Aloha: Why I Sat Out the Hawaiian Alaska Merger Miles Madness

Hawaiian Alaska Merger

A Hawaiian Alaska merger is going to happen, apparently.  People are excited, of course.  Like many of you, I’m intrigued to see what Hawaiian award redemptions look like under the Alaska Mileage Plan program in its next iteration.  As much as I’m interested, I’m equally confident it really won’t affect me.  Perhaps some of you can identify.  Today, I’m describing why a clearly attractive angle for many is a non-starter in my situation.  But first, let’s recap why the push for Hawaiian miles has been so attractive recently.

Resetting the Hawaiian Alaska Merger Mileage Play

Let’s start with a foundational aspect.  Hawaiian miles will supposedly convert to Alaskan miles at a 1:1 ratio.  That makes picking up Hawaiian Miles prior to the merger more attractive, more so given that multiple Hawaiian credit cards and signup bonuses exist.  The personal card can entail as little as a single, no-minimum purchase, while the business version has a quite modest $2k spend requirement.  The cherry on top was a 20% transfer bonus for Amex Membership Rewards to Hawaiian miles through the end of last month.  Many could easily turn considerable amounts of Hawaiian miles into Alaska currency in the future.

But I opted to neither apply for Hawaiian cards nor transfer Membership Rewards.

Why I Sat This One Out

Questionable Value

Over the years, I’ve earned, sometimes unintentionally, a large amount of Alaska miles.  Efficiently racking up miles via signup bonuses (primarily via Bank of America) played a substantial role, of course.  But more significantly, my stash of Virgin America miles became Alaska currency seemingly forever ago.

How many Alaska miles have I redeemed?  Exactly zero.  For a variety of reasons, I’ve never used a single mile in the Alaska Mileage Plan program.  I’m confident I’ll get around to doing so eventually, but I have no plans in the foreseeable future.  And spending down the balance will take quite some time.

Again, I know that non-cash rewards currencies are worth nothing until I consume them.  Since I’m not using any of my Alaska balance, I have little justification for adding more.

Options Vary 

But wait, isn’t a new Hawaiian card signup bonus a way of earning notable mileage amounts quickly?  Yes it is, but not for everyone.  For one reason or another, Barclays approvals can be tricky for points and travel hobbyists.  My wife and I are in this group currently.  So what about the other option to plus up my Hawaiian balance?

Alternative, Immediate Value Now

For years, I’ve cashed out all major bank point currencies, including Amex Membership Rewards.  (For anyone interested in cashing out these points, it’s even more vital to do so now, as a new cap for 1.1 cent per point redemptions is effective 1 Oct.)  I’d rather realize immediate value via Schwab cashout than an inferior one through a Mileage Plan redemption in, say, 2037.

Alaska Redemptions, Someday

Okay, I’ll probably redeem before 2037.  Regardless, I have zero plans to redeem Alaska miles in the near-term, and plans beyond are fuzzy.  But that doesn’t mean I won’t keep hoarding them when it makes sense.  For instance, with plenty of spend options, I’ll take the easy miles from a BoA Alaska Airlines Business card signup bonus.  That’s consistently been a solid chunk of miles with a relatively small amount of spend.

In short, I’ll add onto my Alaska balance when I’m in “yes, and” situations, but not in “either/or” ones.  That means I’ll pursue signup bonuses on cards I’m eligible for when I have plenty of spend options.  My opportunity cost is relatively low, and I’ll efficiently earn rewards currencies – even those I’m (very) slow to use.  Meanwhile, I’m not giving up on any more significant earn opportunities addressing my priority goals.

Hawaiian Alaska Merger – Conclusion

Actually, I wouldn’t be surprised if the Alaska Mileage Plan program goes through a few more iterations before I get around to using their miles.  Or maybe Alaska gets acquired by someone else!  No matter, I’m confident we’ll redeem these for rewards eventually.  Until then, these miles are a nice contingency if our preferred currencies can’t take us where we want/need to go.  But I’d love for Alaska to give me a reason to change my mind and focus more on redeeming soon.  Unfortunately, the promise of the Hawaiian Alaska merger isn’t doing that for me.

Did you chase Hawaiian miles recently?  Why or why not?

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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