baxter
Posts: 52
Joined: Sun Jul 08, 2007 11:55 am

Aloha And Hawaiian To Merge

Wed Dec 19, 2001 2:45 pm

 
FlagshipAZ
Posts: 3192
Joined: Sun Jan 28, 2001 12:40 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 2:52 pm

Sounds legit to me. Guess we'll know come Wednesday afternoon. I wouldn't be all surprised if Aloha were to merge into Hawaiian. Hawaiian is the stronger of the two. Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
 
elal106
Posts: 939
Joined: Mon Jan 10, 2000 1:50 pm

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 2:53 pm

I smell a merger or buyout coming!!!!!!!!!!
 
174thfwff
Posts: 2831
Joined: Thu Sep 04, 2003 12:47 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 2:57 pm

great move! Why have 2 airlines there and both struggle when you can combine efforts and make some profit?

-Peace In-
174thfwff
Brooklyn, Queens, Manhattan, Staten, Uptown, what now? Lets make it happen.
 
FTraveler
Posts: 71
Joined: Tue May 22, 2001 5:59 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 5:50 pm

Great! More airline industry jobs lost and consumers will definitely get screwed. No more inter-island competition means higher fares. There are no freeways, trains or buses to get from one island to another - you have to fly.
 
Superfly
Posts: 37735
Joined: Thu May 11, 2000 8:01 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 5:54 pm

Sounds like a monopoly to me.
Didn't the same thing happen in Alaska?
Are they happier now with just one airline?


I'll really miss those Aloha Dash-8s.  Sad
Bring back the Concorde
 
baxter
Posts: 52
Joined: Sun Jul 08, 2007 11:55 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 6:16 pm

Further information says this might be linked to Coleman Andrews, Greg Brenneman and the Texas-Pacific group headed by David Bonderman.
 
rlwynn
Posts: 1110
Joined: Fri Dec 15, 2000 3:35 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 9:47 pm

I guess this is why Aloha pilots were at Long Beach not long ago.
I can drive faster than you
 
rj777
Posts: 1550
Joined: Sat Dec 02, 2000 1:47 am

RE: Aloha And Hawaiian To Merge

Wed Dec 19, 2001 11:04 pm

It'll be great to see some 737 in Hawaiian's colors.
 
travelin man
Posts: 3198
Joined: Tue Mar 14, 2000 10:04 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 1:49 am

This must mean that Hawaii will HAVE to allow other carriers (i.e. AA, UA, etc.) to offer inter-island service. Someone can correct me, but isn't it prohibited right now that nobody can offer scheduled interisland service with the exception of Aloha and Hawaiian?

I thought I recalled reading that somewhere.
 
Adam84
Posts: 1368
Joined: Sat Jul 24, 1999 6:10 pm

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 1:56 am

Now thats a monopoly, Hawaiian charges the higher fare of the two also. Anyways US carriers can carry passengers interisland as it is. But they will most likely choose not to as the majority of them have codeshare agreements with Hawaiian or Aloha. The only route I believe that has other carriers is OGG-HNL-OGG, and thats with Delta and ATA.
 
jetBlue320
Posts: 319
Joined: Thu Feb 10, 2005 3:01 pm

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 2:14 am

Hmmmm, This is rather odd. I am guessing that Hawaiian will return the 737NG to Boeing Deeming it Useless against their own fleet. The props will go too. It will just be more money coming to Hawaiian, and they will probably order a few more 717, and 767-300 Aircraft. There is no need to keep Aloha's 737s when Hawaiian has their own 717, and 767-300 fleet. Think about it. Currently, Hawaiian has 717 INTER-ISLAND Service and 767-300 OVERWATER Service. Aloha has DASH 8 Inter-Island Service, and 737 OVERWATER service. I do not think Hawaiian will be sending Narrowbodies overwater, and they will not want 737s when they have brand-new 717s Inter-Island. They might trade the 737s in for some 717s to match with Fleet Commonality. I Guess what I am trying to say is. I DO NOT WANT TO SEE A 737 IN HAWAIIANs COLORS.
 
Jason Seiple
Posts: 686
Joined: Thu Mar 02, 2000 7:42 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 2:36 am

Jacob,
Actually Aloha flies B737-200's interisland and the B737NG's go to the mainland. Most of Aloha's B737's are interisland, flying the same routes as Hawaiian B717's. The props fly into small markets that either could not support a jet aircraft or where it is impossible for a jet aircraft to take-off due to runway length, obstructions, etc.

Overwater narrowbodies are great for thin markets. If this goes through, why would the new airline drop the B737NG's when they can operate to secondary cities on the US west coast?
 
travelin man
Posts: 3198
Joined: Tue Mar 14, 2000 10:04 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 2:37 am

If Hawaiian got rid of the 737's it is likely they would have to stop serving markets such as SNA (which can't support 767s) and OAK. The 737's fill a valuable niche in the fleet.
 
elal106
Posts: 939
Joined: Mon Jan 10, 2000 1:50 pm

RE: Rlwynn

Thu Dec 20, 2001 3:15 am

hey Rlwynn,

How did you know there were aloha pilots at long beach recently?


elal106
 
woodsboy
Posts: 899
Joined: Sat Mar 18, 2000 5:59 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 3:16 am

Hmmm.......I dont see the 737NG fitting very well w/the Hawaiian fleet. Did anyone notice that on that web page (The Hawaii Channell) they listed the fleet of Aloha of only being made up of 737-200s and 737-200QCs? They didnt even mention the -700s or the Dash-8s.

