Alaska Airlines and Horizon Air 2014 Annual Report Download - page 93

includes carriers associated with two of the three major global alliances (Oneworld and SkyTeam),
making it easier for our members to earn miles and reach preferred status in our Mileage Plan™, and
have access to a large network of travel destinations. Further, members can receive 25,000 bonus
miles upon signing up for the Alaska Airlines Visa Signature card and earn triple miles on purchases
made on Alaska Airlines flights or on alaskaair.com. Alaska Airlines Visa Signature cardholders also
receive an annual companion ticket that allows members to purchase an additional ticket for $99 plus
tax, with no restrictions or black-out dates. Earned miles can be redeemed for flights on Alaska Airlines
or on any of our partner airlines, or for upgrades to First Class on Alaska Airlines for as low as 15,000
miles. All of these benefits give our Mileage Plan™ members more value for their travel on Alaska
Airlines, which led to our Mileage Plan™ receiving the highest rank by frequent fliers in the first-ever J.D.
Power Airline Loyalty/Rewards Program Satisfaction Report in 2014.
Mileage Plan™revenues represent approximately 10% of Air Group’s total revenues. Furthermore, our
Mileage Plan™ helps drive more revenue through attaining new customers and building customer loyalty
through the benefits that we provide. The Mileage Plan™ provides more value per dollar spent on the
Alaska Airlines Visa Signature card, in comparison to other comparable frequent flier programs in the
industry. Summary of the benefits provided in comparison to some of our competitors are as follows:
Alaska Airlines
Signature Visa
Platinum
Select
AAdvantage
Gold Delta
SkyMiles
United
Mileage Plus
Explorer
Southwest
Rapid
Rewards
Premier
Bonus miles upon approval Yes No No No No
Bonus miles awarded 25,000 upon
approval
30,000 after
spending
$1,000 in 3
months
30,000 after
spending
$1,000 in 3
months
30,000 after
spending
$1,000 in 3
months
50,000 after
spending
$2,000 in 3
months
Annual fee $75 $95 $95 $95 $99
Miles for “on” spend 3x 2x 2x 2x 2x
Companion fare
Yes - annual
companion
fare
purchased for
$99 plus tax.
No No No No
First bag free No Yes Yes Yes No bag fees
AGREEMENTS WITH OTHER AIRLINES
Our agreements fall into three different categories: Frequent Flier, Codeshare, and Interline agreements.
Frequent Flier Agreements offer mileage credits and redemptions for our Mileage Plan™ members.
Alaska offers one of the most comprehensive frequent flier programs for our Mileage Plan™ members
through our frequent flier partnerships with 14 domestic and international carriers.
Codeshare agreements allow one or more marketing carriers to sell seats on a single operating carrier
that services passengers under multiple flight numbers. The sale of codeshare seats can vary
depending on the sale arrangement. For example, in a free-sale arrangement, the marketing carrier sells
the operating carrier’s inventory without any restriction; whereas in a block space arrangement, a fixed
amount of seats are sold to the marketing carrier by the operating carrier. The interchangeability of the
flight code between carriers provides a greater selection of flights for customers, along with increased
flexibility for mileage accrual and redemption.
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ŠForm 10-K