Alaska Airlines and Hawaiian Airlines can undergo with their planned merger, but they have to maintain the worth of their airline reward systems and preserve several key routes, the U.S. Department of Transportation said Tuesday.
The 2 carriers’ $1.9 billion merger agreement cleared the U.S. Justice Department’s review last month. That put it within the hands of the Transportation Department, which must also review airline mergers.
The DOT said the airlines must be certain that miles earned within the HawaiianMiles and Alaska Mileage Plan programs before the creation of a recent, combined loyalty point system is not going to expire and that they will transfer at a 1-to-1 ratio.
In addition they must preserve “essential air support” for rural areas and maintain current levels of service for passenger and cargo routes between the Hawaiian islands, U.S. Secretary of Transportation Pete Buttigieg said on a press call.
The Department of Transportation noted that the airlines can begin the strategy of closing the merger, but still need approval for a transfer application, which allows them to mix and operate international routes under one certificate.
After the DOT’s announcement, Alaska said it could appoint an interim transition team to oversee the mix of the 2 corporations as they seek a single operating certificate from the Federal Aviation Administration. Joe Sprague — who’s currently Alaska Airlines regional president overseeing Hawaii — shall be appointed CEO of Hawaiian Airlines once the transaction is closed until the FAA process is finished, the corporate said.
Hawaiian’s stock rose nearly 4% on Tuesday.
The 2 airlines said in December once they announced plans to mix that they’d keep each carrier’s brand but operate under a single platform, combining right into a greater than 360-airplane fleet offering over 130 destinations.
Hawaiian must also adopt Alaska’s practices of guaranteeing family seating without a further fee and providing compensation if the airline causes significant flight delays or cancellations, the DOT said.
