Why Alaska Airlines Buying Hawaiian Airlines Matters for Passengers and Employees
This is big news for the airline industry, Alaska Airlines has finally sealed the deal to acquire Hawaiian Airlines. With the blessing of the U.S. Department of Transportation (DOT), which is still imposing a number of conditions to keep consumers happy and give small communities a say, the merger will go through, more or less as we expected all along. Read more: Passengers, employees and the airline industry: The impact for the short-term and long-term
Hawaiian Airlines has a new parent with Alaska Airlines taking over ownership
Alaska Airlines on Wednesday put the final touches on its acquisition of Virgin America by sealing a pact the day after the Department of Transportation approved their takeover with some strings attached. Included in the tarot card shuffle, Hawaiian Airlines stock was removed from the Nasdaq. The Department of Justice, which decided not to mount a challenge against the merger earlier this year, sent an Assistant Attorney General that covers antitrust to the hearing table.
Protecting Loyalty Program Members
It’s approval was contingent on a number of “binding, enforceable public-interest protections” to help consumers maintain their service during the transition as well take care of loyalty program members. Key protections include:
Alaska or Hawaiian Miles: Any miles accumulated on previous Alaska or Hawaiian loyalty programs prior to the merger will NOT expire.
1-to-1 Mile Transfer: Passengers can also transfer miles at a 1-to-1 ratio between Alaska Airlines Mileage Plan and Hawaiian Mileages before the two programs merge.
Preserve the Value of HawaiianMiles: Alaska Airlines will retain the value of Hawaiian Airlines’ loyalty program miles.
Miles+Points Balance: The new combined loyalty program must at least maintain the elite status of HawaiianMiles members.
Fee-Free Reward Tickets: There will be no change or cancellation fees on reward tickets for the combined carrier.
How Hawaiian Airlines Employees Will Be Impacted
Hawaiian Airlines has 7,400 employees, most of which are unionized. These are union jobs like mechanics, flight attendants and pilots that are considered stable. But about 1,400 non-union employees could see changes.
Up to some non-union employees migrating to Seattle in Washington and 30% of non-union workers may be laid off. Yet Alaskan has offered severance pay and 90 days of work to help with the transition.
More Safeguards for Passengers and Tiny Towns
The DOT has also instructed important terms and conditions related with the merger to protect passengers and communities.
Ongoing Intra-Hawaii Service: The combined airline must provide substantial levels of service on inter-island routes and to and from the mainland.
Smaller community essential air services in Hawaii and Alaska will continue to receive support
Small Airline Access: The airline may not use force to prevent smaller airlines from gaining access to airports such as the Daniel K. Inouye International Airport in Honolulu.
Seat Protection: The airline may not assess fees for seating family members together on flights.
Compensation For Delays: Passengers will be compensated in terms of frequent flyer miles or travel credits if their flights get delayed more than three hours as reported by CNBC.
What’s Next for Passengers?
I say for now, as Alaska and Hawaiian Airlines will continue to operate separately — No impact on any websites, reservations systems, or loyalty programs. But a couple of immediate advantages await passengers.
Alaska Lounge Access: If you are a member of Alaska’s lounge program, you now have access to Alaska Lounges when flying Hawaiian Airlines.
The route to the above three benefits under the pact, due to be phased in soon includes free mile transfer : Before long loyalty program members of either airline will freely transfer miles between programs.
Cross-book Flights: Customers will be able to book Hawaiian Airlines flights on the Alaska website, or vice versa later this month.
The Dawn Of A New Era In Airline Mergers
The Alaska-Hawaiian Airlines deal represents a new era for how the DOT views airline combinations, putting passenger interests and competition first. When it comes to the advantages that carriers can get, such as better loyalty programs and services will be combined (though Flying Blue is not among them).
Please keep an eye out for further developments as we progress with our integration, and more chances to be taken on extraordinary journeys by the new Alaska-Hawaiian.