I had recently read that Aloha's Oakland service wasnt making them any money for one reason or another, so maybe its a pink elephant that needn't be kept on life support anyway??

Anyway, I just cant see any of the 737-200s being kept, its a heavy gas hog when compared to the 717. Does Aloha use any of their 737-200QCs for cargo? Maybe they would keep those although Alaska Airlines must be salivating at the prospect of US operated 737-200QCs potentially becoming available. This whole situation could very well (almost certainly) mean more 717 orders at a time when they need those orders!
 
Guest

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 3:36 am

The Dash-8's are owned by Island Air, a completely different carrier than Aloha. They have an affiliation with Aloha, but are not the same. Island Air would remain as they provide valuable air service into airports such as Princeville, West Maui, Hana, Lanai, and Molokai. Hawaiian serves Molokai and Lanai with a 717 twice daily, but nowhere near the frequency than is required in those markets where Island Air fills in the void.
 
SegmentKing
Posts: 3224
Joined: Sun Aug 27, 2000 7:16 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 4:55 am

I think you folks are forgetting that only ALOHA hits some far-reaching cities with the 737-700s and -200s using ETOPS, something the 717 isn't certified for.

It will take a year to make HA/AQ come together in one piece....

-nate
~ ~ ~ ~ pRoFeSsIoNaL hUrRiCaNe DoDgEr ~ ~ ~ ~
 
762er
Posts: 522
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RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 4:58 am

Brenneman will get the job done. He is an excellent leader and he can bring employees together. Just look at what he did for Continental.
 
Jj
Posts: 1189
Joined: Sun Jun 24, 2001 7:40 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 6:18 am

i guess that the 737-700's will be kept for the services to easter island and midway islands

jj
 
boeingmd82
Posts: 231
Joined: Thu Jun 21, 2001 11:14 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 6:39 am

I actually do see the B737 staying in the Hawaiian fleet after the merger.

If United or AA do not get into the inter-island business, we are going to see the need for aircraft larger than the 717 needed on heavy routes to OGG and LIH.

Right now, if you look at the schedule, Hawaiian and Aloha have flights leaving almost the same time to keep up with demand. That means that after the merger, Hawaiian would need to schedule 2 717s for the same route at the same time. Wouldn't it be more efficient and cheaper just to put a 1 B737-800 on the route and fly just one plane? The mixed fleet thing should not be a factor if you ask me. They have all the expertise and equipment in-house already to maintain the 737s.

Of course the United question could change everything. They have wanted to get into the inter-island business for a while and with Aloha gone, they might jump at the chance.

Just my 2c.

BMD82
 
penguinflies
Posts: 932
Joined: Thu Apr 06, 2000 12:00 pm

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 7:04 am

On the interisland service..any airline can offer service.

Heard this on KITV this morning...they gave the rumor that Greg B from Continental might be a part of new management.

The news also reported that HA would assume all of AQ's debt.

Back in the day (1990s) UAL flew DC-10s between the islands. Something like the LAX flight would arrive at noon, then fly OGG-HNL, KOA-HNL and then fly the red eye back to LAX. That wasn't the exact schedule, but just an example.

Most of the traffic yeild is being depleted since carriers like AA and UA are flying direct service to smaller islands, so the use of a connection carrier is not as important.

I know Island Air is operated as a seperate carrier, but they are owned by Aloha Air Group.
 
woodsboy
Posts: 899
Joined: Sat Mar 18, 2000 5:59 am

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 7:09 am

Yes, I guess the 737-700 would still be needed for the S. Pacific flying that serves destinations with no need for a 767-300. I think alot of are getting caught up in the "fleet commonality" that many airlines are getting into and sometimes you just cant avoid having different types of a/c with different jobs.

Who knows, maybe the 717 will get a range extension and maybe even a stretch. HA's need for alonger range a/c might be what launches a 717-300?! We know the MD-82 is capable of flying segments like LAX or SFO to HNL carrying more pax than a 737-700 so the 717 with more efficient engines could easily be stretched to do the same job.
 
alexinwa
Posts: 867
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RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 9:45 am

It's for real now!!!!
You mad Bro???
 
JayDavis
Posts: 1870
Joined: Wed Jan 10, 2001 1:09 pm

RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 10:03 am

Kinda funny in a way, because I remember how weak Hawaiian used to be and if I remember correctly, they have declared bankruptcy once. Maybe Southwest will start a division over there to give Hawaiian some competition !!
ha ha !!

Jay
 
dragon-wings
Posts: 3907
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RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 10:30 am

Aloha, Hawaiian airlines to merge
By CBS.MarketWatch.com
Last Update: 7:11 PM ET Dec. 19, 2001


HONOLULU -- Hawaii's two inter-island airlines announced a merger Wednesday.

Gov. Ben Cayetano said the combination of Hawaiian (HA: news, chart, profile) and Aloha airlines likely would lead to higher fares and layoffs but the state will not oppose it.

Ahead of the news, Hawaiian Airlines shares rose a dime to $2.50.

