Alaska Airlines completes Hawaiian Airlines acquisition

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Alaska Airlines has completed its acquisition of Hawaiian Airlines, but must comply with a long list of conditions imposed by the U.S. Department of Transportation.

The protections are aimed at preventing harm to the traveling public, rural communities, and smaller airline competitors.

As the merger moves forward, Alaska and Hawaiian are required to protect the value of airline rewards in their customers' accounts, maintain existing service on key Hawaiian routes to the continental United States and inter-island, preserve support for rural service, ensure competitive access at the Honolulu hub airport, guarantee fee-free family seating and alternative compensation for controllable disruptions, and lower costs for military families.

“Our top priority is protecting the traveling public’s interest in this merger. 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,” said Transportation Secretary Pete Buttigieg.

“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.”

Mileage awards protected Alaska and Hawaiian agreed to the first-ever protections against rewards devaluation that ensure that consumers will receive the rewards, benefits, and status they have earned. Specific rewards protections include:

No expiration for miles earned under current programs: All HawaiianMiles miles and Alaska Mileage Plan miles earned prior to conversion into the new combined loyalty program must not expire. Transfer miles at 1:1 ratio: Rewards members can transfer HawaiianMiles miles to and from Alaska Mileage Plan miles at a 1:1 ratio prior to the launch of the new combined loyalty program. Each outstanding HawaiianMiles and Alaska Mileage Plan mile must be converted into a mile in the new loyalty program at a 1:1 ratio, resulting in all members having the same number of miles before and after conversion. Maintain value of miles: The combined airline must not take any actions that would devalue HawaiianMiles miles, must maintain the value of each unredeemed HawaiianMiles mile earned prior to the merger closing, must honor all active HawaiianMiles promotions from prior to the merger closing, and must continue to award HawaiianMiles miles at the same or greater value. The combined airline must maintain a minimum dollar value for all miles in the new loyalty program, measured by the guest-facing value of miles redeemed for carrier-operated flights. Match, maintain, or increase status: Under the new combined loyalty program, the combined airline must match and maintain the equivalent status levels that HawaiianMiles members hold under the HawaiianMiles program, match and maintain status levels and conferred benefits that are equivalent to Alaska’s Mileage Plan program, and match or increase status and conferred benefits as necessary to ensure members of each existing loyalty program are treated no less favorably relative to status, including by matching or increasing members’ elite status in the new combined loyalty program, for the remainder of the applicable program year. No new junk fees: The combined airline must not impose change or cancellation fees on rewards redemption tickets for travel on carrier-operated flights. The agreement also provides automatic cash refunds to passengers when owed.

The rule makes clear that airline passengers are entitled to a refund when their flight is canceled or significantly changed and they no longer wish to take that flight or be rebooked, when their checked baggage is significantly delayed, or when extra services they paid for – like Wi-Fi – are not provided. The rule also requires refunds to be automatic, prompt, in the original form of payment, and in the full amount paid. [ad_1]

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