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Alaska Airlines, Hawaiian can close merger offer, DOT says

The U.S. Transportation Department stated on Tuesday it had consented to enable Alaska Airlines to close on its $1.9 billion acquisition of Hawaiian Airlines, after the providers consented to keep crucial Hawaiian paths and embrace customer protections.

The Justice Department in August chose not to obstruct the offer that was announced in December by Alaska, the fifth-largest domestic U.S. airline company, to Hawaiian, the 10th-largest provider. The carriers said on Tuesday that they anticipate to close the deal in the coming days.

DOT stated Alaska and Hawaiian consented to safeguard the worth of regular flyer rewards, keep existing service on secret Hawaiian routes to the continental United States and inter-island areas, make sure competitive access at the Honolulu airport and offer travel credits or frequent leaflet miles for disturbances that are the fault of the airline.

The contract followed weeks of discussions in between Alaska and DOT, which had sought extensive concessions that went beyond what remains in the contract revealed on Tuesday.

Alaska stated on Tuesday that the dedications line up with plans it announced at the time it signed the deal and do not effect the synergies of the offer, which will boost competition and broaden choice for consumers.

The providers need to ensure clients can transfer miles without penalty and the combined provider can not decrease the value of HawaiianMiles miles and should maintain, or boost status for HawaiianMiles members in Alaska's Mileage Plan program.

(source: Reuters)