Alaska
Alaska Airlines CEO Doubles Down on Hawaiian Merger, Bets Big on Joint Loyalty Program
Skift Take
In his first public comments since the merger was announced, Alaska CEO Ben Minicucci expressed confidence that the deal would pass regulatory hurdles.
Alaska Airlines CEO Ben Minicucci has called the decision to block the JetBlue-Spirit merger a âpositiveâ â because it now sets the stage for its merger with Hawaiian Airlines.Â
âI think the judge was clear in saying that he’s blocking the deal because of the elimination of an ultra-low-cost carrier that has benefit to consumers in the country,â Minicucci said at the JPMorgan Industrials conference in New York on Tuesday.
âIn our deal, it’s nowhere near that. Our deal is completely different. We’re actually the low-cost, low-fare airline acquiring Hawaiian.â
Minicucci’s Case for the Alaska-Hawaiian Merger
In his first public comments on the proposed partnership since it was announced in December, the Alaska CEO expressed confidence that the Hawaiian merger wouldnât face the same fate as JetBlue-Spirit when it lands on the Justice Departmentâs desk.Â
Minicucci said the two carriers have minimal overlap on routes and that Alaska has done âa lot of work in the diligence process,â including winning support for the merger from the mayors of Hawaiiâs big four islands.
âThe other benefit for us is we become a little bit of a bigger carrier, but we have a few more arrows in our quiver with international capability now that’s possible out of Seattle, which again provides more competition against Delta and other carriers,â Minicucci said at the conference.
He also said the merger would allow the combined airline to better compete with the Big Four carriers â American, Delta, United and Southwest, pointing to how they dominate 23 out of the 25 top travel markets in the U.S. (save for Seattle and Honolulu).
âThis was a play for us to say, now we can get relevance and two of the top 25 markets and actually do something pretty unique,â he said.
Hawaiian shareholders approved the merger in February, but itâs unclear when the DOJ will announce a decision. Minicucci said Alaska is set to give the DOJ more information on the deal by May, adding that it expects to learn more on the timeframe of a decision in June.Â
âWe have their support,â Minicucci said. âIt’s hard to say that there’s a lot of negative with what we’re trying to do. I think the 49th and 50th state, there’s so many similarities in terms of serving remote communities.â
Big Ambitions for a Joint Alaska-Hawaiian Loyalty Program
When Alaska announced that it planned to merge with Hawaiian, it said the two airlines would maintain their distinct identities but operate under an umbrella group. That meant even Alaskaâs and Hawaiianâs frequent flier programs would be combined, forming a loyalty platform thatâs almost similar to Marriott Bonvoy.Â
However, Minicucci said the combined company would not operate like IAG, which owns British Airways, Iberia and Aer Lingus â where each airline maintains its own identity, operations and frequent flier program.
âIt’s not an IAG type,â he said. âThis is one set of labor rules, like one pilot group, one flight attendant group, one mechanic group, one operating certificate, our people can fly and work on different airplanes â but the branding is going to be different.â
Minicucci added that Alaska is currently working to âextract moreâ from its loyalty program and expects to see more gains once it’s combined with Hawaiianâs. He currently forecasts Alaskaâs standalone loyalty program to generate around $80 million in revenue.
âWe believe there’s a big opportunity for us and for Hawaiians to have one loyalty card in their wallet for their one-stop needs to take them out of continental U.S. and also internationally with our 25 global partners that we have partnerships with,â he said.
Alaska
Bear injures two US soldiers during military training in Alaska | The Jerusalem Post
Two US soldiers were wounded by a brown bear during a training exercise in Alaska on Thursday, the US Army stated.
Anchorage Daily News reported that the soldiers were from the 11th Airborne Division, and that the exercise had been a “land navigation training event” near Joint Base Elmendorf-Richardson.
State wildlife officials said that the bear attack seemed to be a defensive one, from a bear which had recently emerged from its den. Staff members from the Alaska Department of Fish and Game collected evidence at the scene in an attempt to learn more about the bear, such as its species and gender.
“The incident is currently under investigation, and we are working closely with installation authorities and local wildlife officials to gather all relevant information and ensure the safety of all personnel in the area,” the 11th Airborne Division said in a statement, reported ABC News.
ABC News also cited an 11th Airborne Division spokesperson, Lt.-Col. Jo Nederhoed, who said that the two soldiers had been seriously wounded, but were receiving care at a hospital in Anchorage, and had shown improvement by Saturday morning.
“We hope both individuals have a full and quick recovery, and our thoughts are with them during this time,” Fish and Game Regional Supervisor Cyndi Wardlow said in a statement reported by Anchorage Daily News. “In this case, having bear spray with them in the field may have saved their lives.”
Both of the soldiers reportedly had and used bear spray during the attack.
The bear’s condition and whereabouts are currently unknown.
Alaska
Travel prices are going up, up and away. Here’s what to watch.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
Alaska
Murkowski warns decreasing national fuel prices could spell disaster for rural Alaska
ANCHORAGE, Alaska (KTUU) – The reopening of the Strait of Hormuz has led to a decrease in oil prices nationally, but Alaska’s senior senator said the state faces a different situation that could threaten rural communities.
“If you can’t produce power because you don’t have the diesel or you just can’t pay the prices, your little communities can collapse,” Sen. Lisa Murkowski, R-Alaska, said at a Friday press conference at the Arctic Encounter Summit in Anchorage.
The price of oil has been a double-edged sword for Alaska. On one hand, the increased price of North Slope oil brings more revenue to the state, but consumer prices can also rise.
North Slope oil prices were $106.36 a barrel on Thursday.
“This is a very precarious time,” Murkowski said. “Our state has enjoyed a bounty because we have benefited from the higher prices of oil that goes into our treasury, but it’s the Alaskans in … the off-road communities that are threatened to be hit most hard.”
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