Alaska-Hawaiian Airlines merger clears DOT review
An Alaska Airlines Boeing 737-790 is seen flying at Anchorage Ted Stevens International Airport in Anchorage, Alaska, United States on July 2, 2024.
Hasan Akbas | Anadolu | Getty Images
Alaska Airlines And Hawaiian Airlines can proceed with their merger plans, but they must maintain the value of the airline’s rewards system and preserve some key routes, the U.S. Department of Transportation said on Tuesday.
Two carriers $1.9 billion merger agreement deleted US Department of Justice Review last month. This was handed over to the Department of Transport, which also has to review airline mergers.
The Department of Transportation said airlines must ensure that miles earned in the HawaiianMiles and Alaska Mileage Plan programs before the new combined rewards system is created will not expire and can be transferred at a 1:1 ratio.
U.S. Transportation Secretary Pete Buttigieg said at a press conference that they must also maintain “essential air support” to rural areas and maintain current service levels for passenger and cargo routes between the Hawaiian islands.
The Ministry of Transport noted that the airlines can begin the process of completing the merger, but still need to get approval for the transfer application, which would allow them to combine and operate international routes under one certificate.
Hawaiian shares rose nearly 4% in afternoon trading.
In December, when they announced plans to merge, the two airlines said they would retain their respective brands but operate under a single platform, combining into a fleet of more than 360 aircraft offering more than 130 destinations.
The Transportation Department said Hawaiian must also adopt Alaska’s practice of guaranteeing seats for families at no extra charge and providing compensation if the airline causes significant delays or cancellations.
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