The U.S. Department of Transportation has granted approval for Alaska Airlines to proceed with its US$1.9 billion acquisition of Hawaiian Airlines, setting the stage for the first major U.S. airline merger in nearly ten years. However, the approval comes with a set of conditions designed to protect consumers and preserve services to and within Hawaii. These conditions, which will last for six years once the merger is fully implemented, include maintaining the value of loyalty points, preserving routes and ensuring customer service protections. Until the department formally allows the two airlines to operate as a single entity, both airlines will continue to run independently.
Transportation Secretary Pete Buttigieg emphasised the importance of these safeguards, saying, “We have secured binding, enforceable, upfront protections for passengers and communities, including some new customer service guarantees that did not exist before at any airline.” Under the agreement, points earned with either airline will not expire and can be transferred on a one-to-one basis, with frequent flyer status being matched between the two carriers.
The combined airline must also ensure continued “robust levels” of inter-island flights in Hawaii and services to smaller and rural communities. Additional conditions include ensuring that children under 13 can sit next to an accompanying adult without extra charges, offering compensation for some delays and cancellations and lowering costs for military members and their families.
Alaska Airlines’ CEO, Ben Minicucci, said: “We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group. We sincerely appreciate the exceptional care and service that employees of both companies have continued to show for one another and our guests throughout this process, and the support of both airlines’ labour unions, as we proceed to realise the vision for this combination and build a stronger future together.”
