Log-in here if you’re already a subscriber
The U.S. Department of Transportation has cleared Alaska Air Group and Hawaiian Airlines to merge, using the upcoming transaction to advance broader Biden Administration policy goals around consumer protections — counterbalancing earlier opposition to airline industry consolidation — weeks before the U.S. presidential election.
“This is the first time that the U.S. Department of Transportation has required airlines to agree to binding enforceable protections as a precondition before we would consider allowing a merger to move forward,” Transportation Secretary Pete Buttigieg said during a call with reporters on Sept. 17.
Related: Alaska’s fleet chief breaks down the strategy behind Hawaiian deal
The approval marks a posture change for the DOT and the Biden Administration, which has taken a harder line on consolidation and corporate power across all industries. The Department of Justice in 2023 successfully blocked the Northeast Alliance between JetBlue Airways and American Airlines, as well as the $3.8 billion merger of JetBlue and Spirit Airlines in January of this year.
Continue Reading