All the chatter in the airline break room is about the Alaska Airlines acquisition of Hawaiian Airlines.
After the U.S. Departments of Justice (DOJ) and Transportation (DOT) had a chance to review the deal, regulators asked for a few concessions. Alaska Airlines agreed to maintain current service levels on Hawaiian’s interisland routes, as well as between Hawaii and the mainland. There’s some wiggle room to allow for overall market conditions and specific competitive developments.
The U.S. regulators required Alaska Airlines to allow kids to sit next to their parents at no additional charge. The regulators also put in some language to try to maintain the value of both Hawaiian’s and Alaska’s frequent flyer plans. Some of the DOT’s order also mandated that miles earned with credit card spending have a specific value. In the order, though, the dollar value is blacked out from public view.
The credit card conditions are important, though, because Bank of America, through its credit card commissions and purchase of frequent flyer miles, is Alaska Airlines’ largest customer by far. Hawaiian Airlines has its own loyalty plan and credit card tie-in, with a Barclays Bank Mastercard.
According to Alaska Air’s news releases, it will take 12-18 months to integrate Hawaiian Airlines with the Alaska Air Group. The group includes both Alaska Airlines and Horizon Air.
Travelers I’ve spoken with are excited at the possibility of using their Alaska Airlines miles to Hawaiian’s international destinations, including Sydney, Auckland, Pago Pago, Rarotonga, Tahiti, Japan and South Korea.
Further, Alaska Air frequent flyers will be able to earn miles on purchased trips to these destinations. According to Alaska Airlines, travelers soon will be able to swap their Alaska Air miles for Hawaiian Air miles 1:1 in order to fly on those international routes.
Even without the acquisition of Hawaiian Airlines, Alaska’s frequent flyers could fly on partner airlines to most (not all) of Hawaiian’s international destinations. Partner airlines with earn-and-burn privileges include Qantas (to Australia and New Zealand), Korean Air (to Seoul), Japan Air Lines and Air Tahiti Nui.
When traveling on partner airlines, though, it costs more miles and you earn fewer miles when flying. For example, traveling on partners like American Airlines and Condor yield only 25% to 30% of actual miles flown, unless you pay extra for business class.
As a wholly owned unit of Alaska Airlines, it’s reasonable for travelers to expect full mileage credit on international routes and more favorable terms when redeeming miles. Still, even when you fly Alaska Air, Saver tickets only yield 30% of miles flown.
This mileage plan reciprocity also opens up a back door where American Express cardholders could use their points on Alaska Airlines.
American Express offers a flexible spend plan where cardholders can move their points to many different airlines, including Delta, Emirates and Hawaiian. After the mileage “swapability” between Alaska and Hawaiian goes live, American Express cardholders can move their points to Hawaiian ... and then to Alaska Airlines.
I’ve already heard from some travelers who have signed up for Hawaiian Air’s loyalty plan and applied for the Barclays Mastercard. There’s a $99 annual fee and travelers must spend $2,000 within 90 days to receive 70,000 Hawaiian bonus miles. Then, you can use the miles on Hawaiian, or transfer them to Alaska Airlines once that feature is live.
Travelers have lots of questions about how the existing Mileage Plan benefits will play out with the Hawaiian Air flights. That includes the two-free-bags benefit for Club 49 members.
For example, will the Alaska Visa $99 companion fare apply to Hawaiian’s international flights? That’s doubtful in the near term, because Alaska and Hawaiian still are operating as separate airlines. That said, the ultimate goal is for both carriers to operate as a single airline.
Also, Hawaiian Airlines, through its loyalty plan Hawaiian Miles, already offers a companion discount to cardholders. Currently, the international routes are not included in the plan.
Many travelers are asking about Hawaiian Air’s wide-body jets. Hawaiian operates two dozen Airbus 330s and has a couple of 787s. Specifically, Alaskans want to know if those jets can be used to fly nonstop from Alaska to Asia.
I think some of these comments come from all the talk of nonstop flights to Asia generated by Ravn and New Pacific Airlines. Those flights aren’t happening. In fact, New Pacific Airlines (formerly Northern Pacific Airways) recently retrofitted their 757s to an all-business configuration for charter work in the Lower 48.
In the near term, it’s hard to see Hawaiian dedicating a wide-body aircraft to fly between Anchorage and Asia. But Alaska’s CEO, Ben Minicucci, said he looks forward to adding international routes, particularly from Seattle. Does that mean that Alaska-Tokyo flights are on the table? Stranger things have happened.
Other travelers are asking if Hawaiian and Alaska will offer more flights between Alaska and Hawaii. Currently, Alaska flies each day from Anchorage to Honolulu, arriving at 10:57 p.m., which is too late to make any neighbor island connections. Nonstop flights to Kona start on Nov. 23, with thrice-weekly service until after New Year’s. Then, the flights go every day through Feb. 13.
Flights to Maui from Anchorage are just once a week (Saturdays) between Nov. 23 and Jan. 4, with four flights per week after that.
One reader, “Barb R.,” said she would be happy if Alaska added a nonstop from Anchorage to Kauai.
While Alaska’s initial plan is to operate both Hawaiian Air and Alaska Air separately, the goal is to absorb Hawaiian and operate the two carriers under one airline certificate. Further, Alaska plans to offer a single loyalty plan to accommodate both Alaska and Hawaiian Air.
According to Alaska’s news releases, one goal is to make sure all Alaska and Hawaiian flights are available to book on both airlines’ websites. That would include booking both airlines on a single ticket, which would accommodate “interlining” bags between the two flights.
Changes for travelers are complex. Add to that the challenge of integrating a fleet of Airbus planes, blending two sets of pilots, flight attendants and support staff. It’s a long process that has to be done thoughtfully.
Honolulu will be Alaska’s second-biggest hub after Seattle, in part because of the high-frequency interisland service Hawaiian Air offers using its fleet of Boeing 717s, as well as flights to Hawaii from Boston, New York, Austin and 12 West Coast cities.