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Hawaiian and Aloha Reach Merger Pact

Aloha and Hawaiian airlines are planning another attempt at a merger.

Their plans, announced yesterday, are evidently not a love match, but a marriage of absolute financial necessity.

The traditional rivals in Hawaii skies tried to merge earlier this year but HAL called it off abruptly.

Subsequent events seem to have proved conclusively that while they don’t like the idea of working together, the two lines simply can’t go it alone financially.

They’ve been running in the red and there’s little prospect of long-range federal aid.

A joint announcement by the chief executive officers of both airlines was made late yesterday in the office of Gov. John A. Burns.

The timetable: To combine the two airlines into a single Hawaiian Aloha Airlines the end of this year.

This time around, the merger stands a better chance of success. Yesterday’s announcement spelled out a more acceptable form of merger financially, and pointed out that a combination will be the only way to reduce expenses drastically. Burns was enthusiastic over the development.

"I welcome this news of a stable and improved system of providing reliable air service to our people," he said.

"In this period of rising prices, we have every reason to expect that inter-Island air fares will be stabilized, at least, because of the merger.

But HAL’s president, John H. Magoon Jr. was cautious. He said rates would be stabilized in the future, but could possibly go higher.

"It is awfully early to tell if transportation expenses will remain the same or go higher." Magoon said.

He said the Civil Aeronautics Board supports the merger proposal 100 percent.

Terms of the merger are complicated.


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