Alaska Airlines has received regulatory approval for its $1.9 billion purchase of Hawaiian Airlines, provided it preserves the value of customer loyalty points and continues to serve key routes.
The two US airlines announced the deal in December 2023, but it has since had to go through federal regulatory approval.
In giving the go-ahead, the U.S. Department of Transportation said the two airlines must "protect the value of the bonuses" customers have earned, maintain service on key Hawaiian routes to the U.S. mainland and ensure competitive access to the hub airport in Honolulu.
"We have secured binding protections that maintain critical flight services to communities and ensure that smaller airlines can access the Honolulu hub airport, reduce costs for families and service members, and preserve the value of award miles against devaluation," it said. Transport Secretary Pete Buttigieg.
"This more proactive approach to merger review marks a new chapter in the Department of Transportation's work to protect passengers and promote a fairer aviation sector in America," he added.
In a filing with the Securities and Exchange Commission (SEC), Alaska said that, subject to certain remaining conditions, "Alaska and Hawaiian Airlines expect to consummate the merger on or about September 18, 2024."
In its statement, Alaska Airlines added that the commitments it agreed to were consistent with the plans announced when the deal was signed.
The combined airline is expected to have a fleet of over 360 aircraft serving nearly 140 destinations.
Based in Seattle, Alaska Airlines primarily serves the western United States. The Hawaiian capital Honolulu will become its second main center. | BGNES
