Hidden Gem of the Emerald City:Alaska Airlines Mileage PlanScott MackenzieChicago Seminars - 18 October 2014

Networks & Partners

Route Map

• Hubs in PDX, SEA, and ANC

• Multiple daily flights to every Hawaiian island

• Award flights to Alaska for the same cost as Lower 48

• Several non-stop routes to the Midwest and East Coast

• Expanding to ABQ, CUN, BWI, DTW, MSY, and TPA

“Alaska Airlines dominates the West Coast…”

Many Large, Quality Partners

Delta Air Lines American Airlines

Elite Status

Earning Elite Status

MVP MVP Gold MVP Gold 75K

Miles on Alaska Airlines 20,000 40,000 75,000

Miles on Alaska Airlines + Partners

25,000 50,000 90,000

Segments 30 60 90

• Fewer miles than most programs require

• Can achieve status while flying multiple carriers– Need lots of miles from partners before it makes sense

• MVP Gold has unique flight cancellation benefits

Elite Status: MVP

• 50% bonus miles• 2 free checked bags• Priority check-in• Preferred seating• 48-hour upgrade

window

Elite Status: MVP Gold

Unchanged• 2 free checked bags• Priority check-in• Preferred seating

Improved• 100% bonus miles• 72-hour upgrade

window

Additional• Various fee waivers• Priority security line• Standby on full flights• Free same-day changes• Free flight cancellations• Free drink on board

Elite Status: MVP Gold 75K

Unchanged• 100% bonus miles• 2 free checked bags• Priority check-in• Preferred seating• Various fee waivers• Priority security line• Standby on full flights• Free same-day changes• Free flight cancellations• Free drink on board

Improved120-hour upgrade window

Additional• 50K bonus miles• Gift MVP status for a

friend• 4 Board Room day

passes• Free digEplayer

MVP Gold Is the Sweet Spot

AlaskaGold

DeltaGold

AmericanPlatinum

UnitedGold

Miles required 40,000 50,000 50,000 50,000

Bonus award miles 100% 100% 100% 50%

Free checked bags 2 2 2 3

Confirmed upgrades 4 No No No

Same day change fee

No No $75 No

Ticket cancellation fee

No See fare

See fare See fare

Award cancellation fee

No $150 $150 $100• Cancel up to 60 days before departure and use your credit for a future flight; MVP Gold/75K can cancel at any time

Getting Upgrades with Status

• “U” fare class must be available for upgrade

• All elite members can get free upgrades at booking– MVP Gold/75K: Y, S, B, M, H– MVP: Y, S, B

Getting Upgrades with Status

• Four MVP Gold Guest Upgrades for MVP Gold 75K– Can use for anyone, even if not traveling with elite

member– Some fares excluded: G, R, T

• Avios awards can also be upgraded and earn miles– Must have Mileage Plan number in the reservation

Getting Upgrades without Status

• Use 15,000 miles– Fare class purchased must still be Y, S, B, M, H

• Upgrades at the gate range from $50-200– But I’ve never seen one offered

• Upgrade as a Delta Sky Miles elite member– Priority after all Mileage Plan elites

American Airlines

• 1-2 free checked bags• Priority AAccess check-

in• Priority AAccess

boarding• Preferred and Main

Cabin Extra seating

Delta Air Lines

• Priority check-in• Zone 1 priority

boarding• Preferred seating• Complimentary

upgrades– Excluding JFK transcons,

Hawaii, and Alaska

Reciprocal Elite Benefits

Alaska Airlines Board Room

• Only a handful of Board Room locations– ANC, SEA, PDX, LAX (SFO replaced by Cathay’s lounge)

• Many partnerships with other airport lounges– All Delta Sky Clubs, but guests cost $29 each– Many other lounges depending on location

• Affordable renewals and discounts for elite members– $450 | $375 | $295 for new membership– $350 | $325 | $295 for renewals

• Free access with Priority Pass Select (via the Platinum Card by American Express)

Alaska Airlines Board Room

Earning & Redeeming Miles

Earning Miles

• Alaska generally awards the same number of award and elite-qualifying miles

• 100% miles for most fares• 125% miles for Y economy class fares• 150% miles for F and P first class fares• 500-mile minimum even without elite status

• Earn 100-150% miles on American Airlines, Delta Air Lines, and most partners

Redeeming Miles – Five Award Levels

– Saver coach (high and low)– Refundable coach

– Saver first– Refundable first

General Redemption Guidelines

• Only the lowest of the two saver coach levels is available to partners like British Airways and American

• One stopover allowed on one-way awards– Two stopovers allowed on round-trip awards

