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

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Airline Merger,Alaska Airlines,Hawaiian Airlines

The 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.

that in a review of the merger, it requires “public-interest protections” from the two airlines that would protect the value of its rewards programs — including Alaska’s Mileage Plan — before giving the merger its approval.

The proposed merger between the two major airlines was announced last December but has been held up in court after athat alleges the merger would harm the Hawaiian economy by eliminating jobs and flights from the Hawaiian islands to the U.S. Mainland, raise prices of fares with the new company, lead to a drop in tourism dollars to the island economy, and would create an unfair monopoly in the airline industry.

 

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