The airlines said they agreed to freeze unrestricted inter-island fares for two years and to link them to inflation and other industry-wide cost increases for three years after that.

The merged airline will be operated by a new company to be headed by Greg Brenneman, who led Continental Airlines to its turnaround as its president and chief operating officer.

``This merger is the best thing these two great airlines could do for the people and economy of Hawaii,'' Brenneman said in a statement released by the airlines.

The companies said, once combined, they expect revenue to hit $1 billion annually, ranking as the nation's 10th biggest carrier. Approval of regulatory agencies is expected in the first half of 2002, according to a statement.

Aloha's routes include links from Hawaii to Oakland and Orange County, Calif., and Las Vegas. Besides flying to several Pacific islands, its Island Air unit connects all the Hawaiian islands. Its fleet comprises 18 Boeing 737s.

Hawaiian's fleet includes a mix of DC-10s and Boeing jets, but it began phasing in new 767s last month to replace the DC-10s. Its routes to the mainland go to Seattle, Portland, San Francisco, Los Angeles, San Diego and Las Vegas; Pacific routes go to Samoa and Tahiti.

Just weeks after the Sept. 11 tragedy grounded the nation's commercial flights, Hawaiian cut 430 jobs. Aloha cut its flights by 26 percent.

The Associated Press contributed to this report.
Don't give up don't ever give up - Jim Valvano
 
dragon-wings
Posts: 3907
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RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 10:36 am

Here is a better written story about the merger:

Aloha, Hawaiian to Merge
Airline Industry Leader Greg Brenneman to Head Combined Company
HONOLULU--(BUSINESS WIRE)--Dec. 19, 2001--In a move designed to ensure the continued viability of Hawaii's interisland air service in a changing marketplace, Aloha Airgroup, Inc. and Hawaiian Airlines, Inc. (AMEX:HA - news; PCX:HA) today agreed to merge Hawaii's two air carriers under a new holding company, Aloha Holdings, Inc.

The new company will be headed by Greg Brenneman, the former president and chief operating officer of Continental Airlines, who for six years helped lead that carrier's spectacular turnaround. Brenneman will serve as chairman and chief executive officer of Aloha Holdings, Inc., which will be a public company traded as Hawaiian Airlines under the ticker symbol HA on the American Stock Exchange (AMEX) and the Pacific Stock Exchange (PCX).

The combined carrier is committing to hold unrestricted interisland fares for two years, and for an additional three years to link increases in those fares to inflation and other adjustments that affect all airlines, such as increased insurance and security rates due to September 11. Beyond this, the carrier will work with the State Attorney General to ensure fair prices for all consumers, including those who currently can arrange their travel at lower fares.

Both Aloha and Hawaiian have been adversely impacted by the global economic slowdown and the dramatic reduction in Hawaii visitors since the tragic events of September 11. These and other financial factors, such as the continuing trend toward more direct flights from the mainland U.S. to Hawaii's Neighbor Islands, have made it uneconomical to maintain dual interisland operations.

``This merger is the best thing these two great airlines could do for the people and economy of Hawaii,'' said Brenneman. ``This state is dependent, like no other place in our country, on frequent, affordable, reliable local air service. The merger will create a flagship carrier for Hawaii that will not only allow the continuation of interisland service that Hawaii depends on, but will also provide the financial muscle and staying power needed to allow us to bring more visitors to Hawaii by growing in new markets, on the Mainland and in the Pacific.''

Since leaving Continental in May 2001, Brenneman has served as chairman and CEO of TurnWorks, Inc., a Texas-based company he founded in 1994, shortly before moving to Continental. TurnWorks invests in and works with firms needing executive turnaround leadership, management expertise and financial re-engineering. During Brenneman's six years as Continental's president and chief operating officer, he worked with management and employees as they developed and implemented a plan which resulted in a dramatic turnaround. Continental moved to the top of the industry in most major airline performance indicators, resulting in a dramatic improvement in shareholder value, reversing 16 years of losses. The company was recognized for outstanding service, including winning the J.D. Power, Frequent Flyer Magazine Award five out of six years for the best customer service of any U.S. air carrier. Continental climbed as high as Number 18 in Fortune (magazine's) ``100 Best Places to Work in America'' before Brenneman's departure.

``I look forward to working closely with all the employees of the new airline as we focus on the basics of providing a great product delivered by people who like coming to work,'' said Brenneman.

The merger is expected to strengthen the company by generating savings of approximately $90 million from the consolidation of operations, elimination of excess aircraft and the coordination of flight schedules, ticket distribution and other functions. The company hopes to minimize the number of employees displaced as a result of the merger and, once profitability is reached, quickly grow so that everyone can come back to work. Brenneman plans to closely involve the unions and employees in making the integration of the two companies a success.

The new airline is expected to have annual revenues of approximately $1 billion, ranking it 10th largest among U.S. carriers, with solid prospects for growth.

The combined company will continue to operate the interisland, Mainland, and Pacific routes currently served by Aloha and Hawaiian, including the operations of Aloha's sister carrier, Island Air, linking Hawaii's primary and secondary airports. The new company also will continue to provide dedicated interisland freight/cargo service.

Aloha and Hawaiian's airline alliance partners will be able to keep their current contracts until they expire. Brenneman said the aim is to work with these partners to develop new agreements as well as to work closely with any airline that wishes to connect its passengers between the Islands.

