Alaska Airlines Completed US$1.9 billion acquisition Hawaiian AirlinesThe companies said on Wednesday, a day after the U.S. Department of Transportation approved the deal that it would be conditional on the airline maintaining the value of its frequent flyer programs and retaining several key routes.
The merger agreement between the two companies passed review by the U.S. Department of Justice last month. That leaves it to the Department of Transportation, which must also review airline mergers.
The U.S. Department of Transportation said airlines must ensure miles earned through HawaiianMiles and the Alaska Miles program do not expire and are transferable at a 1:1 ratio before creating a new integrated loyalty points system.
They must also preserve “essential air support” for rural areas and maintain current service levels on passenger and cargo routes between the Hawaiian Islands, U.S. Transportation Secretary Pete Buttigieg said at a news conference.
“This more proactive approach to merger review marks a new chapter in DOT’s work to advocate for passengers and promote a more equitable U.S. airline industry,” Buttigieg said in a news release. The agency said the protections will continue Six years.
The U.S. Department of Transportation noted that airlines can complete the deal but still need approval of the transfer application, which would allow them to combine and operate international routes under a single certificate.
Following the DOT announcement, Alaska said it would appoint an interim transition team to oversee the merger of the two companies as they seek a single operating certificate from the Federal Aviation Administration. The company said that once the deal closes and pending the completion of the FAA process, Joe Sprague, currently Alaska Airlines’ regional president for Hawaii, will be named Hawaiian Airlines’ CEO.
Earlier this year, another airline deal fell through. A federal judge was blocked in January JetBlue AirwaysSpends nearly $4 billion to acquire low-cost airlines spirit airlines The Justice Department won, challenging the deal on antitrust grounds.
When Alaska Airlines and Hawaiian Airlines announced their merger plans in December last year, they said they would retain their respective airline brands but operate under a single platform. The merger would form a fleet with more than 360 aircraft flying to more than 130 destinations. fleet.
The DOT said Hawaiian Airlines must also adopt Alaska Airlines’ approach of ensuring family seats at no additional cost and providing compensation in the event of significant flight delays or cancellations.
