Alaska Airlines recently announced that the U.S. Justice Department has approved its plan to buy Hawaiian Airlines. After eight months of review and thorough investigation, antitrust regulators decided not to file a lawsuit to stop the deal.
The $1.9 billion agreement to merge the two airlines can move forward. The only thing left for the two airlines to do is to get approval from the U.S. Transportation Department. After this, their deal can be finalized. However, it’s not yet known how long this approval process will take.
Is Alaska Airlines Merging?
Alaska Airlines is merging with Hawaiian Airlines. According to Mergemarket, this isn’t the first time Alaska Airlines will merge with another airline. However, this merger would be the biggest airline in the U.S. since Alaska merged with Virgin America in 2016.
Alaska Airlines announced that the time allowed for the U.S. Department of Justice to review their merger under the Hart-Scott-Rodino Antitrust Improvements Act has passed. They consider this an essential step towards combining the two airlines.
The Department of Justice
This news follows a January decision by the Department of Justice (DOJ), which successfully stopped JetBlue Airways from buying Spirit Airlines. Last year, the DOJ also won a case that ended a partnership between JetBlue and American Airlines in the Northeast.
Hawaiian Airlines had dealt with several issues before the deal was announced last December. These included the Maui wildfires, stricter competition from Southwest Airlines, and a slower travel recovery to and from Asia after the COVID-19 pandemic when people couldn’t travel.
Hawaiian Airlines
Hawaiian Airlines has reported losses since 2020, but company leaders have recently noted that bookings have improved. On Tuesday, Hawaiian’s stock significantly increased by more than 11% after Alaska Airlines made the announcement. Over the past year, Hawaiian’s stock has almost doubled, while other airlines’ stocks have decreased.
In December, Hawaiian and Alaska Airlines said they would keep their brands but work together on a shared platform. This would enable them to create a combined fleet of over 360 planes and serve more than 130 destinations. On Tuesday, the Transportation Department said it is reviewing the deal and will only approve it if it favors the public. The Justice Department hasn’t commented yet.
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Is Hawaiian Airlines Affiliated With Alaska Airlines?
Before the announcement of the merger between the two airlines, Hawaiian Airlines and Alaska Airlines were not affiliated; the same company did not own them, nor were they part of the same airline group.
However, they have announced a partnership in which Alaska Airlines will acquire Hawaiian Airlines. On February 16, 2024, the shareholders of Hawaiian Holdings, the parent company of Hawaiian Airlines, and the company’s previous partners voted in favor of the merger deal.
Is Hawaiian Airlines Domestic or International?
Hawaiian Airlines operates both domestic and international flights. Domestically, the airline is well-known for its service within the United States. It is known for connecting the Hawaiian Islands with various cities on the mainland, such as Los Angeles, San Francisco, and Seattle. This makes it a major airline for travelers to and from Hawaii.
Besides its domestic routes, Hawaiian Airlines also has a solid international network. It offers passengers flights to several countries across Asia, including Japan and South Korea. It also provides flights to destinations in Australia and New Zealand.
That’s not all; the airline also serves locations in the South Pacific, such as Tahiti and American Samoa. This international network allows Hawaiian Airlines to connect Hawaii with significant cities worldwide.
Can You Use Alaska Companion Fare on Hawaiian Airlines?
Alaska Airlines and Hawaiian Airlines offer generous rewards to their frequent customers through their loyalty programs. These rewards include opportunities to earn miles and access to discounted companion fares for those who hold their respective credit cards. However, after the merger was announced, details on how the two airlines would merge their loyalty programs were not available. No immediate changes are expected.
According to an Alaska Airlines spokesperson, the merger is under review by regulators, and the process could take more than a year to finalize. During this time, the Alaska Mileage Plan and HawaiianMiles programs will remain unchanged for members.
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Will Hawaiian Airlines and Alaska Airlines Run Separate Loyalty Programs?
Once the merger is complete, the two airlines will combine their loyalty programs. An Alaska Airlines spokesperson, Ray Lane, mentioned that it would be a gradual process, and many details are still being worked out.
Despite the merger, Alaska Airlines plans to continue operating Hawaiian Airlines under its brand. The merger will also bring Hawaiian Airlines into the global network of airlines that Alaska joined in 2021, Oneworld Alliance. If the merger is successful, the combined loyalty program will allow travelers to earn and redeem miles with over 25 global airline partners and enjoy elite benefits across all Oneworld Alliance airlines.
Who Owns Alaska Airlines?
Alaska Air Group, Inc. owns Alaska Airlines. The company is publicly traded, meaning that its shareholders, those who hold stock in Alaska Air Group, own it. The company is listed on the New York Stock Exchange as “ALK.”
Alaska Air Group also owns Horizon Air, a regional airline that operates feeder flights for Alaska Airlines. While the company is publicly traded, its ownership is spread across various institutional investors, individual shareholders, and company employees who may own shares through stock purchase programs.
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