Under terms of the merger agreement, current Hawaiian Airlines' shareholders will receive approximately 52 percent of the combined company and a six-year, 8-percent note with a face value of $2 per share. Of the 52 percent, Airline Investors Partnership (AIP), Hawaiian's current majority owner, will receive approximately 28 percent and Hawaiian's public shareholders will receive approximately 24 percent. Aloha Airgroup shareholders will receive approximately 28 percent of the combined company, and TurnWorks will receive approximately 20 percent. Additional details regarding the transaction are described in the Annex attached hereto.

An 11-member board of directors will govern Aloha Holdings, Inc. Three members will represent major employee labor units. In addition to Chairman and CEO Brenneman, Han ``Sonny'' Ching will serve as vice chairman. Ching has been chairman of the board of Aloha Airgroup since 1993.

Ching said, ``We see this new venture as the evolution of what Aloha began more than 55 years ago -- an airline especially dedicated to the people of Hawaii. We are fortunate to have a highly respected airline executive like Greg Brenneman to help us carry on this tradition.''

John Adams, chairman of the board of Hawaiian Airlines, said, ``Combining these two companies is something that makes sense now. The events of September 11, the distressed economic climate, and the interest expressed by TurnWorks were the catalysts for taking this step. The merger will create both immediate and long-term benefits for the flying public, Hawaii residents, and the Hawaii economy, as well as for our shareholders.''

The closing is subject to certain federal and state antitrust and other regulatory approvals, which are expected to be obtained in the first half of 2002. Aloha Airgroup's President and CEO Glenn Zander and Hawaiian Airlines' Vice Chairman and CEO Paul Casey plan to retire from their companies when the transaction closes.

Zander said: ``The completion of this merger will fulfill my mission at Aloha, which is to provide a financially stable air carrier that serves the needs of Hawaii and has the strength to expand into new markets. Stability, strength and growth will enable Hawaii's airline to bring increased economic benefits to the state for many years to come.''

Aloha Airlines was founded in 1946 as Trans-Pacific Airlines and is today the largest provider of interisland air transportation services in Hawaii, including passenger, air cargo and contract services. In addition, Aloha offers daily trans-Pacific scheduled air service between Hawaii and Oakland and Orange County in California, as well as Las Vegas, Nevada. Aloha's sister carrier, Island Air, operates scheduled air service to Hawaii's smaller airports.

Founded in 1929 as Inter-Island Airways, Hawaiian Airlines is the first and largest Hawaii-based airline. From Honolulu, Hawaiian provides scheduled and charter air transportation of passengers, cargo and mail among the islands of Hawaii and between Hawaii and seven Western U.S. gateway cities and two destinations in the South Pacific. The nation's 12th-largest carrier, it is also the second-largest provider of trans-Pacific air service between the U.S. mainland and Hawaii.

TurnWorks, Inc., a Texas-based private equity investment firm founded in 1994, focuses on corporate turnarounds and provides services such as management expertise, financial re-engineering, executive search and growth capital.

Mercer Management Consulting provided strategic consulting services in support of the merger.

Additional information on Aloha Airgroup and Hawaiian Airlines is available at www.alohaairlines.com and www.hawaiianair.com. In addition, an investors' presentation is available at www.hawaiianair.com. Updated information on the merger will be posted on both sites as it becomes available.

Don't give up don't ever give up - Jim Valvano
 
jetBlue320
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RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 12:00 pm

Hmm, I wonder if this is a sign. What a Cowinkydinky.
 
sfointern
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RE: Aloha And Hawaiian To Merge

Thu Dec 20, 2001 12:19 pm

What are the ramifications for the alliances?

Hopefully, the new entity will stick with U N I T E D as its partner...

  • SFO
  •  
    ILS
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    RE: Aloha And Hawaiian To Merge

    Thu Dec 20, 2001 12:21 pm


    Click for large version
    Click here for full size photo!

    Photo © Chris Banyai-Riepl

     
    Guest

    RE: Aloha And Hawaiian To Merge

    Thu Dec 20, 2001 12:41 pm

    I guess my shots of the Hawaiian and Aloha will become rare depending on which airline makes it.
     
    Trvlr
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    RE: Aloha And Hawaiian To Merge

    Thu Dec 20, 2001 1:28 pm

    My thoughts:

    Aircraft: The 737-200s will go (or become dedicated freighters), the 737NGs will stay, and as more 767-300s become available, we'll probably a few perennial interisland flights using them.

    Routes: The 737NGs will probably be useful to open up more secondary-city-pair service to the mainland, as well as to the South Pacific island nations. I think there will also be a midwest/eastern USA city getting direct flights in the near future, as well as serious consideration of Phoenix as the next western destination. Lastly, it's not hard for me to see an Australia/NZ city being serviced within the next 10 years.

    Alliances: It doesn't really seem to me like there's a single carrier that's totally calling the shots in this one, so I'm not sure what the alliance structure's going to be like. We may even see continuation of both Aloha's UA agreement and Hawaiian's AA agreement. Mid-size airlines like Alaska don't do too badly having agreements with multiple majors, so why shaft one when you can have the best of both worlds?

