Alaska-Virgin America Merger Begets Sadness, Skepticism

Enter the Holland America Line “Choose Your Cruise” sweepstakes by March 31, 2016, for a chance to win the grand prize: a seven-day Holland America Line cruise for two to the winner’s choice of Alaska, Canada and New England, the Caribbean, or Europe, including most onboard meals.

Likely in response to JetBlue’s systemwide double-points promotion, in effect through February 29, Virgin America is also offering double points, but only on select routes.

With the high probability of Virgin America’s being folded into Alaska Airlines within the next two years, Virgin loyalists are in the market for an alternative. And JetBlue wants to be that alternative.

Today, two storied travel brands that are destined for the scrap heap announced a marketing partnership that only serves to make their imminent demise that much sadder.

Judging by their load factors, U.S. airlines are doing just fine. For June, Alaska Airlines filled 86 percent of its seats; Delta flew 87.7 percent full; other carriers’ results are expected to be similarly robust.

By traditional measures, Alaska Airlines is a carrier of decidedly modest size, even after its acquisition of Virgin America. Its own flight network is small, compared to those of American, Delta, and United. And it’s not a member of one of the three global airline alliances.

With Alaska Airline’s acquisition of Virgin America, it was just a matter of time before Virgin’s loyalty program, Elevate, was terminated and its members folded into Alaska’s Mileage Plan program. In the meantime, the programs were somewhat integrated, allowing reciprocal mileage earning. And beginning on January 9, 2017, Elevate members will be able to convert their points at a 1:1.3 ratio to miles in Mileage Plan, and have their Virgin status matched in Alaska’s program.

Want to fly Virgin America as an elite member of the airline’s Elevate program? If you’ve already earned elite status with American, Delta, Southwest, or United, Virgin America will match that status, for three months.

Virgin America thinks its new “Flights with Bennies” campaign is cheeky. In name, perhaps. But really, it’s just another refer-a-friend bonus promotion. Which isn’t a bad thing.

Two months ago, when Alaska Airlines bought Virgin America for $4 billion, the consensus prediction was that San Francisco-based Virgin would be slowly integrated into Alaska until it was nothing more than a historical footnote. In other words, what customers love about Virgin would be lost in transition.

Enter the Hallmark Channel “Summer Nights” sweepstakes by August 29, 2016, for a chance to win one of two grand prizes: 1) a seven-day Virgin Islands cruise for two, including air and hotel before and after the cruise; 2) or a four-night trip to Victoria Island, British Columbia, to visit the set of “Chesapeake Shores,” including air, transfers, and hotel.

Last week, amid unconfirmed rumors that Virgin America was in merger talks with unnamed potential acquirers, I suggested that the best fit would be a combination with JetBlue. According to a new Bloomberg report, I was half right: One of the would-be buyers is indeed JetBlue; the other is Alaska Airlines.