Alaska Airlines, Hawaiian can close merger deal, DOT says (updated)

Hawaiian Holdings

17/09/2024 20:06

(Adds Alaska statement, more from DOT)
    By David Shepardson
       WASHINGTON, Sept 17 (Reuters) - The U.S. Transportation
Department said on Tuesday it had agreed to allow Alaska
Airlines  ALK.N  to close on its $1.9 billion acquisition of
Hawaiian Airlines  HA.O , after the carriers agreed to maintain
key Hawaiian routes and adopt consumer protections.
    The Justice Department in August opted not to block the deal
that was announced in December by Alaska, the fifth-largest
domestic U.S. airline, to Hawaiian, the 10th-largest carrier.
The carriers said on Tuesday that they expect to close the deal
in the coming days.
    DOT said Alaska and Hawaiian agreed to protect the value of
frequent flyer rewards, maintain existing service on key
Hawaiian routes to the continental United States and
inter-island regions, ensure competitive access at the Honolulu
airport and provide travel credits or frequent flyer miles for
disruptions that are the fault of the airline.   
    The agreement came after weeks of discussions between Alaska
and DOT, which had sought wide-ranging concessions that went
beyond what is in the agreement announced on Tuesday. 
    Alaska said on Tuesday that the commitments align with plans
it announced at the time it signed the transaction and "do not
impact the synergies of the deal, which will enhance competition
and expand choice for consumers."
    The carriers must ensure customers can transfer miles
without penalty and the combined carrier cannot devalue
HawaiianMiles miles and must maintain, or increase status for
HawaiianMiles members in Alaska’s Mileage Plan program.  
    

 (Reporting by David Shepardson; Editing by Mark Porter and
Aurora Ellis)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))