Alaska Airlines has finalised its merger with Hawaiian Airlines after being granted permission to close the deal by the US Department of Transportation (DoT) following agreement on a range of consumer and industry protections.
The DoT’s partial approval of the merger comes a month after the $1.9bn deal passed a review by the Department of Justice (DoJ) and meant Alaska Airlines was able to close the transaction and launch an interim leadership team in Honolulu, Hawaii to guide the process.
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Alaska CEO Ben Minicucci said described it as a “historic day” for the company and said: “Alaska and Hawaiian share tremendous pride in connecting communities with award-winning service, and we look forward to inviting more guests on board to experience what makes both brands unique.
“Among Alaska, Hawaiian and Horizon Air, we have more than 230 years of history flying guests and serving communities. I know we will build on that legacy and become stronger together.”
The new airline will become one of the biggest in the US with Miniccuci as its CEO, though Hawaiian CEO Joe Sprague will remain responsible for leading the operations of his airline, with the Hawaiian and Alaska brands set to remain separate under the new business.
While the DoT said it had not ruled on the transfer application needed by the airlines to operate under a single airline certificate, the Department said the protections it had gained binding approval on were sufficient for it to allow the airlines to finalise the merger transaction.
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By GlobalDataThese protections, which will last for six years if the transfer is approved, include a series of agreements on the value of the airlines’ existing and new rewards schemes, including commitments to not putting an expiration date on existing points, maintaining the value of miles, and putting customers on a matched or increased loyalty status.
Transportation Secretary Pete Buttigieg said the agreement marked a “proactive approach” to his department’s review of the merger and said: “Our top priority is protecting the travelling 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.”
The DoT’s focus on the value of Alaska and Hawaiian’s combined rewards schemes continues the department’s interest in the airline rewards industry after it launched a probe into the fairness of the loyalty programmes for the US’ four biggest airlines.
