by Donald Wood
Last updated: 8:20 AM ET, Wed September 18, 2024
The United States Transportation Department (DOT) announced it
would not block the $1.9 billion merger between Alaska Airlines and Hawaiian
Airlines after all parties agreed to protective guidelines.
According to an official release from the U.S. DOT, Alaska agreed
to maintain key Hawaiian routes and adopt consumer protections, with both
airlines revealing that the deal is now expected to close in the coming days.
In addition, the DOT worked out a deal with officials from Alaska
and Hawaiian to protect frequent flyer rewards, maintain existing service
on key Hawaiian routes, ensure competitive access at the Honolulu airport and
provide travel credits or frequent flyer miles for disruptions.
“Our top priority is protecting the traveling public’s
interest in this merger,” Transportation Secretary Pete Buttigieg said. “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.”
“This more proactive approach to merger review marks a new
chapter of DOT’s work to stand up for passengers and promote a fairer aviation
sector in America,” Buttigieg continued.
In response to the approved merger, Alaska announced an interim
leadership team to guide Hawaiian Airlines operations from transaction close
through a full combination of operations under a single operating certificate,
which will be issued by the Federal Aviation Administration (FAA).
Until then, Alaska and Hawaiian will operate
as one organization with two separate airline operations, under two
individual operating certificates. Hawaiian President and CEO Peter Ingram
would step down from his role following the transaction, with Alaska regional
president of Hawaii/Pacific, Joe Sprague, being named chief executive officer
of Hawaiian Airlines.
“We have a unique, once-in-a-generation opportunity to
combine two incredible companies with aligned values and 90+ year legacies of
serving and connecting local communities,” Sprague said.
“I am deeply honored to work alongside these strong leaders
from Hawaiian Airlines to lead the airline’s people, operations, and brand
through this transition while sustaining our commitments to safety and
service,” Sprague continued.
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