Alaska Airlines has moved one step closer to finalizing its acquisition of Hawaiian Airlines, following the United States Department of Transportation’s (DOT) recent approval. The DOT granted an exemption on September 17, 2024, allowing the merger to proceed, clearing the path for the two airlines to operate under Alaska Air Group’s ownership. The companies expect to officially close the deal by September 18, 2024.
This merger marks the first major U.S. airline acquisition since Alaska Airlines acquired Virgin America in 2016. Alaska Air Group will take full control of Hawaiian Airlines, in a deal valued at $1.9 billion. The agreement, which was initially announced in December 2023, allows Alaska to acquire all capital stock of Hawaiian Holdings, the parent company of Hawaiian Airlines, said a report from FlightGlobal.
The DOT’s approval came after a thorough review and included specific conditions designed to protect consumers and maintain competition in the air travel market. The DOT determined that the acquisition represented a transfer of control over multiple carriers, including those with international route authority, thus requiring certain regulatory approvals.
Consumer Protections in Focus
To prevent potential anti-competitive practices and protect consumers, the DOT imposed specific conditions on the deal. Both airlines have pledged to maintain their nonstop service on key routes where they are either the only operators or two of the three available competitors. This commitment will last for six years.
In addition, Hawaiian Airlines agreed to align its customer service policies with Alaska’s standards, including guarantees such as seating families together, compensating passengers for flight delays of more than three hours, and offering rebooking options without additional charges during major delays. The airlines will also launch a joint loyalty program, allowing Hawaiian Airlines customers to transfer their miles to the Alaska Mileage Plan on a one-to-one basis.
Unlike the recent failed merger attempt between JetBlue Airways and Spirit Airlines, which was blocked by a federal antitrust lawsuit, the Alaska-Hawaiian deal did not face such legal obstacles. This is largely due to the complementary nature of the two airlines’ networks. Alaska Airlines primarily operates routes along the U.S. West Coast and mainland flights to Hawaii, while Hawaiian Airlines focuses on inter-island and Asia-Pacific flights.
Despite the overlap on some routes, industry experts have noted that the merger does not reduce competition in the low-cost carrier market, making it more likely to gain regulatory approval. The Department of Justice allowed the antitrust review period to expire on August 20, 2024, without raising any legal challenges, enabling the deal to move forward.
Maintaining Services and Expanding Networks
The DOT’s conditions also ensure that the combined airline will continue serving rural and underserved communities, particularly within Hawaii. Hawaiian Airlines will maintain its partnership with Mokulele Airlines, which provides inter-island flights and serves smaller communities across the Hawaiian Islands.
Both airlines have expressed excitement about the merger and its potential benefits. Alaska Airlines CEO Ben Minicucci emphasized the importance of the acquisition, stating, “We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group. Throughout this process, both companies have demonstrated outstanding customer service and commitment to their teams.”
The combined airline will continue operating Alaska’s fleet of Boeing 737 aircraft and Hawaiian’s diverse fleet, which includes 717s, 787s, Airbus A330s, and A321neos. Together, they will offer a more robust network, covering domestic U.S. routes, Hawaii, and six countries in the Asia-Pacific region.
While the DOT’s approval is a key milestone, Alaska and Hawaiian Airlines will remain independent until all regulatory conditions are fully met. The merger will officially be completed after the DOT grants a final ruling on route transfers.
In addition to expanding route networks, the merger strengthens Alaska Air Group’s position in the U.S. aviation market and solidifies its role as a leader in West Coast and Hawaii travel. The combined company will continue to build on both airlines’ strengths while addressing the growing demand for air travel between the mainland U.S., Hawaii, and the Asia-Pacific region.
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