Alaska hasn't been adding new Hawaiian markets in a while, United just upgauged a lot of flying, and you have HA adding 32B's to their fleet -- so not sure where there's much room for more growth. This might be one of WN's worst mistakes if they enter Hawai'i.
Good points. (No pun intended.) But, if you're a member of Rapid Rewards, you want to have the option to go to Hawaii. For that reason alone, I think WN will announce Hawaii service sometime in the near future.
Would this not further dilute their yields as RR customers claimed the their rewards with island flights?
In somewhat of a simplified look, not at all as the frequent flyer rewards are liabilities ($63 million as of 12/31/16 as stated in their 2016 Annual Report). Likewise when you purchase a ticket it is also recorded as a liability until the transportation is provided at which point it is recognized as revenue.
With their changes in the past frequent flyer points now have a corresponding dollar value and the more expensive the cash value of a ticket the more points it takes to acquire that ticket. Based on this the availability in that fare bucket is decreased from both the sale of less expensive tickets as well as the lower redemption value of those points.
The one thing which is impacted is the operational cash flow since there is no direct money involved for the majority of the ticket.
318, 319, 320, 321, 332, 333, 388, 707, 717, 722, 732, 733, 734, 73Q, 735, 73G, 738, 7M8, 739, 752, 753, 742, 74L, 744, 762, 763, 772, 77L, 77W, 789, 142, CN1, CR2, CR7, DC8, DH2, DH8, D8Q, D10, D95, EM2, ER3, ER4, E70, 100, J31, M11, M83, M88, M90, SF3