US DoT approves Alaska-Hawaiian merger with binding consumer protections

US Department of Transportation (DoT) approved (17-Sep-2024) Alaska Air Group's acquisition of Hawaiian Airlines, pending the DoT's review of the carriers' transfer application. The airlines agreed to the following enforceable public interest protections required by the DoT to close the merger:

• Maintain airline rewards value: The carriers agreed to protections against rewards devaluation, ensuring consumers receive the rewards, benefits and status they have earned. Specific reward protections include:
  
  • No expiration for miles earned under current programmes: All HawaiianMiles and Alaska Mileage Plan miles earned prior to the conversion into the new combined loyalty programme must not expire;
  • Miles transfer at 1:1 ratio: Rewards members must be able to transfer HawaiinMiles to/from Alaska Mileage Plan miles at a 1:1 ratio prior to the launch of the new combined loyalty programme. Each outstanding mile must be converted into a mile in the new loyalty programme, ensuring all members have the same miles balance before and after conversion;
  • Maintain miles valuation: The combined carrier must not take any actions that would devalue HawaiianMiles, must maintain the value of unredeemed HawaiianMiles, must honour all active Hawaiian Miles promotions from prior to the merger closing and must continue to award HawaiianMiles at the same or greater value;
  • Match, maintain or increase status: The combined carrier must match and maintain the equivalent status levels that HawaiianMiles and Alaska Mileage Plan members hold under the current programmes;
  • No new junk fees: The combined airline must not impose change or cancellation fees on rewards redemption tickets for travel on carrier operated flights;
• Maintain inter-island and continental connectivity: The combined airline must maintain "robust" levels of service for critical Hawaiian inter-island passenger and cargo service and for key routes between Hawaii and the continental US to prevent a loss of competition;
• Preserve support for essential air service in Alaska and Hawaii: Ensuring connectivity for each state's small, rural communities which depend on air service for healthcare, education and economic wellbeing;
• Ensure competitive access to Honolulu Daniel K Inouye International Airport: The combined carrier is prohibited from taking actions to discriminate against new market entrants or smaller competitors' access to the airport;
• Guarantee fee-free family seating: Hawaiian Airlines must join Alaska Airlines in guaranteeing adjacent seats for children aged 13 or under with an accompanying adult at no additional cost;
• Provide alternative compensation for delays and cancellations caused by the airline: Hawaiian must join Alaska Airlines in providing travel credits or frequent flyer miles when a flight is delayed by at least three hours or when a flight is cancelled and passengers must wait at least three hours for a new flight due to circumstances within the control of the airline;
• Lower costs for service members and their families: The carriers must lower costs for military service members and their families by waiving select fees and providing at least one free standard carry-on bag and at least two free standard checked bags for service members and their accompanying spouse and children.

The carriers must remain separate and independently operated until the DoT has ruled on the carriers' transfer application. If approved, the protections will remain in effect for a six year period. [more - original PR]