Following DOT approval, Alaska completes its $1.9 billion acquisition of Hawaiian Airlines
The companies announced on Wednesday that Alaska Airlines has completed its $1.9 billion acquisition of Hawaiian Airlines, one day after the U.S. Department of Transportation approved the merger subject to the carriers maintaining the value of their frequent flyer programs and maintaining numerous important routes.
The U.S. Justice Department's investigation of the carriers' merger deal was completed last month. The Transportation Department, which is also tasked with examining airline mergers, was thus given control over it.
The Department of Transportation (DOT) mandated that the airlines guarantee that miles accrued in the HawaiianMiles and Alaska Mileage Plan programs prior to the establishment of a unified loyalty point system would remain valid and may be transferred at a 1:1 ratio.
U.S. Secretary of Transportation Pete Buttigieg stated during a news conference that they also need to maintain the current levels of service for passenger and cargo routes between the Hawaiian islands and protect "essential air support" for rural areas.
Buttigieg stated in a news release that "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." The protections, according to the EPA, will last for six years.
The airlines can complete the transaction, but the Department of Transportation pointed out that they still need to get approval for a transfer application, which enables them to merge and run international routes under a single certificate.
Following the DOT's decision, Alaska declared that it would designate a transition team to act as a stand-in while the two businesses integrated and applied for a Federal Aviation Administration single operating certificate. After the deal closes and the FAA procedure is completed, Joe Sprague, who presently serves as Alaska Airlines' regional president in charge of Hawaii, will be named CEO of Hawaiian Airlines, the firm announced.
The Alaska-Hawaiian merger gets approved by the DOT, but there are conditions up front to safeguard customers.
Earlier this year, another airline agreement fell through. In January, a federal judge halted JetBlue's acquisition of Spirit Airlines for about $4 billion.
a victory for the Justice Department, which had contested the agreement on antitrust grounds.
When Alaska and Hawaiian announced their intention to merge in December, they stated that while they would retain their own brands, they would use a single platform to run a combined fleet of more than 360 aircraft that would serve more than 130 destinations.
According to the DOT, Hawaiian must also follow Alaska's policies of offering compensation in the event that the airline causes major flight delays or cancellations and ensuring family space without charging extra.
Post a Comment for "Following DOT approval, Alaska completes its $1.9 billion acquisition of Hawaiian Airlines"