Alaska Airlines has recently proposed a purchase of Hawaiian Airlines for a sum of around $1.9 billion. Although airline mergers are generally viewed as having a neutral to negative impact on customers, this particular merger presents some intriguing possibilities. While regulatory approval is still pending, it’s worth considering the potential implications for customers of both airlines.
Previously, Hawaiian Airlines’ limited partnerships with other airlines, as well as its focus on cities on the Pacific coast, posed a significant challenge for passengers traveling from the east coast to the Hawaiian islands. Due to the lack of partnerships, passengers had to retrieve their checked bags and check in again, often from a different area of the airport, which was a time-consuming and inconvenient process. During the pandemic, we took advantage of Hawaiian Airlines running a non-stop flight from Honolulu to Orlando. While it was a long trip, it was amazing to fly non-stop home from Hawaii.
However, a merger with Alaska Airlines will allow passengers from many cities on the East Coast to connect to flights to the Hawaiian Islands with greater ease and convenience, eliminating the need for passengers to make multiple connections.
While I was reading through the press release from Alaska Airlines about the merger, one section stood out from the rest. Alaska vaguely mentioned what would happen to the Alaska Mileage Plan and the HawaiianMiles programs after the merger.
Increased loyalty program benefits: The transaction will connect Hawaiian Airlines’ loyalty members with enhanced benefits through an industry-leading loyalty program for the combined airline, including the ability to earn and redeem miles on 29 global partners and receive elite benefits on the full complement of oneworld Alliance airlines, expanded global lounge access and benefits of the combined program’s co-brand credit card.
Alaska has gone out of its way to mention the “industry-leading loyalty program for the combined airline” and how Hawaiian Airlines’ loyalty members will have access to oneworld Alliance airlines, I’d have to imagine that HawaiianMiles will go away and merge with Mileage Plan.
I know there are many Alaska Mileage Plan fans out there; I’m just not one of them. When I got an Alaska Airlines co-brand credit card, it took me years to use most of the reward points. But what will happen to Hawaiian Airlines miles if and when the programs merge?
Gary from View from the Wing is guessing the programs would merge at a 1:1 value, which is a huge increase in value for HawaiianMiles. If so, is now the best time to get HawaiianMiles.
I dug through my junk mail pile and found an offer for 70,000 Hawaiian miles from the co-brand card from Barclays.
Since HawaiianMiles no longer expire, I could hold onto the miles until the merger closes and have an additional 70,000 miles in the merged programs. If the merger falls through, the worst case is that I’ll have 70K HawaiianMiles.
If I want to maximize my points, I could also sign up for an Alaska Airlines card, which is currently offering a 60,000 signup bonus.
Alaska Mileage Plan miles are highly valued for their use on partner airlines, particularly for booking premium-class flights. However, due to limited opportunities to take advantage of this benefit, we didn’t actively pursue earning Alaska miles. It is worth noting that Alaska does not have any transfer partners, meaning that the only way to acquire miles is through the co-brand card or purchasing them outright.
The proposed merger between Alaska and Hawaiian Airlines presents a unique opportunity for savvy travelers to potentially earn Alaska miles by accumulating HawaiianMiles prior to the merger. It is important to consider the potential risks associated with this strategy, as the deal falling through could result in a surplus of HawaiianMiles with limited redemption options.
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