In December 2023, plans were announced for Alaska Airlines to acquire Hawaiian Airlines, in a $1.9 billion deal. Over the past several weeks, the merger has cleared several regulatory hurdles, including with the Department of Justice (DOJ) and Department of Transportation (DOT).
There’s now an update, as Alaska’s acquisition of Hawaiian has officially been completed as of today (September 18, 2024). The company has provided a roadmap of what we can expect, so let’s cover all the details.
In this post:
Alaska completes acquisition of Hawaiian
Hawaiian is now officially part of Alaska Air Group. However, as you’d expect, not a whole lot is changing for passengers overnight. The regulatory and financial aspect of the merger is complete, and now the attention turns to integrating the operations of the two airlines.
The next step is for the airlines to secure a single operating certificate with the Federal Aviation Administration (FAA), which will allow the airlines to operate as a single carrier with an integrated passenger service system. In the interim, the airlines will continue to operate separately.
Here’s how Alaska CEO Ben Minicucci describes this development:
“This is a historic day for Alaska Airlines as we officially join with Hawaiian Airlines. 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.”
Here are some interesting statistics about the size of the new combined company:
- The company flies nearly 1,500 daily flights to 141 destinations, including 29 international markets in the Americas, Asia, Australia, and the South Pacific
- The company maintains hubs in Seattle, Honolulu, Los Angeles, San Francisco, Portland, San Diego, and Anchorage, with Honolulu becoming the second largest behind Seattle
- The company operates a fleet of 350 aircraft, which includes two Boeing 787s, 24 Airbus A330s, 18 Airbus A321neos, 235 Boeing 737s, 19 Boeing 717s, 44 Embraer E175s, and eight dedicated freighters (three Boeing 737-700s, two Boeing 737-800s, and three Airbus A330s)
- The company employs more than 33,000 people across North America, Asia, and the Pacific
What Alaska & Hawaiian passengers can expect
How quickly should Alaska and Hawaiian passengers expect to see changes? While exact details are limited, here’s what we know….
In the coming weeks:
- It’ll be possible to transfer miles between Alaska and Hawaiian at a 1:1 ratio at no cost
- It’ll be possible to buy flights on both airlines on both websites
- The company will introduce a new travel program just for those who live in Hawaii, called Huaka‘i by Hawaiian, which will offer extra benefits
In the coming months:
- It’ll be possible to earn miles for travel on both airlines on a reciprocal basis
- In early 2025, it’ll be possible to redeem Mileage Plan miles directly on all Hawaiian flights
- It’ll be possible to match status across programs, so that you can link your accounts to automatically enjoy equivalent status with the other airline, and to even combine elite qualifying miles
Then in the long run:
- There will be elite reciprocity between the two airlines, where Mileage Plan elite members will enjoy elite perks on Hawaiian, and vice versa
- There will be a single loyalty program across two brands, with details expected to be shared in mid-2025
- Hawaiian should join the oneworld alliance in 2026
DOT concessions that Alaska & Hawaiian made
While the DOJ didn’t challenge Alaska’s takeover of Hawaiian, the DOT did request certain commitments from the combined airline. Interestingly, many of these involve the frequent flyer program.
