Alaska Airlines Cleared to Finalize $1.9 Billion Acquisition of Hawaiian Airlines, Says U.S. Transportation Department
The U.S. Department of Transportation (DOT) has given Alaska Airlines the green light to proceed with its $1.9 billion acquisition of Hawaiian Airlines, following an agreement between the carriers to maintain key routes and implement consumer protections.
The deal, first announced in December, will see Alaska Airlines, the fifth-largest U.S. airline, acquiring Hawaiian Airlines, the country’s tenth-largest carrier. The carriers are expected to finalize the acquisition in the coming days. The Justice Department had earlier indicated in August that it would not move to block the merger.
As part of the agreement with the DOT, the airlines have committed to preserving essential Hawaiian routes to the U.S. mainland and inter-island services. They will also ensure competitive access to Honolulu International Airport. Additionally, they have promised to protect frequent flyer programs, allowing customers to transfer miles without penalties and guaranteeing that HawaiianMiles members can retain or improve their status within Alaska’s Mileage Plan program.
The carriers also agreed to provide travel credits or frequent flyer miles for disruptions caused by the airline, offering additional consumer protections. Alaska Airlines noted that the terms align with its original plans and do not affect the anticipated synergies from the merger, which is expected to boost competition and offer more choices for travellers.
This agreement follows extensive negotiations between the airlines and the DOT, which initially sought broader concessions.
