Alaska Airlines Completes $1B Acquisition of Hawaiian Airlines

Alaska Airlines finalized its $1 billion acquisition of Hawaiian Airlines on Wednesday, following the removal of the last significant regulatory hurdle by the federal government. The deal will include Alaska assuming approximately $900 million in Hawaiian debt without rebranding Hawaiian planes. Alaska Airlines plans to maintain Hawaiian Airlines as a separate brand.

To gain approval from the Transportation Department, the airlines agreed to keep current service levels on vital routes within Hawaii and between Hawaii and the US mainland, especially where competition is limited. The Justice Department, previously critical of airline mergers like JetBlue's attempt to acquire Spirit Airlines, did not contest this deal on antitrust grounds.

Moreover, Alaska and Hawaiian have pledged various consumer protections such as preserving the value of frequent-flyer programs and providing compensation for cancellations or significant delays caused by the airlines. Alaska Air Group's shares dropped slightly, by over 1%, post-announcement. The acquisition cements Alaska Airlines' status as the fifth-largest US airline by revenue. (This story was generated by Newser's AI chatbot. Source: the AP)