The Transportation Department said on Tuesday that it would allow Alaska Airlines to close its $1.9 billion acquisition of Hawaiian Airlines, clearing the way for the first major U.S. airline merger in nearly a decade.
To receive that approval, the airlines agreed to some conditions, including maintaining the value of loyalty points and preserving service on some routes within and to Hawaii. The conditions will remain in effect for six years once the department formally allows the company to operate as a single airline, a decision federal officials said was still pending. Until that approval is received, the airline must remain independently run.
“We have secured binding, enforceable, upfront protections for passengers and communities, including some new customer service guarantees that did not exist before at any airline,” the transportation secretary, Pete Buttigieg, said on a call with reporters on Tuesday.
Under the agreement, points already earned with either airline won’t expire and can be transferred on a one-to-one basis, while status at either airline must be matched. The combined carrier must also maintain “robust levels” of inter-island passenger and cargo flights, and service to small and rural communities in Hawaii must be preserved, the department said in a news release.
Other conditions include guaranteeing that children 13 or younger can sit next to an accompanying adult regardless of the ticket they've purchased, providing compensation for some flight delays and cancellations, and lowering costs for military members and their families.
“We look forward to formally welcoming Hawaiian Airlines’ guests and employees,” Alaska’s chief executive, Ben Minicucci, said in a statement. The airline said it expected to close the merger “in the coming days.”
The deal cleared another important hurdle about a month ago when the Justice Department did not challenge the acquisition in federal court on antitrust grounds.
The deal allows Alaska to expand its operations on the West Coast, grow internationally, particularly in Asia, and gain access to more planes, pilots and other skilled workers.
The combined airline will command nearly 8 percent of the U.S. market, less than half the share of the next-largest carrier, United Airlines, which has 16 percent. American Airlines, Southwest Airlines and Delta Air Lines each have more than 17 percent.
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Fall is finally here. As we embrace the chillier months, travel brands are already preparing for the upcoming holidays. Just in time for spooky season, Extra Holidays is offering up to 20 percent off resort stays located in cities with Halloween spirit, activities vary from family-friendly to completely frightful—you've been warned. Marriott Bonvoy is having a Fall Flash sale where members can save up to 20 percent off of weekend hotel stays, perfect for those looking for a regenerative staycation or who want to attend an away game this football season.
Back in March, Alaska Airlines launched a new subscription service requiring a $5-per-month payment to get early access to Alaska fare sales, a personalized fare page and free Wi-Fi credits — the Seattle-based airline calls the service "Alaska Access." I was excited to test it out since, at the time, Alaska said it would give subscribers advance notice to some of its biggest deals of the year.
Attention, points and miles enthusiasts: You've probably been keeping up with the breaking aviation news regarding Alaska Airlines' acquisition of Hawaiian Airlines. On Tuesday, the merger was finalized, and details were revealed regarding how the two airlines would continue to operate while maintaining their distinct brands.
Federal charges have been lodged against a California man after he allegedly attempted to strangle a flight attendant and stated that he was “going to kill everybody”, causing his plane to divert. The mid-air disturbance took place aboard a Frontier Airlines flight from Orange County's John Wayne Airport to San Francisco International Airport on September 9.
The Department of Transportation said Alaska Airlines and Hawaiian Airlines can proceed with their $1.9 billion merger after it secured a set of consumer protections from the two carriers.