Key Points
- Alaska Airlines and Hawaiian Airlines’ $1.9 billion merger receives U.S. DOT approval with conditions to maintain key services.
- Miles from HawaiianMiles and Alaska Mileage Plan programs will be preserved and transferable at a 1-to-1 ratio.
- The airlines must continue providing essential services for rural areas and maintaining existing Hawaiian Island routes.
- Hawaiian Airlines will adopt Alaska’s policies, including family seating guarantees and compensation for delays.
Alaska Airlines and Hawaiian Airlines have received approval from the U.S. Department of Transportation (DOT) to proceed with their $1.9 billion merger, with certain conditions aimed at preserving key routes and maintaining the value of their frequent flyer programs. The merger, already cleared by the U.S. Department of Justice last month, marks a major step in combining the two airlines’ operations, subject to ongoing regulatory oversight.
The DOT’s conditions ensure that miles earned in HawaiianMiles and Alaska Mileage Plan programs will not expire during the transition and can be transferred at a 1-to-1 ratio when introducing a new loyalty system. Additionally, the airlines must preserve essential air service to rural communities and continue operating their existing passenger and cargo routes between the Hawaiian Islands.
U.S. Secretary of Transportation Pete Buttigieg emphasized the importance of maintaining services that support rural connectivity and essential travel within the Hawaiian archipelago. The merger will allow the airlines to combine resources while keeping these commitments intact.
While the merger can now begin to move forward, the airlines still need final approval from the DOT for a transfer application, allowing them to operate international routes under a single certificate.
Alaska Airlines announced the creation of an interim transition team to oversee the merger’s implementation. Joe Sprague, Alaska Airlines’ regional president overseeing Hawaii, will serve as CEO of Hawaiian Airlines once the transaction is completed, pending the Federal Aviation Administration’s approval of the combined entity’s operating certificate.
The merger will bring together a combined fleet of over 360 aircraft and expand the airline’s network to more than 130 destinations. Both airlines have committed to maintaining their brands while operating on a unified platform. Hawaiian Airlines will also adopt Alaska’s customer service policies, such as guaranteeing family seating without additional fees and offering compensation for significant flight delays or cancellations caused by the airline. Hawaiian Airlines’ stock saw a nearly 4% increase following the announcement.
