On Wednesday, Alaska Airlines acquired Hawaiian Airlines in a historic merger. The acquisition is the largest merger between U.S. carriers in eight years.
“This is a historic day for Alaska Airlines as we officially join with Hawaiian Airlines,” Alaska Air Group CEO Ben Minicucci said in a statement. “Alaska and Hawaiian share tremendous pride in connecting communities with award-winning service, and we look forward to inviting more guests on board to experience what makes both brands unique.”
The $1.9 billion deal comes after the Department of Justice (DOJ) chose not to block it, marking a change in course after blocking previous consolidations under the Biden Administration. Previously, a U.S. judge blocked a $3.8 billion deal between JetBlue Airways and Spirit Airlines over concerns brought by the DOJ. The agency blocked the 2020 Northeast Alliance deal between American and JetBlue.
However, the new deal won’t come without some strict regulations. The Department of Transportation (DOT) said Tuesday that both airlines had to agree to “enforceable public-interest protections” before closing the deal.
The department also asserted that it would require the airlines “to protect the value of rewards, 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.”
U.S. Transportation Secretary Pete Buttigieg said, “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.
Buttigieg continued, “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.”
How will the airlines operate?
Alaska Airlines, which is based in Seattle, said it will work towards acquiring a single operating certificate from the Federal Aviation Administration (FAA) so that it can operate as one carrier. For now, the airlines will keep separate websites and loyalty programs, but plans to consolidate them down the line.
The airline also noted that the expansion will allow the airline to cater to 1,200 travel destinations while maintaining hubs in Seattle, Honolulu, Los Angeles, San Francisco, Portland, San Diego, and Anchorage. It will also employ more than 33,000 people.
What will happen to frequent flyer miles and other loyalty benefits?
According to Alaska Airlines, flyers don’t have to worry about their mileage rolling over. “Your Mileage Plan and HawaiianMiles retain their full value,” the statement says. The airline even asserted that post-merger, those points will become “more valuable than ever.” The airlines will develop a single frequent flyer program but won’t release details until mid-2025.
However, later this month, flyers will be able to transfer miles between both airline’s frequent flyer programs “at a 1:1 ratio, for no charge,” the site states. “For example, if you have miles in a HawaiianMiles account and you want to redeem for a flight on Alaska or an Alaska Global Partner, simply transfer the miles to Mileage Plan at no charge and book your award travel at alaskaair.com.”
Alaska Lounge members can also access Alaska lounges even when flying on Hawaiian. New benefits for those who have flown one million miles or more on Hawaiian Airlines will also be introduced.
How will bookings work?
For now, bookings will stay the same; however, once the sites fully merge, customers can purchase Hawaiian flights on AlaskaAir.com, and vice versa. That means flyers will have far more destinations to choose from on each site. AlaskaAir will have more global destinations, and Hawaiian will have an increase in North and Central America locations.
For a full explanation of the new benefits, customers can read more here.
The DOT also said the airlines will provide travel credits or frequent flyer miles for any disruptions that customers experience as a result of the merger.
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