An Alaska Airlines Boeing 737-790 flies at Anchorage Ted Stevens International Airport in Anchorage, Alaska, USA, on July 2, 2024.
Hassan Akbas | Anadolu | Getty Images
Alaska Airlines and Hawaiian Airlines The U.S. Department of Transportation said on Tuesday they could complete the planned merger, but they must maintain the value of the airline rewards system and preserve several key routes.
The $1.9 billion merger agreement between the two carriers passed review by the U.S. Department of Justice last month. That leaves it to the Department of Transportation, which must also review airline mergers.
The DOT said airlines must ensure miles earned through HawaiianMiles and the Alaska Miles program do not expire and are transferable at a 1:1 ratio before creating a new integrated loyalty points system.
They must also preserve “essential air support” for rural areas and maintain current service levels on passenger and cargo routes between the Hawaiian Islands, U.S. Transportation Secretary Pete Buttigieg said at a news conference.
The Department of Transportation noted that airlines can begin completing the merger process but will still need approval of their transfer applications, which would allow them to combine and operate international routes under a single certificate.
Hawaiian Airlines shares rose nearly 4% in afternoon trading.
When the two airlines announced their merger plans in December last year, they said they would retain their respective airline brands but operate under a single platform. The merger would form a fleet of more than 360 aircraft flying to more than 130 destinations. Team.
The DOT said Hawaiian Airlines must also adopt Alaska Airlines’ approach of ensuring family seats at no additional cost and providing compensation in the event of significant flight delays or cancellations.
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