US DOT approves Alaska Airlines-Hawaiian merger

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The US Department of Transportation (DOT) has given its consent to Alaska Airlines (AS, Seattle Tacoma International) and Hawaiian Airlines (HA, Honolulu) to merge, although it did require some guarantees, namely that Alaska Airlines, Inc., its subsidiary Horizon Air (QX, Seattle Tacoma International), and Hawaiian Airlines, Inc. all continue to be maintained and operated as separate entities.

The two companies expect to close their USD1.9 billion transaction in the coming days. Ben Minicucci, chief executive of Alaska Air Group, said the company is looking forward to formally welcoming Hawaiian Airlines’ guests and employees into the group.

Besides maintaining the carriers as independent entities, Alaska Air Group and Hawaiian Holdings agreed to ten commitments, which remain binding and enforceable for the next six years, including:

Maintain service on each nonstop overlap route where Alaska and Hawaiian are the only nonstop competitors or two of the three competitors; Keep interline agreements with other US carriers; Ensure reasonable access to airport infrastructure at Honolulu International Airport; Amend and align the airlines’ customer service plans, improving and addressing onboard services for children 13 or under, frequent flier travellers, military personnel, and rebooked passengers, obtaining green check marks on the DOT Customer Service Dashboard; Maintain service to rural and unserved communities, including Alaska’s participation in the Essential Air Service program, and keep the interline agreement with Mokulele Airlines (MHO, Kona); and Protect members of both carriers' loyalty programs during the period between the closing and launch of a new combined loyalty program.

On December 3, 2023, both companies notified the DOT that Alaska Air Group had entered into an agreement to acquire all of the capital stock of Hawaiian Holdings. Alaska will assume USD900 million worth of Hawaiian’s debt as part of the deal.

Last month, the United States Department of Justice cleared the merger.

The combined fleet of both companies is of 352 aircraft:

Hawaiian Airlines: 66 aircraft (eighteen A321-200Ns, twenty-four A330-200s, three A330-300(P2F)s, nineteen B717-200s, and two B787-9s); Alaska Airlines: 242 aircraft (eleven B737-700s, three B737-700(BDSF)s, five B737-8s, fifty-nine B737-800s, two B737-800(BCF)s, seventy-one B737-9s, twelve B737-900s, and seventy-nine B737-900ERs; Horizon Air: 44 aircraft (all E175s).

Furthermore, Alaska Airlines has an order for 70 additional airframes (forty-six B737-10s, fifteen B737-8s and nine B737-9s), and Hawaiian has an order for seven B787-9s.

This is Alaska Airlines’ fifth merger, following the acquisition of Cordova Airlines and Alaska Coastal Airlines in 1968, Horizon Air in 1986, Jet America Airlines in 1987 and Virgin America in 2018.

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US DOT approves Alaska Airlines-Hawaiian merger

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