In the wake of Hawaiian Airlines’ recent merger with Alaska Airlines, the Honolulu-based carrier is planning a wave of layoffs, targeting 73 non-contract employees. The move is a direct result of operational changes following the USD 1.9 billion merger, which was completed in September 2023. The layoffs, set to be completed by the end of the year, are aimed at eliminating duplicated roles between the two airlines as they begin to consolidate their operations. Industry analysts warn that these initial cuts may not be the last, as further adjustments may be necessary to streamline the two airlines into a cohesive unit.
Merger Details: Alaska Airlines Acquires Hawaiian Airlines
The merger, which took place over a month ago, saw Alaska Airlines acquire Hawaiian Airlines, with the combined entity now working towards operating under a single air operator’s certificate. The integration of these two major U.S. airlines represents a significant shift in the aviation industry, strengthening Alaska Airlines’ position in the market while simultaneously bringing changes to Hawaiian Airlines’ staffing and operational structure.
The merger is also a strategic move for Alaska Airlines to expand its reach in the Pacific market, especially in Hawaiian Airlines’ stronghold in Hawaii. However, as with many mergers, overlapping roles are inevitable, prompting both airlines to streamline their workforce. Hawaiian Airlines’ layoffs signal an initial step towards achieving efficiency and reducing redundancies within the merged company.
Details of the Layoffs: Roles and Severance Packages
Hawaiian Airlines confirmed that the 73 employees affected by the layoffs are primarily non-contract, operational support staff. According to an airline spokesperson, these roles were deemed redundant following the merger, with many being duplicated roles at airports and in cargo hangars. Out of the 73 layoffs, 57 employees are based in Hawaii, with the remaining layoffs on the mainland.
A letter submitted to Hawaii’s labor agency by Alaska Airlines’ Human Resources Chief, Andy Schneider, provided further details on the distribution of the job cuts. The majority of the layoffs will take place at Hawaiian Airlines’ headquarters, with 52 positions set to be eliminated. Additionally, four jobs will be cut at a cargo hangar and one position at an airport, although specifics on mainland layoffs were not disclosed.
Affected employees will remain employed until December 17, and they will receive severance pay through the end of the year. Additionally, many in the non-contract workforce have received offers to stay with the merged company for at least six months, with long-term offers extended to select employees. According to the airline spokesperson, the company’s intent is to retain as many employees as possible, with hopes of maintaining most roles for a year or longer as operations integrate.
While the current layoffs represent a relatively small segment of Hawaiian Airlines’ workforce, industry experts have suggested that more cuts may follow. As the airline navigates the merger and consolidates resources with Alaska Airlines, additional redundancies may emerge, especially within administrative and support functions. This is a typical consequence of mergers in the airline industry, where operational integration often necessitates a reduction in staff to eliminate duplicate functions.
The Alaska-Hawaiian merger is also taking place amid an uncertain economic climate for the airline industry, which is still recovering from the pandemic. Rising operational costs and fluctuating demand have pressured airlines to optimize their workforce and focus on efficiency. The layoffs at Hawaiian Airlines may be seen as part of this larger trend, where airlines seek cost-saving measures to maintain profitability
A significant step in integrating Hawaiian and Alaska Airlines involves uniting the two brands under a single air operator’s certificate, a process that can take months or even years. This certification will allow the two airlines to operate as one cohesive entity under shared policies, procedures, and standards. The integration will ultimately help to improve efficiency, reduce operational costs, and enhance customer service across the merged airline’s entire network.
During this period of transition, both Alaska and Hawaiian Airlines are working closely to align their systems, standardize their fleets, and integrate their services to deliver a unified customer experience. The layoffs are one of many changes being implemented as part of this effort to streamline operations under the merged entity.
In addition to severance pay, Hawaiian Airlines has committed to supporting affected employees during the transition. The company has stated that most non-contract staff have received offers to stay within the combined company for at least six months, and longer-term roles are being considered. This approach aligns with Alaska Airlines’ intent to minimize disruption for employees while adjusting to new operational structures.
For those who are being let go, Hawaiian Airlines has assured severance packages and transition assistance. This measure reflects the airline’s commitment to providing a level of security for its employees as they adapt to the changes following the merger.
The $1.9 billion Alaska-Hawaiian Airlines merger represents a powerful shift in the U.S. airline industry, with the newly combined entity poised to capture a greater share of the market. The merger will likely strengthen Alaska Airlines’ presence in the Hawaiian market and expand its network in the Pacific region. However, as the two airlines move toward full operational integration, layoffs and further restructuring could be on the horizon.
With Alaska Airlines and Hawaiian Airlines working towards a single air operator’s certificate, travelers can expect a more streamlined experience in the future. This integration will likely bring operational efficiencies, potentially lower costs, and improved service, but may also come with job cuts as redundancies are identified and removed.
For Hawaiian Airlines’ employees and passengers alike, the merger with Alaska Airlines marks the beginning of a new chapter. While these initial layoffs are challenging, the long-term benefits of a streamlined, unified airline could ultimately lead to a stronger, more competitive player in the market, capable of meeting the demands of a dynamic aviation landscape.
