Alaska and Hawaiian Airlines Merger Wins DOT Approval with Key Conditions
Alaska Airlines and Hawaiian Airlines have received the green light to proceed with their $1.9 billion merger but with some conditions. The Department of Transportation (DOT) has stipulated that the airlines must protect key elements of their operations, including their loyalty programs and essential routes.
Under the agreement, miles earned in the Hawaiian Miles and Alaska Mileage Plan programs before the merger remain valid and transferable at a 1-to-1 ratio. Additionally, the airlines must maintain air service for rural communities and preserve inter-island routes in Hawaii. U.S. Transportation Secretary Pete Buttigieg emphasized that the carriers must maintain “essential air support” for these areas.
The DOT also requires Hawaiian Airlines to adopt Alaska’s family seating policies and compensation procedures for delays and cancellations. Despite these conditions, the merger can proceed, though the airlines must still obtain approval to combine international routes under one certificate.
Alaska Airlines has appointed an interim transition team led by Joe Sprague to manage the merger process. Sprague will serve as Hawaiian Airlines’ CEO until the merger is finalized. Once complete, the airlines will operate a combined fleet of over 360 aircraft, offering more than 130 destinations.
Hawaiian Airlines’ stock rose nearly 4% following the DOT’s announcement, reflecting positive market sentiment toward the merger’s progress.
Also Read: Alaska-Hawaiian Merger Advances as DOJ Greenlights $1.9B Deal
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