Marriage Minded

December 4, 2023

OVER THE WEEKEND, Alaska Airlines announced it will purchase Hawaiian Airlines for a reported $1.9 billion. If approved, the merger will form the nation’s fifth-largest carrier.

I find this interesting for a number of reasons — though probably not the ones most people are talking about. You can pop over to the other news and travel sites to learn about how this union does or doesn’t make sense, strategy-wise. You can read about loyalty programs, stock prices, and the alleged woes of yet more industry consolidation. My take is more fun:

Alaska and Hawaii. Our most geographically extreme states, numbers 49 and 50. One mammoth and frigid, the other small and tropical. They share a lot of traits: remoteness, mountains, indigenous people, whales.

Then we have the tails. Alaska and Hawaiian are the only carriers I know of whose liveries feature faces. One is a woman, the other a man. They stare longingly at one another across the vastness of the Pacific.

It’s romantic, no? They’ve been courting this merger all along, haven’t they? Thus we have a more literal marriage than are most mergers.

Both faces, by the way, are borrowed from real people.

The visage at Hawaiian is that of a woman named Leinaala Teruya Drummond. The former Miss Hawaii, she’s been up there since 1973. Ms. Drummon passed away in September at age 77.

Mr. Alaska’s history is a little less clear. What we know for sure is that he’s not Old Man Winter, Johnny Cash, an age-enhanced Che Guevara, or the former Arkansas governor Mike Huckabee. He is an Eskimo. An Inuit. Though even the airline isn’t sure which one. They narrow him down to one of two native Alaskans: a reindeer herder from Kotzebue named Chester Seveck, or a man named Oliver Amouak, who appeared in an airline-sponsored “traveling stage show” in the 1950s.

Whichever is correct, he’s an iconic mascot and deserves to remain up there, in monochrome and smiling warmly in his parka.

For all of these reasons, I’m happy to hear that the plan is to keep both brands intact. Financially the carriers will be as one, but will operate independently under their own names. I suppose this makes sense. It’d be a little weird to have an entity called Alaska Airlines with a hub in Honolulu. Hawaii-Japan is one of Hawaiian’s busiest markets, and I imagine Japanese passengers in particular would find it baffling.

Of course, things like this have a way of changing. I wouldn’t be shocked if a year from now one of the two brands is subsumed or the carrier changes its name entirely. Pacific Airways, anyone?

 

Photo credits: Alaska and Hawaiian Airlines.

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December 4, 2023 · Filed under Uncategorized

Joining Forces

February 8, 2022

THIS WEEK, Frontier airlines announced it would acquire Spirit Airlines, thus turning two of the nation’s biggest low-cost carriers (LCCs) into one.

What does this mean for consumers? Most importantly, fingers crossed, it means we won’t have to look at Spirit’s ugly yellow planes anymore. Beyond that, I really don’t know. Not a lot, probably. Maybe fares will go up in some markets. Maybe they won’t. Any time airlines combine forces, there’s a resulting media chorus about all the awful ways in which the merger will impact travel: higher prices, fewer flight options, and so on. The actual repercussions tend to be subtle.

Frontier’s main hub is in Denver. Spirit’s headquarters are in Florida, with a concentration on eastern cities, as well as numerous routes into Latin America and the Caribbean. In this respect the merger makes sense, with the two company’s route structures complementing one another. A “classic” merger, if you will. Once approved by regulators, the new carrier will be the fifth largest airline in the United States, just behind American, United, Delta, and Southwest.

Frontier was established in 1994, and operates about 110 aircraft. It’s not to be confused with the original Frontier airlines, which collapsed in 1986 after a boondoggled takeover by PeopleExpress. Spirit was founded in 1993, and currently flies 175 planes, all of them of the Airbus A320 series.


Mergers, acquisitions, takeovers. Consolidation is the story of commercial aviation in this country. Take a look at the lineages of American, Delta and United. Those three alone carry the DNA of at least twenty carriers absorbed over the years.

Today we have fewer airlines overall, but there’s plenty of robust competition. Fares remain historically cheap and there are flights going everywhere, all the time. Despite waves of consolidation, the fallout for travelers has been largely positive. The list below highlights the most significant mergers since Deregulation in 1979:

2016. Alaska Airlines purchases Virgin America
2013. American Airlines purchases US Airways
2010. United Airlines merges with Continental
2010. Southwest Airlines buys AirTran (formerly ValuJet)
2008. Delta Air Lines acquires Northwest
2005. America West Airlines purchases US Airways
2001. American Airlines takes over what’s left of TWA
1991. Delta buys the ailing Pan Am’s transatlantic network
1989. USAir takes over Piedmont Airlines
1988. USAir acquires Pacific Southwest Airlines (PSA)
1987. American acquires AirCal (formerly Air California)
1986. United buys Pan Am’s transpacific and Asia network
1986. TWA takes over Ozark Airlines
1985. Delta Air Lines and Western Airlines combine
1986. Northwest merges with Republic Airlines
1980. Pan Am acquires National Airlines
1979. Southern and North Central become Republic

It’s unknown, for the moment, which name the new Frontier-Spirit enterprise will settle on. Will it be Frontier, Spirit, or something completely new? The Frontier name is nice enough, but it evokes a particular region — as it was designed to do. It makes you think of Colorado, the American West. The tails of Frontier’s planes feature a menagerie of great American wildlife: grizzlies, elk, salmon and the like. Spirit is more generic, and probably a better fit for a carrier whose routes reach into South America. Just please do something, anything, about that yellow paint job.


While mergers often appear uneventful on the outside, things can become quite contentious on the inside, among the employees. This especially true within the pilot ranks. Seniority controls everything for pilots, from which plane you fly to the quality of your monthly schedule, and when pilot groups are suddenly combined, the seniority list has to be rebuilt in a way that is more or less equitable to both sides. As the saying goes, good luck with that.

Sometimes, when one airline buys another, the airline doing the buying simply takes the entire roster of the airline being bought and moves it to the bottom. In other words, if airline A purchases airline B, forming airline C, all of the airline B pilots are now junior to all of the airline A pilots. Pilots call this “stapling.” This is what happened when American took over TWA, and is more of a concern when the groups are represented by different unions — or by no union at all.

The Delta-Northwest integration in 2008 was about as seamless and peaceful as the pilots (or their management) could have hoped for. In the cases of American-TWA, or Northwest-Republic, on the other hand, things didn’t go so smoothly. The “green book” pilots from Republic spent two decades clashing with the “red book” pilots of Northwest. To this day many former TWA pilots, some of whom spent years on furlough after their airline was bought by American, feel they were tossed under the bus.

 

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February 8, 2022 · Filed under Uncategorized