DOT Approves Alaska Airlines’ Purchase of Hawaiian Air

Alaska Airlines’ $1 billion purchase of Hawaiian Airlines is going across the finish line.

The Department of Justice (DOJ) on Tuesday confirmed that the purchase of Hawaiian by Alaska would be allowed to proceed with some conditions. The deal should close in the next few days.

The conditions are mostly agreements with the DOJ to keep routes to smaller communities in Alaska and Hawaii in place, along with maintaining the level of service between Hawaii and the continental U.S. The DOJ did say that the second requirement could be dropped in the future if it becomes unprofitable.

Alaska officially announced the completion of the acquisition in a statement on Wednesday, calling it a “historic day” for the carrier.

“Alaska and Hawaiian share tremendous pride in connecting communities with award-winning service, and we look forward to inviting more guests on board to experience what makes both brands unique,” Alaska Air Group CEO Ben Minicucci said.

Aside from the impact on guests, the news is also significant because of how heavy-handed the DOJ has been recently with airline mergers, including blocking the proposed merger between JetBlue and Spirit earlier this year.

The real impact

Effective immediately, Alaska Air Group will now fly nearly 1,500 daily flights to 141 destinations, including 29 international markets. It will operate a fleet of 350 aircraft and employ more than 33,000 people.

For passengers, there are a couple of changes that will impact their air travel experience. Alaska says that members of its Mileage Plan loyalty program and HawaiianMiles will retain their full value. It also said that Alaska Loug members will get access to those lounges when flying on Hawaiian, effectively immediately.

More changes will come soon, too, including the ability to transfer miles between the two loyalty programs and the ability to buy tickets for flights on both airlines on both websites. Alaska is also planning on launching a new travel program specifically for those who live in Hawai’i called Huaka’I, which will offer discounts and benefits exclusive to them.