Alaska-Hawaiian merger clears DOT review, but airlines must preserve miles, routes

Business

In this article

Boeing 737-790 aircraft belonging to Alaska Airlines is seen flying at Anchorage Ted Stevens International Airport in Anchorage, Alaska, United States on July 2, 2024. 
Hasan Akbas | Anadolu | Getty Images

Alaska Airlines and Hawaiian Airlines can go through with their planned merger, but they must maintain the value of their airline reward systems and preserve several key routes, the U.S. Department of Transportation said Tuesday.

The two carriers’ $1.9 billion merger agreement cleared the U.S. Justice Department’s review last month. That put it in the hands of the Transportation Department, which must also review airline mergers.

The DOT said the airlines must ensure that miles earned in the HawaiianMiles and Alaska Mileage Plan programs before the creation of a new, combined loyalty point system will not expire and that they can transfer at a 1:1 ratio.

They also must preserve “essential air support” for rural areas and maintain current levels of service for passenger and cargo routes between the Hawaiian islands, U.S. Secretary of Transportation Pete Buttigieg said in a press call.

The Department of Transportation noted that the airlines can begin the process of closing the merger, but still need approval for a transfer application, which allows them to combine and operate international routes under one certificate.

Hawaiian’s stock rose nearly 4% in afternoon trading.

The two airlines said in December when they announced plans to combine that they would keep each carrier’s brand but operate under a single platform, combining into a more than 360-airplane fleet offering over 130 destinations.

Hawaiian must also adopt Alaska’s practices of guaranteeing family seating without an additional fee and providing compensation if the airline causes significant flight delays or cancellations, the DOT said.

This is breaking news. Please refresh for updates.

Articles You May Like

Workplace flexibility is helping Americans take longer trips this holiday season, report finds
Social Security beneficiaries to soon receive notices revealing the size of their 2025 benefit checks
Germany’s Thyssenkrupp pops 8% after narrowing net loss and booking $1 billion impairment charge
How to optimize your holiday travel budget on ‘Travel Tuesday’
Making Friends After Retirement, According To Dr. Ruth

Leave a Reply

Your email address will not be published. Required fields are marked *