On Tuesday, the U.S. Division of Justice opted to not block the proposed merger of Alaska Airways and Hawaiian Airways. The information comes simply eight months after the 2 U.S. carriers introduced the $1.9 billion deal.
“I’m assured that by the becoming a member of of those two airways, a stronger firm will emerge and supply extra journey choices for Hawai’i residents and native companies — and can improve competitors throughout the U.S. airline trade,” Hawaii Gov. Josh Inexperienced mentioned in an announcement. “I admire the DOJ’s robust consideration of Hawai’i’s distinctive wants throughout its evaluate of the proposed merger. I sit up for this merger continuing and the overwhelming shopper, worker and neighborhood advantages that can outcome from it.”
For Hawaiian Airways loyalty program fans, what’s going to the advantages of this potential merger seem like? Although Alaska Airways plans to maintain Hawaiian Airways as a separate model, the packages will function underneath one loyalty program.
So, is it protected to imagine Hawaiian Airways will undertake the Alaska Airways Mileage Plan program, or will the 2 carriers function underneath a brand new identify fully?
Whereas the merger nonetheless must be accredited by the U.S. Division of Transportation, the potential consolidation of those two packages has left us with a number of questions on how this merger will have an effect on these desirous to earn and redeem miles, use elite standing advantages and extra.
Maintain studying to search out out extra about what we all know concerning the Alaska Airways and Hawaiian Airways merger, in addition to what we wish to know if this consolidation formally goes by way of.
What we all know concerning the Alaska Airways and Hawaiian Airways merger
Right now, particulars are scant concerning how the conjoined loyalty program will function as soon as the consolidation is full. In accordance with a Securities and Trade Fee doc filed by Hawaiian in December 2023, the 2 airways’ loyalty packages might be mixed into one shared loyalty program, and your miles will carry over.
Moreover, for those who at the moment maintain elite standing with Hawaiian Airways, your standing may even be carried over. Nevertheless, neither Hawaiian nor Alaska has specified how Pualani Gold or Pualani Platinum members’ standing will match Alaska’s Mileage Plan elite standing tiers.
“It’s anticipated that [the elite tiers] will supply comparable or higher advantages to what you obtain as we speak,” per the SEC doc.
One other good thing about the merger is Hawaiian Airways becoming a member of the Oneworld alliance. At the moment, Hawaiian isn’t a part of any main airline alliance, in contrast to Alaska, which is a part of Oneworld. This merger is not going to solely present elite standing members with further Oneworld perks, similar to precedence check-in and bonus miles, however Oneworld vacationers will be capable of earn and redeem miles when flying with the provider.
“As soon as the mix is full, Hawaiian Airways’ current clients will get pleasure from the advantages of the trade’s highest-value buyer loyalty program, incomes and redeeming miles and receiving elite advantages on the complete complement of Oneworld Alliance airways, expanded world lounge entry and advantages of the mixed program’s bank card,” in keeping with the SEC doc.
Associated: Alaska Airways unveils 4 main adjustments to MVP elite standing
What we wish to know concerning the Alaska Airways and Hawaiian Airways merger
Nevertheless, far more isn’t clear about the way forward for an Alaska-Hawaiian loyalty program.
Will your Hawaiian miles switch to Alaska miles at a 1:1 ratio?
In accordance with the SEC doc, the miles you earn with Hawaiian Airways is not going to expire, and you may proceed to earn and redeem these miles previous to the merger. If in case you have remaining miles post-merger, “your current miles might be honored.”
Nevertheless, the SEC doesn’t state how they’d be honored. Particularly, will these miles be transformed into Alaska Airways Mileage Plan miles at a 1:1 ratio?
Previous expertise is combined alongside these strains.
For instance, when Finnair adopted Avios as its loyalty forex, any remaining Finnair Plus award factors have been routinely transformed at a 3:2 ratio. Nevertheless, the conversion ratio was 1:1 in the course of the integration of American Airways AAdvantage and US Airways Dividend Miles again in 2015.
It’s unclear precisely what strategy Hawaiian and Alaska will take, although it’s value noting that our August 2024 valuations have Alaska miles value roughly 72% greater than Hawaiian miles.
