x
Analytics Economy USA World

Alaska Airlines Plans Expansion After Hawaiian Airlines Acquisition

Alaska Airlines Plans Expansion After Hawaiian Airlines Acquisition
  • PublishedSeptember 19, 2024

Alaska Airlines CEO Ben Minicucci has outlined plans for expansion following the company’s acquisition of Hawaiian Airlines, the New York Times reports.

This marks the first major airline merger since Alaska’s purchase of Virgin America in 2016. The deal gives Alaska access to more airports, planes, and customers, potentially enabling the airline to expand its routes, including international destinations.

Minicucci highlighted the potential for Alaska Airlines to introduce larger, wide-body aircraft capable of long-haul international flights, particularly out of Seattle.

“This is something that makes sense for the future of Alaska,” he said.

Despite the promise of growth, airline mergers can be complex. Minicucci acknowledged challenges such as obtaining regulatory approval to operate as a single airline and smoothly integrating operations. The merger of United Airlines and Continental in 2010, for example, faced years of operational setbacks. However, Minicucci remains optimistic, citing the airline’s successful integration of Virgin America.

Alaska Airlines will continue to operate independently from Hawaiian Airlines until full regulatory approval is obtained, a process that could take over a year. Once combined, Alaska will control roughly 8% of the US commercial air travel market, making it the fifth-largest airline in the country.

The merger also provides Alaska with valuable assets, including skilled workers and additional aircraft. Supply chain issues have delayed new plane deliveries across the industry, so acquiring Hawaiian’s fleet, which includes Airbus jets, offers flexibility and resilience against potential manufacturing challenges.

Written By
Joe Yans