Originally Posted by
AKCattleCarrier
Asking us to tighten our belts while they hemorrhage billions purchasing failed airlines at 3x market cap is laughable. The good thing is I don’t even have to read the unions propaganda trying to sell me on a mediocre JCBA, toss that email right in the trash. Can’t really imagine what incentive they have to even get one to a vote? They are essentially in the clear running an alter ego airline and getting 1/4 of the pilot group at a nice hefty discount (great job HA ALPA, dues well spent), what does management need a contract for? might as well wait it out for an economic downturn, couple failed ULCCs to upend the pilot supply/demand curve, some nice justifications to park airplanes if you don’t accept industry mediocre. Oh right “synergies”. LOL. Pilots believe the darndest things.
A few things worth pointing out from our side of the fence:
- Alaska couldn’t have bought our fleet for what they paid for the whole company. The equity portion was only about $1B, and even with assumed debt, the total price is roughly in line with what it would cost just to acquire a similar wide-body fleet on the open market.
- The real prize isn’t the airplanes — it’s our routes, international authority, slots, and the Hawaiian brand.None of that is something Alaska could’ve simply gone shopping for.
- Yeah, Hawaiian wasn’t profitable, but those losses were driven by temporary headwinds: Japan’s slow rebound, fuel spikes, and the A321 engine issues. The underlying assets hold real value once integrated into a larger network.
As for the JCBA and management’s incentives — we absolutely should be skeptical. But even with the merger, Alaska doesn’t gain long-term stability by dragging their feet on a contract. They still need a unified pilot group and predictable labor costs to make their “synergies” actually materialize. Without that, the numbers they’re projecting don’t work.
No one here has to swallow the corporate spin — we’ve all heard enough of it to last a career. But from the inside looking out, this acquisition isn’t just a bailout or a vanity buy. I think it’s a strategic grab Alaska couldn’t replicate by just waiting for the market or shopping for metal.