Merger moves forward as Alaska-Hawaiian granted exemption

HONOLULU (KHON2) — The Department of Transportation issued an order granting an exemption allowing transfer of international route authorities for the Alaska Airlines and Hawaiian Airlines merge.

“We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group. We sincerely appreciate the exceptional care and service that employees of both companies have continued to show for one another and our guests throughout this process, and the support of both airlines’ labor unions, as we proceed to realize the vision for this combination and build a stronger future together,” Alaska Air Group CEO, Ben Mincucci said in a statement.

The main concern of the DOT in allowing the merger was maintaining the traveling public’s interest.

“As the merger moves forward, Alaska and Hawaiian are required to protect the value of rewards, maintain existing service on key Hawaiian routes to the continental United States and inter-island, preserve support for rural service, ensure competitive access at the Honolulu hub airport, guarantee fee-free family seating and alternative compensation for controllable disruptions, and lower costs for military families,” the DOT said in a statement.

Among the protections required, the transfer of miles must be on a 1:1 ratio and the miles earned under the current programs must not expire.

The two airlines filed an exemption application, that DOT approved, which allows them to close the deal on the merger on the condition that they operate independently until the DOT rules on the transfer application.

As the merger moves forward, a leadership team has been assembled to “guide Hawaiian Airlines operations from transaction close through a full combination of operations under a single operating certificate with two brands – Hawaiian Airlines and Alaska Airlines.”

The team will lead lead Hawaiian operations while the two airlines operate under two individual operation certificates until Alaska Airlines can obtain a single certificate from FAA.

Joe Sprague, the current Alaska Airlines regional president of Hawaii/Pacific will be named CEO of Hawaiian Airlines. CEO Peter Ingram will step down from his role after the transaction closes.