The US Department of Transportation (DOT) has cleared the $1.9 billion acquisition of Hawaiian Airlines by Alaska Airlines, marking the first major airline merger in nearly a decade.
To gain approval, the airlines agreed to meet specific conditions, including preserving key routes and protecting customer loyalty programs.
As part of the agreement, Alaska and Hawaiian Airlines must maintain service on inter-island routes and flights to and from Hawaii, as well as ensure that frequent-flyer rewards from both airlines retain their value. The deal also includes consumer protections, such as allowing families with children to sit together without extra fees, providing compensation for flight delays or cancellations, and offering reduced costs for military families. These commitments will remain in effect for six years following final regulatory approval.
Transportation Secretary Pete Buttigieg emphasized the binding protections in place for passengers and communities, highlighting new customer service guarantees. The merger has faced multiple regulatory reviews, including approval from the Justice Department, which did not challenge the deal on antitrust grounds.
The merger is expected to strengthen Alaska Airlines’ presence on the West Coast, expand international operations, and position the combined carrier as the fifth-largest US airline by revenue. Alaska Airlines is set to close the deal in the coming days, though some final approvals remain pending.
Both airlines will operate under one entity, but Alaska has committed to retaining the Hawaiian brand.
The New York Times, FOX Business, the Associated Press contributed to this report.
