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Could A HA/AS Merger Work?  
User currently offlineGonzalo From Chile, joined Aug 2005, 1985 posts, RR: 2
Posted (1 year 3 months 4 weeks 1 day 6 hours ago) and read 4691 times:

I was reading about HA and the good work they are doing with the airline, which was much smaller just a few years ago. Also about the fleet changes in HA ( purchase of A321, A330 and A350 ) and its implications for the expansion of the airline looking for new markets ( Asia, Europe ). While all this is happening in HA, the flights to the islands represents about 20 % of the scheduled flights of another great airline with a fast growing in the recent years : Alaska Airlines.
Apparently ( my sources are just media and some other forums ) AS is doing a great job in the Hawaiian market with a very smart flight schedule to the west coast and northwest.
Could this two airlines see its operations as complementary, and try a merger ? Or is this too far fetched ?

Just asking...

Rgds.
G.


80 Knots...V1...Rotate...Gear Up...DC-3 / EMB-110 / Fairchild-227 / Ab318-19-20 / B732 / B763
32 replies: All unread, showing first 25:
 
User currently offlinedabpit From United States of America, joined May 2012, 103 posts, RR: 0
Reply 1, posted (1 year 3 months 4 weeks 1 day 4 hours ago) and read 4541 times:

It would be interesting; however, I don't see it ever happening.

User currently offlineMortyman From Norway, joined Aug 2006, 3834 posts, RR: 1
Reply 2, posted (1 year 3 months 4 weeks 1 day 4 hours ago) and read 4503 times:

Has'nt this been discussed numerous times before on this forum ?

User currently onlineAeroWesty From United States of America, joined Oct 2004, 20352 posts, RR: 62
Reply 3, posted (1 year 3 months 4 weeks 1 day 2 hours ago) and read 4382 times:

Quoting Gonzalo (Thread starter):
Could this two airlines see its operations as complementary, and try a merger ?

No. Two different goals in two different regions. HA and AS are nothing alike.

Quoting Gonzalo (Thread starter):
Or is this too far fetched ?

Yes. See above.

Quoting Mortyman (Reply 2):
Has'nt this been discussed numerous times before on this forum ?

Yes. Every couple of weeks, someone gets bored and starts marrying AS off to one airline or another.



International Homo of Mystery
User currently offlineLHCVG From United States of America, joined May 2009, 1541 posts, RR: 1
Reply 4, posted (1 year 3 months 4 weeks 1 day 2 hours ago) and read 4340 times:

Quoting AeroWesty (Reply 3):
Quoting Gonzalo (Thread starter):Could this two airlines see its operations as complementary, and try a merger ?
No. Two different goals in two different regions. HA and AS are nothing alike.

Agree with the above - the only real synergy I could see would be if there were a business case for consolidating mainland-HI traffic between them, and perhaps beefing up some of the direct feed to that traffic given AS's more extensive service east across the continent. But I don't think that case is really viable at this time.


User currently offlineBigGSFO From United States of America, joined Jun 2005, 2910 posts, RR: 6
Reply 5, posted (1 year 3 months 4 weeks 1 day 2 hours ago) and read 4324 times:

Short answer: no. Also, there is too much overlapping of routes/markets now between the mainland/Alaska and Hawaii. The DOJ would take issue with that. Competition would decrease and that's bad for consumers. There is nothing in the public's best interest about this merger.

User currently offlineSANFan From United States of America, joined Aug 2006, 5343 posts, RR: 15
Reply 6, posted (1 year 3 months 4 weeks 1 day 2 hours ago) and read 4226 times:

Quoting Mortyman (Reply 2):
Hasn't this been discussed numerous times before on this forum?

Yes, to a point beyond tedium. OP, please do a search and see what's already been said -- MANY times...

bb


User currently offlineBC77008 From United States of America, joined Sep 2011, 292 posts, RR: 0
Reply 7, posted (1 year 3 months 4 weeks 1 day 1 hour ago) and read 4153 times:

Quoting Gonzalo (Thread starter):
Could this two airlines see its operations as complementary, and try a merger ?



"He waited his whole damn life to take that flight. And as the plane crashed down he thought 'Well isn't this nice...'"
User currently offlinestlgph From United States of America, joined Oct 2004, 9293 posts, RR: 25
Reply 8, posted (1 year 3 months 4 weeks 1 day 1 hour ago) and read 4151 times:

Alaska is currently trading around $62. Hawaiian is currently trading around $5.80.
Blackrock, Vanguard, State Street, Acadian, JP Morgan - are all some of the largest share holders in both companies. Given the price difference, a merger would serve little purpose for either of their portfolios.



