Alaska and Hawaiian Airlines Merger Receives Approval from Department of Transportation (DOT)
Alaska Airlines and Hawaiian Airlines have received approval for their $1.9 billion merger from the U.S. Department of Transportation. The merger agreement, which had previously cleared the U.S. Justice Department’s review, includes requirements to maintain the value of their airline reward systems and preserve key routes.
The Department of Transportation stated that both airlines must ensure that miles earned in their loyalty programs will not expire and can be transferred at a 1-to-1 ratio. Additionally, they must uphold essential air support for rural areas and maintain current levels of service for routes between the Hawaiian islands.
While the airlines can proceed with the merger process, they still need approval for a transfer application to operate international routes under one certificate. Hawaiian’s stock saw a nearly 4% increase following the news.
In December, both carriers announced plans to combine under a single platform, operating a fleet of over 360 airplanes and offering more than 130 destinations. Hawaiian will also adopt Alaska’s family seating guarantee and compensation policies for significant flight delays or cancellations.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.