The DOT suddenly has a big focus on protecting consumers when it comes to airline loyalty programs, so most of the conditions that have been agreed to involve the future of the loyalty programs of the two airlines. Alaska and Hawaiian have agreed to the first-ever rewards protections against devaluation, which include the following:
- No expiration of miles earned under the current programs — all HawaiianMiles and Alaska Mileage Plan miles earned prior to conversion into the new combined loyalty program must not expire
- Transfer miles at a 1:1 ratio — the programs must allow 1:1 transfers between programs, prior to creating a new combined loyalty program
- Maintaining the value of miles — the combined airlines must not take any actions that would devalue HawaiianMiles miles, must maintain the value of each unredeemed HawaiianMiles mile earned prior to the merger closing, must honor all active HawaiianMiles promotions from prior to the merger closing, must continue to award HawaiianMiles miles at the same or greater value, and the combined airline must maintain a minimum dollar value for all miles in the new program, measured by the guest-facing value of miles redeemed for carrier-operated flights
- Match, maintain, or increase status — the combined loyalty program must match and maintain the equivalent status levels and conferred benefits that are equivalent to Alaska’s Mileage Plan program
- No new junk fees — the combined airline must not impose change or cancelation fees on award redemption tickets for travel on carrier-operated flights
Beyond the loyalty program, Alaska and Hawaiian had to make some other guarantees:
- Maintaining critical inter-island and continental routes — the combined airline must maintain robust levels of service for critical Hawaiian inter-island passenger and cargo service, and for the key routes between Hawaii and the continental United States that are at risk of loss of competition
- Preserving support for essential air service in Alaska and Hawaii — the combined airline must preserve its support for Essential Air Service in the small rural communities of Alaska and Hawaii
- Ensuring competitive access to Honolulu hub airport — the combined airline is barred from directly or indirectly taking actions that would discriminate against new entrants or smaller competitors’ access to airport infrastructure as part of a new or existing investment in Honolulu
- Guaranteeing fee-free family seating — Hawaiian must join Alaska in guaranteeing adjacent seats for children 13 or under and an accompanying adult at no extra cost for all fare types
- Providing alternative compensation for delays and cancellations caused by the airline — Hawaiian must join Alaska in providing a travel credit or frequent flyer miles when, due to circumstances within the control of either airline, a flight is cancelled and they wait three hours or more for a new flight, or a flight is delayed by three hours or more from the scheduled departure time
- Lowering costs for service members and their families — the two airlines must lower costs for the nation’s military and their families, a significant population in both Alaska and Hawaii, by waiving certain fees
While I don’t think any of these concessions are earth shattering, I’m impressed by how thoughtful and reasonable these requirements are from the DOT. Now, I do wonder how exactly some of these conditions will be measured and enforced, but regardless, I love the idea behind this.
This is really pro-consumer, and if it’s a sign of the ways in which the DOT is looking to investigate loyalty programs, then I’m a fan.
Bottom line
Alaska and Hawaiian have just finalized their merger, so the two airlines are now part of the same company. With this, the work of integrating the two airlines begins, including getting on a single operating certificate. Alaska has provided a roadmap for what customers can expect. Not much is changing immediately, but there will start to be benefits from this in the coming weeks and months.
I’m also pleased to see the conditions that the DOT put on this merger, as I think the concept of protecting members of a loyalty program in a merger is positive.
With the merger now having closed, the big question is how Alaska actually plans to make its acquisition of Hawaiian profitable, given the extent to which the airline has been struggling.
What do you make of the Alaska and Hawaiian merger closing, and the commitments requested by the DOT?
Looking forward to seeing how the merger works out. I always preferred to flying to Hawaii in Hawaiian's wide-bodied planes, rather than being cramped in a 737. Now if Alaska would concentrate on having better connections to Europe... American's choices--particularly from SEA do not even hold a candle up to United and Delta and their alliance programs.
I was excited that maybe I could finally book a trip on Hawaiian. But alas their website still doesn't know my city. The first thing they need to do is add all the airport codes to their database that Alaska flies to that they don't.
For those folks who actually live in Hawaii, I'd love to hear your take on this merger.
Given the struggles Hawaiian has had, I’m a fan of it. Keeping the branding, expanded access to a combined rewards program, and ensures that inter-island flights will continue uninterrupted. Hawaiian was in a bad financial position since Covid, so this ensures access to vital inter-island flights going forward, which still haven’t fully recovered to Covid levels of operation.
The airlines are also offering a free discount program for Hawaii residents that includes quarterly flight...
Given the struggles Hawaiian has had, I’m a fan of it. Keeping the branding, expanded access to a combined rewards program, and ensures that inter-island flights will continue uninterrupted. Hawaiian was in a bad financial position since Covid, so this ensures access to vital inter-island flights going forward, which still haven’t fully recovered to Covid levels of operation.
The airlines are also offering a free discount program for Hawaii residents that includes quarterly flight discounts and a free checked bag, among other perks, which will buy quite a bit of goodwill.
I haven't heard about that on the Big Island. Maybe just for Maui?
Can you tell us if hawaiin join ONE World
Let's note that, as of September 2024, Alaska Airlines has 326 jetliners (in service + parked) in its fleet, whereas Hawaiian Airlines has 69 jetliners (in service + parked).
Dr. Güntürk Üstün
Do we think HA will go away as a transfer partner for Amex? Or conversely will this become a method to backdoor transfer into Alaska miles?
Hopefully not anytime soon. The best transfer partner for Hawaii residents. I’m hoping the 40k miles awards to the west coast, or 25k for the miles upgrade option with a cash coach fare in a lie flat A330 are game changers. About the best domestic redemption options available. Regularly get 3-4 cents per dollar value when booking Hawaiian flights to the west coast.
