Alaska Airlines Completes Hawaiian Airlines Acquisition

Alaska Airlines completed the acquisition of Hawaiian Airlines on Wednesday, a day after it cleared the final regulatory hurdle. The acquisition of Hawaiian Airlines was worth $1.9 billion. This will give travelers access to 141 direct destinations and more than 1,200 destinations worldwide. 

In August, the Justice Department decided to allow the deal, which was initially announced by Alaska in December. Alaska CEO Ben Minicucci said in an interview that this will be good for competition and will ultimately benefit customers. He said, “It’s just a few more arrows in our quiver on how we deploy airplanes across our entire network.” Minucucci also added, “Putting the right airplane in the right market to deliver the best results for the combined entity.”

Hawaiian Acquisition’s Final Regulatory Hurdle

Getting the green light for the acquisition required the airlines to agree to several terms from the Transport Department. 

For one, points earned by travelers from both airlines’ frequent flyer rewards programs will be maintained. In addition to this, the airlines need to keep “essential support” for rural areas. Additionally, flights between the Hawaiian islands and the continental US remain the same. 

Hawaiian Airlines is also expected to adopt Alaska’s guaranteed family seating policy, not to mention offering refunds for significant delays and canceled flights. 

Transport Secretary Pete Buttigieg said, “Travelers care a lot about our frequent flyer miles, and that’s why we secured the first ever rewards program protections that prevent the combined airline from devaluing or taking away the miles, status or benefits that consumers have earned.” 

Buttigieg added, “This is the first time that the US Department of Transportation has required airlines to agree to binding enforceable protections as a precondition before we would consider allowing a merger to move forward.”

Stopping Airline Consolidation

Under the Biden administration, the Justice Department has blocked numerous attempts by different airlines to consolidate. In March, JetBlue Airways and Spirit Airlines decided to stop their $3.8 billion merger after a judge blocked the deal in January, citing anticompetition concerns.