    Interisland service by other carriers: I think that we will soon see airlines start to add flights on interisland routes as continuations of flights to the mainland. For instance, UA would operate SFO-HNL-OGG or LAX-OGG-LIH, American would do DFW-HNL-LIH, DFW-HNL-OGG, etc etc. I think most of the airlines would be a bit hesitant to open up a narrowbody base at HNL; right now they're probably not very interested in the extra costs associated with setting up a hub at HNL.

    Aaron G.
     
    hawaiian717
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    RE: Aloha And Hawaiian To Merge

    Thu Dec 20, 2001 6:50 pm

    My own thoughts and feelings that I've been churning through my head all day...

    Hawaiian's fleet will make up the backbone of the new carrier, the 717s handling interisland flights and the 767s handling the major westcoast and South Pacific flights. However, Aloha's 737-700s could remain as well, serving Aloha's current destinations as well as expanding service to other cities that could not be served economically with the much larger 767-300ER. Additionally, 737-700QCs could take over the current night cargo operation of the 737-200QCs, operating longer flights during the day. Unless Boeing offers a 717-200QC. Island Air's Dash 8s will also remain as part of the new airline.

    Don't look for immediate growth to new cities by the new carrier, but once things get settled I do expect them to expand. Among the various things I've read about the merger today, I recall reading something about Brenneman wanting to expand to new markets, a move that would allow them to recall workers affected by layoffs.

    Looking at the way things are structured, it looks to me like this is a true merger, not a buyout (which is what most recent "mergers" really are). Both companies stocks will be sold to Aloha Holdings which would then merge the operations. The announced plan for Aloha Holdings stock to trade under the Hawaiian Airlines name and ticker symbol seems to indicate that Hawaiian Airlines will be the name of the new carrier, but this could be simply a formality for now and could be changed if a different name is ultimately selected.

    A lot of people seem to be convinced that the merger will result in raising airfares. While this certainly is a possiblity, it is also possible that the resulting cost savings of combining the two airlines may allow the new airline to be profitable without raising airfares. I also believe as the airline industry recovers, another entrant will enter the Hawaii market, either an established mainland carrier such as Southwest, JetBlue, or even one of the majors, one of the small interisland carriers such as Pacific Wings, or another new upstart hoping that they'll fare better than Mid Pacific Airlines and Mahalo Air with only one major competitor rather than two.

    As far as the alliances go, Aloha Holdings intends to honor all of the current agreements to their expiration. After that it's less clear as I imagine new agreements will be sought. Early indications seem to indicate though that Brenneman is interested in establishing a relationship with any airline wishing to have an interisland partner.

    I haven't quite figured out yet whether or not how difficult getting government approval will be. The Hawaii state governement agencies appear to have been aware of the plan for some time now and some elements of the merger plan seem to have been developed in conjunction with them to resolve any concerns they might bring up. The Federal government hasn't said anything as of yet, but the only areas that would be truely affected, the Hawaii interisland market, fall outside of the Federal government's jurisdiction as is is an intrastate commerce issue. Hawaiian and Aloha's current mainland and overseas services are much more complementary than competitive with each other, plus there is much more competition from other carriers, particularily to California where the only close overlap exists (Hawaiian to LAX and SFO, Aloha to SNA and OAK). So I don't see how the Federal government will have much grounds to try and block the merger, but who knows what government regulators can come up with if they really want to...

    I haven't come to a decision whether or not this merger is "good" or "bad" and I doubt I will. My opinion in this respect has no difference in the overall scheme of things and whatever the outcome is, plus I do not have enough information at this stage to make a decision even if I wanted to.

    David / HNL
     
    Jj
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    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 12:47 am


    What name will the new airline have????

    Perhaps it could be called:

    Aloha "Hawaiian Airlines"

    jj

     
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    lindy field
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    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 12:54 am

    I wouldn't be surprised to see Aloha's 737-200s phased out and replaced by an additional number of 717s. They probably don't need to replace the 732s on a one-to-one basis because I'm sure they'd prefer to fill their flights. The merger is probably good for employees who will not lose their jobs (as they would if Aloha failed) but bad for the Hawaiian consumer who will pay more for interisland flights in the future.
     
    Guest

    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 1:13 am

    Well I have heard that Hawaiian does want another 5 717s to add to their fleet and they have told Boeing that as well. Now I wonder if they plan on keeping both SFO and OAK? What about SNA? Since SNA is between LAX and SAN but closer to LAX, will SNA loose the hawaii flights?
     
    User avatar
    lindy field
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    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 1:42 am

    Why should the merged carriers cease ops to SNA or OAK if the operations are profitable? Plenty of carriers fly to OAK, SJC, and SFO from the same hubs, just as you might find flights from a given hub to SNA, LGB, LAX, BUR, and ONT. It's about money in the end.
     
    Guest

    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 1:45 am

    It was just a thought that ran through my head. Sometimes airlines do things like that. Don't ask me why.

