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The Department of Transportation (DOT) announced today that it is approving the merger of Alaska Airlines and Hawaiian Airlines with some required contingencies around preserving the value of the respective frequent flyer programs, maintaining existing service on key Hawaiian routes (both inter-island and to the continental United States), preserving support for rural service, ensuring competitive access at Honolulu’s Daniel K. Inouye International Airport (HNL), guaranteeing fee-free family seating, offering alternative compensation for controllable disruptions, and lowering costs for military families.
The Department of Justice (DOJ) approved the merger last month (more here). The fifth largest US airline will soon operate a fleet of 365 narrow and widebody aircraft and reach 138 destinations through the combined networks. This will offer flyers access to more than 1,200 destinations globally through the oneworld Alliance. The plan is that the combination will build on the 90+ year legacies and cultures of the two airlines while preserving the brand legacies and loyalties they both hold.
US Transportation Secretary, Pete Buttigieg, said:
Our top priority is protecting the traveling public’s interest in this merger. We have secured binding protections that maintain critical flight services for communities, ensure smaller airlines can access the Honolulu hub airport, lower costs for families and service members, and preserve the value of rewards miles against devaluation. This more proactive approach to merger review marks a new chapter of DOT’s work to stand up for passengers and promote a fairer aviation sector in America.”
A large part of the approval is contingent upon the combined entity protecting the value of the frequent flyer programs and miles. Some of the requirements include:
- No expiration date for miles earned under current programs
- Allowing miles to be transferred between programs at 1:1 ratio
- Maintaining the value of miles
- Matching, maintaining, or increasing status held by members of both programs
- No new junk fees for award travel
Other requirements include:
- Maintaining critical inter-island and continental routes for both cargo and passengers
- Preserving support for essential air service in Alaska and Hawaii
- Ensuring competitive access to Honolulu’s Daniel K. Inouye International Airport (HNL)
- Guaranteeing fee-free family seating
- Providing alternative compensation for delays and cancellations caused by the airline
- Lowering costs for service members and their families
Alaska CEO, Ben Minicucci, 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.”
Anthony’s Take: The merger of Alaska and Hawaiian Airlines is moving forward. The DOT made reasonable requests with consumers in mind and the combined airline will need to ensure that the conditions the government agency has outlined are met.
(Image Credits: Hawai’i Public Radio and Alaska Airlines.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
