Combination Marks the First Major U.S. Airline Merger Since 2016

The U.S. Department of Transportation (DoT) announced on September 17 that the Alaska Airlines and Hawaiian Airlines merger has passed its final regulatory approval. This sets the stage for the first major U.S. airline combination since Alaska merged with Virgin America in 2016.

Hawaiian Airlines President and CEO Peter Ingram will step down once the $1.9 billion transaction goes through. Joe Sprague, an Alaska Airlines' regional president, will assume the role of Hawaiian Airlines CEO during the transition period.

“We have a unique, once-in-a-generation opportunity to combine two incredible companies with aligned values and 90-plus year legacies of serving and connecting local communities,” Sprague stated. “I am deeply honored to work alongside these strong leaders from Hawaiian Airlines to lead the airline’s people, operations, and brand through this transition while sustaining our commitments to safety and service.”

With the green light given, the merger could be finalized in mere days. Until then, both airlines will operate as separate entities under their own operating certificates.

The combined airlines will cater to approximately 54.7 million passengers annually, covering 138 destinations, including 29 international locations across the Americas and Asia.

This merger comes after a time of extreme financial difficulty for Hawaiian Airlines. The carrier reported a second-quarter net loss of $67.6 million during Covid.

In April, a group of eight passengers filed a lawsuit claiming that the merger would result in higher fares and reduced flights. However, a federal judge dismissed the lawsuit, allowing the merger to proceed.

The DoT is requiring Alaska and Hawaiian to agree to several consumer protections, including maintaining existing flight services and loyalty program benefits. These protections are aimed at safeguarding the interests of travelers and keeping industry competition alive.

 “The transaction is expected to enable a stronger platform for growth and competition in the U.S., as well as long-term job opportunities for employees, continued investment in local communities and environmental stewardship,” Alaska commented.

FMI: www.alaskaair.com