Skift Travel News Blog

Hawaiian Airlines shareholders will vote in February on Alaska Airlines’ proposed $1.9 billion takeover of the carrier.

Shareholders are set to vote on February 16 on merger plan that would see them receive $18 for each share in Honolulu-based Hawaiian, according to a securities filing on Tuesday. The purchase price is a 270% premium over the carrier’s share price on December 1, the last trading day before the deal was unveiled on December 3.

Under the terms of the deal, Alaska plans merge with Hawaiian but — in a rare move for a U.S. airline — continue to operate both brands. The merged carrier would be based in Seattle and led by Alaska CEO Ben Minicucci.

Approval by Hawaiian shareholders is a key step towards finalizing the merger. However, the deal still must secure antitrust and U.S. Department of Transportation approval before it can close. Both of those are big questions given the Biden Administration’s animosity towards further consolidation in the airline industry; for example, the Biden Justice Department sued to block the merger of JetBlue Airways and Spirit Airlines.

Alaska and Hawaiian hope to close their merger within 12-18 months, or by June 2025.

The deadly wildfires on the island of Maui are likely to affect visitor — and airline — demand to the island for the “foreseeable future,” analysts at T.D. Cowen said Friday.

“Resort destinations in Maui are likely to disappear from plans for the foreseeable future, but we believe Hawaii overall will remain an aspirational vacation destination for travelers,” they wrote in a report. The analysts expect the recovery to “take years,” citing as an example the two-year recovery in air travel demand to Puerto Rico after Hurricane Irma hit the island in 2017.

The wildfires, believed to have been fueled by high winds from a hurricane that passed near the Hawaiian islands, leveled the historic town of Lahaina, killing at least 55 people and displacing thousands on Wednesday. The region of West Maui affected is isolated with just one road in and out.

The outlook is tough news for Hawaiian Airlines, which is the largest airline on the island and operates a secondary hub at Maui’s main airport of Kahului. T.D. Cowen expects the impact the be “meaningful” for the carrier. Southwest Airlines, United Airlines, and Alaska Airlines — the second, third, and fourth largest airlines to the island — are also likely to feel the affect of less demand to Maui.

“We expect capacity to shift away from Maui as a destination and to Oahu, [and] the Big Island,” the T.D. Cowen analysts wrote. “Kauai may also benefit.”

Most airlines have stopped carrying non-essential travelers — or all passengers in some cases — to Maui. Instead, they have been transporting supplies to the island from the mainland U.S., and filling departing flights with those eager to leave the island after the fires. Hawaiian and Southwest are offering seats for just $19 between Kahului and Honolulu.

Airlines have all waived change fees for certain previously booked tickets to Maui, and some are offering rebooking flexibility, including allowing travelers to change their destination in Hawaii free of charge. As of Friday morning, American Airlines‘ waiver applied to trips scheduled by August 13; Alaska and Delta Air Lines by August 15; Hawaiian and United by August 31; and Southwest by September 4.

Non-essential travel to Maui is strongly discouraged for the time being.

Global distribution system provider Sabre is alleging that beginning May 31 Hawaiian Airlines implemented a new distribution policy that prevented U.S.-based travel agents using Sabre from booking the airline’s inter-island flights, and also began levying U.S.-based travel agents a $7 per segment surcharge on all bookings of all other Hawaiian Airlines’ flights through Sabre.

Those breach-of-contract allegations are laid out in a federal lawsuit filed August 30 in the Southern District of New York.

Hawaiian has an assortment of inter-island flights such as Maui to Oahu, for example.

Saying the pandemic shrunk the airline’s network by 13 percent compared to 2019, Hawaiian informed travel agents several months ago that all of its flights, including its inter-island schedule, would be available to U.S. travel agents without surcharges through alternative means, including  HA Connect, the Hawaiian Airlines Partner Portal, and HA Connect Approved Partners. These include: ATPCO, ClarityTTS, NuFlights, Thomalex, Tidesquare, Travelfusion, TravelNDC, and Verteil Technologies, according to the airline.

Hawaiian said these partners use the New Distribution Capability, and connect to travel agencies through API (application programming interface) technology as an alternative to global distribution systems.

“Hawaiian’s breaches have also put Sabre at a competitive disadvantage,” Sabre said in the lawsuit.

Hawaiian Airlines denied that it breached its contract with Sabre.

“We believe Sabre’s claims to be baseless and that we are acting well within our contractual rights as we implement a new distribution strategy replacing dated technology with the modern NDC standard,” the airline said in a statement. “We intend to vigorously defend against these claims.”

Sabre seeks a jury trial and to recover damages.

A significant portion of the lawsuit is redacted to protect contract details.

Sabre-lawsuit-against-Hawaiian

Air travelers in the U.S. now have a one-stop shop when it comes to knowing what airlines will provide them with in the event of a lengthy flight delay or cancellation.

The new Airline Customer Service Dashboard by the Department of Transportation is designed to “ensure the traveling public has easy access” to airline commitments in the event of a disrupted trip, the regulator said Thursday. The commitments, which are largely a list of existing airline policies compiled together in one place, only apply to “controllable” events, or one where the airline is at fault, for example staff shortages.

“Passengers deserve transparency and clarity on what to expect from an airline when there is a cancelation or disruption,” U.S. Transportation Secretary Pete Buttigieg said. “This dashboard collects that information in one place so travelers can easily understand their rights, compare airline practices, and make informed decisions.”

For example, if a travelers flight is delayed more than three hours due to a mechanical problem with the aircraft, the dashboard shows that they are guaranteed a meal voucher on almost all major airlines except Allegiant Air. However, if their flight is cancelled, only American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, and United Airlines will rebook them on another carrier.

“Carriers welcome opportunities to simplify travel policies, clarify existing practices and increase transparency for travelers,” a spokesperson for trade group Airlines for America said.

The new dashboard follows a spike in flight delays and cancellations earlier this year that resulted in a blame game between airlines and authorities. While acknowledging their own staffing issues, airlines have claimed that air traffic control staffing has exacerbated the situation while the DOT has argued that the situation is primarily the fault airlines and weather. Whatever the reason, the regulator has moved to improve airline passenger protections, including a new rule that would guarantee cash refunds.