The Rationale Behind Hawaiian's Brand Strategy

Alaska Air Group is spending a lot of time and money on how it positions Hawaiian Airlines. I spoke to CEO Diana Birkett Rakow to learn more about the plan.

Dear readers,

It has become a running gag, but it's no joke: You can learn a lot about an airline’s priorities based on the quality of the cheese plate it sells in economy class (or if it sells any at all). And as you might recall, while I enjoyed flying Hawaiian Airlines before Alaska acquired it, Hawaiian’s cheese plate was a disgusting medley of self-stable offerings, pumped with enough preservatives to make it last, well, forever.

When I interviewed new Hawaiian CEO Diana Birkett Rakow last month, I asked her whether she had fixed this error by adopting Alaska's fruit and cheese plate. It's the industry's best: a selection of perishable cheeses paired with (usually) crunchy apple slices and plump, juicy grapes. Alaska's customers have loved it for years, because it's delicious — a true marvel of airline catering.

Absolutely not, she said.

"The cheese plate is a signature Alaska brand item," she said. "It doesn't belong on the Hawaiian airline brand."

Wait, what? These two airlines are owned by the same company and fly under a single operating certificate. Their parent, Alaska Air Group, has promised investors it will wring at least $500 million in synergies from its acquisition by 2027, and part of that will come from joint procurement.¹

Why spend any money to design and fulfill two different cheese plates?