    Stephen
     
    hnl-jack
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    Official Press Release

    Fri Dec 21, 2001 3:07 am

    Here's the official release:

    FOR IMMEDIATE RELEASE
    > Wednesday, December 19, 2001
    > Contact:
    > Stu Glauberman, Aloha Airgroup, (808) 539-5947
    > Keoni Wagner, Hawaiian Airlines, (808) 833-6778
    > Owen Blicksilver, TurnWorks, (516) 742-5950
    > Alison Russell, Communications-Pacific, (808) 543-3542
    >
    >
    > ALOHA, HAWAIIAN TO MERGE
    > Airline Industry Leader Greg Brenneman to Head Combined Company
    >
    > HONOLULU - In a move designed to ensure the continued viability of
    > Hawaii's interisland air service in a changing marketplace, Aloha
    > Airgroup, Inc. and Hawaiian Airlines, Inc. (AMEX/PCX "HA") today agreed to
    > merge Hawaii's two air carriers under a new holding company, Aloha
    > Holdings, Inc.
    >
    > The new company will be headed by Greg Brenneman, the former president and
    > chief operating officer of Continental Airlines, who for six years helped
    > lead that carrier's spectacular turnaround. Brenneman will serve as
    > chairman and chief executive officer of Aloha Holdings, Inc., which will
    > be a public company traded as Hawaiian Airlines under the ticker symbol HA
    > on the American Stock Exchange (AMEX) and the Pacific Stock Exchange
    > (PCX).
    >
    > The combined carrier is committing to hold unrestricted interisland fares
    > for two years, and for an additional three years to link increases in
    > those fares to inflation and other adjustments that affect all airlines,
    > such as increased insurance and security rates due to September 11.
    > Beyond this, the carrier will work with the State Attorney General to
    > ensure fair prices for all consumers, including those who currently can
    > arrange their travel at lower fares.
    >
    > Both Aloha and Hawaiian have been adversely impacted by the global
    > economic slowdown and the dramatic reduction in Hawaii visitors since the
    > tragic events of September 11. These and other financial factors, such as
    > the continuing trend toward more direct flights from the mainland U.S. to
    > Hawaii's Neighbor Islands, have made it uneconomical to maintain dual
    > interisland operations.
    >
    > "This merger is the best thing these two great airlines could do for the
    > people and economy of Hawaii," said Brenneman. "This state is dependent,
    > like no other place in our country, on frequent, affordable, reliable
    > local air service. The merger will create a flagship carrier for Hawaii
    > that will not only allow the continuation of interisland service that
    > Hawaii depends on, but will also provide the financial muscle and staying
    > power needed to allow us to bring more visitors to Hawaii by growing in
    > new markets, on the Mainland and in the Pacific.
    >
    > Since leaving Continental in May 2001, Brenneman has served as chairman
    > and CEO of TurnWorks, Inc., a Texas-based company he founded in 1994,
    > shortly before moving to Continental. TurnWorks invests in and works with
    > firms needing executive turnaround leadership, management expertise and
    > financial re-engineering. During Brenneman's six years as Continental's
    > president and chief operating officer, he worked with management and
    > employees as they developed and implemented a plan which resulted in a
    > dramatic turnaround. Continental moved to the top of the industry in most
    > major airline performance indicators, resulting in a dramatic improvement
    > in shareholder value, reversing 16 years of losses. The company was
    > recognized for outstanding service, including winning the J.D. Power,
    > Frequent Flyer Magazine Award five out of six years for the best customer
    > service of any U.S. air carrier. Continental climbed as high as Number 18
    > in Fortune (magazine's) "100 Best Places to Work in America" before
    > Brenneman's departure.
    >
    > "I look forward to working closely with all the employees of the new
    > airline as we focus on the basics of providing a great product delivered
    > by people who like coming to work," said Brenneman.
    >
    > The merger is expected to strengthen the company by generating savings of
    > approximately $90 million from the consolidation of operations,
    > elimination of excess aircraft and the coordination of flight schedules,
    > ticket distribution and other functions. The company hopes to minimize
    > the number of employees displaced as a result of the merger and, once
    > profitability is reached, quickly grow so that everyone can come back to
    > work. Brenneman plans to closely involve the unions and employees in
    > making the integration of the two companies a success.
    >
    > The new airline is expected to have annual revenues of approximately $1
    > billion, ranking it 10th largest among U.S. carriers, with solid prospects
    > for growth.
    >
    > The combined company will continue to operate the interisland, Mainland,
    > and Pacific routes currently served by Aloha and Hawaiian, including the
    > operations of Aloha's sister carrier, Island Air, linking Hawaii's primary
    > and secondary airports. The new company also will continue to provide
    > dedicated interisland freight/cargo service.
    >
    > Aloha and Hawaiian's airline alliance partners will be able to keep their
    > current contracts until they expire. Brenneman said the aim is to work
    > with these partners to develop new agreements as well as to work closely
    > with any airline that wishes to connect its passengers between the
    > Islands.
    >
    > Under terms of the merger agreement, current Hawaiian Airlines'
    > shareholders will receive approximately 52 percent of the combined company
    > and a six-year, 8-percent note with a face value of $2 per share. Of the
    > 52 percent, Airline Investors Partnership (AIP), Hawaiian's current
    > majority owner, will receive approximately 28 percent and Hawaiian's
    > public shareholders will receive approximately 24 percent. Aloha Airgroup
    > shareholders will receive approximately 28 percent of the combined
    > company, and TurnWorks will receive approximately 20 percent. Additional
    > details regarding the transaction are described in the Annex attached
    > hereto.
    >
    > An 11-member board of directors will govern Aloha Holdings, Inc. Three
    > members will represent major employee labor units. In addition to
    > Chairman and CEO Brenneman, Han "Sonny" Ching will serve as vice chairman.
    > Ching has been chairman of the board of Aloha Airgroup since 1993.
    >
    > Ching said, "We see this new venture as the evolution of what Aloha began
    > more than 55 years ago-an airline especially dedicated to the people of
    > Hawaii. We are fortunate to have a highly respected airline executive
    > like Greg Brenneman to help us carry on this tradition."
    > John Adams, chairman of the board of Hawaiian Airlines, said, "Combining
    > these two companies is something that makes sense now. The events of
    > September 11, the distressed economic climate, and the interest expressed
    > by TurnWorks were the catalysts for taking this step. The merger will
    > create both immediate and long-term benefits for the flying public, Hawaii
    > residents, and the Hawaii economy, as well as for our shareholders."
    >
    > The closing is subject to certain federal and state antitrust and other
    > regulatory approvals, which are expected to be obtained in the first half
    > of 2002. Aloha Airgroup's President and CEO Glenn Zander and Hawaiian
    > Airlines' Vice Chairman and CEO Paul Casey plan to retire from their
    > companies when the transaction closes.
    >
    > Zander said: "The completion of this merger will fulfill my mission at
    > Aloha, which is to provide a financially stable air carrier that serves
    > the needs of Hawaii and has the strength to expand into new markets.
    > Stability, strength and growth will enable Hawaii's airline to bring
    > increased economic benefits to the state for many years to come."
    > Aloha Airlines was founded in 1946 as Trans-Pacific Airlines and is today
    > the largest provider of interisland air transportation services in Hawaii,
    > including passenger, air cargo and contract services. In addition, Aloha
    > offers daily trans-Pacific scheduled air service between Hawaii and
    > Oakland and Orange County in California, as well as Las Vegas, Nevada.
    > Aloha's sister carrier, Island Air, operates scheduled air service to
    > Hawaii's smaller airports.
    >
    > Founded in 1929 as Inter-Island Airways, Hawaiian Airlines is the first
    > and largest Hawaii-based airline. From Honolulu, Hawaiian provides
    > scheduled and charter air transportation of passengers, cargo and mail
    > among the islands of Hawaii and between Hawaii and seven Western U.S.
    > gateway cities and two destinations in the South Pacific. The nation's
    > 12th-largest carrier, it is also the second-largest provider of
    > trans-Pacific air service between the U.S. mainland and Hawaii.
    >
    > TurnWorks, Inc., a Texas-based private equity investment firm founded in
    > 1994, focuses on corporate turnarounds and provides services such as
    > management expertise, financial re-engineering, executive search and
    > growth capital.
    >
    > Mercer Management Consulting provided strategic consulting services in
    > support of the merger.
    >
    > Additional information on Aloha Airgroup and Hawaiian Airlines is
    > available at www.alohaairlines.com http://www.alohaairlines.com and
    > www.hawaiianair.com http://www.hawaiianair.com. In addition, an
    > investors' presentation is available at www.hawaiianair.com
    > http://www.hawaiianair.com. Updated information on the merger will be
    > posted on both sites as it becomes available.
    >
     
