Alaska Airlines, Hawaiian can close merger deal, DOT says
Alaska Airlines Acquisition of Hawaiian Airlines Approved #
The U.S. Transportation Department has given the green light for Alaska Airlines to finalize its $1.9 billion acquisition of Hawaiian Airlines. This approval comes after both carriers agreed to maintain key Hawaiian routes and implement consumer protection measures.
The deal, which was initially announced in December, is now expected to close in the coming days. This merger will combine the fifth-largest and tenth-largest domestic U.S. airlines.
As part of the agreement, the airlines have committed to:
- Protect the value of frequent flyer rewards
- Maintain existing service on crucial Hawaiian routes to the continental United States and inter-island regions
- Ensure competitive access at the Honolulu airport
- Provide travel credits or frequent flyer miles for disruptions that are the fault of the airline
These commitments were reached after extensive discussions between Alaska Airlines and the Transportation Department. The final agreement is less extensive than initially proposed concessions.
Alaska Airlines has stated that these commitments align with their previously announced plans and will not impact the synergies of the deal. They believe this merger will enhance competition and expand choices for consumers.
Specific provisions of the agreement include:
- Allowing customers to transfer miles without penalty
- Prohibiting the devaluation of HawaiianMiles miles
- Maintaining or increasing status for HawaiianMiles members in Alaska’s Mileage Plan program
This merger represents a significant development in the U.S. airline industry, potentially reshaping competition and service offerings in the Hawaiian and Pacific Northwest markets.