Alaska Airlines requests transfer of Hawaiian’s int’l rights

Alaska Airlines (AS, Seattle Tacoma International) and Hawaiian Airlines (HA, Honolulu) have asked the US Department of Transportation (DOT) to approve the de facto transfer of Hawaiian’s international route authorities to Alaska Air Group as part of their merger process.

In a joint application, the companies also requested the reissuance of Hawaiian and Alaska’s international route authorities in the name of Alaska and/or Hawaiian. The DOT’s orders state that when two carriers that hold international route authority merge under common ownership, there has to be an approved de facto transfer.

Simultaneously, both companies requested the DOT grant Hawaiian an exemption to allow it to continue operations using its international rights once Alaska Air Group’s acquisition of Hawaiian Holdings closes.

Following the transaction, both carriers will continue to operate separately until their operations can be merged under a single operating certificate, and during this transition period Hawaiian will be a wholly owned subsidiary of Alaska Air Group, they stated. Even after they are under a single FAA certificate, the merged airlines will keep both brands, “retaining consumer choice while offering integrated and seamless loyalty benefits and customer service.”

In December last year, Alaska Air Group and Hawaiian Holdings agreed to merge in a deal that would see Alaska assume USD900 million worth of Hawaiian’s debt and Hawaiian shareholders receiving USD18 per share in cash.