A Boeing 737-790 aircraft belonging to Alaska Airlines is seen in flight at Ted Stevens Anchorage International Airport in Anchorage, Alaska, U.S., July 2, 2024.
Hasan Akbas | Anadolu | Getty Images
Alaska Airlines And Hawaiian Airlines The two airlines can move forward with their proposed merger, but they must maintain the value of their airline rewards systems and preserve several key routes, the U.S. Transportation Department said Tuesday.
The $1.9 billion merger deal between the two airlines was approved by the U.S. Justice Department last month. It now moves to the Department of Transportation, which also reviews airline mergers.
The DOT said airlines must ensure that miles earned in the HawaiianMiles and Alaska Mileage Plan programs before the creation of a new combined loyalty points system will not expire and can be transferred at a 1-to-1 ratio.
They must also preserve “essential air support” for rural areas and maintain current service levels for passenger and cargo routes between the Hawaiian Islands, U.S. Transportation Secretary Pete Buttigieg said at a news conference.
The Transportation Ministry noted that the airlines can begin the process of closing the merger, but still need approval of a transfer application, which allows them to combine and operate international routes under a single certificate.
Hawaii shares rose nearly 4% in afternoon trading.
The two airlines said in December when they announced their proposed merger that they would retain each carrier’s brand but operate under a single platform, combining a fleet of more than 360 aircraft offering more than 130 destinations.
Hawaiian must also adopt Alaska’s practices of guaranteeing family seats at no extra charge and providing compensation if the airline causes significant flight delays or cancellations, the DOT said.
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