• You must call to book Cathay Pacific or LAN

• Each award can include only one partner– Can mix that partner with segments on Alaska Airlines– KLM/Air France count as one partner, so you could have

segments operated by both carriers plus Alaska– You can use different partners in each direction

(by booking two one-way awards)

Great Values on Cathay Pacific

One-Way Award Fares Coach Business

First

North America to Asia 30,000 50,000 70,000

North America to Australia/New Zealand

40,000 60,000 80,000

North America to Africa/India/Middle East

50,000 62,500 70,000

Map generated by the Great Circle Mapper – © Karl L. Swartz

Great Values on Emirates

One-Way Award Fares Coach Business First

North America to Asia 52,500 75,000 100,000

North America to India/Middle East 42,500 72,500 90,000

North America to Africa 47,500 77,500 100,000

Great Values on Fiji Airways

One-Way Award Fares Coach Business

North America to S. Pacific/Australia/New Zealand

40,000 55,000

Hawaii to S. Pacific/Australia/New Zealand 37,500 45,000

Map generated by the Great Circle Mapper – © Karl L. Swartz

Note: Round-trip from Hawaii to Australia is only 55,000 in coach

Strategic Opportunities

Saving Money with Alaska Airlines

• Companion fare costs about $118– Applies to any itinerary in economy class on Alaska

Airlines– Both passengers earn miles and qualify for upgrades– Earned after signing up for Alaska Airlines Visa and at

each account anniversary

• 5% discount on weekly fare specials– Must sign up for newsletters

• Cheap upgrades at the gate, from $50-200

Alaska Airlines Visa Signature

• 3X on Alaska Airlines and 1X on everything else• $79 annual fee• Typically 25,000-mile sign-up bonus upon approval

• NO free checked bag or priority boarding/check-in

Major benefit of card is the annual companion fare.

The AMAZING Companion Fare!

• Deposited as a coupon in your Mileage Plan account

• May be used for round-trip, one-way, or multi-city travel

• Can’t book first class, but flights are eligible for upgrades and to earn miles

• TIP: Bank of America has a reputation for offering customers multiple credit cards

How Alaska Airlines Helps You Save Miles

• Cheaper awards to Alaska– Considered part of the continental U.S.

• Cheaper intra-state awards

• Cheaper Avios awards to Hawaii– All Alaska Airlines flights to the islands are 12,500 points

• Free stopovers on domestic one-way awards

Using Avios to Book on Alaska Airlines

• Avios is a distance-based award chart– Great value in short, non-stop flights with no fuel

surcharges

Using Avios to Fly to Hawaii

• Only 12,500 points each way to Hawaii

• Connect in BLI, PDX for 9,000 more

• Connect in California for 15,000 more

• Compare to 40,000 miles for most other airline programs

Map generated by the Great Circle Mapper – © Karl L. Swartz

Using Avios to Fly to Hawaii

Using Avios to Fly to Hawaii

• You must call to book (before 4 PM, Pacific Time)! Searches on BA.com will turn up empty.

Finding Alaska’s Award Space

• Three economy class award levels, two for first class– Only the cheapest will be available to partners

Finding Alaska’s Award Space

• Confirm partner award availability using American Airlines

• Might need to check segment-by segment

Stopovers on One-way Awards

• Stopovers allow you to book a single award ticket for multiple future uses

• Can fill in remainder of itinerary with Avios awards or revenue tickets

20,000 Mileage Plan miles or 25,000 Avios points?

52,500 vs. 90,000 Miles

• EWR – SEA // SEA – OGG = 20,000 miles + $5• OGG – SEA // SEA – SFO = 20,000 miles + $5• SFO – SEA // SEA – DCA = 12,500 miles + $5

Map generated by the Great Circle Mapper – © Karl L. Swartz

Conclusion

Big Presence for a Small-ish Airline

• Alaska Airlines’ own network is limited …but it is great if you happen to live or travel on the West Coast– Expanding with more coast-to-coast routes– Hundreds of flights to Hawaii and Alaska

• Great partner relationships help Alaska fill any gaps– Knowing how to exploit partners is key to maximizing

value– American Airlines and Delta Air Lines great for U.S.– British Airways, Emirates, and Cathay Pacific offer good

value

Customer Satisfaction Comes First

• Earning elite status is relatively easy and more rewarding than with many competitors– More important as airlines are cutting benefits and focusing

on revenue

• “Highest in customer satisfaction among traditional carriers in North America...” – JD Power– Alaska Airlines has held this title for 7 years (tied once)– Mileage Plan ranked #1 among all airline programs in 2014

• Also check out my contribution to Alaska’s Blog!http://blog.alaskaair.com/2014/08/26/award-miles/