I’ve never watched a minute-long clip and thought it would change how I viewed things. Then I saw a recent clip of United States Transportation Secretary Pete Buttigieg. In this short clip, which his official account posted to Twitter, he explains the concessions that the DoT received from Alaska Airlines for the government to approve its purchase of Hawaiian Airlines.
In this clip, he says the DoT locked in consumer protections to approve the purchase.
For the first time in the history of our Department's airline merger review process, we have locked in consumer protections up front to ensure Alaska and Hawaiian Airlines passengers were treated fairly before the merger moved forward. pic.twitter.com/m77BrTorLu
— Secretary Pete Buttigieg (@SecretaryPete) September 22, 2024
What does this mean for members of the loyalty program?
While customers who have points in a loyalty program often have to wait to find out what a merger or acquisition will mean for their points or status, the current administration views loyalty programs as an internal part of an airline’s business. Therefore, how members will be treated has now become an important part of the negotiations.
Probably the most new and I think one of the most important things that we’re doing. The rewards program and making sure there are provisions related to that points and miles system too, that is really breaking new ground for us as a department.. but its an increasingly a very, very important part of the customer experience and it’s looming larger and larger financially too.
This is a sign that airline mergers will be approved based on how they deal with their loyalty programs, which I think most people who earn loyalty points will believe is a net positive.
Secretary Pete has always been interested in loyalty programs.
Shortly after being sworn in as Transportation Secretary, Pete Buttigieg was interviewed with The Points Guy website, where he covered many topics, including that he prefers the window seat and is firmly on “Team Carry-On Bag.” But most interesting was that he said they used points to book their honeymoon in Bali using “creative routing,” with flights on United Airlines, Eva Air and Thai Airlines. “I can’t remember exactly. I have to admit that as proficient as I like to think I am, Chasten [Note: his husband] is the real master (and) points wizard.”
Even if he’s Player 2 in the points relationship, Buttigieg can appreciate the value of points and, more importantly, the problem of airlines devaluing points without notice. It’s nice to know that someone who at least understands the world of airline loyalty programs is in charge of making sure airlines can’t screw customers during a merger.
Final Thought
United States Transportation Secretary Pete Buttigieg has stated that the treatment of loyalty program members will be considered in airline mergers. His understanding of loyalty programs signals a positive shift in how airline mergers are approved, offering reassurance to customers concerned about the potential devaluation of their loyalty points.
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