Alaska sees freighter expansion opportunity with Hawaiian deal

Seattle-based Alaska Airlines’ proposed $1.9 billion acquisition of Hawaiian Airlines may lead to Amazon freighters ending up on the Alaska AOC as Alaska evaluates expanding its own freighter operations. Alaska said it intends to keep the Hawaiian Airlines brand intact but will operate both carriers on one certificate and establish a single collective bargaining agreement for the unions, Alaska Air Group Chief Executive Ben Minicucci told analysts in a call Dec. 3. [caption id="attachment_56866288" align="aligncenter" width="1136"] Alaska recently started operations with its first 737-800BCF. (Photo/Alaska Airlines)[/caption] Alaska said in a joint announcement Dec. 3 that it planned to acquire Hawaiian for $1.9 billion, including $900 million in debt . Amazon CMI ops Alaska has three 737-700BDSFs and last month started flying the first of two 737-800BCFs . It is also set to acquire the first CMI carrier for Amazon’s A330-300P2Fs, with the first of ten units entering service in October. “We haven’t had a ton of conversations with Amazon, but we’re excited to get engaged with this flying,” Minicucci said. “We’re excited about a midwest hub for pilots, more widebody flying. It's a really nice asset-light model, so it’s very [return on invested capital]-accretive over time.” Freighter operations are “an area of potential longer-term opportunity” for the company, Minicucci said. “We’ll continue to watch if that type of flying makes more sense, if there’s more of it we could do, or more dedicated freighter flying in our own fleet could make sense over time as well,” he said. “I do think this is an area we might find more opportunity in over time.” Alaska Air Cargo declined to comment, and Hawaiian Airlines Cargo did not respond to Cargo Facts’ request for comment. It remains to be seen if Alaska will reshape the CMI deal Hawaiian has in place with Amazon. Hawaiian may have a cancelation right in the contract with Amazon, but the e-tailer also has warrants implemented in the deal with the carrier that could give it some leverage, one industry executive told Cargo Facts . One possibility could be that Alaska takes on Amazon’s 737-800Fs as part of a deal for terminating the A330-300F operating agreement, the executive said. Amazon and Hawaiian Airlines announced a deal in the fourth quarter of 2022, with the e-commerce giant saying it would use the A330-300P2Fs to replace some of its older 767-200Fs on lease from ATSG. Looking ahead The executive added that Alaska’s intentions aren’t known pending approval of the deal, but there are many similarities between this week’s announcement and when Alaska acquired Virgin America in 2016. “I think you will see Alaska continue to be proudly all-Boeing and hence A330s are replaced by 787s and A321s changes to 737 MAXs,” the industry insider told Cargo Facts . Alaska announced a purchase, sale and leaseback with BBAM in 2022 for two of its passenger 737-800s. Although the combined airline group will be based in Seattle (SEA), Alaska said during the investor call that Honolulu (HNL) will become a key hub for the carrier as it looks to expand capacity in the U.S. and the Asia-Pacific region. Seattle-based Saltchuk Aviation, which has operations in Alaska and Hawaii through subsidiaries Northern Air Cargo, Aloha Air Cargo and Ryan Air, does not foresee any direct impact on its markets at this time, the group told Cargo Facts , adding that it has a “strong, long-term relationship” with its Alaskan and Hawaiian customers . Cargo Facts EMEA 2024, the essential event for stakeholders in Europe, the Middle East and Africa, will take place Feb. 5-7 in Amsterdam. Register today to take advantage of early-bird pricing .

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