An Alaska Airlines Boeing 737-790 flies at Anchorage Ted Stevens International Airport in Anchorage, Alaska, United States on July 2, 2024.
Hasan Akbas | Anadolu | Getty Images
Alaska Airlines And Hawaiian Airlines can go ahead with their proposed merger, but they must preserve the value of their airline rewards systems and keep some key routes, the U.S. Department of Transportation said Tuesday.
The two airlines' $1.9 billion merger deal was approved last month by the U.S. Department of Justice, putting it in the hands of the Department of Transportation, which also reviews airline mergers.
According to the DOT, airlines must ensure that miles earned in the HawaiianMiles and Alaska Mileage Plan programs prior to the implementation of a new, combined loyalty points system do not expire and that they can be transferred on a 1:1 ratio.
They must also maintain “essential air support” for rural areas and maintain current levels of service for passenger and freight routes between the Hawaiian Islands, U.S. Transportation Secretary Pete Buttigieg said at a news conference.
The Department of Transportation said the airlines can begin finalizing the merger, but they still need approval for a transfer application, which would allow them to combine and operate international routes under a single certificate.
The two airlines announced their plans to merge in December. They would retain the brand names of both airlines but operate under a single platform. Together, they have a fleet of more than 360 aircraft serving more than 130 destinations.
Hawaiian must also adopt Alaska's approach and guarantee family seating at no additional charge and provide compensation if the airline causes significant flight delays or cancellations, the DOT said.
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