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Pohakuloa
Posts: 219
Joined: Fri Jun 09, 2006 4:28 am

RE: Should Delta Acquire Hawaiian?

Mon Dec 14, 2015 5:24 am

Quoting global1 (Reply 90):
HA's geography is not conducive to this approach. Also, I don't sense that HA has the same fire in their belly to go it alone. At least I have yet to see posts on this thread from HA employees that would indicate that.

The HA employees on this site steer clear of these threads for very good reason.

Separately to the topic of the thread, air travel in Hawaii is not just something to get from A to B, it's a necessity as it is in Alaska. A poster said a similar length segment on the mainland was 3 to 4 times more expensive, but driving is an option there, not in the islands. Any airline who would attempt to acquire HA would have more than just the normal issues with government agencies. The airways are the intrastate highway system here. If a carrier doesn't see inter-island flying as profitable enough to keep, this poses a serious problem for the residents here. This brand of flying is not an easy thing to pull off so saying anyone else could step in if they wanted to may not be a valid argument. And you can be sure there will be at least 4 to 8 congressional members pushing for either assurances before allowing a merger or fighting tooth and nail against it.

Respectfully,
Pohakuloa
Fast cars and 'Jet A' - such a sweet smell!
 
global1
Topic Author
Posts: 493
Joined: Fri Dec 19, 2014 5:31 pm

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 2:37 am

I don't envision a scenario where, should DL/HA ever gel, the inter-state flying would not continue.

Some on here say that DL would have no interest in HA because they could simply replicate their routes if they wanted. I view this as flawed because many of these routes are unique and not large enough to support another entrant.

HA is the only remaining carrier that would pass DOT/DOJ hurdles. B6 would be hampered by too much concentration at JFK and AS is too expensive and off the table now that DL has embarked on building a hub in SEA. VS is tiny and brings nothing to the table (except maybe a few LGA slots and the two gates at DAL) that DL could not replicate on their own.

A structure similar to AF/KLM may have merit with DL/HA.
 
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usdcaguy
Posts: 1445
Joined: Mon Jan 26, 2004 12:41 pm

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 3:13 am

Quoting EA CO AS (Reply 93):
The irrational fanboyism for DL is strong on this site. They're a good carrier, but give it a rest...

Yes, they most definitely have drunk the Flavor Aid. I hope it proves to be a good choice for them and their Family.

DL is only interested in growing internationally using acquisitions at this point; it does not appear interested in any more domestic acquisitions for the time being (although NK may be a very good one in the future).   
 
global1
Topic Author
Posts: 493
Joined: Fri Dec 19, 2014 5:31 pm

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 3:30 am

Was there any point or perspective in your post other than to bash DL?

I don,t think so. But if it was therapeutic for you, enjoy the moment.
 
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HA_DC9
Posts: 570
Joined: Thu Jul 15, 1999 3:16 pm

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 8:26 am

My take for DL...screw the merger idea with HA. Instead, give HA some much needed competition here and make an interisland network. It will attract local travelers who travel between the islands and it can also feed their own transpac flights to the lower 48 such as LIH-LAX, HNL-LAX, OGG-LAX, etc. Maybe use some of their 717s from WN and operate it as mainline like HA or operate it as DL Connection with Skywest and the CRJ-900s.

HA is currently taking a beating in the eye of the hometown public about the high cost of interisland tickets. Two of the state's four counties are urging the state legislature to look into offering incentives to encourage competition when they meet again for the upcoming legislative session.

If I were DL, I would be talking to these state legislators and give serious thought to shifting a fleet of 717's to Hawaii for interisland ops and beat AS and WN to the punch before they get the same idea or make a move. We all know the 717 is the best plane for this market so DL would have an advantage over anyone else to start an interisland operation to compete with HA. Plus DL has far deeper pockets than HA to weather any financial storm over this.
 
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EA CO AS
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Joined: Wed Nov 14, 2001 8:54 am

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 10:06 am

Quoting HA_DC9 (Reply 104):
If I were DL, I would be talking to these state legislators and give serious thought to shifting a fleet of 717's to Hawaii for interisland ops and beat AS and WN to the punch before they get the same idea or make a move.

AS has already shot down the idea of creating an inter-island network for a number of reasons:

o Difficulty in entering the market vs. an established incumbent (HA)
o Relatively low-yield environment
o Removes some point-to-point traffic between Hawaii and AK/L48 that now comprises 18% of AS' total ASMs

The Q400 would be a great fit in that role however....
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
superjeff
Posts: 1310
Joined: Fri Feb 05, 2010 2:14 am

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 4:12 pm

Quoting HA_DC9 (Reply 104):
If I were DL, I would be talking to these state legislators and give serious thought to shifting a fleet of 717's to Hawaii for interisland ops and beat AS and WN to the punch before they get the same idea or make a move. We all know the 717 is the best plane for this market so DL would have an advantage over anyone else to start an interisland operation to compete with HA. Plus DL has far deeper pockets than HA to weather any financial storm over this.

I don't see this happening, for a number of reasons (note that I grew up in Hawaii, but haven't lived there in years, but the basic reasons are the same):

1. Delta is not going to go after inter-island business. The locals in Hawaii remember Aloha and what happened when Mesa started go! - they won't support Delta, and Delta is not going to commit to the kind of operation Hawaiian has anyway.

2. If Delta started their own inter-island operation, HA would do what AS did on the mainland - codeshare with American, as well as probably United, Virgin America, and anybody else they could sign up with.

Just my thoughts, with nothing to back them up, but, FWIW. . . .
 
cschleic
Posts: 1773
Joined: Sat Feb 16, 2002 10:47 pm

RE: Should Delta Acquire Hawaiian?

Tue Dec 15, 2015 8:50 pm

Quoting EA CO AS (Reply 105):
AS has already shot down the idea of creating an inter-island network for a number of reasons:

o Difficulty in entering the market vs. an established incumbent (HA)
o Relatively low-yield environment
o Removes some point-to-point traffic between Hawaii and AK/L48 that now comprises 18% of AS' total ASMs

The Q400 would be a great fit in that role however....

Some of the same reasons UA never did it ages ago when they dominated routes to Hawaii. They relied on the local carriers. Inter-island also was a low-growth market.

In a way, it's like Europe and the 763, that fragmented traffic away from the hubs to "secondary" cities flying to "secondary" cities. The 737 NGs, and use of 757s overwater, have done that with a lot of Hawaii routes. True, HA uses wide-bodies, but the mainland carriers use a lot of single-isle now.

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