This week, the Department of Transportation (DOT) approved the Alaska-Hawaiian Airlines merger. The deal included provisions to protect customers’ reward points, continue service to remote Alaskan areas, retain routes to the Hawaiian islands, and more.
More details on the Alaska-Hawaiian Airlines merger
The two carriers announced the merger in December 2023, and since then, it’s undergone an antitrust review by the Department of Justice (DOJ). Last month, the review period passed without any competitive issues raised by the DOJ. Now, by agreeing to provisions with the DOT, the airlines can move forward and become one company.
The consumer protections agreed to include:
- Lowering costs for military families
- Preserving support for rural service
- Ensure fee-free family seating and alternative compensation for controllable disruptions
- Protecting the value of rewards
- Retain existing service for key Hawaiian routes between islands and to the Lower 48
- Providing competitive access at the Honolulu hub airport
Hawaii Governor Josh Green commented on the merger, saying: “One of the realities was Hawaiian Airlines was losing about a million dollars a day, and if they had gone suddenly bankrupt, I think they could have been a victim of a violent takeover where we wouldn’t have had the same consideration. Maybe we would have lost all our millage. Maybe they would’ve cut half the jobs whoever came in.”
Ben Minicucci, CEO, Alaska Air Group, said: “We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group. We sincerely appreciate the exceptional care and service that employees of both companies have continued to show for one another and our guests throughout this process and the support of both airlines’ labor unions as we proceed to realize the vision for this combination and build a stronger future together.”
