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Alaska Airlines CEO Doubles Down on Hawaiian Merger, Bets Big on Joint Loyalty Program

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Alaska Airlines CEO Doubles Down on Hawaiian Merger, Bets Big on Joint Loyalty Program


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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 “positive” — because it now sets the stage for its merger with Hawaiian Airlines. 

“I 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,” Minicucci said at the JPMorgan Industrials conference in New York on Tuesday.

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“In our deal, it’s nowhere near that. Our deal is completely different. We’re actually the low-cost, low-fare airline acquiring Hawaiian.”

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 wouldn’t face the same fate as JetBlue-Spirit when it lands on the Justice Department’s desk. 

Minicucci said the two carriers have minimal overlap on routes and that Alaska has done “a lot of work in the diligence process,” including winning support for the merger from the mayors of Hawaii’s big four islands. 

“The 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,” Minicucci said at the conference.

He also said the merger would allow the combined airline to better compete with the Big Four carriers — 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). 

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“This 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,” he said.  

Hawaiian shareholders approved the merger in February, but it’s 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. 

“We have their support,” Minicucci said. “It’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.” 

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 Alaska’s and Hawaiian’s frequent flier programs would be combined, forming a loyalty platform that’s almost similar to Marriott Bonvoy. 

However, Minicucci said the combined company would not operate like IAG, which owns British Airways, Iberia and Aer Lingus — where each airline maintains its own identity, operations and frequent flier program. 

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“It’s not an IAG type,” he said. “This 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 — but the branding is going to be different.”

Minicucci added that Alaska is currently working to “extract more” from its loyalty program and expects to see more gains once it’s combined with Hawaiian’s. He currently forecasts Alaska’s standalone loyalty program to generate around $80 million in revenue.

“We 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,” he said. 



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Alaska

This Day in Alaska History-March 27th, 1964

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This Day in Alaska History-March 27th, 1964


 

The largest landslide in Anchorage occurred along Knik Arm between Point Woronzof and Fish Creek, causing substantial damage to numerous homes in the Turnagain-By-The-Sea subdivision. Courtesy of Wikipedia
The largest landslide in Anchorage occurred along Knik Arm between Point Woronzof and Fish Creek, causing substantial damage to numerous homes in the Turnagain-By-The-Sea subdivision. Courtesy of Wikipedia

J.C. Penney Department Store at Fifth Avenue and D Street, Anchorage District, Cook Inlet Region, Alaska, 1964. Courtesy of USGS
J.C. Penney Department Store at Fifth Avenue and D Street, Anchorage District, Cook Inlet Region, Alaska, 1964. Courtesy of USGS

It was on this day in 1964 that a massive 9.2 earthquake in Southcentral Alaska.

The massive quake at 5:36 pm on March 27th caused much devastation throughout the region and generated a huge tsunami that inundated many communities in the region.

The quake was the largest in the history of the United States and initially killed 15 people while the resulting tsunami killed an additional 100 people in the new state and another 13 in California as well as five in Oregon.

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The megathrust earthquake endured for four minutes and thirty-eight seconds and ruptured over 600 miles of fault and moved up to 60 feet in places.

The deadly quake occurred 15 and a half miles deep 40 miles west of Valdez and generated a ocean floor shift that created a wave 220 feet high.

As many as 20 other smaller tsunamis were generated by submarine landslides.



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Opinion: Alaska’s public schools were once incredible. They can be that way again.

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Opinion: Alaska’s public schools were once incredible. They can be that way again.


(iStock / Getty Images)

I grew up greeting friends and neighbors on my walk to my neighborhood Anchorage public school, just as my kids do now. It’s an essential, and value-added, part of living in our community.

In the late 1990s, when I attended Service High School, I had amazing teachers. My AP chemistry teacher left the oil and gas industry to teach. He could have earned significantly more money in another field, but teaching was competitive enough, given pensions and compensation, that he stayed in the job he loved and gave a generation of students a solid foundation in chemistry.

Now, my kids, who are in first, third and fifth grade, face a different reality. Teachers across our state are leaving in droves. Neighborhood schools across Alaska are closing. Art and music are being combined, which is nonsensical — they are not the same and they are both valuable independently. When he was in second grade, my oldest had a cohort of more than 60 students in his grade — split between two teachers. When he enters sixth grade next year, there will be no middle school sports and he will lose out on electives. Support systems and specialists to help when kids are falling behind have been cut. I’m lucky that my children have had amazing teachers, but many excellent teachers are nearing retirement age or don’t have a pension and are pursuing other careers. What happens then?

Despite skyrocketing inflation, last year was the first time in years that our schools received a significant increase in the Base Student Allocation — and that money doesn’t begin to make up for what they have lost over the years. Even that increase had to overcome two vetoes from what a recent teacher of the year calls “possibly the most anti-public education governor in the history of Alaska.” Shockingly, my own representative, Mia Costello, despite voting for the increase, failed to join the override to support education. She has failed to explain that decision when asked.

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State spending on corrections is up 54% since 2019; meanwhile, spending on education is up only 12% in the same timeframe. Schools are now working with 77% of the funding they had 15 years ago when accounting for inflation.

When we starve our public schools of funding, Alaska families leave. No one wants their child to suffer from a subpar education and the lower test scores and opportunities that come with it. A significant number of people are working in Alaska but choosing not to raise their families here.

To the elected officials who preach school “choice” but starve public schools: our family’s choice is our neighborhood school. It’s our community. It’s where our friends are. Neighborhood public schools, which are required to accept all children, should be the best option out there. Public schools should be a good, strong, viable option for communities and neighborhoods across our great state. Once, they were.

I am thankful for those in the Legislature working to solve these problems. This includes HB 374, which raises the BSA by $630, and HB 261, which would make education funding less volatile.

It breaks my heart that across the state, dedicated teachers keep showing up for our kids while being underpaid and undervalued. Underfunding our schools is also a violation of Alaska’s constitution, which requires “adequate funding so as to accord to schools the ability to provide instruction in the standards.”

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Not so long ago, Alaska’s public schools were adequately funded, and they produced well-educated students and retained excellent teachers. It’s up to all of us to reach out to our elected officials and urge them to make that the case once again.

Colleen Bolling is a lifelong Alaskan and mother of three who cares deeply about Alaska’s schools.

• • •

The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.





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Alaska volunteer dedicates 600 hours a year to food bank after husband’s death

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Alaska volunteer dedicates 600 hours a year to food bank after husband’s death


ANCHORAGE, Alaska — Karen Burnett spends most days in the sorting room at the Food Bank of Alaska, ensuring every donated item finds its place.

The Anchorage woman dedicates her time to sorting, packing and organizing food donations.

Finding purpose after loss

Burnett’s journey at the Food Bank of Alaska began after a personal loss. Following the death of her husband, Burnett said she found herself with time on her hands and a desire to help.

“I had a friend who had talked to me about it, and it just sounded like a good thing to be out doing,” she said.

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Burnett now volunteers between 500 and 600 hours each year.

“I started, but it got to be so fun. I spent more and more time here,” Burnett added.

Understanding community need

Burnett has witnessed the growing need in the community, particularly as more families struggle to make ends meet.

“If you took a look at the pantry and saw those empty shelves, it’s hard sometimes when you know people are coming in and looking for something, for their clients, and there’s absolutely nothing in there,” Burnett said.

Her dedication has made a lasting impact on countless families.

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“I just feel real involvement in a way that is appreciated,” Burnett said. “You know, people need this food. They need people to put it out for them.”

See the full story by Ariane Aramburo and John Perry.



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