Alaska, Hawaiian deal done, with DOT conditions

Alaska Air Group has completed its purchase of Hawaiian Airlines and is on an 18-month path to merge systems, loyalty programs and ultimately its operating certificate, ultimately operating as one airline with two brands.

In the process, the company signed off on a deal with the U.S. Department of Transportation for some enforceable provisions, including for the first time at any airline guarantees around loyalty points and elite status, as well as guaranteeing continuation of some routes.

Secretary of Transportation Pete Buttigieg said in a statement 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 provisions include

  • Maintain the value of airline miles in a new combined frequent flyer program
  • Continue serving inter-island and continental routes in the Hawaii market
  • Preserve Essential Air Service routes in both Alaska and Hawaii
  • Foster competition at the new combined airline’s Honolulu hub
  • Guarantee free family seating

Some people who are members of both Alaska’s and Hawaiian’s loyalty plans may see a boost in status as their combined points reach new levels. Alaska’s biggest hub is at Seattle; Honolulu will now be its second busiest.

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