Alaska Airlines’ Potential Acquisition of Hawaiian Airlines:
Alaska Airlines‘ recent announcement of a proposed $1.9 billion acquisition of Hawaiian Airlines has ignited discussions about the transformative impact this merger could have on the U.S. air travel industry. The deal, awaiting approval from federal regulators, could bring together the fifth-largest and tenth-largest domestic carriers, creating a dominant player with control over more than half of the Hawaii market—a key global tourist destination.
While experts are weighing in on the potential consequences, concerns about fair market competition have emerged. Critics worry that the merger may lead to fewer competitors on West Coast routes, potentially resulting in increased fare prices amid an era of already soaring inflation in the aviation sector.
Historically, airline mergers have often correlated with decreased competition and higher flight prices. William McGee, a senior fellow for aviation and travel at the American Economic Liberties Project, warns of possible fare hikes within Hawaii, between Hawaii and the mainland, and across the Pacific Rim if the acquisition gains regulatory approval.
Despite these concerns, there are positive aspects to consider. Analysts argue that the consolidation of these two airlines, with their complementary destination maps, could bring advantages for travelers. One notable benefit for frequent flyers would be the integration of both airlines’ loyalty programs into a single entity, enhancing the overall travel experience.
If the acquisition proceeds, Hawaiian Airlines would become part of the Oneworld Alliance, a major global airline network that Alaska Airlines joined in 2021. This affiliation would provide Hawaiian Airlines customers with streamlined access to book and take trips with other Oneworld partners, significantly expanding their travel options beyond the current constraints of the HawaiianMiles program.
The integrated loyalty program would allow members to earn and redeem rewards miles on more than 25 global partner airlines, a substantial improvement from the current limitations of redeeming rewards solely on Hawaiian Airlines’ flights within Hawaii. Additionally, elite-tier loyalty program members could expect equivalent elite benefits with other Oneworld member airlines, although the specifics of tier alignment remain to be clarified.
For HawaiianMiles members, the potential benefits of an expanded shared loyalty program with Alaska Airlines are considerable. Shane Tackett, Chief Financial Officer of Alaska Airlines, emphasizes the increased attractiveness and utility of the combined network for residents of Hawaii, offering seamless travel and redemption across Oneworld and the entire suite of airline partners.
