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
State of Alaska Secures Win in Fight for Transparency Around Oil Development
(Bethel, AK) –Wednesday, the Ninth Circuit Court of Appeals issued a favorable opinion for the State of Alaska in ConocoPhillips Alaska v. Alaska Oil and Gas Conservation Commission (AOGCC), agreeing that State laws requiring disclosure of oil well data are not preempted by federal law.
“Alaska relies heavily on our resources and resource development,” said Acting Alaska Attorney General Cori Mills. “We are also stewards of those resources for the citizens of Alaska. Alaska’s law both allows resource development now, and encourages further development and exploration in the future. We’re pleased that the Ninth Circuit recognized that federal law has not overridden Alaska’s balanced approach.”
The Alaska Oil and Gas Conservation Commission regulates oil and gas operations throughout Alaska, including within the National Petroleum Reserve–Alaska (NPR–A). Under Alaska law, companies need permits from the AOGCC to drill and must submit well data. The AOGCC is required to keep well data confidential for 24 months.
ConocoPhillips drilled several wells on lease holdings within the NPR–A and submitted data to the AOGCC. When the 24-month period expired, the AOGCC notified ConocoPhillips of the upcoming well data disclosure. ConocoPhillips sued in federal court to stop the disclosure process claiming that the Naval Petroleum Reserves Production Act, the federal law allowing private exploration in the NPR–A, preempted Alaska’s 24-month disclosure law. The federal district court found Alaska law preempted, and the AOGCC sought appellate review by the Ninth Circuit Court of Appeals.
On appeal, the Ninth Circuit agreed with the AOGCC. The federal Production Act does not preempt state law. The Ninth Circuit therefore reversed the district court’s holding to the contrary.
“The Alaska Oil and Gas Conservation Commission is pleased with the court’s decision upholding Alaska law,” said AOGCC Commissioner Jessie Chmielowski in a declaration filed in the litigation court. “Alaska’s balanced approach to well data confidentiality leads to increased exploration activity, not less. Alaska law allows for a two-year confidentiality period on exploration well data to leverage a company’s investment in drilling. Thereafter, making the data public has incentivized exploration on the North Slope. Placing well data in the public record allows competing companies to evaluate different exploration concepts or interpretations based on seismic data that, without well data, are just educated guesses.”
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Alaska
Opinion: A governor’s race for Alaska’s next generation
Alaska needs change. That’s why I’m running for governor: to bring new energy and a new generation of leadership to the governor’s office.
For 13 years in a row, more Alaskans have left our great state than have moved here. Prices are rising, schools are closing and Alaskans are getting left behind.
This year, those planning to leave Alaska include Ben and Catherine Walker, both recipients of Alaska’s Teacher of the Year Award. They can’t justify staying in the place they grew up in and love because of our failure to invest in the fundamentals, such as our schools.
The problem is personal. I’m 37. Many of those leaving Alaska are my age — debating whether there’s a future for us here or not. It’s a challenge we must solve.
I love challenges.
Back in 2012, I dropped out of college to challenge an entrenched Republican incumbent legislator who was running unopposed to represent my home region of Southeast Alaska. I launched a scrappy, grassroots campaign and focused on the kitchen table issues that matter to every Alaskan: good schools, getting our fair share of oil revenues, lowering costs, protecting our fisheries. I won — by 32 votes.
When I was sworn in, I was baby-faced and bushy-tailed, just 23 years old. It was the beginning of a decade-long tenure in the Legislature. A lot happened in those 10 years.
Among the most important: We formed the House Bipartisan Coalition in 2016. While I have a “D” next to my name, I believe strongly in working across party lines. That’s what the Bipartisan Coalition was, and is, all about: Democrats, moderate Republicans and independents, all working together to do what’s best for Alaska.
I want to bring that same bipartisan, vigorous problem-solving spirit to the governor’s office, where it has been nonexistent the last eight years.
As governor, I want to work hand in hand with the Legislature to deliver some desperately needed wins for Alaska that will make our lives better and get our state back on track:
• Reinvest in our public schools. Our school districts are in battlefield triage mode, but instead of amputating limbs, our school boards are forced to choose which sports to cut, which electives to discontinue and which neighborhood school to close. Enough already. Get school funding back up to par.
• Forward fund our schools. Our school districts shouldn’t have to guess how much education funding will end up being appropriated in end-of-session legislative haggling.
This circus forces school districts to prospectively fire teachers, then rehire them a month or two later, when they find out the final education funding number. It’s awful for all involved. We should fix it by forward funding.
• Close the Hilcorp corporate income tax loophole. Hilcorp should pay their fair share in taxes just as ConocoPhillips, and nearly every other major corporation in Alaska, already does.
• Lower the cost of energy. Chugach Electric Association, Golden Valley Electric Association, Homer Electric Association and Matanuska Electric Association operate about 1,700 megawatts in power generation capacity. Peak Railbelt winter demand is half that: about 850 megawatts. Guess who pays for the nearly gigawatt in underused and unused power plants? You, on your power bill. The governor should force the co-ops to work together, reduce redundancies and diversify energy sources, including renewables, in order to reduce the sky-high cost of energy for Alaskans.
• Lower the cost of childcare. Alaska has inadvertently created a system of childcare permitting and licensing that effectively amounts to death by a thousand pieces of paperwork. It’s creating scarcity and cost. We need to fix it.
• Lower the cost of housing. Cut red tape to make it easier and cheaper to build more homes of all kinds — from tiny homes and ADUs to manufactured and modular housing, to apartments and condos, to traditional single-family homes. More housing of all kinds, faster.
• Rein in bottom-trawl bycatch. I will nominate Alaskans to the North Pacific Fishery Management Council who will make sure that Alaska and Alaskans — not Seattle and Lower 48 industry interests — foremost benefit from our fisheries.
• Responsibly develop our resources. Support projects that have regional buy-in and support, such as Pikka on the North Slope, which just produced first oil this month, while saying “no” when the risks are too great and those in the region are opposed, as is the case with Pebble.
• Grow our tourism economy. And let’s crack the code on winter tourism while we’re at it. If Iceland can do it, we darn well can, too. Fairbanks is having burgeoning winter tourism success. Let’s follow their great lead.
• Make Alaska an awesome place to live. Let’s build dozens more public-use cabins. Let’s build an alpine hut-to-hut system like they have in New Zealand and the Alps. Let’s build the Alaska Long Trail. Let’s make Anchorage a world-class winter city.
Does this sound like the kind of Alaska you want to live in? Then I have great news: We are the governor campaign for you. And if what you just read gives you indigestion, you’ll be relieved to know you have 17 other options.
I have more great news: I can win.
After beating an entrenched Republican incumbent, I spent a decade representing a swingy district that voted for Donald Trump.
In those 10 years, I recorded some of the highest margins of crossover support from Trump voters of any Democrat in Alaska. I ran 12% ahead of Hillary Clinton in 2016 and 15% ahead of Joe Biden in 2020.
Here’s the simple truth: Whoever becomes our next governor will need to win with the support of significant numbers of independents and moderate Republicans, in addition to Democrats. I’ve done that. And I’ll do it again. Will you join me?
Former state Rep. Jonathan Kreiss-Tomkins of Sitka is a candidate for governor of Alaska.
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Alaska
Laboratory analysis cracks Alaska’s golden orb marine mystery – Futura-Sciences
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