What will Hawaiian's relationship with One world / American Airlines be? Will Hawaiian honor Oneworld Status for passengers, and will American Airlines elites receive enhanced benefits like they do on Alaska? Or is Hawaiian effectively being left out of that for now?
This might be a good time for me to start booking Hawaiian flights using my TrueBlue points, with the possibility of that redemption path going away in the future.
Alaska Airlines has truly accomplished a great feat. Let's hope that the transition will be less problematic for Hawaiian Airlines.
Dr. Güntürk Üstün
I'm just waiting for my AS companion certs to be valid for a flight to Japan or Australia when HA is fully integrated.
just so everyone knows, Delta wanted this to happen and is the ulTimate winner here #MostPremiumAirline
Funny thing is, Oneworld will have 3 members from the US — AA, AS and HA — but NOTHING from the rest of the Americas! Until 2020, Oneworld was content with just LATAM, while Star has both Avianca and Copa, and SkyTeam has AM and AR. But Delta’s completely left-field move in 2019 — almost exactly 5 years ago — which yanked LATAM out of Oneworld has left the alliance completely bereft of a member...
Funny thing is, Oneworld will have 3 members from the US — AA, AS and HA — but NOTHING from the rest of the Americas! Until 2020, Oneworld was content with just LATAM, while Star has both Avianca and Copa, and SkyTeam has AM and AR. But Delta’s completely left-field move in 2019 — almost exactly 5 years ago — which yanked LATAM out of Oneworld has left the alliance completely bereft of a member from Latin America. Perhaps Gol could join? But it certainly won’t provide any of the heft, outside Brazil, that LATAM did!
Not sure of family members sitting next to each other if this goes industry wide.
As I fly solo often, have a feeling I’ll be bounced around the cabin to accommodate family. I don’t like the middle seat; nor window seat; nor demoted in class just to make Biden happy.
Sounds like it would be pretty complicated to uphold some of those rules. As someone else said I guess AS will probably devalue their chart again. In saying that I've found some sweet spots down in Oceania.
I might move a few Amex MR over to Hawaiian.
Although at the moment there seem to be a lot of points deals and more to come with Black Friday. I'm focused on lifemiles not that...
Sounds like it would be pretty complicated to uphold some of those rules. As someone else said I guess AS will probably devalue their chart again. In saying that I've found some sweet spots down in Oceania.
I might move a few Amex MR over to Hawaiian.
Although at the moment there seem to be a lot of points deals and more to come with Black Friday. I'm focused on lifemiles not that I've got that subscription which gives you free cancellations.
The main reason I have AS miles is to secure travel plans that can be changed/cancelled free of charge.
Does the DOT's no-devaluation provision mean they'd be compelled to accept a partnership between AS and B6?
(That really does seem like the next logical step for the country's west coast and east coast focused airlines. Not a takeover, just cooperation.)
This news made me sign up for HA card tonight. Found an offer for SUB after just one purchase, no min spend.
Even if AS awards tank more, more AS miles in the bank is a good thing being based in PDX, and heck maybe we'll actually go to Hawaii next year using the HA companion 50% off cert.
I'm excited to see how this plays out, would be super cool to see Alaska fly to Asia on a 787.
There are definitely some clear examples of overreach by the DOT, (beyond the obvious that they shouldn't be involved with private company mergers to begin with) but I think that Alaska should generally be happy with the arrangement. Maintaining unprofitable routes or limiting prices where no other airline wants to compete is crazy.
The Airbus planes all go to American. Several 787’s will be based in Seattle flying for Alaska to Europe & Asia, etc. The CEO of Alaska is foaming at the mouth for his airline to fly wide body planes. And that’s been well known to employees for years. And American will finally have their oneWorld hub at SeaTac & their own Pacific route division. A rather sly plan that was thought up many years ago...
The Airbus planes all go to American. Several 787’s will be based in Seattle flying for Alaska to Europe & Asia, etc. The CEO of Alaska is foaming at the mouth for his airline to fly wide body planes. And that’s been well known to employees for years. And American will finally have their oneWorld hub at SeaTac & their own Pacific route division. A rather sly plan that was thought up many years ago & is finally coming to fruition. It is some what amazing how much the leading carrier of an airline alliance can have on their partners.
