In a groundbreaking move that breaks decades of airline merger precedent, Alaska Air Group is maintaining both the Alaska Airlines and Hawaiian Airlines brands following their $1.9 billion acquisition, marking the first time a major U.S. airline merger has preserved dual brands long-term.
Alaska Airlines completed its acquisition of Hawaiian Airlines in September 2024, and “in a first for a U.S. airline, we will maintain both beloved brands,” according to company officials. The unprecedented strategy represents a sharp departure from industry norms, where virtually every previous domestic airline merger resulted in one brand being absorbed into another.
Preserving Pualani and the Aloha Spirit
Hawaiian Airlines’ iconic Pualani branding, featuring the serene profile of a woman adorned with a floral lei and known as the “flower of the sky,” will remain unchanged. The logo, which symbolizes Hawaii’s beauty and warmth, has been a cornerstone of Hawaiian’s brand identity since 1973 and was refreshed in 2017 to feature Pualani framed by the rising sun.
Alaska Airlines will uphold its commitments to employees by preserving and growing union-represented jobs in Hawaii and providing opportunities for long-term career advancement. The carrier has promised to maintain Hawaiian’s cultural authenticity, including its famous purple-accented livery and the welcoming “aloha spirit” that has made Hawaiian Airlines synonymous with island hospitality.
Strategic Branding Division
Alaska CEO Ben Minicucci revealed the company’s long-term strategy: all Alaska Air Group flights to, from, and within Hawaii will maintain Hawaiian Airlines branding, while flights not involving Hawaii will carry Alaska Airlines branding. This geographic approach to brand identity ensures that passengers flying to the islands continue to experience the vacation-like atmosphere Hawaiian Airlines is known for.
The strategy means that aircraft will eventually be rebranded to reflect the markets they serve. Wide body jets flying long haul from Seattle will have Alaska branding, while Hawaiian could get some Boeing 737s in its fleet featuring Hawaiian branding.
Why This Strategy is Unique
The dual-brand approach is “kind of unprecedented, because with virtually every airline merger we’ve seen of domestic carriers, one brand survives,” noted industry observers. Historical precedents show that merged airlines typically eliminate acquired brands:
- Virgin America disappeared quickly after Alaska acquired it in 2016
- United retired its “Ted” brand extension after just four years (2004-2008)
- Delta shut down its “Song” brand after three years in 2006
- Most other airline mergers resulted in complete brand absorption
Industry veterans note that maintaining two brands can be costly and complex – it requires separate marketing, livery, and potentially different customer touch points, which is why most airlines choose to fold an acquired carrier into the dominant brand.
The Business Case for Preservation
Alaska’s decision stems from recognizing Hawaiian Airlines’ exceptional brand value and cultural significance. Hawaiian Airlines’ branding strength has long set it apart in the competitive world of air travel, helping the airline outperform larger carriers in emotional resonance and creating a connection with travelers beyond just the flight experience.
According to industry analysis, Hawaiian Airlines ranked significantly higher in customer satisfaction surveys, with the emotional connection passengers feel to the Pualani brand proving “priceless” for passenger loyalty and premium pricing power.
The merger wasn’t just about routes and aircraft, Alaska knew what they were getting when they paid close to $2 billion for Hawaiian Airlines, recognizing that “the Hawaiian brand is a major leg up on the competition. Not just on Hawaii flights either, people love seeing it around the world”.
Substantial Merger Benefits
The combination delivers significant advantages to both carriers and passengers:
Network Expansion: Alaska and Hawaiian now operate over 1,400 daily flights to over 140 cities and can take people to over 1,200 destinations worldwide with global partners and through the oneworld Alliance.
Enhanced Loyalty Program: Miles held in Hawaiian’s HawaiianMiles frequent flyer program are being converted to Alaska Airlines Mileage Plan at a 1:1 ratio, with Pualani Elite status transferred to Mileage Plan. The new combined program, “Atmos Rewards,” brings together the best of both airlines’ loyalty offerings.
Financial Synergies: Alaska expects approximately $235 million in run-rate synergies, with the transaction representing a conservative multiple of 0.7 times revenue—approximately one third the average of recent airline transactions.
Strategic Positioning: The combined company controls approximately 40% of the traffic between Hawaii and the United States mainland, creating a dominant position in this lucrative market.
Operational Integration Challenges
While preserving distinct brands, the strategy presents operational complexity. Planes must maintain distinct branding, which limits the ability for the company to shift aircraft between markets. For example, a particular aircraft might not be able to fly from Tokyo to Seattle and then from Seattle to Honolulu if one flight is Alaska-branded and one is Hawaiian-branded.
The approach also limits seasonal flexibility. The company might want to fly wide body aircraft between the mainland and Hawaii in winter, then from Seattle to Europe in summer, but brand-specific aircraft could constrain such operational efficiency.
Industry Implications
The Alaska-Hawaiian merger sets a new precedent for how major airlines can approach acquisitions while preserving valuable brand equity. Alaska Airlines appointed Eric Edge as Vice President of Brand & Marketing for both brands, underscoring the company’s commitment to preserving the unique identities of both airlines while maximizing their combined strengths.
The success of this dual-brand strategy will be closely watched across the industry. If Alaska can maintain operational efficiency while preserving two distinct brands, it could influence how future airline mergers are structured.
For passengers, the preservation of Hawaiian Airlines’ colors, Pualani logo, and aloha spirit represents more than just marketing—it maintains a cultural connection that has made flying to Hawaii feel like the vacation begins at the airport gate. In an industry where mergers typically erase beloved brands, Alaska’s commitment to preserving Hawaiian’s identity offers hope that authentic airline culture can survive corporate consolidation.
As Alaska CEO Ben Minicucci noted, “Among Alaska, Hawaiian and Horizon Air, we have more than 230 years of history flying guests and serving communities. I know we will build on that legacy and become stronger together”—while ensuring that Hawaiian’s 95-year-old brand continues to welcome passengers with the same aloha spirit that has defined island aviation for generations.