Will American Categorical Membership Rewards lose Hawaiian Airways as a switch accomplice?
Earlier this 12 months, Bilt Rewards silently misplaced Hawaiian Airways as a switch accomplice however stored Alaska Airways. With the proposed acquisition, can Amex cardholders anticipate to lose Hawaiian as a switch accomplice within the close to future?
You possibly can at the moment switch Amex factors to Hawaiian at a 1:1 ratio. Plus, Amex is providing a 20% switch bonus to Hawaiian Airways till Aug. 31; subsequently, your factors at the moment switch at a 1:1.2 ratio.
Since we don’t but know if Hawaiian miles will switch to Alaska at a 1:1 ratio, you could be rolling the cube by making a speculative switch from Amex to Hawaiian. In spite of everything, these miles might finally convert into Alaska miles at a 1:1 ratio. Nevertheless, you may fall sufferer to your Hawaiian miles changing at a far decrease price. It’s as much as you to resolve whether or not that is well worth the gamble.
Associated: American Categorical Membership Rewards switch companions: Maximize your factors
What is going to occur to Hawaiian Airways’ cobranded bank cards?
Barclays at the moment points two Hawaiian Airways cobranded bank cards: the Hawaiian Airways® World Elite Mastercard® and the Hawaiian Airways® Enterprise Mastercard®. Each supply two free checked luggage on Hawaiian flights while you use your card to buy eligible tickets from Hawaiian Airways’ web site; 3 miles per greenback spent on Hawaiian Airways purchases; 2 miles per greenback spent on gasoline, eating and eligible grocery retailer purchases; and 1 mile per greenback spent on all different purchases.
Per the SEC doc, Hawaiian will “proceed to simply accept new purposes.” So, can cardholders anticipate the cobranded playing cards to stay? Will the cardboard finally dissolve? Or, will further card advantages be added that can apply throughout the mixed route community?
The knowledge for the Hawaiian Mastercard and Hawaiian Enterprise Mastercard has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or offered by the cardboard issuer.
What number of miles will you want for Hawaiian award flights?
Whereas many main airways use dynamic award pricing, Hawaiian Airways and Alaska Airways nonetheless function utilizing award charts. Nevertheless, Hawaiian’s award chart is predicated on a number of elements, together with the area of your flight and the time of 12 months (busier journey dates will price you extra miles). Some vacationers additionally qualify for discounted award charges — particularly Pualani Platinum, Pualani Gold and Premier Membership members, in addition to choose Hawaiian Airways cardholders.
In the meantime, Alaska Airways has distance-based award charts for its personal flights and separate award charts for accomplice airways, all of which function “beginning at” award costs (precise charges may be two or 3 times larger, relying on the flight).
So, the place will Hawaiian-operated flights match into this? Since Alaska plans to maintain Hawaiian as a separate model, will it’s topic to accomplice pricing, or will Alaska add new areas (and pricing) to its personal award chart? Or, will Hawaiian preserve its personal award chart intact?
Right now, neither Hawaiian nor Alaska has specified what award flights will seem like in a mixed loyalty program.
Associated: Alaska Airways Mileage Plan award chart adjustments are actually reside
What is going to occur to different Hawaiian companions?
Hawaiian Airways isn’t a part of a serious alliance, but it surely does have partnerships with various different carriers, together with Virgin Atlantic, JetBlue and Japan Airways. Moreover, you’ll be able to earn (and redeem) miles with American Airways, Delta Air Strains and United Airways on interisland flights with Hawaiian Airways.
Whereas none of those partnerships are notably worthwhile, it stays to be seen what’s going to occur if the merger is accredited and the loyalty packages are mixed.
Backside line
We’ve seen airways undertake new loyalty packages simply within the final 12 months. For instance, Finnair now makes use of British Airways Avios as its respective award program. Nevertheless, Finnair retained its autonomy concerning this system’s elite standing tiers and award chart.
Right now, there usually are not many particulars on how the consolidation of Hawaiian Airways and Alaska Airways will have an effect on the loyalty packages and its members — however we’re eagerly awaiting information and can make sure to replace our readers after we get extra particulars.
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