Kauai Real Estate Update- For a complete list of the real estate activity on the island of Kauai for the last week click here: Kauai Real Estate Activity November 27 to December 3, 2023
Poipu Beach Real Estate Update- The loan fee simple one bedroom under a million that came on the market went quickly into escrow. A one bedroom in Waikomo Streams for $798,900 got an accepted offer with only 10 days on the market. There is just one vacation rental fee simple property in Poipu under a million which is a studio at Prince Kuhio for $699,000. To see the year-to-date activity in Poipu click here: Poipu Beach Fee Simple Current Market Analysis
Kiahuna Plantation Real Estate Update- For a complete update on all the real estate activity at the Kiahuna Plantation since the beginning of the year click here: Kiahuna Plantation Current Market Analysis
Alaska Airlines Buys Hawaiian Airlines
The news that Alaska Airlines bought Hawaiian Airlines for $1.9 Billion dollars was pretty shocking when it was announced on Sunday. Later that same day there was a news conference that I watched where more details were given and the two CEO’s, Peter Ingram for Hawaiian and Ben Minicucci for Alaska, both answered questions.
To say that no one saw this coming on a Sunday is an understatement, but the secrecy makes perfect sense. On Friday Hawaiian was trading at $4.00 a share and the buyout will be for $18.00 dollars a share, on Monday the stock was trading at $14.20 a share, a buyout has to have this level of secrecy.
It was stated that these two companies coming together make for one much stronger alliance and it’s one that they want to grow, with the merger they are now in the big leagues. The two companies have a lot in common with their home states being so reliant on dependable, affordable air travel, I really can’t think of another airline that has the same culture as Hawaiian. Hawaiian Air started in 1929 and Alaska started in 1932, before either of them were a State.
At the news conference this is what was stated:
- For now, nothing is changing, everything is remaining the same.
- It will take 12 to 18 months for this deal to close and it’s pending approval from Federal Regulators.
- The Brands will remain and this is the first time that this has happened.
- Honolulu will become a “key hub” for Alaska and one they intend to keep.
- All union employees will keep their status/seniority and they will be working with the Unions to integrate them both.
- Alaska CEO said “they hope” to be keeping as many non-union employees as they could.
- There aren’t many duplicate routes between islands currently so they don’t see much changing.
- Loyalty programs remain the same for now and will be combined, how that will look exactly is not known. They did talk about a “co-branded” credit card.
In my work history I’ve gone through many company buyouts and one thing they have all had in common is the assurance to all (employees and the public) that this will be better for everyone and not to worry. Sometimes that has been the case and other times, not so much. When I was a young 20 something-year-old, and nervously going through my first buyout experience, I remember an old timer telling me “Believe none of what you hear, and half of what you see” and that has proven to be sound advice. My husband and I are all in with Hawaiian Air loyalty programs and truly like the airline, so I plan to stay away from negativity about this but keep an eye on what is happening. All eyes are on what is happening from a State level on down, we are all in the same canoe when it comes to traveling between islands and beyond.
In Related News… Hawaiian Airlines Adds New Route From Sacramento to Lihue
Beginning May 24th Hawaiian Air will add four weekly direct flights from Sacramento to Lihue and three weekly direct flights from Sacrament to Kona which will start on May 25th. Beginning May 15 there will be a new daily non-stop flight from Honolulu to Salt Lake City. The flight will leave Honolulu at 6:50 p.m. and will leave Salt Lake at 7:00 a.m.
Amazons Footprint Larger In 2024
In Hawaii we love Amazon (and their Prime Shipping!!) and we’re getting more to love soon. In April of 2024 they are opening a 595,000 sq ft facility in Oahu. This will allow them to shorten their delivery time as well as better meet the demand for products here in Hawaii. Amazon currently works with 1,200 small companies here in the islands that sell through their platform. 350 to 400 jobs will be created and they will start the hiring process in January. Amazon has invested $415 million into Hawaii since 2010 and have created 900 jobs.
Kauai Year To Date 2023 vs 2022
Good news for Kauai Home and Condominium Sellers, the Median Prices were up in every area on Kauai with the exception of a small price decrease for Homes on the North Shore. This is remarkable when you consider how far down we are in the number of sales and yet, the Median Prices are still up. Looking at Median Prices is a bit tricky when the sales are this low, here is a short video that explains that: Median Price Video
Are Sellers needing to back off on their prices? For some home sellers, yes and condo sellers not so much. For just the month of November 2023 compared to 2022 Residential Sellers are getting 94.5% of their original asking price to their sold price, this year 91.2%. For condominium Sellers it was 97% compared to this year’s 95.9%.
Below is a graph showing this year’s activity compared to this same time last year.