Alaska Airlines and Hawaiian Airlines CEOs break down $1.9 billion cash merger

Peter Ingram, Hawaiian Airlines CEO, and Ben Minicucci, Alaska Airlines CEO, join 'Squawk on the Street' to discuss how long both sides were talking about a merger, how to convince the White House this deal makes sense, and much more.

[@harveyh3696]

I appreciate the Alaska Airline CEO pronouncing Honolulu correctly.

[@mirzaahmed6589]

It's not hard to pronounce.

[@h3x172]

Yet the reporter mispronounced it. Kinda like Nevada. “Vaa” or “Veh” da. @@mirzaahmed6589

[@hawaiiguy1]

@@mirzaahmed6589 oh yes it has been... people having pronounced it like an 'a' instead of an 'o'... people do not pronounce it like you are saying Hana (the small town on Maui), it is Honolulu ... hoe (like the garden tool) - kno - lou - lou, *NOT* Hah - kna- lou -lou.

[@hawaiiguy1]

Ben *didn't* pronounce it correctly.

[@user-if3wu4es7o]

Vote NO on shareholder proxy to not approve buyout

[@mikemcd]

I would love to see Alaska start using 787’s for transcon!

[@ericjones7769]

But the 787s will still be in Hawaiian Airlines livery tho

[@johniii8147]

@@ericjones7769 We will have to see how all that evolves if the merger goes through.

[@bryantlocke1761]

The song of Ice and fire! Comes together!

[@markjaffe40]

Hawaiian Airlines only serves sausage sandwich or pepperoni pizza for their intercontinental flights (LAX to the islands). I tried to explain to Hawaiian Airlines that there are some vegetarians, people who don’t eat pork or those who ate a whole pig the night before and don’t want to eat more during the flight. Would it be possible to serve cheese pizza or cheese sandwich? Many fliers would be eternally grateful. Thank you

[@Psiros]

HA stock was $4 per share. Alaska Airlines offers $18 per share. I guess I don't understand.

[@john_wick1]

just expect higher fares

[@mirzaahmed6589]

Actually, fares were at all-time lows (inflation adjusted) in 2019, after 15 years of mergers and consolidation in the industry.

[@Aussie_Hawaiian_boy]

I grew up with Hawaiian airline I will be sad when it get bought by Alaska

[@TeachAManToAngle]

Why? It’ll still say “Hawaiian” on the plane

[@ericjones7769]

But Hawaiian Airlines brand is Not gonna disappear like in traditional mergers

[@ericjones7769]

​@@TeachAManToAngleexactly 💯

[@N3oNvP4nda]

I dunno, look what they did to the Virgin America brand. If the fold Hawaiian, this would be very sad…

[@johniii8147]

Entirely different situation. AS never intended to keep the Virgin American brand. It wasn't part of the transaction for them to own the brand. They had to licensee it from the virgin group until it was formally discontinued. They bought VX for the gates and presence at SFO and LAX.

[@planesofhawaii]

well didn’t they do that to Horizon Air? I know they still exist but they use the Alaska paint. They don’t have a seperate brand, just seperate operations but correct me if i’m wrong or missing anything

[@Sacto1654]

I think this deal _will_ require that more flights from American, Delta, Southwest and United between the mainland and Hawaii are allowed. It may mean JetBlue will fly the A321LR between San Francisco and Los Angeles and Hawaii, too.

[@johniii8147]

Not really. They are already strong there out their hubs. United especially. and Southwest now does interisland.

[@GenX1964]

Minicucci should fly Alaska Airlines for every trip this year. Sit by the window plug.

[@jxudan]

It's about time! I refused to fly Hawaiin airlines b/c they still dont' offer inflight WIFI. This would be a game changer. Nicely done, alaska!

[@localpoiboy1]

you realize that was a limitation over the ocean right? Hawaiian is in the process of installing starlink on their aircraft to remedy lol.

[@SaltyAntelope63]

They should call it 49/50 Airlines

[@solomonhilliard5357]

How about Non-Continental? :D

[@user-hk9fp9oj4q]

This is a huge mistake Alaska Air is making.

[@mirzaahmed6589]

How?

[@user-if3wu4es7o]

Peter Ingram, Failed CEO Yep, Peter Ingram surprisingly proved to be a grossly overpaid and overrated failure as CEO in so many ways. Wasn't even good enough of a leader to navigate before the ship was headed for trouble. Mark Dunkerly was leader, visionary and a success. Now Ingram is going to walk away undeservingly RICH and sail off into the sunset, hopefully not in Hawaii, if the Alaska deal goes through. So Peter, why don't you man up and give back most of your past salary and the huge bonus for selling off HA to help out all the non-contract professionals, who made HA legendary, but will lose their jobs when Ben takes out the axe? Are you sleeping like a baby these days? Btw, sure wore a sheepishly guilty face during Sunday’s big announcement and press conference. Do us all a big favor and just resign now.

