Five months after its acquisition by Alaska Airlines was completed, Hawaiian Airlines CEO Joe Sprague on Thursday shared updates about the organization and plans for the future.
His remarks came during a business pau hana hosted by the Chamber of Commerce Hawai‘i at the airline's Honolulu headquarters.
Alaska Air Group, Inc. and Hawaiian Holdings, Inc. announced in December 2023 that Alaska Airlines would acquire Hawaiian Airlines in a deal that was valued at approximately $1.9 billion, including $900 million of Hawaiian’s net debt, according to an announcement at that time.
The acquisition was completed last September but the distinct Alaska Airlines and Hawaiian Airlines brands will be maintained. Sprague was named CEO of Hawaiian Airlines in September following its combination with Alaska Air Group.
“We recognize full well the important role — really the critical role — that Hawaiian Airlines plays here in the Islands for everybody,” he told the gathered audience Thursday. “We sort of view ourselves as part of the infrastructure, part of this place, part of the fabric of this place, but for the business community, for the employer community, all of you, we know we play a very special role as well. For that reason, there’s a lot going on at Hawaiian Airlines right now, and we thought it would make sense to give you a little update.”
Here are some highlights of what Sprague had to say:
— There are similarities between the two airline brands.
“We’re not identical, but there’s a lot of similarities between Hawaiian Airlines and Alaska,” he said. “A lot of employee culture, corporate culture similarities. A lot of similarities tied to the special purpose that I believe both airlines have.”
Although it has grown in the past two decades, Sprague says that during its history, Alaska has served its namesake state, which also shares similarities with Hawai‘i, including a reliance on air service.
“Alaska has a sense of purpose and a commitment to communities that has been there for almost 93 years because of that service. [It’s] so similar to what Hawaiian Airlines has done for 95 years here in the air service-dependent communities of the Islands,” he said. “So there’s a lot of things that bring us together in sort of a common fashion.”
— Vision and goals
Sprague says one of the pillars of Alaska Air Group's long-range vision is a commitment to be “Hawai‘i’s trusted airline.”
“And that means not only maintaining strong Neighbor Island service, but it also means flying folks to wherever they need to get to,” he said. “For residents of Hawai‘i, we’re now, because of the combination, expanding our network across North America that will allow us to serve three [times] the number of destinations — over 100 destinations in North America — with a single airline.
“For folks here in Hawai‘i, that’s just a significant new expansion of what you can access with just one airline.”
More information about Alaska Air Group's three-year strategic plan can be found online here.
— Benefits for residents and travelers
Sprague says that Huaka‘i by Hawaiian is a new program announced last year for residents of Hawai‘i “to give them special benefits when they’re flying Neighbor Island and, importantly, to help bring down the cost of flying between islands here in Hawai‘i."
According to an announcement in November, members of the program will get a free checked bag — inclusive of surfboards, golf bags and other sports equipment — on interisland flights along with discounts of 10% or 20% for one Neighbor Island booking per quarter and other deals.
Sprague also says the airline will bring its HawaiianMiles program together with Alaska’s Mileage Plan.
“Already, we’re starting to link the benefits,” Sprague said, noting that the next “really big step” will happen later this year when the programs are combined into a single new loyalty program.
“We’re going to give it a fantastic new identity, so watch for that,” he told the audience. “It will be the best new loyalty program in the industry. It’ll be a miles-based program with tons of benefits.
“So again, an expanded network and a single, powerful loyalty program will allow us to do wonderful things for our guests here in Hawai‘i.”
— Maintaining and building upon interisland service
Flying between the Islands is a critical part of the airline’s business, Sprague says.
“It always has been and it always will be, just the same as Alaska Airlines. Even as it’s gotten bigger and started to fly to different places, still flies to places like Nome ... or Kodiak up in the state of Alaska,” he said. “So, the Neighbor Island service is going to continue to be a critical part of what we do, and in fact, we’re enhancing that service.”
That includes adding late evening flights to the Neighbor Islands and back into Honolulu.
“It’s a positive thing and, again, it’s a way for us to express our commitment," Sprague said. "Those later night flights, they’re not big money makers, but they are important for the community. That’s why we’re doing them.”
Additionally, Sprague says spring flight schedules will be adjusted in the coming weeks so there will be “more flying between the West Coast and Hawai‘i, and a lot more flying on Hawaiian Airlines between the West Coast and Hawai‘i. Then we’ll start to shift some of the Alaska flying to elsewhere in North America.”
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
