DOT Approves Alaska Airlines And Hawaiian Airlines Merger With Public Interest Protections

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Alaska Airlines,Hawaiian Airlines,Merger

The Department of Transportation (DOT) has approved the merger between Alaska Airlines and Hawaiian Airlines, imposing conditions to protect consumers and ensure fair competition. Secretary Pete Buttigieg highlighted these protections, which include maintaining critical flight services, access for smaller airlines, cost reductions for families and service members, and preserving rewards program value.

The Department of Transportation has approved the merger between Alaska Airlines and Hawaiian Airlines, provided that both carriers agree to certain conditions such as the value of their rewards programs and preserve critical routes for customers. For the first time, the DOT is requiring both airlines to agree to what it says are "binding, enforceable public-interest protections" to clear the merger.

We have secured binding protections that maintain critical flight services for communities, ensure smaller airlines can access the Honolulu hub airport, lower costs for families and service members, and preserve the value of rewards miles against devaluation," Buttigieg said. In July, both companies filed an application requesting that the DOT allow them to combine and operate international routes under one certificate.

The federal government is allowed to approve a transfer or grant an exemption if it is in the public interest. This includes preventing unfair, deceptive, predatory, or anticompetitive practices, the DOT said. GET FOX BUSINESS ON THE GO BY CLICKING HERE However, by locking in the terms, the DOT said it is "establishing a more proactive approach" to the merger review process that prioritizes protecting the public interest from the outset.

 

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