Alaska Airlines and Hawaiian Airlines are set to move forward with their $1.9 billion merger, provided they uphold the integrity of their respective airline reward systems and sustain several key routes, the U.S. Department of Transportation (DOT) announced Tuesday. The merger, which received clearance from the U.S. Justice Department last month, now hinges on DOT approvals.
The DOT mandates that miles accumulated in the HawaiianMiles and Alaska Mileage Plan programs remain intact and transferable at a 1-to-1 ratio within the new unified loyalty program. Furthermore, the airlines must continue offering “essential air support” to rural areas and uphold current passenger and cargo services between the Hawaiian islands, as emphasized by U.S. Secretary of Transportation Pete Buttigieg.
While the merger can commence, final approval for a transfer application is still required. This application would enable the two airlines to combine and operate international routes under one certificate. On news of the merger progress, Hawaiian Airlines’ stock saw a nearly 4% boost on Tuesday.
Initially announced in December, the merger plans indicate that both airlines will retain their individual brands while operating under a single platform, collectively managing a fleet of over 360 aircraft serving more than 130 destinations. Additionally, Hawaiian Airlines will need to adopt Alaska’s customer-friendly policies, which include guaranteed family seating without extra fees and compensation for significant flight delays or cancellations, as stipulated by the DOT.
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Original Story https://www.cnbc.com/2024/09/17/alaska-airlines-hawaiian-airlines-merger-review.html
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