On December 3, Alaska Airlines and Hawaiian Airlines announced the intention to bring Hawaiian Airlines into the Alaska Air Group of airlines. In an investor’s call that day, Alaska Air Group and Hawaiian Airlines leaders discussed the future of Hawaiian Airlines’ mixed fleet, considering how both Alaska Air Group airlines are now single-fleet. A special focus was placed on the T-tailed Boeing 717, which provides inter-island service and makes up 20% of Hawaiian Airlines’ current network.

About the Boeing 717

The Boeing 717 was a product of turning the McDonnell Douglas MD-95 into a member of the Boeing line after the firm bought McDonnell Douglas in August 1997. The Boeing 717 was more than just a rebrand; it was an aircraft intended to keep the DC-9 relevant with US airline deregulation as a smaller, somewhat more efficient aircraft.

However, the small Boeing 717 was not terribly competitive with Bombardier’s and Embraer’s growing offerings at the time; the last Boeing 717 was built on January 4, 2005. The fact the Boeing 717 per-seat mile cost was comparable to the 737-800 helped keep the 717 fleet small at 156.

Hawaiian Airlines operates the Boeing 717 as inter-island airliners. The airplanes have two-class seating with 120 economy seats and eight first class seats.

Alaska Airlines CEO Ben Minicucci: “Take a look at all the fleets”

Checking the ch-aviation database, Hawaiian Airlines operates 19 Boeing 717s, five of which are leased. Hawaiian Airlines’ fleet of Boeing 717s has a cumulative value of $53.73 million and an average age of 21.9 years.

With regulatory approval proceedings ahead and labor contracts in negotiation, decisions about fleets are nowhere near being ready to be made.

Single fleet strategy versus the Hawaiian Airlines fleet

However, earlier this year, Nathaniel “Nat” Pieper, Senior Vice President of Fleet, Finance, and Alliances at Alaska Airlines – a subsidiary of Alaska Air Group – kindly shared his thoughts on Alaska Airlines’ single fleet efforts.

Hawaiian Airlines operates a total of 62 aircraft across four different aircraft types, with nine Boeing 787-9 Dreamliners on order.

This does not include the Amazon Air freighters that Hawaiian Air operates. Getting down to a single fleet or at least two aircraft types could become Senior Vice President Pieper’s next big challenge.

What could replace the Boeing 717? 

Unlike with the Airbuses above, the answer to what could replace the Boeing 717 is seemingly clear. First, the Boeing 737 MAX 7 could be bought or leased to replace the Boeing 717. However, the 737 MAX 7 is not FAA-certified for flight, aiming for certification in 2024, and there is a substantial backlog of orders for the model. The Boeing 737 MAX 7 can carry, on average, between 138 and 153 passengers.

Alternatively, the Airbus A220-300 is another possibility with 130 seats in a three-class configuration. The A220-100 offers only 109 seats in a three-class configuration - Qantas is using the A220 to replace the 717. Alaska Air Group’s rival Delta Air Lines operates the Airbus A220, and the aircraft’s existence is a point of contention with Boeing, which Alaska Air Group’s subsidiary Alaska Airlines has gone 100% with again.

E195-E2 is the favorite to replace the Boeing 717

However, Alaska Air Group could direct Hawaiian Airlines to invest in the Embraer E195-E2 with at least some commonality with Alaska Air Group's Horizon Air’s Embraer E175 and can seat 120 in three classes – just slightly less than the Boeing 717-200 with 128 seats in a two-class configuration. The E195-E2's 2,655 NM (4,917 km) range is also significantly more than the 717's 2,060 NM (3,815 km).

Considering Alaska Air Group’s efforts to increase Premium Class – a mid-level seating class with more pitch and additional amenities like early boarding plus deboarding – the Boeing 717-200’s two-class seating post-acquisition may not last long. Additionally, the E195-E2 offers the latest in avionics and builds on the relationship Alaska Air Group already has with Embraer.

Bottom line

Presuming the Alaska Air Group acquisition of Hawaiian Airlines is approved, difficult decisions will have to be made about the future of Hawaiian Airlines’ fleet. The Hawaiian Airlines' fleet’s average age of 10.7 years with leases concluding in a few years versus Virgin America’s 86% leased aircraft with long-term leases outstanding at the time of Alaska Air Group’s acquisition will make this easier. Could the Embraer E195-E2 be the favorite replacement for the Boeing 717?