By Ellen Kennedy
published 7 December 2023
In a deal that could significantly benefit travelers, Alaska Airlines announced its intention to acquire Hawaiian Airlines. While customers may not see immediate changes, there are opportunities to take advantage of now, especially in terms of accruing miles in anticipation of the merger. You could potentially earn frequent flyer miles worth $660 in airfare.
Alaska Airlines Merger
Alaska Airlines plans to purchase Hawaiian Air (Hawaiian Holdings, Inc.) for $1.9 billion, a strategic move that will expand Alaska’s route network and take on Hawaiian’s existing debt. Alaska has expressed admiration for Hawaiian Airlines’ strong customer service dedication, commitment to sustainability, and deep-rooted ties to Hawaiian culture and employees.
Alaska Air’s $660 Value Bonus Offer
One effective way to accumulate Alaska Air’s frequent flyer miles is by applying for the company’s credit card. The Alaska Airlines credit card has recently enhanced its bonus offer for new cardholders. After spending $3,000 in the first 90 days of ownership, customers can earn 60,000 bonus points. According to Bankrate, each Alaska Airlines loyalty mile is valued at approximately 1.1 cents, meaning this bonus offer is valued at about $660 for travel redemption.
Moreover, cardholders who also use Bank of America benefit from a 10% increase in frequent flyer miles earned. Thus, if a customer travels 1,000 miles, they would earn a total of 1,100 miles as a qualifying Bank of America customer.
This credit card also offers three points per dollar spent on Alaska Airlines travel, two points on gas, cable, streaming services, and local transit, and one point on all other purchases. This performance positions it as a competitive offering among travel rewards credit cards.
Alaskan vs Hawaiian Miles
While Alaska Airlines has not provided extensive details regarding changes to the combined companies’ loyalty programs post-merger, they confirmed in a statement in early December that the two frequent flyer programs will be integrated. Customers will have the ability to earn and redeem miles with 29 global partners, as well as enjoy elite benefits across the oneworld Alliance airlines and benefit from expanded lounge access.
However, it remains uncertain whether the well-liked companion fare perk will be retained in the new structure. This benefit allows Alaska Airlines credit card customers to secure a second ticket for only $99 (plus taxes and fees), resulting in significant savings on family travel.
When will customers notice changes?
Though the merger is expected to finalize within the next 12 to 18 months, board approvals have been obtained from both companies. Nevertheless, the acquisition is not immune to potential setbacks. Shareholders may protest the merger, or the Biden Administration could intervene to preserve competition and manage airfare costs. Recently, the Department of Justice (DOJ) has taken action against merger attempts, including a suit against JetBlue concerning its acquisition plans involving Spirit Air.
How will the route map change?
Following the merger, Hawaiian Airlines is likely to join the oneworld Alliance, of which Alaska Airlines is already a member. To gain insight into the possible future offerings of the new entity, refer to the detailed route map outlined in Alaska Airlines’ Investor Presentation from December 3, 2023.
Conclusion
In summary, as the acquisition of Hawaiian Airlines by Alaska Airlines unfolds, customers can look forward to expanded travel opportunities and potential rewards. Although there are uncertainties about how the loyalty programs will be integrated and changes to existing perks, the merger promises an enhanced travel experience for passengers throughout Hawaii and the West Coast.
