ANCHORAGE, Alaska (KTUU) – Alaska Airlines completed its acquisition of Hawaiian Air on Wednesday, just one day after the federal government cleared the way of major regulatory obstacles.
According to Alaska Airlines, the deal worth roughly $1 billion will enable travelers to reach 141 destinations directly (including 29 international markets) and over 1,200 destinations globally.
This is a prospect that excites local travel expert Scott McMurren.
“From a personal standpoint, I’m excited about it because I’ll be able to use my miles and earn miles on Hawaiian destinations to Australia, New Zealand, Japan, Korea, Rarotonga, Tahiti and Fiji,” said McMurren, who publishes the Alaska Travelgram and email travel newsletter.
Many travelers were concerned that rewards systems would change or go away. That was a major sticking point when the United States Department of Transportation (USDOT) approved the merger.
“Travelers care a lot about our frequent flyer miles, and that’s why we secured the first ever rewards program protections that prevent the combined airline from devaluing or taking away the miles, status or benefits that consumers have earned,” U.S. Secretary of Transportation Pete Buttigieg said.
“This is the first time that the US Department of Transportation has required airlines to agree to binding enforceable protections as a precondition before we would consider allowing a merger to move forward.”
McMurren agrees with Buttigieg — travelers do care a lot about frequent flyer miles. But he has a different take than some.
“The three magic words for frequent flyer in the 21st century are as follows: ‘Earn and burn,’” McMurren said. “That means hyperinflation is rampant in the unregulated shadow currency we call frequent flyer miles. Your miles are worth more today … than they will be tomorrow. Mark my words; merger, no merger.”
McMurren says he was surprised when first hearing of the merger, but feels like this will benefit travelers as much as the shareholders of Alaska Airlines.
“Typically … companies only merge only so that they can decrease competition and increase fares so that they would be able to return more money to their shareholders as a result of a monopolistic situation,” McMurren explained as to why the government was concerned about the merger. “This is not abundantly clear to me, how that differs here. [But] I do not think that that Alaska or Hawaiian enjoy a monopoly in these markets.”
Currently, the two airlines will continue operating as distinct brands with a goal of securing a single operating certificate with the Federal Aviation Administration (FAA).
Once that occurs, Alaska Airlines and Hawaiian Air will operate as a single carrier.
In terms of benefits, Alaska Airlines says both mileage plans will retain their full value and Alaska Lounge members will have access to locations when flying on Hawaiian Air.
Within the month, travelers will be able to transfer miles between the two airlines’ loyalty accounts to redeem award travel. Ticket purchases for both airlines will be available on both websites as well.
Alaska says that in early 2025, travelers will be able to combine Hawaiian flights with Alaska or partner airlines when redeeming miles.
“This is a historic day for Alaska Airlines as we officially join with Hawaiian Airlines,” CEO of Alaska Air Group Ben Minicucci said. “Alaska and Hawaiian share tremendous pride in connecting communities with award-winning service, and we look forward to inviting more guests on board to experience what makes both brands unique. Among Alaska, Hawaiian and Horizon Air, we have more than 230 years of history flying guests and serving communities. I know we will build on that legacy and become stronger together – providing the excellent operation guests have come to expect, expanding options to seamlessly travel nearly anywhere in the world, and securing the financial stability and value that inspires investment.”
McMurren has his fingers on the pulse of Alaska travelers and he says the questions are flowing in.
“They want to know, ‘Is Alaska going to offer a wide body, nonstop service from Anchorage to Tokyo?’ That’s like the number one question,” he said.
“Number two is, ‘Can I use my companion fare ticket to Sydney?’ That’s the number two question.
“So we’re getting a lot of these questions. And you know, these are things that are going to take 18 months to work out.”
As of Wednesday, Hawaiian Air’s stock has been de-listed on the NASDAQ. Alaska says the combined organization will continue to trade on the New York Stock Exchange under the ticker ALK.
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