Hawaiian Airlines to get new leadership after merger with Alaska | Honolulu Star-Advertiser

Update: 11 am

Alaska Air Group, parent company of Alaska Airlines, announced today that Hawaiian Airlines President and CEO Peter Ingram will step down immediately following the completion of the $1.9 billion transaction with Hawaiian Airlines and an interim Honolulu leadership team will lead the merger.

Joe Sprague, Alaska Airlines' current regional president for Hawaii/Pacific, will be named CEO of the new Hawaiian Airlines and lead an interim leadership team overseeing Hawaiian's operations while Alaska pursues a single-operating certificate.

Until then, the airlines will operate as one entity with two separate airline operations under two separate operating certificates. After the certificate is granted, the airline will operate as a single operation with two public-facing brands, Hawaiian Airlines and Alaska Airlines.

Sprague will oversee all aspects of Hawaiian Airlines' operations until the FAA finalizes Alaska's request for a single operating certificate — a process made possible by the US Department of Transportation's approval of the airlines' application to consolidate and operate international routes under one certificate.

“We have a unique, once-in-a-generation opportunity to bring together two incredible companies with aligned values ​​and a 90-plus year legacy of serving and connecting local communities,” Sprague said in a statement. I am deeply honored to work with these strong leaders at Hawaiian Airlines to lead the airline's people, operations and brand through this transformation while maintaining our commitment to safety and service.”

Some other key members of Hawaii's interim Honolulu leadership team include:

>> Shannon Okinaka, Executive Vice President, Administration

>> Robin Kobayashi, Senior Vice President, Human Resources

>> Jim Landers, Senior Vice President of Technical Operations (Maintenance and Engineering, Flight Operations and System Operations Control Center)

>> Lokesh Amarnayak, Vice President, Airport Operations and In-Flight

>> Terry Hill, Managing Director, Security

>> Alyssa Onishi, brand and culture director

>> Daniel Chun, regional vice president of Hawaii for Alaska Airlines

Hawaiian's operations leader Bob Johnson, vice president of flight operations, Beau Tatsumura, vice president of maintenance and engineering, and Tom Zheng, vice president of technical operations, business planning and services, will continue to report to Hawaiian vice president Jim Lander. Maintenance and Engineering. Justin Doan, Hawaiian's vice president of labor and public relations, will continue to support Hawaii labor relations.

Previous coverage

A proposed $1.9 billion merger between competing Alaska and Hawaiian Airlines has cleared its final hurdle with the U.S. Department of Transportation announcing today that it is authorizing the airlines to combine and operate international routes under a certificate – one that requires approval to provide air transportation. Integrated career.

The clearance, which includes protections for travelers, comes about a month after the U.S. Justice Department ended its formal review period for the proposed merger under the Hart-Scott-Rodino Act. Acquisitions that would significantly lessen competition or create monopoly power.

However, if the DOT had denied the joint application filed by Alaska and Hawaiian on July 15, the airlines would not have been able to merge.

When the DOT announced that the merger was moving forward today, it said in a statement that it had secured “binding, enforceable public interest safeguards” from Alaska Airlines and Hawaiian Airlines prior to their merger. The safeguards required by the department's consideration of the approval required by the airlines, the traveling public, rural communities and aimed at preventing the loss of smaller airline competitors.

The DOT added that, “It is necessary to protect award prices for Alaska and Hawaii, maintain existing service on core Hawaiian routes in the continental United States and interisland, preserve support for rural service, ensure competitive access to the Honolulu hub airport, guarantee fee-free family seating. and alternative compensation for manageable disruptions and lower costs for military families.

“Our top priority in this merger is protecting the interests of the traveling public,” US Transportation Secretary Pete Buttigieg said in a statement. We have secured mandatory protections that maintain critical flight services for communities, ensure smaller airlines can access the Honolulu hub airport, lower costs for families and service members, and preserve award miles against depreciation,” said this more proactive approach to consolidation. said the review marks a new chapter in DOT's work to stand up for passengers and promote a fair aviation sector in America.”

Key safeguards, according to DOT, include:

>> HawaiianMiles miles and Alaska Mileage Plan miles do not expire before converting to the new combined loyalty program.

>> Rewards members can transfer Hawaiian Miles miles to and from Alaska Mileage Plan miles at a 1:1 ratio prior to the launch of the new Combined Loyalty Program.

>> Under the new combined loyalty program, the combined airline must match and maintain the equivalent status level of HawaiianMiles members under the HawaiianMiles program, match and maintain the status level and provide benefits equivalent to Alaska's Mileage Plan program.

>> The combined airline must not impose change or cancellation fees on award redemption tickets for travel on carrier-operated flights.

>> The combined airline must maintain strong levels of service for critical Hawaiian interisland passenger and cargo services and for core routes between Hawaii and the continental United States at risk of loss of competition.

>> The combined airline must preserve its support for essential air service in small, rural communities in Alaska and Hawaii where such service is a lifeline to health care, education and economic well-being.

>> Both airlines will update their customer service plans to provide at least one free standard carry-on and at least two free standard checked bags for service members and their accompanying spouses and children. They will also waive change fees for service members and their families who reschedule flights due to military orders or directives.

Hawaiian and Alaska are expected to complete the merger soon, which was approved by both carriers' boards of directors on Dec. 2. The process, which has included litigation and high-level federal and state reviews, has taken about nine months so far.

Hawaiian shareholders, who approved the merger on Feb. 16, will receive $18 a share in cash as part of the deal, which includes $900 million in Hawaiian debt. Hawaiian's stock was very close to that price this morning, an indication to some that investors had confidence that the deal would happen.

The deal is expected to boost Hawaiian's financial performance, which has been strained at least since Covid-19. Hawaiian reported a second-quarter net loss of $1.30 per share, or $67.6 million, compared with a net loss of $12.3 million a year earlier. Adjusted for nonrecurring costs, the second-quarter loss came in at $1.37 a share.

After it completes the financial terms of the deal, Alaska Air Group Inc., the parent company of Alaska Airlines, will also own and control Hawaiian. It's not yet clear how the merger will affect Hawaii's 7,400 employees. Union members are expected to keep their jobs, however, changes are expected in the carrier's top leadership team.

The DOT's approval of the airlines' joint application means that the carriers can proceed to consolidate under a single FAA operating certificate.

In their filing, the airlines said they plan to “keep both the Alaska and Hawaiian brands, maintaining customer choice while providing integrated and seamless loyalty benefits and customer service.”

Hawaiian Airlines has a history that goes back to 1929. It is the state's largest carrier, with about 150 daily inter-island flights and more than 230 systemwide. It offers nonstop flights between Hawaii and 16 US gateway cities, as well as service to American Samoa, Australia, the Cook Islands, Japan, New Zealand, South Korea and Tahiti.

Alaska Airlines and its regional partners serve more than 120 destinations throughout the United States, Belize, Canada, Costa Rica, Mexico, the Bahamas and Guatemala.

The merger is expected to close quickly, and when it does, the combined airlines will, “serve 54.7 million passengers annually and operate to 138 destinations, including nonstop service to the Americas, Asia, Australia and 29 of the world's top international destinations. South Pacific,” according to their joint plea agreement.