[@user-if3wu4es7o]

u/wellnow13 • 1d Peter Ingram's legacy??? After 94 years of Hawaiian independence and Hawaii owned, Peter Ingram has managed to do something that was never intended....lose the company made great by the people of Hawaii. His ONLY legacy is that he failed as CEO to bring HA back to greatness. What a shame, and he has lost the respect of the employees, as well as forgetting Malama, Lokahi, Pookela, Hookipa, and Aloha. Like the Alaska Airlines CEO said, "there can't be 2 CEOs".

[@EWRFLYER]

These mergers are not pro consumer. Less airline options for people = higher fares because there is less market competition and they can dictate the price since people will have no other choice. I'd respect it more if they just said, yes we are doing this to make even more profits for our business and that's our highest priority, instead of this nonsense marketing bs like we are all too stupid to know otherwise.

[@zoneout0]

agreed, but they don't overlap on that many routes. So i'd argue that fares would've been high regardless on most of the routes.

[@aerohk]

Jet Blue and Spirit should be blocked due to massive overlap and same low-cost price segment. Alaska and Hawaiian are okay.

[@tethron.]

Alaska is pretty good they do a good job

[@mirzaahmed6589]

There is no shortage of options to fly to and from Hawaii. All of the big four (American, Delta, United, Southwest) fly there, Allegiant did in the past and might do so again in the future, Frontier is looking to fly there once they get A321XLR airplanes, Sun Country flies there seasonally. The loss of one out of Alaska and Hawaiian isn't going to affect anyone.

[@mirzaahmed6589]

@@aerohk JetBlue and Spirit aren't in the same low-cost price segment. Spirit is an ultra low-cost carrier that is much cheaper than JB, and has far fewer amenities.

[@GenX1964]

Chuck Fina

[@hankakah4180]

Unless they can show us that the cost of fares to go from Moloka'i to O'ahu or Maui costs $200 round-trip or what used to cost $200 to go 30 miles while it costs $299 round trip between Hawaii and the West Coast 2500 miles away, it only shows us how much they are a monopoly as they know we can't drive there and HAVE to fly!

[@paulmayden7344]

I really don't get behind the "This is farther so it should cost more than this shorter route." That reasoning shows a lack of understanding about basic economics. Supply and demand are things. If people were only willing to pay 100.00 to fly Seattle to Miami but they were willing to pay 1000.00 to fly Seattle to Portland, you can bet they'd be charged the 1k to go the 130 miles all day. it's the consumer that ultimate sets prices. If the consumer doesn't want to pay what it costs to go somewhere then airlines will stop going there. But if they're willing to pay out the nose to go 100 miles, well, how does and airline turn that down? Distance has very little to do with it.

[@hankakah4180]

@paulmayden7344 You will see it when you lose it. There are less and less locals here because they need to move to somewhere else where it's cheaper. The "Priced out of Paradise is real" Without the locals there is no 'Ohana, and with no locals all the new transplants from elsewhere don't know what Aloha means or how to share it. Hawaiian Airlines used to be an icon of the Aloha spirit who locals depended on to get to many cultural gatherings, now they may go the way of just profit/loss. With so many ethnicities and cultures here who depend on family gatherings to bolster their relationships, it comes down to whether they can afford the plane fares, hotel rooms, car rentals and meals for a family of 4, or not able to participate. When you have celebrations for Anniversaries, birthdays, weddings, graduations, retirement, funerals, it comes down to a lot of money for many locals a year. It's not like some tourists coming to Hawaii for their one time. There should be kama'aina or local rates for Hawaii residents.

[@yeby_8203]

​@paulmayden7344 you must not realize that hawaiian air at one point was the only airlines that flew interisland and was the only option for us to get from certain islands to another. We do not have a ferry option nor a bridge. What do you want us locals to do? Swim or take our canoes so we can stick it to the man for charging exuberant prices? That is not an option. What ever they set the price at is what we had to pay and they knew this because when there was another major airline that serviced the islands hawaiian killed off the competition by lowering their prices to unsustainable lows. After the competition went out, Hawaiian air jacked their prices way up and that lasted for more than a decade before southwest decided to come in a few years ago and gave us locals another interisland flight option. Hawaiian air has ripped us off for years and there was nothing we could do about it.

[@tommytwogloves16]

Italian name but Ashkenazim face. Nice try. Tu sei un favre!

[@AK2HI]

Hell yeah now hawaiian might be a descent airline now thats its run by a real company

[@wm6746]

Glad they are not in the fashion business😂😂😂

[@wadehiggins1114]

😂

[@KuostA]

..........yet they're sitting there as the multi millionaires traveling the world, while you're not. enjoy looking 'fashionable' while not being them lmaooooo

[@mirzaahmed6589]

They are wearing Hawaiian shirts, which is appropriate enough.

[@hawaiiguy1]

@@mirzaahmed6589 just fyi, it is called *Aloha* shirts --- since its inception

[@mitchellquartero]

Two words ONE WORLD!

[@justsnappy]

Yes! That’s the angle I’m excited about. As is, OW is weak compared to star alliance