[Merger Closes, Mileage Transfer Launching This Month!] WOW! DOT Approves Alaska-Hawaiian Merger, On Condition That Miles Combine At 1:1 Ratio!

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Update, 9/18: Alaska has completed its acquisition of Hawaiian Airlines for $1.9B.

The integration process will take up to 18 months, but later this month you will be able to transfer miles from Hawaiian to Alaska and vice versa at a 1:1 ratio!

That means for the first time ever, you can effectively transfer AMEX points to Alaska via Hawaiian at a 1:1 ratio!

The DOT is requiring the 1:1 transfer ratio and that miles never expire. The DOT will also require that “The combined airline must maintain a minimum dollar value for all miles in the new loyalty program, measured by the guest-facing value of miles redeemed for carrier-operated flights” and that “The combined airline must not impose change or cancellation fees on rewards redemption tickets for travel on carrier-operated flights.” It remains to be seen how exactly that will play out.

Lounge members also have reciprocal access and elite status matching will take place later this year.


Originally posted on 9/17:

The US DOT has approved the Alaska Airlines and Hawaiian Airlines merger, with some conditions.

The biggest is that miles must be preserved at a 1:1 ratio and never expire!

That topic was the subject of my own speculation last month, when I speculatively transferred 500,000 AMEX points into 600,000 Hawaiian miles, on the gamble that they would become 600,000 Alaska miles.

I never thought I’d be writing an expected value formula on DansDeals, but I got pretty wonky with the fun!

While Hawaiian miles aren’t worth much, Alaska miles can be very lucrative. This comparison chart shows just how much better their miles are over the competition for domestic awards.

And now it seems like the bet will pay off, with the DOT insisting on 1:1 transfer ratios!

The DOT said the combined airline must also continue flying their current rural routes, provide family seating on all fares, and provide compensation for airline caused delays and cancellations.

You can still transfer miles from AMEX to Hawaiian, though the 20% bonus is no longer applicable. I would certainly assume we will get advance notice before that transfer option goes away, but it’s always possible that it goes away without warning. I would assume the transfer option will go away at some point before the merger closes.

Of course, the merger still has to close. And Alaska can devalue its program in a combined mileage program, but I don’t think that will happen right away as airlines don’t try to squander goodwill soon after a merger.

How many AMEX points will you transfer to Hawaiian before the merger is finalized?

HT: Moshe R

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62 Comments On "[Merger Closes, Mileage Transfer Launching This Month!] WOW! DOT Approves Alaska-Hawaiian Merger, On Condition That Miles Combine At 1:1 Ratio!"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

Harley Kesselman

Dan, Are you on the US DOT too now? Haha!

Stamaguy

How much of a sure thing is this

Eli

Thank you Dan!! I moved 500k of my 1.5m

David

great. I transferred what I had last week in Amex points to HI air before the deadline based on your thoughts (I didn’t have much, about 26,000, but I’ll take it in Alaska).

I really hope I’m wrong, but to your last article point, I think devalue coming first 1/2 of next year.

Stamaguy

Dan what do you think of signing up for the Hawaiian airlines Barclays card right now, do some quick spending and getting that welcome bonus ultimately in Alaskan airlines miles

CtownBin

Unlike the AMEX transfer option- which is almost certain to go away before the merger (though hopefully with notice)- the Barclay’s co-brand cards might stick around. That’s what happened when American merged with US Airways, there are 2 co-brand issuers post-merger, similar with the Marriott-Starwood merger. Time will tell. But certainly no rush to grab the Hawaiian cards right now.

pes

i love the math

Me

I actually took your original advice and transferred 1 million points. Now I’ll have 1.2 Alaska.
Thank you Dan!

moshe

BH great news- i took a gamble and moved 1m with the 20% hopefully it goes thru and ill have 1.2m AS IYH

Avi

Alaskan deval incoming

Valentin

I got the Barclays Hawaii credit card right away I heard about the merger. Nowadays the offer is even better: 70K miles, spending only $2,000.

