Alaska Airways and Hawaiian Airways can undergo with their deliberate merger, however they need to keep the worth of their airline reward techniques and protect a number of key routes, the U.S. Division of Transportation stated Tuesday.
The 2 carriers’ $1.9 billion merger settlement cleared the U.S. Justice Division’s evaluate final month. That put it within the arms of the Transportation Division, which should additionally evaluate airline mergers.
The DOT stated the airways should make sure that miles earned within the HawaiianMiles and Alaska Mileage Plan applications earlier than the creation of a brand new, mixed loyalty level system won’t expire and that they will switch at a 1-to-1 ratio.
In addition they should protect “important air assist” for rural areas and keep present ranges of service for passenger and cargo routes between the Hawaiian islands, U.S. Secretary of Transportation Pete Buttigieg stated on a press name.
The Division of Transportation famous that the airways can start the method of closing the merger, however nonetheless want approval for a switch software, which permits them to mix and function worldwide routes below one certificates.
Hawaiian’s inventory rose practically 4% on Tuesday.
The 2 airways stated in December once they introduced plans to mix that they’d maintain every service’s model however function below a single platform, combining right into a greater than 360-airplane fleet providing over 130 locations.
Hawaiian should additionally undertake Alaska’s practices of guaranteeing household seating with out a further payment and offering compensation if the airline causes important flight delays or cancellations, the DOT stated.
