close
close

Alaska Airlines Completes Acquisition of Hawaiian; Here’s What You Need to Know

HONOLULU (HawaiiNewsNow) – The merger of Hawaiian Airlines and Alaska Airlines is a done deal.

As of Wednesday morning, the corporate merger was complete. The acquisition was completed within hours of receiving final federal approval.

Following merger review by the Antitrust Division of the Department of Justice, the next and final regulatory event was a review by the U.S. Department of Transportation.

On Tuesday, the DOT notified the two carriers that it had granted a waiver necessary to fulfill the agreement. The waiver allows the carriers to fulfill all of their obligations regardless of which airline provides the service.

For example, it allows the new joint operation to operate international routes that are currently operated under the imprimatur of Hawaiian Airlines. Solving this bureaucratic problem allowed Alaska Air to complete its acquisition of Hawaiian Holdings.

Both airlines will retain their separate brands, but management will see a noticeable change in leadership. Hawaiian CEO Peter Ingram will leave, and Joe Sprague, who was regional head of Hawaii and Pacific operations in Alaska, will serve as interim CEO.

PREVIOUS COVERAGE:

As part of the new Department for Transport action, negotiated terms of approval included a promise to maintain inter-island links and a commitment not to eliminate frequent flyer miles before the frequent flyer plans were merged.

All of the negotiated terms were things Alaska planned to do anyway, but were blocked by federal enforcement authority. Alaska shares closed down a tenth, reflecting the larger debt it took on, while Hawaiian rose four-tenths, reflecting the premium Alaska will pay.

Honolulu will become Alaska’s second-largest transportation hub and regional headquarters.

“This is a historic day for Alaska Airlines as we officially join Hawaiian Airlines. Alaska and Hawaiian take incredible pride in connecting communities through award-winning service, and we look forward to welcoming more guests on board to experience what makes both brands special,” said Ben Minicucci, CEO of Alaska Air Group.

For travelers, the partnership means there’s a lot to look forward to over the next 18 months, including expanded benefits and choices. While nothing significant is changing immediately in the guest experience, Alaska Air says guests could start experiencing significant benefits from the merger very quickly and in stages.

Through the Alaska and Hawaiian partnership, guests will be able to fly directly to 141 destinations, including 29 international markets and more than 1,200 destinations worldwide.

Here’s what you need to know:

What will happen to Hawaiian Airlines?

Paying tribute to its rich history and deep heritage, Alaska Airlines said Hawaiian Airlines will retain its brand.

The acquisition created a company with 33,000 employees and 350 planes. Until a single operational certificate is issued, the company has two — one for each airline.

Hawaiian CEO Peter Ingram will step down on the board of directors from Alaska CEO Joe Sprague, who will leave behind an interim management team for Hawaiian that will include key executives from both carriers.

When the FAA grants a single operating certificate, Alaska confirms that it plans to operate a single operation with two brands to the public. The DOT said Alaska has committed in writing to maintaining key Hawaiian mainland routes and existing inter-island flights. Those promises are legally enforceable for years.

Valid from September 18:
  • Alaska’s Mileage Plan and Hawaiian Miles retain full value
  • Alaska Lounge members and guests can enjoy Alaska Lounge access on Hawaiian flights.
  • Hundreds of passengers have accumulated more than a million miles or more flying Hawaiian Airlines, and Alaska says they appreciate their business by offering new benefits.
In the coming weeks
  • You’ll soon be able to transfer miles between your Alaska and Hawaii frequent flyer accounts for free to redeem for travel rewards.
  • Buy tickets for both airlines on both websites. For example, you will be able to buy tickets for most Hawaiian flights on alaskaair.com and buy tickets for Alaska flights on hawaiianairlines.com. Alaska will soon offer the ability to buy flights to Japan, South Korea and Australia.
  • A new travel program for Hawaii residents is in the works, called Huakai (travel). It will feature exclusive discounts and benefits exclusive to Hawaii residents, including 10% off one booking per quarter for interisland travel. Learn more here.
In the coming weeks
  • You will be able to earn Mileage Plan or HawaiianMiles miles when flying with both airlines.
  • In early 2025, you’ll be able to use your Mileage Plan miles directly on all flights to Hawaii, including international routes. You’ll be able to combine flights to Hawaii with flights to Alaska or partner flights when you redeem your miles.
  • If you are an elite passenger on Alaska or Hawaiian, you will be able to link your accounts to automatically enjoy equivalent status on the other airline. If you have elite qualifying miles (EQM) on both programs, your status will be based on the highest tier you qualify for, based on your total EQM.
Long-term benefits:
  • Elite Reciprocity: Mileage Plan and HawaiianMiles members will be able to enjoy select Elite benefits when flying with both airlines.
  • One industry-leading loyalty program for both brands. More details in mid-2025.

For more information on the implications of the merger, click here.