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 business,” Hawaii Gov. Josh Inexperienced stated in a press release. “I recognize the DOJ’s sturdy consideration of Hawai’i’s distinctive wants throughout its assessment of the proposed merger. I stay up for this merger continuing and the overwhelming client, worker and neighborhood advantages that may outcome from it.”
For Hawaiian Airways loyalty program fans, what’s going to the advantages of this potential merger appear like? Although Alaska Airways plans to maintain Hawaiian Airways as a separate model, the packages will function below 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 below 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 eager to earn and redeem miles, use elite standing advantages and extra.
Preserve studying to search out out extra about what we all know concerning the Alaska Airways and Hawaiian Airways merger, in addition to what we need to know if this consolidation formally goes via.
What we all know concerning the Alaska Airways and Hawaiian Airways merger
Presently, particulars are scant concerning how the conjoined loyalty program will function as soon as the consolidation is full. Based on 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, in case you at the moment maintain elite standing with Hawaiian Airways, your standing will even be carried over. Nonetheless, 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 right now,” per the SEC doc.
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One other advantage of the merger is Hawaiian Airways becoming a member of the Oneworld alliance. Presently, Hawaiian is just not a part of any main airline alliance, in contrast to Alaska, which is a part of Oneworld. This merger won’t solely present elite standing members with further Oneworld perks, comparable to precedence check-in and bonus miles, however Oneworld vacationers will have the ability to earn and redeem miles when flying with the provider.
“As soon as the mixture is full, Hawaiian Airways’ current prospects will get pleasure from the advantages of the business’s highest-value buyer loyalty program, incomes and redeeming miles and receiving elite advantages on the total complement of Oneworld Alliance airways, expanded international lounge entry and advantages of the mixed program’s bank card,” in accordance with the SEC doc.
Associated: Alaska Airways unveils 4 main modifications to MVP elite standing
What we need to know concerning the Alaska Airways and Hawaiian Airways merger
Nonetheless, rather more is not clear about the way forward for an Alaska-Hawaiian loyalty program.
Will your Hawaiian miles switch to Alaska miles at a 1:1 ratio?
Based on the SEC doc, the miles you earn with Hawaiian Airways won’t expire, and you’ll 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.”
Nonetheless, 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 traces.
For instance, when Finnair adopted Avios as its loyalty foreign money, any remaining Finnair Plus award factors had been mechanically transformed at a 3:2 ratio. Nonetheless, 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 is 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 companion?
Earlier this yr, Bilt Rewards silently misplaced Hawaiian Airways as a switch companion however stored Alaska Airways. With the proposed acquisition, can Amex cardholders anticipate to lose Hawaiian as a switch companion within the close to future?
You’ll be able to 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; due to this fact, your factors at the moment switch at a 1:1.2 ratio.
Since we do not 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 could ultimately convert into Alaska miles at a 1:1 ratio. Nonetheless, you may fall sufferer to your Hawaiian miles changing at a far decrease price. It is as much as you to resolve whether or not that is definitely 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 whenever 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 just accept new functions.” So, can cardholders anticipate the cobranded playing cards to stay? Will the cardboard ultimately dissolve? Or, will further card advantages be added that may apply throughout the mixed route community?
The data 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 supplied 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. Nonetheless, Hawaiian’s award chart is predicated on a number of components, together with the area of your flight and the time of yr (busier journey dates will price you extra miles). Some vacationers additionally qualify for discounted award charges — specifically 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 companion airways, all of which characteristic “beginning at” award costs (precise charges might 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 companion pricing, or will Alaska add new areas (and pricing) to its personal award chart? Or, will Hawaiian hold its personal award chart intact?
Presently, neither Hawaiian nor Alaska has specified what award flights will appear like in a mixed loyalty program.
Associated: Alaska Airways Mileage Plan award chart modifications at the moment are reside
What is going to occur to different Hawaiian companions?
Hawaiian Airways is not a part of a significant alliance, however it does have partnerships with quite a lot of 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 Traces and United Airways on interisland flights with Hawaiian Airways.
Whereas none of those partnerships are notably useful, it stays to be seen what’s going to occur if the merger is accredited and the loyalty packages are mixed.
Backside line
We have seen airways undertake new loyalty packages simply within the final yr. For instance, Finnair now makes use of British Airways Avios as its respective award program. Nonetheless, Finnair retained its autonomy concerning this system’s elite standing tiers and award chart.
Presently, there are usually 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 you should definitely replace our readers after we get extra particulars.
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