva said in an email to the Star-Advertiser. , and will be respected both before and after the merger of the two airlines. “Following closure, both airlines’ loyalty programs will be combined into a common loyalty program,” da Silva said in an email.
Ingram said he believes keeping the Hawaii brand alive will “resonate” with employees.
“This is big news for the 7,300 employees who work at Hawaiian Airlines, and today will be a difficult day… As this news was announced, many emotions were running high and people were anxious about what was to come. ,” Ingram said. “The fact that the Hawaiian Airlines brand will absolutely remain is a sign of respect from the Alaska team for what our group has built over the past 94 years.”
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Alaska Airlines will acquire Hawaiian Airlines in a $1.9 billion deal, the companies announced today.
Alaska Air Group will pay $18 per share to Hawaiian Holdings, the parent company of Hawaiian Airlines. Hawaiian’s stock closed Friday at $4.86 per share. The deal includes $900 million in Hawaii debt, and airline executives say the total deal is $1.9 billion.
The companies said in a news release this morning that the transaction has been approved by both boards of directors. The acquisition is subject to regulatory approvals, approval by Hawaiian Holdings shareholders, expected in the first quarter of 2024, and other closing conditions. The companies say it is expected to close within 12 to 18 months.
The combined organization will be based in Seattle and will be led by Alaska Airlines CEO Ben Minicucci.
“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand choice for travelers on the West Coast and Hawaii,” Minicucci said in a news release. Ta. “We have long had a deep respect for Hawaiian Airlines, its role as Hawaii’s top employer, and the way its brand and employees share a warm culture of aloha around the world. ”
“Hawaiian Airlines has been an integral part of Hawaiian life since 1929, and by working with Alaska Airlines, we are proud to continue to support our customers and our customers,” said Peter Ingram, president and CEO of Hawaiian Airlines. “We will be able to better serve our employees and the communities we serve.” .
“At Alaska Airlines, we join an airline that has served Hawaii for many years and shares a culture of complementary networks and service. With the additional scale and resources brought by this transaction with Alaska Airlines, Hawaiian Airlines We can accelerate our investments in guest experience and technology while maintaining our brand.”
The airline said the merger would “triple the number of destinations across North America that can be reached nonstop or with one stop from the island, while maintaining robust service on neighboring islands and increasing air cargo capacity,” the airline said. and convenience will expand.”
“Honolulu will become a key hub for Alaska Airlines, and its one-stop service through Hawaii will enable greater international connectivity for West Coast travelers across the Asia-Pacific region,” airline officials said in a news release.
Alaska Airlines executives said the airline and its regional partners serve more than 120 destinations in the U.S., Belize, Canada, Costa Rica and Mexico, with new service to the Bahamas and Guatemala starting in December. .
Celebrating its 95th year in business, Hawaiian Airlines is the state’s largest airline, offering approximately 150 daily interisland flights, nonstop service between Hawaii and 15 U.S. gateway cities, and service to U.S. territories. Samoa, Australia, Cook Islands, Japan, New Zealand, South Korea and Tahiti.
The airline said in its announcement that the merger will:
>> Expands the nation’s fifth-largest airline to a fleet of 365 narrow- and wide-body aircraft.
>> Make Honolulu a key hub for the integrated carrier, expanding service to the mainland United States for Hawaii residents and creating new connections to Asia and the Pacific for travelers across the United States.
>> Maintain commitment to Hawaii, including service to “strong” neighboring islands.
>> Preserve and grow Hawaii’s union-represented workforce.
Staff writer Peter Boylan contributed to this report.