Herman the German

I transferred 60K Amex. into 72K Hawaiian.
In addition opened Hawaiian cc with 70k sign up bonus for spending 2G

Week before I used 60k Alaska miles for 2 RT 1st class tix AA JFK-MIA

R

Nice! I moved 275k (now 330k).

Dave

How do you all have so many Amex points? I have a measly 100k 🙁

ad

are we going to be able to transfer hawaiann miles to alaska or redeem hawaiaan miles at alaska rates

lakewood34

yes transfers will be allowed beginning later this month
https://forums.dansdeals.com/index.php?topic=137495.msg2866890#msg2866890

MG

So can still transfer over now and it will merge into AS

A

“The combined airline must not take any actions that would devalue HawaiianMiles miles, must maintain the value of each unredeemed HawaiianMiles mile earned prior to the merger closing…”
Dan,
Doesn’t this suggest that our Hawaiian miles cannot ever be devalued for flight redemptions?

Also, thanks to you I got in on the MR transfer!

Moshe

Why didn’t you move 1m?

cook

Too bad the deadline was on motzei shabbos, by the time I saw the post it was after midnight

Dfw Jon

What we need now is a deal on pagers

Eli

Can one still move miles now to Hawaii?

Work-for-ur-muny

מזל טוב

Wow, I am pretty surprised at how the DOT sounds off on such seemingly nitty-gritty parts of the deal, such as transfer ratios.

Sam

Well they do have their own Hawaii points to look out for.

CtownBin

Moved over 400k of my 2.2mil AMEX points with the 20% bonus. Hopefully they last a while- and the program doesn’t devalue before I get to use them!

Berel

I moved 450k plus 20%. Thanks Dan!

Mendy

I don’t have American Express points or any other banks transferable to Hawaiian airlines

Sai Dhanchander

Dan I have a question I did transfer 66,000 miles and today and other 49,000 making total of 115,000. I’m located in Cincinnati I know you are in Columbus area so was wondering what would you suggest it is for me and my girlfriend to wisely use the 115,000 so we both can do trips to Hawaii and Alaska hooefully it is possible since I looked and the points to Alaska for two are around 50k plus taxes if you can provide more insights would be great

Friend Question

asking for a friend- he has 1.5m MR however due to issues with his business, some accounts were closed (he was told by amex that they will be re-opened) and other are under financial relief. probably wont be able to use amex (BP) for at least another year until balance is paid off.
He already transferred 1m with the 20%, but he wants to know if he should send the remaining 1.5m and have total of 2.7m AS.
would you advise him to do that or should he hold off the 1.5m in his MR account and be happy with the 1.2m AS?

joel

why couldn’t your friend say he is asking for a friend….

Moshe

Or his friend asking for his friends friend which would be him

Mergs

Can you remind what is the great value now that El Al is not an option?

Chaim

Will amex stop being transferable to Hawaiian airlines?

Barry

So I fly out of EWR
American sucks for that..

So what is alaska miles really good for

Mergs

Without allow is there still an advantage to Israel?

Josh

So Dan how many more points are you transferring

xbox 360

if i have about 250k points would you recommend sending them all over?

BG

It doesn’t say anything about killing the value of the miles for transfers to American, which is the biggest and best value for Alaska miles at this point.

Moshe

Any chance Hawaiian miles usage will be restricted to Alaska metal only?

cook

Any way to know beforehand if miles in Hawaiian account will count towards lifetime status for Alaska once the accounts trasfer/merge?

xc

I cant make a laining on this for the life of me “The combined airline must maintain a minimum dollar value for all miles in the new loyalty program, measured by the guest-facing value of miles redeemed for carrier-operated flights”

cook

Hawaiian CC currently offers 2 free checked bags, how likely is Alaska to honor the baggage allowance post merger?

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