Eternal darkness we all should dread. It's hard to party when you're dead.
User currently offlineBigGSFO From United States of America, joined Jun 2005, 2910 posts, RR: 6
Reply 9, posted (1 year 3 months 4 weeks 1 day 1 hour ago) and read 4130 times:

Quoting BC77008 (Reply 7):
Quoting Gonzalo (Thread starter):
Could this two airlines see its operations as complementary, and try a merger ?

Best. Response. Ever.  


User currently offlineLHCVG From United States of America, joined May 2009, 1541 posts, RR: 1
Reply 10, posted (1 year 3 months 4 weeks 1 day 1 hour ago) and read 4101 times:

Quoting BigGSFO (Reply 9):
Quoting BC77008 (Reply 7):Quoting Gonzalo (Thread starter):
Could this two airlines see its operations as complementary, and try a merger ?

Best. Response. Ever.

It was only a matter of time before Grumpy Cat made his appearance on these esteemed forums!


User currently onlineKD5MDK From United States of America, joined Mar 2013, 296 posts, RR: 0
Reply 11, posted (1 year 3 months 4 weeks 1 day ago) and read 3956 times:

Quoting stlgph (Reply 8):

I don't disagree with your outcome, but the share price is irrelevant.

T has a share price of 36.57 right now and a market cap of 200B. ALK has a share price of 59.04 and a market cap of 4.17B. Which is worth more as a company?


User currently onlineTomassjc From United States of America, joined Jan 2010, 839 posts, RR: 2
Reply 12, posted (1 year 3 months 4 weeks 23 hours ago) and read 3886 times:
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Quoting AeroWesty (Reply 3):
No. Two different goals in two different regions. HA and AS are nothing alike.

Not quite. AS and HA have very similar corporate cultures, service goals, and both a record of high customer satisfaction and on time performance. The similarities between the states of Alaska and Hawaii are not all that extreme. Both have native populations, are isolated, and depend on air service within the state in order to get somewhere quickly. Outside of that.....it's HAS been discussed....

Quoting SANFan (Reply 6):
Yes, to a point beyond tedium. OP, please do a search and see what's already been said -- MANY times...

        

Tomas SJC



When once you have tasted flight, you will forever walk the Earth with your eyes turned skyward -Leonardo DaVinci
User currently onlineAeroWesty From United States of America, joined Oct 2004, 20352 posts, RR: 62
Reply 13, posted (1 year 3 months 4 weeks 23 hours ago) and read 3810 times:

Quoting Tomassjc (Reply 12):
Not quite.

Perhaps then you could detail for us the far-flung international goals Alaska Airlines has stated and embarked upon in comparison to Hawaiian Airlines.  



International Homo of Mystery
User currently offlineawacsooner From United States of America, joined Jan 2008, 1882 posts, RR: 1
Reply 14, posted (1 year 3 months 4 weeks 22 hours ago) and read 3730 times:

Quoting Mortyman (Reply 2):
Has'nt this been discussed numerous times before on this forum ?

About as much as when NW/DL will retire their DC-9's


User currently onlineTomassjc From United States of America, joined Jan 2010, 839 posts, RR: 2
Reply 15, posted (1 year 3 months 4 weeks 21 hours ago) and read 3662 times:
Support Airliners.net - become a First Class Member!

Quoting AeroWesty (Reply 13):
Perhaps then you could detail for us the far-flung international goals Alaska Airlines has stated and embarked upon in comparison to Hawaiian Airlines.


As far as THIS statement goes, true, AS and HA are nothing alike. I simply mentioned what similarities that the two carriers share, as you made a blanket statement "HA and AS are nothing alike"  

[Edited 2013-03-26 12:23:41]


When once you have tasted flight, you will forever walk the Earth with your eyes turned skyward -Leonardo DaVinci
User currently offlinedenverdanny From United States of America, joined Sep 2007, 258 posts, RR: 0
Reply 16, posted (1 year 3 months 4 weeks 21 hours ago) and read 3586 times:

I'm putting forth two potential names for the airline, should there be a merger. 4950, 'cause I'm not sure there's ever been a number for an airline. That would be interesting, and everything ending in fifty has a grander sound. (Psst, also a fun and secret geography test!) Or, something to fill the entire length of the fuselage, like Humuhumunukunukuapua'Airlines. Now serving baked alaska. Both names would be interesting advertising wise.

[Edited 2013-03-26 12:52:38]

[Edited 2013-03-26 12:53:21]

User currently offlineHiFlyerAS From United States of America, joined Jul 2011, 923 posts, RR: 2
Reply 17, posted (1 year 3 months 4 weeks 21 hours ago) and read 3586 times:

People that discount this from happening aren't seeing the beauty of it. You have two similar airlines in many ways...excellent customer service, stellar on-time, outliers in the industry. Connect ANC and SEA with some of HA's Asia destinations and you'd have a formidable competitor over a vast area of the world. I wish I was clever enough to merge the AS and HA route maps...if I could I'm sure it'd be a beautiful thing.

