On Tuesday, the U.S. Department of Transportation secured binding and enforceable protections from Alaska Airlines and Hawaiian Airlines prior to the close of their merger.
The protections would prevent the traveling public from being harmed, and would require the airlines to protect the value of their rewards programs, preserve some critical flight service, ensure Honolulu hub access, enhance customer benefits and lower costs for military families, officials said. The airlines would also be required to guarantee fee-free family seating and alternative compensation for controllable disruptions, the DOT said.
“Our top priority is protecting the traveling public’s interest in this merger. We have secured binding protections that maintain critical flight services for communities, ensure smaller airlines can access the Honolulu hub airport, lower costs for families and service members, and preserve the value of rewards miles against devaluation,” U.S. Transportation Secretary Pete Buttigieg said. “This more proactive approach to merger review marks a new chapter of DOT’s work to stand up for passengers and promote a fairer aviation sector in America.”
Earlier this year, Alaska and Hawaiian filed a transfer application with the DOT that would allow them to combine and operate international routes under one certificate as a merged carrier. The two airlines also filed an exemption application asking the DOT to permit them to operate under common ownership prior to the requested transfer. Officials said the DOT may approve a transfer or grant an exception if it is in the public interest, including preventing unfair, deceptive, predatory or anticompetitive practices, ensuring consumers in all regions have access to affordable service, and maintaining service for small communities and isolated areas.
The DOT said that by locking in the terms Alaska and Hawaiian must deal with upfront, the department is establishing a proactive approach to the review process that prioritizes the public interest.