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Update 9/26/2024: Mileage transfers between Alaska and Hawaiian are now live, and miles are transferring instantly!
The big news out now is that the U.S. Department of Transportation (DOT) has given Alaska Airlines the official green light to close its merger with Hawaiian Airlines. However, the merger agreement comes with some strings attached, a few of which will be of particular interest to mileage collectors.
Here's a look at how the combined Alaska Mileage Plan-HawaiianMiles program could impact you.
Page Contents
Hawaiian and Alaska Merger Loyalty Program Protections
The Alaska-Hawaiian merger is setting a precedent — in a good way. If it's to happen, the two airlines needed to agree to enforceable public-interest protections, including the preservation of loyalty program value. And the airlines have agreed to these terms. This is the first time the DOT has required such steps in the merger approval process, and what's baked into this agreement is noteworthy in and of itself.
From the guarantee of fee-free family seating to maintaining critical inter-island routes, the two airlines have agreed to a lot. But of everything, five points stand out:
Transfer miles at a 1:1 ratio
HawaiianMiles are required to convert to Alaska Mileage Plan miles 1:1. Transfers will start later this month.
Maintain the value of miles
The combined airline is barred from taking action to devalue HawaiianMiles, and must maintain the value of each mile earned prior to the merger closing — and continue to award miles at the same or greater value.
Additionally, 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.” We'll revisit this last point later on.
Match, maintain, or increase status
Alaska is required to match or increase status held in the HawaiianMiles program for the remainder of the applicable program year. Mileage Plan has already tipped its hand and revealed how HawaiianMiles tiers will translate into the new program later this year.
Moreover, Mileage Plan will take into account the number of elite-qualifying miles (EQM) you've earned between both programs and assign statuses according to the following chart:
Combined EQM balances could result in you receiving a higher tier of elite status than you otherwise would through an outright match.
No expiration for miles earned under current programs
HawaiianMiles never expire, and Mileage Plan miles do not expire as long as your account remains open and active. Under the agreement, miles earned prior to the conversion can never expire.
No new junk fees
The combined airline is barred from imposing change or cancellation fees on award tickets for travel on carrier-operated flights.
How To Earn HawaiianMiles Quickly
It goes without saying that 1:1 conversions are a huge deal — and transfers will start later this month. If you've stockpiled HawaiianMiles (or are considering doing so now that there's clarity on the merger), you lucked out. Mileage Plan miles are incredibly valuable, and there's value at the top- and bottom-end of Alaska's distance-based award charts.
And it's worth reiterating that there are plenty of reasons to collect Alaska miles. A bevy of sweet spots and free stopovers are just part of the equation.
Here are two of the best ways to earn a bundle of HawaiianMiles:
- Apply for a Hawaiian Airlines credit card. The Hawaiian Airlines® World Elite Mastercard® and the Hawaiian Airlines® World Elite Business Mastercard® are still open for applications. It's unknown what the future of these cards will be after the merger closes.
- Transfer Amex points to Hawaiian Airlines. American Express offers 1:1 conversions of Membership Rewards points to HawaiianMiles. Effectively, you'll collect one Mileage Plan mile for every point you transfer from Amex to Hawaiian Airlines. Plenty of cards earn Membership Rewards, so there could be time to collect a big welcome bonus to jumpstart your account.
If you're considering purchasing HawaiianMiles to leverage the 1:1 conversion, we'll advise against it. While Alaska miles average 2.11¢ apiece in recent redemptions, purchasing Hawaiian miles for 2.54¢ each without a bonus is mathematically a bad deal.
In that case, you're better off buying Alaska miles for as little as 1.85¢ apiece through Mileage Plan's ongoing promotion.
Final Thoughts
The combination of Alaska Airlines and Hawaiian Airlines is a big deal. While we don't know exactly what the combined airline and, by extension, the new Mileage Plan program will look like, we do know that certain protections will be in place to protect your elite status benefits and your hard-earned miles. As we know more about how the combination will happen, we'll share it.
It's also worth noting that the DOT recently launched an investigation of rival frequent flyer programs, which will uncover the reason for devaluations, understand award pricing, and establish the value of frequent flyer miles. Notably, Alaska and Hawaiian were excluded from this probe, likely because of the agreed-upon protections included in the merger deal.
AwardWallet reached out to the DOT in response to the investigation to ask what the future of mileage programs would look like and what it deems “acceptable” in regards to the value of frequent flyer miles, but did not receive any clarity.
Based on what we know so far about the agreements in the Hawaiian-Alaska merger, it appears the DOT believes miles should have a “minimum dollar value.” Whether this will soon apply to American, Delta, United, and others is anyone's guess, but at the very least, we know now it's something the DOT can enforce.
And, further, it's unclear how airlines will respond to such regulation. Will the value of each mile stay the same? Or will the value of each frequent flyer trend down towards the established “minimum dollar value?” Time will tell.
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