DOT Approves $1.9 Billion Alaska and Hawaiian Airline Merger, Clearing Path for Completion

The U.S. Transportation Department announced on Tuesday that it authorized the $1.9 billion acquisition of Hawaiian Airlines by Alaska Airlines. The department granted both airlines the authority to maintain key Hawaiian routes and implement consumer protections as part of the Alaska and Hawaiian airline merger. The Justice Department decided not to reject the transaction in August after it was first made public in December. As a result, the airlines anticipate closing the agreement in the following days.

The Department of Transportation (DOT) reports that Hawaiian and Alaska Airlines have pledged to uphold the value of frequent flier awards and continue operating on vital Hawaiian routes. This covers travel to and from the continental United States and between islands. In addition, the agreement mandates that the airlines guarantee Honolulu Airport competitive access and provide travel credits or frequent flier miles as compensation for any interruptions they may create.

The DOT, which had been seeking more significant concessions, and Alaska Airlines engaged in lengthy talks that resulted in this deal. The conversation covered several topics beyond those included in the final agreement. However, Alaska Airlines declared that the promises corresponded with the original intentions disclosed at the transaction’s signature. They stressed that these pledges have no bearing on the deal’s synergies, which would eventually boost competition and provide customers with more alternatives.

According to the agreement, customers must also be able to transfer their frequent flier points without incurring penalties. Additionally, the merged airline must preserve or enhance HawaiianMiles members’ standing within Alaska’s Mileage Plan program and refrain from depreciating HawaiianMiles. This clause ensures that frequent flier perks are still worthwhile and available to participants in both schemes.

The DOT’s clearance is a critical milestone in the Alaska and Hawaiian airline merger and demonstrates the company’s dedication to competitive airline service and consumer protection. The carriers are now prepared to proceed with the merger, hoping to combine their offerings while maintaining crucial customer protections.