And now we know why other airline CEO’s were shuttling back & forth to DFW headquarters.
gonna be crucial for Bastian & team to invest very heavily to defend their profitable Seattle hub, go all in on this bet
I would hope this means Hawaiian Airlines in joining the OneWorld Alliance soon!
I think it does. This will also mean that some Hawaiian routes (most likely out of airports like JFK and ORD) will be codeshared with AA.
For people thinking of using AMEX MR to gain access to AS points, remember a lot of people are going to try to redeem the seeet spots if this does flow through 1:1. Expect it to be highly competitive.
This all but guarantees the extinction of award charts - which I think most who are ‘in the know’ would agree is a bad thing. We talk about devaluations of miles a lot, but we have to remember that miles are easier and easier to come by too, in no small part due to the rise in airfares (more expensive ticket = more miles). So naturally, the amount of those easier-to-accrue miles needed for a redemption should increase.
“Naturally, I should cheer for my own poverty.”
I actually have a co-worker who has a stash of HA miles she doesn't plan to use. I'm hoping she gives them to me. I believe HA requires a nominal payment to move points between accounts, but cheap compared to buying points.
So you're not gonna tell him/her about the merger? If the account has enough miles for redemption, I would suggest paying your coworker what HA would've charged you for transferring miles and booking an award for yourself straight from their account.
Hopefully this is the beginning of protection for frequent fliers against some of the arbitrary devaluations that take place almost annually.
Having wide bodies in the Alaska Hanger is a welcome addition.
Couple of observations:
1) Will be curious to see Alaska's commitment to long-haul and Trans-Pacific service. Not in their wheelhouse but do they want it to be.
2) Will mileage redemptions improve? HA often priced JFK-HNL at extortionate mileage rates; AS rates have traditionally been more reasonable for transcon. How that would translate to the islands is TBD.
3) Think it's fair to say DOT realized HA would likely go Chapter 11...
Couple of observations:
1) Will be curious to see Alaska's commitment to long-haul and Trans-Pacific service. Not in their wheelhouse but do they want it to be.
2) Will mileage redemptions improve? HA often priced JFK-HNL at extortionate mileage rates; AS rates have traditionally been more reasonable for transcon. How that would translate to the islands is TBD.
3) Think it's fair to say DOT realized HA would likely go Chapter 11 without a merger. Didn't think that about B6, though it's still not out of the realm of possibility. Maybe a different result with another carrier (Avelo, Breeze).
Really? I see JFK-LAX J one stops next July for 125k one way!
Minimum value doesn't matter. It's when the best redemptions like 60k JAL business class awards get devalued that it matters.
The 1:1 HA and AS miles transfer is good though however.
Minimum dollar value doesn't mean anything. It's basically always dynamically 1cpp range.
Devaluations are when the maximum dollar value gets affected. When the cost of a JAL business class flight goes from 60k to 75k.
The 1:1 miles transfer is good though.
Seeing a requirement to make documented efforts to maintain partners of birth programs ongoing should be part of the requirements.
If all Hawaiian miles are converted to a new currency, however that currency is not redeemable on all current partners, that's a devaluation.
Any way you look at it, anyone with HA miles that are willing to wait for them to be converted to AS miles will come out ahead with value (HA miles are almost worthless unless flying interisland). Hawaii residents with HA miles will now have 3 carrier choices to North America, 3 carrier choices to Asia & 3 carrier choices to Oceana - that fly to HNL. All bookable online. This is aside from the...
Any way you look at it, anyone with HA miles that are willing to wait for them to be converted to AS miles will come out ahead with value (HA miles are almost worthless unless flying interisland). Hawaii residents with HA miles will now have 3 carrier choices to North America, 3 carrier choices to Asia & 3 carrier choices to Oceana - that fly to HNL. All bookable online. This is aside from the the rest of OneWorld & AS's other partners like Condor, Singapore & Islandic.
Hawaiian currently has partners AS does not - Virgin Atlantic, Virgin Australia, and JetBlue.
So HA devotees forgoing these partners post-merger could, arguably, be considered problematic.
Those partners will be replaced with British Airways, Qantas, and American respectively.
So it's not like they're being left with no options.
Well they will pick up British Airways and Qantas in replacement and the entire OW Alliance of carriers, so I think they will make out just fine.
All those folks gambling on the Amex transfer Bonus and on the Hawaiian card are being rewarded by the DOT. I may look at one of those Hawaiian cards this week.
