US gives okay to Alaska-Hawaiian airlines merger

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Alaska Airlines won regulatory approval Tuesday for its $1.9 billion purchase of Hawaiian Airlines, under the condition it maintains the value of loyalty points and keeps servicing key routes.

The two US airlines announced the deal in December 2023 but has since needed to undergo federal regulatory approval.

In giving the green light on Tuesday, the US Department of Transportation said both airlines have to “protect the value of rewards” customers have earned, maintain services on key Hawaiian routes to the continental United States, and ensure competitive access at the Honolulu hub airport.

“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,” Transportation Secretary Pete Buttigieg said in a statement.

“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,” he added.

In a filing with the Securities and Exchange Commission (SEC), Alaska said that subject to some remaining conditions, “Alaska and Hawaiian expect to consummate the Merger on or about September 18, 2024.”

Alaska Airlines added in a statement that the commitments it agreed to align with plans it announced when it signed the transaction.

The combined airline is expected to have a fleet of over 360 aircraft, servicing nearly 140 destinations.

Based in Seattle, Alaska Airlines mainly serves the western United States. The Hawaiian capital of Honolulu would become its second main hub.

Alaska Airlines’ shares were around 0.9 percent lower at the close of trading on Tuesday, while Hawaiian’s shares were up 3.9 percent.

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