    baxter
    Posts: 52
    Joined: Sun Jul 08, 2007 11:55 am

    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 5:13 am

    Looks like airliners.net scooped the major news sources on this, especially the Brenneman connection.
     
    RJ_Delta
    Posts: 1391
    Joined: Sun Oct 22, 2000 4:17 am

    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 9:35 am

    Good for the hawaiian airlines, which will be the name of the new airline? Maybe Hawaiian Airlines.

    Regards,
    RJ_Delta.
     
    mlsrar
    Posts: 1384
    Joined: Thu Mar 09, 2000 7:41 am

    Wrong

    Fri Dec 21, 2001 2:41 pm

    I'll try to keep this civil, but I've yet to see one mention of an aircraft that has been considered by AQ for a while if their traffic picks up and shares commonality with HA's 763s.

    I'll give you one guess....come on, keep trying...that's it, you're getting warmer, oh wait, you've almost got...it.....

    That's right, the 757. An aircraft that would fit perfectly into the route structure for both airlines, both of whom are now ETOPS certified carriers. The 757, operated successfully by ATA, TWA, AA, and UA for years has provided an impeccable economical yield for the Hawaiian market. One which is typically dominated by the redemption of FF miles and displaced traveler vouchers. From the west coast, it's not cargo, the seat pitch, or the size of your engines that makes this successful, it's how cheap can you get this airframe from Point A. to HNL, knowing how few revenue seats are on board, and still squeeze out a penny of profit.

    Second. AQ's west coast service is carving out a niche in its product delivery. Their 73Gs have a classy seat pitch. With the aplomb of YX, they deliver 'Fresh-Baked' cookies, and impressive meal service. Their average W-V class fares are anywhere between $100-$150 higher because of their service level.

    We'll see 757s in AQ colors soon, and HA will learn that bigger is not better.

    Regards,

    Mike
    I mean, for the right price I’ll fight a lion. - Mike Tyson
     
    Guest

    RE: Mlsrar

    Fri Dec 21, 2001 2:49 pm

    If they do indeed merge which is their plan now, to at least attempt to go through with this, why would AQ pick up 757's before this went through?
     
