The U.S. Department of Transportation announced on Tuesday (September 17) that it has approved Alaska Airlines’ acquisition plan of Hawaiian Airlines, with the agreement to retain Hawaiian Airlines’ primary routes and take steps to protect consumer interests.
In a press release issued on Tuesday, the U.S. Department of Transportation stated that after the two airlines agreed to take measures to safeguard the interests of passengers, the agency believed they had met the necessary conditions for approval of the $1.9 billion merger plan.
Transportation Secretary Pete Buttigieg stated in the press release, “Our primary mission in this merger is to protect the interests of the traveling public. We have secured enforceable protections to maintain critical flight services for communities, ensure smaller airlines can access Honolulu hub airport, reduce costs for families and service members, and maintain the value of reward miles.”
Buttigieg also mentioned during a conference call that the two airlines must also preserve “essential air support” for rural areas and maintain existing service levels for passenger and cargo routes between the Hawaiian Islands.
Alaska Airlines, the fifth largest airline in the U.S., announced last December its intention to acquire the tenth largest domestic airline, Hawaiian Airlines. In August of this year, the U.S. Department of Justice decided not to block the acquisition.
Both airlines stated on Tuesday that they expect to complete the transaction in the coming days.
Prior to the Department of Transportation’s approval of the acquisition, Alaska Airlines had engaged in discussions with the Department for several weeks, with both parties hoping for concessions in various aspects beyond what was mentioned in the agreement announced on Tuesday.