The U.S. Department of Transportation (USDOT) has mandated binding, enforceable protections from Alaska Airlines and Hawaiian Airlines in light of their impending merger. These measures aim to prevent harm to the traveling public, rural communities, and smaller airline competitors. The key requirements include preserving the value of rewards programs, maintaining essential flight services, ensuring competitive access at the Honolulu hub, and reducing costs for military families.
Key Provisions of the Merger Agreement
- Rewards Protection: Alaska and Hawaiian Airlines will protect the value of loyalty rewards, including no expiration for miles earned before the merger, transferring miles at a 1:1 ratio between programs, and preventing any devaluation of miles.
- Route Preservation: The merged airline is required to maintain critical inter-island and continental routes, safeguarding passenger and cargo services vital to Hawaii’s rural communities.
- Essential Air Service: The merged airline will continue to support Essential Air Service in Alaska and Hawaii’s small, rural communities.
- Honolulu Hub Access: The airline is barred from actions that would limit access to new entrants or smaller competitors at the Daniel K. Inouye International Airport in Honolulu.
- Family Seating and Compensation: Alaska Airlines and Hawaiian Airlines will guarantee fee-free adjacent seating for children 13 or under and an adult. They will also provide alternative compensation for delays or cancellations caused by the airline.
- Military Families: The airlines will lower costs for military personnel and their families by waiving certain fees, offering at least one free carry-on and two free checked bags, and waiving change fees for rescheduling flights due to military orders.
According to U.S. Transportation Secretary Pete Buttigieg, “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.”
Alaska Air Group CEO Ben Minicucci stated “We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group. We sincerely appreciate the exceptional care and service that employees of both companies have continued to show for one another and our guests throughout this process, and the support of both airlines’ labor unions, as we proceed to realize the vision for this combination and build a stronger future together.”
On July 15, 2024, Alaska and Hawaiian Airlines filed a transfer application with the DOT, requesting to operate international routes under one certificate. The department may approve the merger if it aligns with public interest criteria, including preventing anticompetitive practices and ensuring affordable service access for all regions.
With these measures, USDOT marks a more proactive approach to airline merger reviews, ensuring upfront public-interest protections. The protections will remain effective for six years if the transfer is approved.
