DOT CLEARS MERGER BETWEEN ALASKA AND HAWAIIAN FOR TAKEOFF
October 8, 2024
Eckert Seamans has prepared the information in this update for educational purposes only. It does not constitute legal advice nor substitute for legal advice. Neither your receipt of information from this website nor your use of this website to contact Eckert Seamans or one of its attorneys creates an attorney-client relationship, as the firm may, for example, already represent another party involved in your matter. Accordingly, you should not provide confidential information to Eckert Seamans. Persons seeking legal advice should consult a licensed professional attorney in their state. The firm’s Terms of Use, Legal Notice, and Disclaimer detailed herein are expressly incorporated into the Aviation Regulatory Update.
On September 17, 2024, the U.S. Department of Transportation (“DOT”) advanced the merger between Hawaiian Airlines and Alaska Airlines after both airlines agreed to consumer protection concessions. Pursuant to the agreement reached with DOT, Hawaiian and Alaska agreed not to devalue either airline’s frequent flyer miles, continue to provide service on each nonstop overlap route where the airlines are the only competitors in the market, and guarantee family seating arrangements at no additional cost. To further protect customer reward miles against devaluation, DOT also secured commitments that neither airline will impose an expiration date on miles accrued under existing loyalty programs. The agreed-upon consumer protections will remain in place for six years following final DOT approval. This unusual step enabled DOT to approve an exemption that begins the merger process and permits the airlines to start merging business practices under common ownership. By obtaining DOT approval, the airlines cleared the last regulatory hurdle after securing U.S. Department of Justice approval last month. In a statement, the two airlines announced plans to “close their merger transaction in the coming days.”
This Aviation Blog is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or Samantha Walter at 412.566.1920 or swalter@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.