Alaska Airlines has completed its acquisition of Hawaiian Airlines, Alaska announced Wednesday.
The next step in combining the carriers is to secure a single operating certificate from the U.S. Federal Aviation Administration, which will allow the airlines to operate as a single carrier with an integrated passenger service system, according to Alaska. In the interim, each carrier will continue to operate separately with no immediate changes to operations. Each also will maintain separate websites, reservation systems and loyalty programs for now.
With the close of the transaction, Hawaiian president and CEO Peter Ingram will step down from his role, and Joe Sprague, current Alaska Airlines regional president of Hawaii and the Pacific will assume those duties, according to Alaska. Sprague will be responsible for leading all aspects of Hawaiian’s operations until the FAA grants a single operating certificate.
The deal was not finalized, however, until the U.S. Department of Transportation secured “binding, enforceable public-interest protections” from each carrier, according to the agency. Some of those protections Alaska and Hawaiian are required to provide include protecting the value of rewards—including no expiration for miles earned under current programs; transfer of miles at a one-to-one ratio; maintaining the value of miles; matching, maintaining or increasing status; and no new junk fees.
The carriers also must maintain existing service on key Hawaiian inter-island routes and those to the continental United States, 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, according to DOT.
As a combined entity, the merger offers 141 direct destinations, including 29 markets and more than 1,200 destinations globally through the Oneworld Alliance and global partners, according to Alaska. Honolulu also now is Alaska’s second-largest hub.
Alaska announced the $1.9 billion acquisition deal in December 2023. Hawaiian stockholders approved the deal in February, and the proposed merger cleared the U.S. Department of Justice in August.
