Alaska Airlines closed the acquisition of Hawaiian Airlines yesterday, the first major airline deal since Alaska bought Virgin America in 2016. It is going to unlock doors for Alaska Airlines at more airports, on more planes, and in front of many more customers, moving the airline forward into more growth, including wide-body jets on many international routes.
We saw it as a major body opportunity, operating with international service out of Seattle moving forward. The acquisition just makes common sense for Alaska’s future growth, Minicucci tells The New York Times in an interview.
Airline consolidation is a challenging process, with many airlines experiencing financial and operational issues after mergers. United Airlines and Continental Airlines in 2010 are some of the previous examples where several difficulties arose. Alaska, currently the fifth-largest airline in the U.S., will have the same problem with integrating Hawaiian Airlines while lagging far behind industry giants United and American Airlines.
Minicucci also said, however, that some things were complicating this combination: integrating reservation systems, obtaining regulatory approvals, and then keeping Hawaiian Airlines as a brand under Alaska’s ownership. However, he gave credit to the company’s earlier experience in acquiring Virgin America as an example of its competence to cut through those challenges. “This is not our first rodeo,” Minicucci said. “Many of the team members who managed the Virgin America integration are still here, and the lessons learned are fresh in our minds.” The acquisition didn’t meet any opposition from the Department of Justice and just received approval from the Transportation Department. Until regulation approval is granted to fully integrate the airlines, the two will operate independently-a process that could take more than a year.
The acquisition gives Alaska Airlines 8% stake in the U.S. commercial air travel market, still trailing United Airlines’ 16%. The acquisition gives Alaska access to more planes and skilled people, which are in short supply today because of lingering supply chain problems. Minicucci also mentioned that Alaska is interested in using the larger Airbus jets, which are available at Hawaiian Airlines, for the expansion of long-haul service capabilities complementing the Boeing fleet.
A move that shows Alaska Air’s strategic intent to expand its business into U.S. markets but with the aim of developing international opportunities, all under trying circumstances in assimilating Hawaiian Airlines within its fold.
For More Details: https://ciolook.com/
