The fifth-largest U.S. carrier, Alaska Airlines, received a green light to complete its $1.9 billion acquisition of Hawaiian Airlines, the 10th largest airline in the country.
According to Alaska Airlines, the proposed merger, which was announced back in December, was cleared by the U.S. Department of Transportation. However, the deal comes with several conditions.
Alaska Airlines will need to honor the miles that passengers collected from its own and Hawaiian’s frequent flyers program and transfer them in a 1-to-1 ratio to the new loyalty points system it intends to create.
Additionally, the airliner will need to maintain key routes that Hawaiian serviced, including those to rural areas and between Hawaiian islands.
When it first announced the acquisition, Alaska Airlines said that Hawaiian would continue to operate under its current brand. The merger will create a fleet containing 360 airplanes that serve more than 130 destinations.
Alaska Airlines CEO Ben Minicucci said in a recent interview that the merger will provide a better experience for the passengers while allowing the company to be more competitive.
“It’s just a few more arrows in our quiver on how we deploy airplanes across our entire network. Putting the right airplane in the right market to deliver the best results for the combined entity,” Minicucci stated.
Hawaiian Airlines’ stock was delisted on Wednesday and will no longer trade on Nasdaq. The combined entity will continue trading under the ALK ticker on the New York Stock Exchange.