BusinessSep 18, 2024
Alaska Airlines and Hawaiian Soar Together After $1.9B Merger
Carrier Consolidation
Daniel Schoester
The skies are clear for takeoff as Alaska Airlines and Hawaiian Airlines join forces. The US Department of Transportation (DOT) has approved the $1.9B merger, wrapping up the deal and delisting Wednesday. The two airlines will maintain their own brands as they jointly manage a fleet of over 360 aircraft, serving more than 130 destinations.
- Alaska’s CEO estimates $235M in cost savings, thanks to the ability to better allocate “the right airplane in the right market to deliver the best results.”
- The DOT’s approval comes with conditions: Key Hawaiian routes must be preserved, loyalty program values maintained, and Alaska’s customer protection policies — including no-fee family seating and flight delay compensation — adopted.
Changing course: This merger’s approval is surprising, given recent crackdowns on airline consolidation. In January, a $3.8B tie-up between JetBlue and Spirit was blocked on anti-competitive grounds, and in 2023, the Justice Department grounded an alliance between American Airlines and JetBlue. But even regulators seem to agree — sometimes you need a little ice in your Mai Tai.
