Plans for Alaska Airlines to bring widebody flying to Seattle and launch long haul routes are big news, and the airline is also sharing the timeline to merge frequent flyer programs with Hawaiian Airlines and introduce a premium credit card.
Alaska Airlines is holding their Investor Day in New York today, and they’re out with their “Alaska Accelerate” plan to generate value from their Hawaiian Airlines merger. It’s alliterative, but I still like JetBlue’s “Jet Forward” better.
- connect guests to world
- be Hawaii’s trusted airline
- deliver a remarkable travel experience
- diversify with cargo and technology
I like the focus on delivering value to customers. The first three are all about their passengers, and focus on customer trust and customer experience. That’s a great start.
They believe that they’ll drive a lot more value from this merger than I expected. For instance, synergy estimates that are usually overstated and rarely fully achieved have no doubled from $235 million to $500 million; they expect to maintain margins right out of the gate even with merger integration costs; and they see $1 billion in incremental profit by 2027.
Moving Widebody Aircraft To Seattle For Long Haul Flights, Starting This April
It appears they’re correct that they can better utilize Hawaiian Airlines aircraft both by repositioning some of their widebodies to the mainland and by getting more flying out of each plane. When Hawaiian was just turning around planes back and forth to Hawaii these planes often sat quite a lot.
- Surprising no one, they’re going to launch long haul international flights from Seattle.
- This will initially involve Hawaiian Airbus A330s
- The first flight will be Tokyo Narita, launching May 12. Seoul will launch in October.
- By 2030, they expect at least 12 long haul destinations from Seattle
- Meanwhile they are amping up Seattle – Hawaii, with 3 of 6 daily non-stops on widebody aircraft and 20% more seats on Seattle – Honolulu. Airbus A330 widebodies will also fly peak summer Seattle – Anchorage.
- Hawaiian Boeing 787s and Airbus A321s will get more flying – the A321s 25% more, while optimizing for connections at Alaska hubs.
Alaska is not wasting time in this merger moving aircraft and launching new routes. Now we know where that Austin plane is going. They’re also swapping aircraft between Hawaii and Japan.
It helps that they’re keeping both brands (even as they anticipate a single operating certificate in October 2025). That may be higher cost, even when they combine work groups. For instance, the same flight attendants are going to work under two different brands (different sets of uniforms!). But it also means that Hawaiian Airlines can operate Hawaiian planes from Seattle to Anchorage, Tokyo Narita and Seoul.
Expect A New Hawaiian Airlines Inflight Product And New Lounges
Hawaiian Airlines is light on premium product. While their widebody business class seat is excellent on the Boeing 787, and their Airbus A330 seat is ‘fine’ for flights between the mainland and Hawaii, the latter is not a long haul business class seat. Yet, Alaska Airlines plans to use it for long haul. There are also just 18 premium seats on the Airbus A330
In addition, Hawaiian doesn’t have an extra legroom coach product, either. So it’s not surprising that they’re in the process of planning the expansion of premium seating. They plan to invest in the Hawaiian fleet to “match the competition.” That means an interior retrofit. After all, Delta flies a much more luxe Airbus A330 from Seattle to both Tokyo and Seoul (and has slots for the more desirable Haneda airport in Tokyo).
Alaska is also investing in new lounges in San Diego and Honolulu. Details so far are sparse. Hawaiian’s lounge situation in Honolulu is quite poor, outside of its paid premium dining experience. Like Alaska, Hawaiian offers lounge access to premium cabin customers.
Hawaiian’s Plumeria lounge is considered better than their Premier lounge, and is offered to international business class customers whereas Premier is granted to domestic first. It’s also a Priority Pass lounge.
People are standing in line to get into this lounge.
Make it make sense. pic.twitter.com/8nBRY3Zm5y
— gary leff (@garyleff) August 11, 2024
Loyalty Programs Combine This Summer, New Premium Credit Card Coming
I wrote two months ago that we could expect Alaska Airlines and Bank of American to introduce a new premium credit card and also that once Alaska launched its combined frequent flyer program, we’d begin to see the Hawaiian Airlines credit cards disappear.
We now have a timeline for the move to a single loyalty program. Alaska shares that they plan this launch in summer 2025. While there aren’t a lot more specifics beyond that, other than it should mean moving onto the Alaska Airlines loyalty platform for all members, it tells us something about how long we’ll have the opportunity to,
- Acquire Hawaiian Airlines credit cards, which have had lucrative acquisition offers
- Transfer points between members free, since that’s a benefit of the Hawaiian Airlines card
- And of course all points will be pooled in Alaska accounts.
