The Boeing 717 has been the mainstay of Hawaiian Airlines interisland operation for 20 years. Hawaiian Airlines is the second largest operator of the Boeing 717 in the world. The aircraft are approaching 25 years old and operate in a hot, humid environment. Speculation has mounted about a replacement.
Last year, Hawaiian Airlines CEO Peter Ingram indicated that a replacement plan for the fleet was in the works. The airline had mentioned possible candidates for the interisland operation that included the Embraer E195-E2, used Airbus A319s, or a combination of Airbus A320NEOs.
Then a multi-billion dollar acquisition of Hawaiian Airlines happened. Rumors and speculation ran rampant that Alaska might decide to scrap Hawaiian’s fleet of 717s earlier than later and instead run a combination of Hawaiian A321s and Alaska 737s through the island chains to replace the aging and orphan fleet.
Alaska Highlights Merger Strategy
Earlier this week, Alaska Airlines held its annual investors day. While most airlines host an annual event to highlight their business strategy, Alaska’s was particularly interesting in light of the recent merger with Hawaiian Airlines.
During the event, the airline announced that they planned to inaugurate service between Seattle and Tokyo Narita utilizing Hawaiian’s Airbus A330. The airline also will introduce service to South Korea from Seattle next year. Hawaiian would drop Honolulu-Narita service to make way for this new route. This route would compete directly against Delta in an attempt to further Alaska’s claim that it is Seattle’s hometown airline.
The airline also announced that the synergy between the two airlines would result in a potential $500m for 2025, up from the previously expected $250m gain. The gains would be realized by synchronizing schedules between the airlines to offer greater connectivity to Hawaii and the west coast of the US.
Alaska’s CEO Shared More Thoughts About the Hawaiian Acquisition, Evolving Strategy and More
During the investor day, the airline didn’t really highlight the interisland market. However, Alaska’s CEO Ben Minicucci did open up on a recent Air Show podcast.
During the show, Minicicci mentioned that the combination of the airlines means that their goal is to have most flying to/from Hawaii on Hawaiian Airlines branding. That means that Hawaiian branding could be on Boeing 737s sometime in the future. For now though, each airline will continue to operate under their respective brands and crews until a single operating certificate is achieved.
Minicucci also stated that the new fleet as part of the merger will give Alaska additional flexibility. Right sizing markets will be possible as the Airbus A321NEO is a better fit for Hawaii to Las Vegas at any time of day than the Boeing 737 MAX fleet.
The Boeing 787 offers additional flexibility to connect large, distant markets. Minicucci sees the opportunity to build a larger international gateway from its Seattle hub.
So What About The Boeing 717?
Minicucci did address the lingering Boeing 717 question during the podcast. He stated that the Boeing 717 still “has some legs on it” which gives the airline flexibility to determine the proper replacement.
He stated that they’ll need to figure out the right solution within the next five years. Furthermore, Minicucci stated that the “[Boeing] 717 might stay longer than we think”. He charged his staff to determine what the right eventually replacement would be appropriate for the market. The bottom line though is that the airline has time to get it right.
There you have it. The mighty Douglas derivative will likely live on in the Hawaiian Islands through the end of this decade.