    Hoffa
    Posts: 946
    Joined: Wed Nov 21, 2001 8:04 am

    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 2:56 pm

    SO serving a warm cookie is characterized as having "aplomb"  Insane

    Aren't Hawaiian and Aloha very different animals from their mainland counterparts? Firstly, because there is a sizeable market for destinations for South Pacific destinations outside the US from Hawaii and secondly because DL, AA, UA are full of frequent fliers using up their hard-earned miles while AQ and HA must try to run a more profit-centered operation with a lot of the traffic moving in the other direction also.

    If Hawaiian is moving towards ETOPS 763's, why don't they attempt to get some of the enormous Japanese tourist market. HNL-NRT is certainly possible with a 763.
     
    hawaiian717
    Posts: 3139
    Joined: Tue May 18, 1999 2:46 am

    RE: Aloha And Hawaiian To Merge

    Fri Dec 21, 2001 6:26 pm

    Hawaiian has actually had the authority to operate OGG-NRT (that's Kahului, Maui to Tokyo/Narita) for a few years now. But they never started service because they got it just as Japan's economy sunk into a recession and Japan-Hawaii travel dropped off. I'm not sure, but I think getting slots at Narita airport was also an issue.

    I don't really see the point of adding 757s.

    Also I might mention that local media here in Hawaii has been putting a bit of a negative spin on this, focusing on the potential for job cuts (one station interviewed an Aloha mechanic who had 7 years with the airline but was worried his job would be cut) and raising airfares. The new airline promisies not to raise unrestricted airfares; we all know how many people actually use those.

    David / HNL
     
    T prop
    Posts: 912
    Joined: Tue Apr 03, 2001 4:33 pm

    RE: Aloha And Hawaiian To Merge

    Sat Dec 22, 2001 1:59 am

    This paragraph is clipped from yesterdays New York times;

    'Another challenge will be combining fleets. Aloha flies Boeing (news/quote) 737's while Hawaiian is in the process of introducing the Boeing 717 to replace its aging DC-9's. It is also phasing out the wide-body DC- 10 in favor of the Boeing 767. Mr. Brenneman said he would have to meet with Boeing to work out a plan and might add some 757's.'

    So it looks like 757's are being considered. To see the rest of the article go to http://www.nytimes.com/2001/12/20/business/20AIR.html?ex=1009515600&en=61da0e72e84457e4&ei=5040&partner=MOREOVER

    T prop.
     
    762er
    Posts: 522
    Joined: Thu Feb 08, 2001 8:18 am

    RE: Aloha And Hawaiian To Merge

    Sat Dec 22, 2001 8:22 am

    They may use ETOPS 75's to compliment Aloha's service to secondary cities on the West Coast.
     
    TWA902fly
    Posts: 2869
    Joined: Fri Dec 31, 1999 5:47 am

    RE: Aloha And Hawaiian To Merge

    Sat Dec 22, 2001 9:05 am

    I believe TWA flew HNL-STL with 757s for a couple months so could we not see services like HNL-DEN, HNL-MCI.. i doubt that would happen but still

    twa902
    life wasn't worth the balance, or the crumpled paper it was written on
     
    Superfly
    Posts: 37735
    Joined: Thu May 11, 2000 8:01 am

    RE: Aloha And Hawaiian To Merge

    Sat Dec 22, 2001 9:10 am

    I am sooooo glad I flew to Hawaii last year on United's 747-200s, Aloha's 737-200s and Dash 8s (inter-Island).

    How much longer will Hawaiian use the DC-10 from the west coast?

    I would hate to fly on a 757 or 737NG that distance.
    Bring back the Concorde
     
    Guest

    RE: Aloha And Hawaiian To Merge

    Sun Dec 23, 2001 7:59 pm

    I'm not sure what to think or say, this is a complete shock to me. My whole life I've wanted to fly for Aloha, and now they're going to be gone.

    I trust Brenneman, and I'm almost certain he'll make the new airline a great one, but what will come fo this? Aside from fleet changes. What about hiring procedures? Will requirements get stricter? Will it be harder for a young pilot like myself to climb the ladder into a position at the airline?

    We all know how impossible it is to get into a major carrier on the mainland. Before this merger, you could get your PPL, take the course at HCC, get your commerical, fly for Pacific Wings, move up into Island Air, move up into Aloha, and then move up into Hawaiian. Very simple. Now, how will the be affected?

    Will fares become impossibly high? IF they want to help the Hawaii economy they better not raise fares. People have a hard enough time makeing enough money to feed the family in Hawaii and pay the bills (IT'S VERY EXPENSIVE IN HAWAII), let alone have to pay even more to commute by air, which alot of people in our state do.

    I am worried about the outcome, I guess we'll wait and see. 757s? that might be interesting to see, though I'd rather see a 717-300.  Big grin

    At any rate, people please keep replying to this thread. There are some of us here who have gambled their entire future and aviation career on what goes on in that little island state, this is very important for me.

    If you come across ANY more info PLEASE post it here, it means alot to me.

    Thanks



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    Goodbye Aloha, you were a wonderful airline. We all love you, and we will all miss you. God speed, and thank you.  Crying  Crying  Crying


    I love you Aloha..


    Aloha 737-200, signing out....