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

HONOLULU (HawaiiNewsNow) – Less than a day after receiving federal approval, Alaska Airlines has finalized a $1.9 billion deal to buy Hawaiian Airlines.

Alaska confirmed the merger the same day the U.S. Department of Transportation approved it, and was ready to name a new management team.

The merger passed review by the Justice Department’s Antitrust Division on Monday, and then on Tuesday, the DOT notified the two carriers that it had granted a waiver necessary for the transaction. The waiver allows the carriers to meet 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.

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An unexpected card that has emerged in the regulatory process could make the decision-making easier: The U.S. Department of Transportation obtained several promises in writing as a condition for approving the merger.

Alaska agreed to legally binding commitments, valid for six years, to maintain all current inter-island routes, as well as major routes to the mainland — and promised in writing that it would not withdraw any frequent flyer miles before merging its loyalty programs.

For the first time in DOT history, it essentially took commitments that Alaska had already made and turned them into binding promises. Since Alaska was already planning to do these things, it was happy to commit to them in order to get the contract approved.

No one can be sure how long it will take to integrate the two carriers’ systems, and one big question for Hawaii remains: How many nonunion office positions will be made redundant or moved to Alaska’s headquarters in Seattle?

The coming months will bring many attractions for travelers.

Hawaiian employs 7,000 people, mostly in Hawaii. Alaska has already said it will keep Honolulu as its second-largest hub after SeaTac. Hawaiian’s local unions have backed the merger.

Hawaiian has faced a number of financial headwinds in recent years — the COVID travel crisis, the subsequent Japanese travel crisis, the Maui wildfires and the interisland fare wars following Southwest Airlines’ entry into the interisland market. Southwest and Hawaiian have at times sold interisland fares below cost to try to gain and maintain market share.

“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.

What does this mean for travellers?

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.

The overall plan is to refine the two websites, reservation systems and loyalty programs until they can be easily combined because they are the same thing.

What will happen to Hawaiian Airlines?

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

Both airlines will retain their separate brands, but management will see a noticeable change in management. Most of Hawaiian’s interim management team will be Hawaiian vice presidents doing the same job as before, but Hawaiian CEO Peter Ingram is stepping down, while Alaska CEO Joe Sprague is stepping in.

Daniel Chun, Alaska Hawaii manager, will be responsible for community and government relations.

Until a single operating certificate is issued, the company will have two — one for each airline.

At Hawaiian, CEO Peter Ingram will step down and be replaced by Alaska CEO Joe Sprague, who will lead an interim Hawaiian management team 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.

According to the Alaska Airlines website, the following changes can be expected over the next few months:

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.