While Alaska’s Vice President in charge of the Mileage Plan program has told me they like points transfer and pooling as a credit card feature, and it’s something we may see in the future, that is a Hawaiian Airlines card benefit that will not port over to Alaska, at least initially.
Meanwhile, Alaska is sharing that a new $395 annual fee premium credit card is coming in “summer” (so presumably aligned with single loyalty program) and that there will be an ‘early access list’ to join by December 31 with a mileage incentive. Those who join the list will get additional bonus miles when approved for the card.
While they haven’t detailed the value proposition yet, they’re sharing that:
- it will include a global companion award certificate and it appears that it will be valid on partner airlines. In other words, while the base consumer Alaska Visa comes with a $99 plus tax companion ticket on paid fares, this one will double the value of your miles on a redemption.
- The card should offer 3 points per dollar on foreign transactions and dining, and accelerated elite status.
There could be real value in the new card product, and I certainly like 3x on foreign transactions as a unique category accelerator.
This is actually welcome news. Glad to see Alaska is getting creative with their newly acquired a330s via the Hawaiian merger. While I do enjoy a visit to Hawaii, Japan is a fantastic destination and great access point to the rest of east Asia. More competition on this route is also good for consumers. Now, I wonder what the point redemptions will look like. Fingers crossed.
@Gary Leff What are your thoughts/speculation on the award fee waiver on the teased 395 af card. Just waiving the $12.50 partner award fee? Let’s be honest that’s a junk fee anyway. Or will be see no carrier or program fees and only government imposed taxes and fees? No fuel surcharges on BA awards sounds too good to be true.
How would the global companion ticket work on partners? Only on mileage redemptions? I can’t imagine they’d eat the charge of a second cash ticket on every one world partner.
More flights = more competition = better for us?
Have to say though, unless I am traveling w/my wife I have zero interest in 2-2-2 Business seating these days. Looks like Emirates premium economy — actually, not as good.
@Woofie
You’d be surprised; sometimes those 2-2-2 configurations have more space in unexpected ways, such as the overall length, which is better for taller folks. I’m thinking of Turkish 773 and some of their a330s in business class. I even find Delta’s older 763 to be more comfortable in lie-flat than some of their newer stuff, namely because they’ve taken away space for storage and larger entertainment screens. To each their own, though.
“the more desirable Haneda”
Haneda is more desirable for point-to-point flying, but anyone connecting (which Alaska/Hawaiian tout with JAL) will want Haneda for the onward connection opportunities.
Hawaiian’s in-flight food and drinks in business-class is in need major improvement. They’re awful. Especially if the competition across the Pacific is United Polaris, Delta One or an Asian airline.
I, for one, think this is great. It will force Delta to invest and expand in its Pacific fleet. Despite what Tim Dunn says, connecting in Seoul is not ideal. The fact that Delta doesn’t fly Tokyo-New York is incredible.
Typo … Haneda may be more desirable for point-to-point flying, but anyone connecting (which Alaska/Hawaiian tout with JAL) will want Narita for the onward connection opportunities.
@FNT Delta Diamond
That is a decent point. From JFK, Delta’s primary focus is Europe (and a little bit of South America). JAL, ANA, and American already fly nonstop to Japan (and United from EWR), so Delta probably felt there was too much competition already. So, to fly Delta metal, the only nonstops between USA-Japan are ATL, DTW, MSP, and SEA. Am I missing anything?
12 long haul routes to come? Anyone else think Alaska is being overly optimistic? Delta doesn’t seem to be doing that hot in Seattle when it comes to international.I don’t think Seattle is every going to be a mega international hub.
yes, John, LAX and HNL.
and FNT, since you posted the same thing on another site, I will post here
it was clear that HA’s business model was failing so, AS, after years of trying to copy WN as being a 737 only operation, decided to copy DL. Problem is that AS really was a low cost airline but it won’t be any more… AS’ announcement ensures that it will pay as much if not more than DL and other legacies (UA excepted that can’t be bothered to settle with its confused union, the AFA).
DL has long had the revenue advantage to the eastern US from SEA and also internationally. DL has multiple flights on its own metal to Europe as well as across the Pacific – as well as with joint venture partners.
