It’s been a little over a week since Alaska’s and Hawaiian’s bombshell announcement, which was followed by a flurry of regulatory filings. One such SEC filing previews the future of HawaiianMiles. That said, take anything disclosed at this early stage with a massive grain of salt.
The biggest question most people have is what will become of Alaska Mileage Plan and HawaiianMiles. Executives of the two airlines have been intentionally vague about the possibilities, though they have stated that both airlines will utilize a combined loyalty program, along with a combined operating platform and operating certificate. As such, I provided my opinion on what the combined program will be given recent precedence, and it seems I was a little off.
SEC Filing Previews The Future of HawaiianMiles
Filed on December 7, 2023, Hawaiian Airlines’ Schedule 14A SEC Filing previews the future of HawaiianMiles – at least, based on the strategy Alaska Air and Hawaiian Air have been able to discuss to date. As always, treat any information provided in the early stages of a merger as speculation, even when it comes directly from the companies involved. Things change, and they change for a multitude of reasons. With that said, here’s what the filing says:
- Miles that you earn with Hawaiian Airlines do not expire.
- Prior to the closing of the combination, you may continue to earn and redeem HawaiianMiles as you did prior to the announcement.
- Your existing miles will be honored – both before and after the combination is official.
- After the combination, the two airlines’ loyalty programs will be integrated into a single shared loyalty program and your miles will be carried into the new program.
- Members who qualify for Pualani Elite status with Hawaiian Airlines will also see their status carried across into the combined program.
- While the elite tiers of any combined program may not have the same names as our Pualani Elite tiers, it is expected that they will offer comparable or better benefits to what you receive today.
- The same is true for your Hawaiian Airlines World Elite Mastercard. You can continue to spend and earn miles as you do today, and get the same great rewards.
- If you do not have the Hawaiian Airlines World Elite Mastercard, we will continue to accept new applications and hope you’ll apply and start earning even more miles.
- 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.
There isn’t a lot of substance to the filing outright, but if you read between the lines a bit, you get an idea of what’s currently being planned for the combined program.
Program Architecture
One point of the SEC filing that previews the future of HawaiianMiles more than any other bit of information and that’s the last bullet point. So, let’s unpack what’s being said here. This point begins by stating, “[o]nce 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 lounge access…” Did you get that? Upon combination, HawaiianMiles members will enjoy the benefits of the industry’s highest-value customer loyalty program with oneworld Alliance benefits. That sounds an awful lot like HawaiianMiles members will be merged into Mileage Plan, and they will rename the program.
Why do I say this? Just take a look at that wording again. As written, it sounds like the program already exists and that the program is already part of oneworld. Guess what program that is? It’s Mileage Plan! And this makes complete sense. Why reinvent the wheel if you don’t have to?
By the way, this doesn’t mean changes to earnings and redemptions won’t happen – they still can, and they occur quite often with all existing loyalty programs. I just wouldn’t expect something entirely new, even if what we get is no longer call Alaska Mileage Plan.
Credit Cards
Picking up where we left off, in the SEC filing previews the future of HawaiianMiles, the last bit of the last bullet states, “…and benefits of the combined program’s credit card.” Did you notice that? Credit card. Singular. As in, one card. Yes, you can still apply for a new Hawaiian Airlines World Elite Mastercard, but it sounds like this card will go away in the future – at least, according to the plans as they stand today. Why would the Hawaiian Airlines World Elite Mastercard go away? Scale.
Alaska Airlines is a much larger airline, Mileage Plan has a more extensive membership base, and Bank of America is a larger bank than Barclaycard U.S. So what, then? Will Hawaiian Air cardholders need to apply for a new credit card? That is a highly probable outcome based on what we’re seeing here. But there are several things that can happen which aren’t too different from what I theorized on yesterday:
- Alaska Airlines Visa Signature is the sole surviving credit card, but gets rebranded. Barclays discontinues Hawaiian cards and reissues existing cardholders with something else. Those who didn’t have the previous Alaska Air Visa will need to apply with Bank of America for the new card.
- Alaska Air Visa Signature is the sole surviving card and gets rebranded, but Barclays gets to keep its existing portfolio of Hawaiian Air cardholders who receive rebranded cards issued by Barclays. All new applicants must apply with Bank of America. Both cards may have similar or different benefits – the Barclays AAdvantage Red and Citi AAdvantage Platinum Select have somewhat different benefits.
- Alaska Air Visa Signature is the sole surviving card and gets rebranded, but Bank of America purchases the existing Hawaiian portfolio, allowing those with Hawaiian cards to transition to new BoA cards.
- Both Bank of America and Barclays continue to issue new cards for the new program. As you can see in point 2, there is precedence for this, but I think this is still the least likely outcome.
If you want to hedge your bets, I’d say make sure you have both cards in your wallet now. In fact, if you don’t have one of these cards today, it might not be a bad idea to take advantage of a lucrative sign-up offer if you see one. It’ll help boost your war chest in the combined program.
Elite Status
Regarding the transfer of elite status, the SEC filing that previews the future of HawaiianMiles, bullet six states, “…it is expected that they will offer comparable or better benefits to what you receive today.” I think it’s safe to say that, based on the comparison I published yesterday, Pualani Gold members will receive the equivalent of MVP today, while Pualani Platinum members will receive the equivalent of MVP Gold. This one just makes too much sense, as all of these statuses have similar qualifying requirements, but is all but confirmed with bullet six. Moreover, MVP and MVP Golds already receive far better benefits than Pualani status members.
The Future of HawaiianMiles, Final Thoughts
There you have it. While there are no definitive plans for the future of HawaiianMiles, we now have a clearer picture of what’s being planned. And, honestly, if they stick with this plan, I think it’s the best we could ask for. Alaska Mileage Plan is far superior to HawaiianMiles for so many reasons and remains a much better program than those of the big three. But what do you all think? Do the plans inspire confidence? Or do they give you anxiety?