Alaska Airlines has officially completed its $1.9 billion acquisition of Hawaiian Airlines, the first major airline merger in nearly a decade. The merger was announced in December 2023 and approved by the US Department of Transportation (DOT) in September 2024.
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The US Department of Transportation led by Secretary Pete Buttigieg approved the merger under several conditions. These were implemented to protect consumers and ensure continued service to specific regions.
Both Alaska Airlines’ Mileage Plan and Hawaiian Airlines’ HawaiianMiles loyalty programs must retain their value. Miles accrued by passengers in both programs will remain intact and be transferable on a 1:1 basis when the two airlines fully integrate their loyalty systems.
Statuses held in either program must be matched in the combined airline, ensuring no loss of benefits for loyal customers.
The merger agreement includes a provision requiring Alaska Airlines to maintain essential air services to rural communities in Hawaii and Alaska.
The new combined airline must ensure that passenger and cargo services between the Hawaiian Islands continue at current levels. The inter-island routes are vital for residents and tourists alike, must remain operational to maintain robust inter-island connectivity.
The airlines must maintain crucial routes that connect Hawaii with the US mainland. These routes serve both passengers and cargo, are critical for Hawaii’s tourism and commerce sectors.
Services to small and rural communities in both Hawaii and Alaska must remain uninterrupted, a stipulation that aims to protect consumers in regions that are dependent on air travel due to their geographic isolation.
The DOT has also mandated that the new airline ensures competitive access to Honolulu’s hub airport. This clause aims to maintain a level playing field for smaller airlines, allowing them to operate in Hawaii and provide competitive services to passengers.
Alaska Airlines will extend its practice of guaranteeing family seating without additional charges to Hawaiian Airlines flights. Families with children under the age of 13 will now be assured that they can sit together regardless of the fare type purchased.
The merged airline will adopt Alaska’s policies regarding compensation for flight delays and cancellations. If a flight is delayed or canceled due to the airline’s fault, passengers will be entitled to compensation.
In recognition of the large military presence in both Alaska and Hawaii, the merged airline will introduce special discounts for military members and their families.
These discounts will help alleviate travel costs for service members stationed in these regions. The airlines will also lower costs related to ticketing and baggage fees for military personnel providing them with additional financial relief when traveling.
Alaska Airlines has appointed an interim transition team to oversee the integration process of the two companies. Joe Sprague serving as Alaska Airlines’ Regional President for Hawaii, will take on the role of CEO of Hawaiian Airlines temporarily until the merger is fully completed and the combined entity secures a single operating certificate from the Federal Aviation Administration (FAA).
The merger will create a combined airline that holds approximately 8% of the US market share. While this may seem significant, it is still less than half the market share of the next-largest carrier, United Airlines, which holds around 16%.
In comparison larger airlines like American Airlines, Southwest Airlines and Delta Air Lines each command over 17% of the US market.
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Both Alaska Airlines and Hawaiian Airlines will continue to operate under their brands for the future. Alaska Air Group, the parent company of both airlines has committed to retaining the rich heritage and identity of both brands.
The two airlines will maintain separate websites, reservation systems and loyalty programs until the integration process is complete.
This integration is expected to take up to 18 months, with no immediate changes to day-to-day operations.
The combined entity is expected to receive a single operating certificate from the Federal Aviation Administration (FAA) once all regulatory approvals are in place. This certificate will allow the airlines to operate under a unified parent company.
Passengers will enjoy an expanded global route map gaining access to 29 international destinations served by both airlines including cities across the Americas, Asia, Australia and the South Pacific.
Alaska’s membership in the oneworld Alliance provides even broader access to over 1,200 global destinations through its network of partners.
In future, Travelers will be able to purchase Hawaiian Airlines flights on Alaska Airlines’ website and vice versa. This feature will make it easier for passengers to book flights between the US mainland, Hawaii and global destinations like Japan, South Korea and Australia.
Alaska Airlines Lounge members will gain access to Alaska Lounges when flying with Hawaiian Airlines, a perk currently offered to those traveling with oneworld partners.
One of the benefits of the merger is the ability for passengers to transfer miles between Alaska Airlines’ Mileage Plan and Hawaiian Airlines’ HawaiianMiles loyalty programs at a 1:1 ratio.
This change is expected to roll out by the end of September 2024, will allow travelers to maximize their miles across both airlines without any additional fees.
Elite members of both Mileage Plan and HawaiianMiles will have the option to link their accounts and enjoy status matching across both airlines. For example, if a passenger holds elite status in both programs, their total elite-qualifying miles (EQMs) will be combined, potentially earning them higher-tier status in both loyalty programs.
Although both Mileage Plan and HawaiianMiles will remain separate for now, the airlines plan to develop a unified loyalty program by mid-2025. This program will continue to offer some of the most generous benefits in the airline industry.
Hawaiian Airlines introduced a new program, Huaka’i by Hawaiian, which provides unique benefits for residents of Hawai’i. These include, a 10% discount on one booking per quarter. One free checked bag on inter-island flights.
Hawai’i residents will receive an email with a link to sign up for a free Huaka’i membership.
Children under 13 will be allowed to sit next to an accompanying adult without incurring additional fees. Passengers may be eligible for compensation in the event of certain delays and cancellations.
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