AS will start its longhaul international expansion by serving NRT, an airport that gets just 2/3 of the average fare of flights to HND from the same destination. NRT makes sense if you have a joint venture but AS does not have one and even JL agrees to add AS to the AA-JL JV, it will mean the end of AA-JL cooperation at least as far as international goes. The US does not and will not allow two US carriers to have a JV with the same foreign carrier.
As for ICN, AS’ entrance proves precisely why there were no restrictions needed on the KE-OZ merger and why the DL-KE JV can continue. DL/KE/OZ operate 3 flights per day from SEA-ICN with far more seats than SEA-Tokyo and yet there are slots available for new entrants.
AS will have no JVs on the end of their Asia routes.
They will be a bottom feeder, not unlike B6, but using widebodies.
And AS will leave Hawaii even more exposed to competition. Anyone that thinks that either UA or WN will take AS’ growth in HA capacity laying down will be in for a rude awakening.
I believe AS is taking over and expanding the current Aspire lounge at SAN. Thank god. That lounge makes the CLT C AA AC look like a castle.
This appears to be just the beginning of the potential synergies these two airlines create.
The two smallest survivors of the deregulation era became that because they both excel at what they do. When so many failed, from Aloha to Wein, from Pan Am to Braniff etc etc, these two survived by being innovative, quicker on their feet than the larger airlines, great employees and frankly a bit lucky too.
Alaska clearly realizes the potential of the “Hawaiian Brand”.
Combining these two plucky survivors is going to be a substantial upgrade to the airline industry landscape and TransPac options.
They should dump the Alaska name and go with Hawaiian. Everyone loves Hawaii. It invokes a spirit of happiness : vacation vibes. Alaska, not so much.
Haneda is FAR SUPERIOR to Narita. I have flown into both over 200 times. Connections in Haneda are plenty good now too. There is no reason to use Narita any longer except to cut cost potentially which a marginally cheaper ticket or to connect with an NRT only carrier.
It’ll be weird to see Alaska planes in Asia. Especially with their bid awful ugly logo.
They should fly from Busan to Fukuoka. Or Fresno to Fukuoka. Those who know, know. *wink*
@Tim Dunn
Good catch! I had no idea about HNL. And I should have remembered LAX. In fact, LAX may have the most options for USA-Japan nonstops, even Singapore operates a Fifth Freedom route there. Cool stuff.
If only Alaska was a viable airline for anyone east of the Rockies.
So they’re going to pull several wide bodies out of HNL and base them in SEA… so they’re conceding their money losing Hawaii market to the big boys. I said it when the merger was announced, and I stand by it- Alaska will not keep both brands for long. Hawaiian is going away.
@TWAviator Alaska said in their presentation that they’ve freed up 6-7 planes worth of A330 time just by integrating their schedules, which makes sense considering HA’s A330’s regularly just sat parked on the west coast for 10-12 hours at a time. With that and the AUS cuts, plus 8 more 787s on the way I’m not really sure this means they’re cutting much HNL flying.
AS/HA will be just fine with long haul out of SEA or even something like PDX-TYO probably, a different story if they try from SFO or LAX though.
In fact, TWA, they said that all flying in and out of Hawaii would ultimately be branded as Hawaiian Air.
Far from going away, Hawaiian will be operating the two new SEA/ASIA routes as well as adding two daily SEA/ANC A330 flights, also Hawaiian Air. They were very specific that they did not want to lose the Hawaiian brand and felt it had a lot of value. They gave the example that it’s the only airline where your Hawaiian experience starts when you board the flight, everyone else it’s after you deplane in Hawaii. The Japan/ Hawaii market have not recovered from Covid yet , so till it does the Narita/HNL flying is on hold. Fukuoka, Osaka and Haneda remain as is.
Bottom line is the Hawaiian brand is here to stay. It’s a powerful marketing tool around the world.
Gary I’m not sure how operating two brands on one certificate is that much more expensive?
For instance, your example of FA uniforms is easily solved….use the Hawaiian Air uniforms for all. Flying on the mainland on an Alaska branded flight with FA’s in Hawaiian uniforms would be a nice marketing touch. Seems to me a good way to promote Alaska’s now strong presence in the Pacific.throughout their system
Korea Japan Japan Korea is a super conservative add for Alaska. Kind of a no brainer since traffic is down between Hawaii and Japan for HA.
Congratulations Alaska Air Group HA and AS.