Alaska Airlines And Hawaiian Airlines The airlines can go ahead with their planned merger, but must preserve the worth of their rewards systems and several other essential 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 choice now rests with the Department of Transportation, which also has to review airline mergers.
The U.S. Department of Transportation said airlines must be certain that miles earned within the HawaiianMiles and Alaska Mileage Plan programs don’t expire and will be transferred on a 1:1 basis before the introduction of a brand 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 may allow them to mix international routes and operate them under a single licence.
Hawaiian shares rose nearly 4 percent on Tuesday.
When the 2 airlines announced their merger plans in December, they said they’d retain their respective brands but operate under a single platform. Together they’d have a fleet of greater than 360 aircraft and fly to greater 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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