The U.S. Transportation Department has approved Alaska Airlines’ $1.9 billion acquisition of Hawaiian Airlines, with the condition that key Hawaiian routes be maintained and consumer protections be adopted. This deal, announced in December, was not blocked by the Justice Department in August. Both airlines expect the transaction to close in the coming days.
Alaska and Hawaiian agreed to protect frequent flyer rewards, maintain service on important routes, ensure competitive access at Honolulu airport, and provide travel credits for disruptions caused by the airline. These concessions were reached after weeks of discussions between Alaska and DOT, which had initially sought more extensive concessions. Alaska stated that these commitments align with their original plans for the deal and will enhance competition and choice for consumers.
As part of the agreement, customers must be able to transfer miles without penalty. The combined carrier is not allowed to devalue HawaiianMiles miles and must either maintain or increase status for HawaiianMiles members in Alaska’s Mileage Plan program. These measures aim to ensure a smooth transition for customers of both airlines following the acquisition.
While the deal faced scrutiny from regulatory bodies, the final agreement includes provisions that prioritize consumer protection and competition within the airline industry. By maintaining key routes and protecting frequent flyer rewards, Alaska and Hawaiian aim to provide a seamless experience for their customers during the transition period. The combined carrier also commits to enhancing the benefits for loyalty program members.
The approval of the acquisition marks a significant milestone for Alaska Airlines, positioning them as a major player in the airline industry with an expanded network. By finalizing this deal, Alaska gains access to Hawaiian’s routes and customer base, enhancing their competitive position in the market. The consumer protections and route maintenance agreed upon by both airlines demonstrate a commitment to customer satisfaction and a focus on providing high-quality service.
Overall, the approval of the Alaska Airlines acquisition of Hawaiian Airlines represents a strategic move that will benefit both companies and their customers. The agreement reached with the U.S. Transportation Department emphasizes the importance of maintaining consumer protections and competition within the airline industry. By adhering to these conditions, Alaska and Hawaiian seek to create a seamless experience for their customers while leveraging the combined strengths of both airlines.
