Chicago-based United Airlines is sounding the alarm over Alaska Airlines ’ planned acquisition of Hawaiian Airlines . Executives at the carrier raised concerns earlier this week, highlighting its current agreements with Hawaiian. It comes as the Department of Transportation (DOT) is reviewing the proposed merger following the Justice Department’s regulatory review period expiring earlier this month.
Alaska and Hawaiian still have not been given the green light to merge, but some believe they are a step closer. Sending a letter United’s Chief Legal Officer, Robert Rivkin, spoke about the concerns with Brian Stansbury, the DOT deputy general counsel, on Tuesday, according to Skift . However, the memo reportedly did not go into much detail about United’s unease with the merger.
The carrier’s partnership with Hawaiian includes interline, codeshare, pricing, strategy, and loyalty agreements. Alaska has maintained that the merger will provide greater choice and flexibility for passengers. Unlike traditional acquisitions, the airline plans to continue operating both brands separately, except for the loyalty program.
Currently, Alaska has its MileagePlan program, while Hawaiian has HawaiianMiles. If the airlines receive approval to merge, the programs will be combined, although a name for the program has yet to be announced. Existing miles from both programs will be integrated into the new program.
“Once the combination is complete, Hawaiian Airlines’ existing customers will enjoy the benefits of the industry’s highest-value customer loyalty program, earning and redeeming miles and receiving elite benefits on the full complement of oneworld Alliance airlines, expanded global lounge access and benefits of the combined program’s credit card(s),” Hawaiian said. Current agreements Members of United’s frequent flyer program, MileagePlus, can earn miles when flying on qualifying Hawaiian-operated flights. Eligible travel is reportedly only exclusive to inter-island flights and must be booked as a codeshare flight with a United flight number.
Despite United’s concerns’ Alaska says the merger will allow for increased loyalty program benefits. The app was created to boost mileage earnings on everyday purchses. Some have criticized Alaska's ability to maintain two brands while essentially operating as one.
The carrier’s CEO, Ben Minicucci, addressed the criticism last year when the planned acquisition was announced, according to Skift. “The one biggest question I have is Ben, ‘how are you gonna do a dual brand under a single platform?’” Minicucci said. “And I just say there is no other choice.
We will figure it out because we need to respect the culture and the legacy that’s been created here for over 94 years.” Hawaiian has airline agreements with other carriers. HawaiianMiles members can earn miles on China Airlines, Japan Airlines, JetBlue Airways, Korean Air, Virgin Atlantic, and Virgin Australia.
It is unclear if the merger will affect the existing agreements. Not yet approved Since the pandemic, Hawaiian has been struggling with its revenues. The decrease in demand on routes from Japan, which has been a critical market for the airline, has contributed to its poor financial performance.
Additionally, the wildfires that ravaged Maui greatly impacted the airline. Simple Flying previously reported that Alaska’s acquisition may be Hawaiian’s only lifeline, as it reportedly was $900 million in debt last year. The merger would have reportedly been approved in the past, but it comes on the heels of JetBlue and Spirit's attempt to combine.
As the US government attempts to promote industry competitiveness, Alaska and Hawaii have faced some headwinds. Although the Justice Department’s review period is over, the merger’s approval is now in the hands of the DOT..
