DALLAS — The merger between Alaska Airlines (AS) and Hawaiian Airlines (HA) is one step closer to completion following a critical approval from the U.S. Department of Transportation (DOT).
The DOT granted an exemption allowing the transfer of international route authorities, a significant regulatory hurdle in the merger process. This approval means the two airlines can begin integrating their operations, and the merger is expected to close in the coming days.
The US$1.9 billion deal had already passed a review by the U.S. Justice Department, and now, with DOT's clearance, the merger is nearly finalized. However, both airlines must maintain specific commitments to ensure customer service and competition in the industry.
These include preserving the value of their loyalty programs—Hawaiian Miles and Alaska Mileage Plan—ensuring miles can transfer at a 1-to-1 ratio and not expire. Additionally, both airlines are required to maintain essential air service for rural areas and continue passenger and cargo routes within the Hawaiian Islands.
Alaska Airlines’ CEO, Ben Minicucci, expressed optimism about welcoming HA's guests and employees into the Alaska Air Group. He praised the cooperation between the companies and labor unions throughout the process.
Following the merger's closure, Joe Sprague, currently AS' regional president overseeing Hawaii, will temporarily lead HA until the FAA grants the combined entity a single operating certificate.
More updates on the transition and integration of the two airlines are expected soon, so stay tuned to Airways for further developments.