According to the Department of Transportation, Alaska Airlines and Hawaiian Airlines can finalize their merger agreement.
The United States Department of Transportation declared on a Tuesday that they've consented to Alaska Airlines finalizing their $1.9 billion procurement of Hawaiian Airlines. This agreement came about after the airlines assured to preserve crucial Hawaiian routes and implement consumer safeguards.
In August, the Justice Department decided against impeding the merger, which had been announced by Alaska Airline, the 5th largest domestic US airline, and Hawaiian, their 10th largest counterpart, in December. The carriers anticipate to conclude the deal shortly.
The Department of Transportation stated that Alaska and Hawaiian have agreed to safeguard the value of frequent flyer points, keep current service on vital Hawaiian routes connecting to the continental United States and inter-island regions, ensure competitive access at Honolulu International Airport, and offer travel credits or frequent flyer miles for disruptions attributable to the airline.
Negotiations between Alaska and the Department of Transportation continued for several weeks, with the government seeking extensive concessions beyond what was agreed upon on Tuesday.
Alaska stated on Tuesday that these commitments adhere to plans they revealed when signing the agreement and "will not impede the synergies of the deal, thereby boosting competition and increasing consumer options."
The carriers must guarantee that customers can transfer miles without penalty and the combined airline cannot devalue HawaiianMiles miles. Additionally, they must preserve, or even improve, status for HawaiianMiles members in Alaska's Mileage Plan program.
The business merge between Alaska Airlines and Hawaiian Airlines is expected to boost competition, providing more consumer options. To ensure this, the airlines have agreed to maintain the value of frequent flyer points and keep current service on crucial Hawaiian routes.
