Merger between Alaska and Hawaii is approved by the US Department of Transportation, award miles and routes must be retained

The U.S. Department of Transportation (DOT) has approved the merger of Alaska Airlines and Hawaiian Airlines, provided that both airlines meet certain conditions, such as the value of their loyalty programs, and maintain key routes for their customers.

For the first time, the U.S. Department of Transportation is requiring both airlines to agree to “binding and enforceable public interest protections” in order to approve the merger.

This important decision by the U.S. Department of Transportation was one of several hurdles that airlines had to overcome in implementing their plans to consolidate their operations.

US Transportation Secretary Pete Buttigieg said on Tuesday that during this process the department’s “top priority is to protect the interests of travelers.”

ALASKA AIR AND HAWAIIAN AIRLINES MERGER OVERCOMES JUSTICE DEPARTMENT HURDLE. WILL IT BENEFIT AIRLINES?

“We have achieved binding protections that maintain essential air service for communities, ensure smaller airlines can reach the Honolulu hub airport, reduce costs for families and military members, and protect the value of award miles from devaluation,” Buttigieg said.

A Hawaiian Airlines aircraft takes off next to an Alaska Airlines aircraft at Los Angeles International Airport (LAX) in Los Angeles, California, USA, on Tuesday, December 5, 2023. (Eric Thayer/Bloomberg via Getty Images / Getty Images)

In July, both companies filed an application with the U.S. Department of Transportation requesting permission to combine and operate international routes under a single license.

Merger of Alaska Airlines and Hawaiian Airlines overcomes regulatory hurdle and is now being reviewed by the US Department of Transportation

The federal government may authorize a transfer or grant an exception if it is in the public interest. This includes preventing unfair, fraudulent, predatory or anti-competitive practices, the Ministry of Transport explained.

An Alaska Airlines Inc. Boeing 737-700 aircraft at Hollywood Burbank Airport (BUR) in Burbank, California, USA, on Wednesday, April 28, 2021. (Bing Guan/Bloomberg via Getty Images / Getty Images)

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However, the U.S. Department of Transportation said that by setting the terms, it is establishing “a more proactive approach” to the merger review process that puts protecting the public interest at the forefront from the outset.

JetBlue and Spirit had similar merger intentions, but those plans fell through earlier this year after a federal judge blocked the $3.8 billion deal on antitrust grounds.