Wednesday, September 18, 2024 7:24PMAlaska Airlines closed its $1 billion purchase of Hawaiian Airlines on Wednesday, a day after the federal government removed the last major regulatory obstacle to the deal.
To win approval from the Transportation Department this week, the airlines agreed to maintain current levels of service on key routes within Hawaii and between the island state and the U.S. mainland where they don't face much competition.Alaska Air Group to buy Hawaiian Airlines in $1.9B deal
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DOT Approves Alaska Airlines-Hawaiian Airlines Merger With Public Interest ProtectionsThe US Department of Transportation (DOT) has approved the merger between Alaska Airlines and Hawaiian Airlines, but with conditions. The DOT requires the airlines to implement 'public-interest protections' to safeguard the value of their rewards programs. These protections include preserving existing miles, enabling a 1:1 transfer ratio between their programs, maintaining earned mile value, and prohibiting new 'junk fees'. The merger was initially announced last December but faced delays due to legal challenges alleging potential harm to the Hawaiian economy.
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