User currently offlineawacsooner From United States of America, joined Jan 2008, 1882 posts, RR: 1
Reply 18, posted (1 year 3 months 4 weeks 20 hours ago) and read 3490 times:

Quoting denverdanny (Reply 16):
I'm putting forth two potential names for the airline, should there be a merger.

How about "The Non-Continental" Airlines?


User currently offlinedenverdanny From United States of America, joined Sep 2007, 258 posts, RR: 0
Reply 19, posted (1 year 3 months 4 weeks 20 hours ago) and read 3483 times:

Quoting awacsooner (Reply 18):
How about "The Non-Continental" Airlines?

That's pretty good.


User currently offlineBigGSFO From United States of America, joined Jun 2005, 2910 posts, RR: 6
Reply 20, posted (1 year 3 months 4 weeks 17 hours ago) and read 3259 times:

Quoting HiFlyerAS (Reply 17):
People that discount this from happening aren't seeing the beauty of it.

Not much beauty in it when people in Anchorage or Portland or San Diego have to pay a higher fare to Hawaii because there's no other nonstop competition. Those are the things that get examined by the feds, not how awesome it would be to fly from Fairbanks to Pago Pago on the same airline.

I just don't see the value as a shareholder or as a customer.


User currently offlineHiFlyerAS From United States of America, joined Jul 2011, 923 posts, RR: 2
Reply 21, posted (1 year 3 months 4 weeks 17 hours ago) and read 3222 times:

Quoting BigGSFO (Reply 20):
I just don't see the value as a shareholder or as a customer.

I have a feeling that the customer is winning out over the shareholder here. Fares are high everywhere.

AS would be a stronger, more formidable company if they merged/purchased HA. UA and DL still have plenty of flights to Hawaii....I don't think that there would be the big anti-competition issue that people seem to think would cause the feds to take note. There isn't that much overlap...and AS has no service from SFO or LAX to Hawaii. The hardest part about the whole thing would be what to name the damn thing as noted earlier. I'm sure some branding firm could come up with the perfect name for the right price.


User currently offlinesuperdash From United States of America, joined Sep 2003, 574 posts, RR: 0
Reply 22, posted (1 year 3 months 4 weeks 16 hours ago) and read 3110 times:

I think a Delta-Hawaiian merger makes more sense.

User currently offlineAirport From , joined Dec 1969, posts, RR:
Reply 23, posted (1 year 3 months 4 weeks 16 hours ago) and read 3071 times:

On a slightly related note, it's too bad HA didn't contract their regional flying out to QX. They missed a golden opportunity to call it Hawaiizon Air.  

User currently offlinePassedV1 From United States of America, joined Oct 2012, 220 posts, RR: 0
Reply 24, posted (1 year 3 months 4 weeks 13 hours ago) and read 2527 times:

Quoting BigGSFO (Reply 5):
Short answer: no. Also, there is too much overlapping of routes/markets now between the mainland/Alaska and Hawaii. The DOJ would take issue with that. Competition would decrease and that's bad for consumers. There is nothing in the public's best interest about this merger.

There are actually only a relatively few routes that HA and AS overlap on actually. This is why HA is buying the NEO's.

Also, although Alaska has the largest number of flights between the US mainland and Hawaii, it is acutally not one of the larger players in the market.

These two companies even combined are small potatoes. The Justice department wouldn't do anything.


25 RWA380 : Yes, the new carrier will operate 763's ANC-HND & 330's Flying HNL-ANC-LHR or HNL-SEA-LHR, and 738's HNL-NAN.
26 Post contains images Darksnowynight : Good one.
27 stlgph : If it was a different group of core investors, then yes. But it's not.
28 HNL-Jack : While their routes are quite complimentary, such a merger would provide little benefit in additional revenue generation or economy of scale. And, at t
29 LHCVG : My assumption was that even though AS is a relatively small player, their extensive coverage on the West Coast and somewhat inland would give numerou
30 pennphila : Don't see what the point would be. HA already has a good west coast network. Plus with the a321neo I'm sure that's gonna help. If anything I'd see the
31 HiFlyerAS : The whole point of a AS/HA merger would be that with just a few additional routes added they'd be a major player in the US. You'd have service from A
32 slcdeltarumd11 : I agree the netorks could compliment each other but a merger makes no finanical sense. The airlines could partner up and offer connections all they wa
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