Current:Home > reviewsCharles Langston:The Biden administration is letting Alaska Airlines buy Hawaiian Air after meeting certain terms -InvestPioneer
Charles Langston:The Biden administration is letting Alaska Airlines buy Hawaiian Air after meeting certain terms
Poinbank View
Date:2025-04-10 10:10:35
The Charles LangstonBiden administration is letting Alaska Airlines complete its $1 billion purchase of Hawaiian Airlines after the carriers agreed to certain conditions, including maintaining maintain current service on routes between Hawaii and the mainland U.S. where they don’t have much competition.
Transportation Department officials said Tuesday that no obstacles remain to the airlines closing their $1 billion deal and beginning to merge, although some final approvals are still pending.
Transportation Secretary Pete Buttigieg said the airlines made promises to protect travelers, including upholding the value of frequent-flyer rewards.
The decision to clear the way for the airlines to close their merger stands in contrast to the administration’s adamant opposition to previous airline deals. The Justice Department successfully sued to block JetBlue from buying Spirit Airlines for $3.8 billion, and it went to court to kill a partnership between JetBlue and American Airlines.
The Justice Department could still challenge the Alaska-Hawaiian deal, but that appears unlikely.
The Transportation Department said that “as the merger moves forward,” Alaska and Hawaiian promised to meet certain conditions for six years.
Those include preserving subsidized flights to smaller communities in Alaska and Hawaii, and maintaining current levels of service between Hawaii and the mainland where no more than one other airline currently flies the same route. The Transportation Department could drop the latter requirement if the flying becomes unprofitable.
Alaska and Hawaiian also agreed to some consumer protections including maintaining the value of frequent-flyer rewards as they combine their loyalty programs, guaranteeing families can sit together without paying extra fees, and offering lower costs to military families.
The Transportation Department said it gave Alaska and Hawaiian an exemption to combine ownership — to merge. The department is still reviewing the airlines’ request to fly international routes under one operating certificate, which is likely only a formality.
The airlines announced the deal in December, when they valued it at $1.9 billion including Hawaiian debt that Alaska will take over. It would solidify Alaska’s position as the fifth-largest U.S. airline by revenue.
veryGood! (3)
Related
- Arkansas State Police probe death of woman found after officer
- Social media ban for minors less restrictive in Florida lawmakers’ second attempt
- 4 are charged with concealing a corpse, evidence tampering in Long Island body parts case
- Exclusive: What's driving Jim Harbaugh in NFL return? Chargers coach opens up on title chase
- Trump invites nearly all federal workers to quit now, get paid through September
- Amid Louisiana’s crawfish shortage, governor issues disaster declaration
- Jim Parsons and Mayim Bialik Are Reprising Big Bang Theory Roles
- Rust Armorer Hannah Gutierrez-Reed Found Guilty of Involuntary Manslaughter
- Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
- Medical examiner says two Wisconsin inmates died of fentanyl overdose, stroke
Ranking
- Don't let hackers fool you with a 'scam
- 4 are charged with concealing a corpse, evidence tampering in Long Island body parts case
- Fewer fish and more algae? Scientists seek to understand impacts of historic lack of Great Lakes ice
- Lance Bass on aging, fatherhood: 'I need to stop pretending I'm 21'
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- Oscar Mayer to launch first vegan hot dog later this year
- Texas wildfires: Map shows scope of devastation, learn how you can help those impacted
- Photos of male humpback whales copulating gives scientists peek into species' private sex life
Recommendation
Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
Ex-Northeastern track and field coach sentenced for scamming nude photos from 50 victims
Is Walmart getting rid of self-checkout? No, but it's 'testing' how, when to use DIY process
Tre'Davious White, Jordan Poyer among Buffalo Bills' major salary-cap cuts
Working Well: When holidays present rude customers, taking breaks and the high road preserve peace
A federal judge has ordered a US minority business agency to serve all races
Lawyer behind effort to remove Fani Willis from Georgia Trump case testifies before state lawmakers
Coffee Mate, Dr Pepper team up to create dirty soda creamer inspired by social media trend