DOT also making it clear its priorities for consumer protections. That list looks very similar to the document requisition list sent to Delta, AA, United, and Southwest last week. They are clearly focusing on devaluations within programs. It also now makes sense why Alaska...
All those folks gambling on the Amex transfer Bonus and on the Hawaiian card are being rewarded by the DOT. I may look at one of those Hawaiian cards this week.
DOT also making it clear its priorities for consumer protections. That list looks very similar to the document requisition list sent to Delta, AA, United, and Southwest last week. They are clearly focusing on devaluations within programs. It also now makes sense why Alaska and Hawaiian were spared the request, as they were already entering into an agreement with the DOT regarding the issue.
I'm happy about the lack of upcharge or children's seating.
Two very competent airlines with higher-than-average customer service. My concern is for Hawaiian's loss of identity and Aloha spirit. It is a island carrier formost with a unique brand reputation.
This merger going through but the JetBlue/Spirit merger getting derailed makes me think someone at Alaska was better with their bribes.
The DOJ believed NK/B6 would survive and thrive on their own. Hawaiian's position was very clearly much worse.
“ The combined airline must maintain a minimum dollar value for all miles in the new loyalty program, measured by the guest-facing value of miles redeemed for carrier-operated flights.”
LOL, AS Mileage Plan for Alaska flights is often worse than Delta SkyPesos when redeeming for own-airline flights. A penny a mile is pretty common.
I'd take a penny a mile for a flight redemption in a heartbeat...
Maybe signup for a credit card that gives 2% cashback?
We will soon be "proudly all Boeing" flying Max10s from HNL to SYD and Pago Pago! Bye Bye Airbuses...
$1M Question: Does that mean Amex transfers into Alaska now (by way of Hawaii) at a 1:1 ratio now?!?!?
They must allow 1:1 transfers between the two programs before setting up a new unified program. That's good news indeed for us. I think that for most people Alaska miles are much more valuable, so the sooner the better. But no, it isn't now. Still, transferring from Amex to Hawaii now in anticipation of their becoming Alaska miles in the relatively near future makes a lot of sense to me.
I’d assume so. A once in a lifetime (?) chance to turn MR points into Alaska miles.
Love the thought but hesitate big time. They say they can’t ‘devalue’ in the new program, but nothing about the current programs. I suspect a wave of Alaska redemption devaluations will hit before the programs merge. Wouldn’t be surprised if Alaska partner award charts go away entirely before it happens.
Alaska gets access to widebody Airbus jets and some A-321neo. Alaska is so myopic with only using Boeing aircraft, I will be curious to know what happens to these planes long term. Alaska will have eighty-four of the 737 MAX aircraft once current orders are filled. I am avoiding the MAX and Alaska Airlines using Delta through Seattle with no MAX aircraft involved.
They’ll get rid of all the Airbus jets as soon as it’s financially viable to do so.
Just like they did with Virgin’s.
But, Virgin America didn't have the long-haul network that HA does. It's not a huge international, long-haul network, but it does exist. I just wonder if AS will keep it long-term. As someone based in Hawaii, I hope it does.
I fully anticipate Alaska converting options on the 787. They will simplify the fleet down the road.
It is not myopic, but adopting the Southwest route to keep the costs down for maintenance, crew training, and easy operations by switching planes. They didn't realize the max issues would happen; otherwise, they wouldn't have let go of the 320s and 321st that came with the VA acquisition. Also, Boeing gives them better pricing to keep them as a Boeing-only airline. I am sure they would rethink this strategy now that they aspire to...
It is not myopic, but adopting the Southwest route to keep the costs down for maintenance, crew training, and easy operations by switching planes. They didn't realize the max issues would happen; otherwise, they wouldn't have let go of the 320s and 321st that came with the VA acquisition. Also, Boeing gives them better pricing to keep them as a Boeing-only airline. I am sure they would rethink this strategy now that they aspire to be a bigger international airline to compete with Delta better and cannot rely on buggy max or 787s, they need 321s, 321XLR, and 330 to expand the routes
They will probably eventually get rid of the A330's however those A321XLR's can be quite useful.
Hopefully this is the beginning of protection for frequent fliers against some of the arbitrary devaluations that take place almost annually.
Having wide bodies in the Alaska Hanger is a welcome addition.
Hawaiian was already taking 787s to replace the A330s.
But yeah, they're probably gonna sell the A321neos to someone else (my bets are on AA).
What do you think the OW timeline will be?