An Alaska Airlines Boeing 737-790 takes off from Anchorage Ted Stevens International Airport in Anchorage, Alaska, USA, on July 2, 2024.
Hasan Akbas | Anadolu |
Alaska Airlines And Hawaiian Airlines The airlines can go ahead with their planned merger, but must preserve the value of their rewards systems and several important routes, the U.S. Department of Transportation said on Tuesday.
The two airlines' $1.9 billion merger deal was reviewed by the U.S. Department of Justice last month, meaning the decision now rests with the Department of Transportation, which also has to review airline mergers.
The U.S. Department of Transportation said airlines must ensure that miles earned in the HawaiianMiles and Alaska Mileage Plan programs do not expire and can be transferred on a 1:1 basis before the introduction of a new, combined loyalty points system.
They must also maintain “essential air support” for rural areas and maintain current levels of service for passenger and cargo routes between the Hawaiian Islands, US Transportation Secretary Pete Buttigieg said in a press conference.
The Department of Transport noted that the airlines could now begin completing the merger but still need approval for a transfer application that would allow them to combine international routes and operate them under a single licence.
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Hawaiian shares rose nearly 4 percent in afternoon trading.
When the two airlines announced their merger plans in December, they said they would retain their respective brands but operate under a single platform. Together they would have a fleet of more than 360 aircraft and fly to more than 130 destinations.
Hawaiian must also adopt Alaska's approach and guarantee family seats at no additional charge and pay compensation if the airline causes significant flight delays or cancellations, the Department of Transportation said.
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