On Tuesday, the U.S. Division of Justice opted to not block the proposed merger of Alaska Airlines and Hawaiian Airlines. 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 provide extra journey choices for Hawai’i residents and native companies — and can improve competitors throughout the U.S. airline business,” Hawaii Gov. Josh Inexperienced said in a statement. “I respect the DOJ’s sturdy consideration of Hawai’i’s distinctive wants throughout its assessment of the proposed merger. I look ahead to this merger continuing and the overwhelming client, worker and neighborhood advantages that can end result from it.”
For Hawaiian Airways loyalty program fanatics, what’s going to the advantages of this potential merger appear to be? Although Alaska Airways plans to maintain Hawaiian Airways as a separate model, the programs will operate under one loyalty program.
So, is it secure to imagine Hawaiian Airways will undertake the Alaska Airlines Mileage Plan program, or will the 2 carriers function beneath a brand new title completely?
Whereas the merger nonetheless must be authorized 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.
Hold studying to seek out out extra about what we all know in regards to the Alaska Airways and Hawaiian Airways merger, in addition to what we need to know if this consolidation formally goes by means of.
What we all know in regards to 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 line with a Securities and Exchange Commission document filed by Hawaiian in December 2023, the 2 airways’ loyalty packages will likely be mixed into one shared loyalty program, and your miles will carry over.
Moreover, if you happen to at present maintain elite standing with Hawaiian Airways, your standing may also 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 provide comparable or higher advantages to what you obtain in the present day,” per the SEC doc.
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One other good thing about the merger is Hawaiian Airways becoming a member of the Oneworld alliance. Presently, Hawaiian isn’t a part of any main airline alliance, not like Alaska, which is a part of Oneworld. This merger won’t solely present elite standing members with further Oneworld perks, equivalent to precedence check-in and bonus miles, however Oneworld vacationers will be capable to earn and redeem miles when flying with the service.
“As soon as the mix 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,” based on the SEC doc.
Associated: Alaska Airlines unveils 4 major changes to MVP elite status
What we need to know in regards to the Alaska Airways and Hawaiian Airways merger
Nonetheless, far 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?
In line with the SEC doc, the miles you earn with Hawaiian Airways won’t expire, and you may proceed to earn and redeem these miles previous to the merger. You probably have remaining miles post-merger, “your current miles will likely 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 blended alongside these traces.
For instance, when Finnair adopted Avios as its loyalty currency, any remaining Finnair Plus award factors have been mechanically transformed at a 3:2 ratio. Nonetheless, the conversion ratio was 1:1 through the integration of American Airlines 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 accomplice?
Earlier this yr, Bilt Rewards silently misplaced Hawaiian Airways as a switch accomplice however stored Alaska Airways. With the proposed acquisition, can Amex cardholders count on to lose Hawaiian as a switch accomplice within the close to future?
You possibly can at present switch Amex factors to Hawaiian at a 1:1 ratio. Plus, Amex is offering a 20% transfer bonus to Hawaiian Airlines till Aug. 31; due to this fact, your factors at present 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 any case, these miles might finally convert into Alaska miles at a 1:1 ratio. Nonetheless, you could possibly fall sufferer to your Hawaiian miles changing at a far decrease charge. It is as much as you to resolve whether or not that is definitely worth the gamble.
Associated: American Express Membership Rewards transfer partners: Maximize your points
What is going to occur to Hawaiian Airways’ cobranded bank cards?
Barclays at present points two Hawaiian Airways cobranded bank cards: the Hawaiian Airways® World Elite Mastercard® and the Hawaiian Airlines® Business Mastercard®. Each provide two free checked luggage on Hawaiian flights if 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 purposes.” So, can cardholders count on 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 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 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. Nonetheless, Hawaiian’s award chart relies on a number of components, together with the area of your flight and the time of yr (busier journey dates will value 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 accomplice airways, all of which characteristic “beginning at” award costs (precise charges will be two or thrice increased, 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 hold its personal award chart intact?
Right now, neither Hawaiian nor Alaska has specified what award flights will appear to be in a mixed loyalty program.
Associated: Alaska Airlines Mileage Plan award chart changes are now live
What is going to occur to different Hawaiian companions?
Hawaiian Airways is not 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 may 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 significantly beneficial, it stays to be seen what’s going to occur if the merger is authorized 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 uses British Airways Avios as its respective award program. Nonetheless, Finnair retained its autonomy concerning this system’s elite standing tiers and award chart.
Right now, 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 once we get extra particulars.
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