Skift Take
Alaska Airlines CEO said a loyalty program for a combined Alaska-Hawaii may look comparable to Marriott Bonvoy, an idea that is rather uncommon for the airline industry.
Meghna Maharishi
When Alaska Airlines stated Hawaiian Airlines would keep its independent brand under a merged business, it was uncertain how the two carriers would combine their loyalty programs.
Alaska CEO Ben Minicucci offered a clue Sunday night when he said Alaska and Hawaiian would run under a single commitment program, and compared it to Marriott Bonvoy.
“So think about something like Marriott Bonvoy, right? You’re part of Marriott Bonvoy, but you might stay in different hotels right under this home of brand names. So that’s how we’re thinking of it,” he stated.
The idea of two separate brand names under a single regular flier program is a novel concept in the airline market, given that a lot of airline companies either have their own frequent flier program or allow travelers to make miles through codeshares or alliances.
The closest example of 2 airlines running under a single business with the exact same loyalty program might be Air France and KLM, however it’s more so out of nationwide pride.
Alaska Airlines and Hawaiian Airline Companies: 2 Brand Names, 1 Program
Minicucci and Hawaiian CEO Peter Ingram said they wanted separate brands under the very same commitment program in part due to each airline’s local culture and history.
“As the two airline companies rooted in the 49th and 50th state, both of which are uniquely dependent upon air travel, Alaska and Hawaiians share a good deal in common,” Minicucci stated.
Alaska’s decision to maintain Hawaiian’s independent brand name, even under a combined loyalty program, may also be related to its experience with the Virgin America acquisition in 2016.
It worked quickly to integrate the brand name. But although Virgin America had actually only existed for around a years, it had actually developed a loyal following because of its state of mind lighting, leather seats, treat choice and tech-driven method.
By 2019, Virgin America’s brand was basically erased and faithful consumers weren’t happy.
At the Sunday night press conference in Honolulu, where the 2 CEOs donned aloha shirts, they restated it would take time for clients to see any changes.
Loyalty Timeline
“The HawaiianMiles benefits are precisely the same,” Ingram stated. “The Alaska commitment benefits are exactly the very same. And after that post-merger, once we have all the approvals, once the offer closes, that’s when the two commitment plans will come together.”
Minicucci added that if the merger closes– which would remain in the next 12 to 18 months– they would then look to see how tier statuses from the Alaska Air Mileage Plan and HawaiianMiles would match up under a combined commitment program.
The Alaska CEO added that they would also match the status tiers of the merged commitment programs into Oneworld’s frequent flier program.
This time around, Minicucci said the only alternative for Alaska’s merger with Hawaiian was to keep the brand names of the two airline companies different.
“The one greatest question I have is Ben, how are you gon na do a double brand under a single platform?” Minicucci stated. “And I simply say there is no other option. We will figure it out because we require to respect the culture and the legacy that’s been created here for over 94 years.