US airlines set for unlikely merger

Two most unlikely allies are to come together to create a new US airline powerhouse.

The US Justice department this week gave the all-clear for an Alaska Airlines-Hawaiian airline merger, Travel Mole reports

The $US1.9 billion deal cements Alaska’s place as the fifth-largest US airline. 

The Biden administration found no significant barriers to the deal, although it comes with some conditions.

The airlines must continue operating the same frequency of flights on routes with little outside competition and continue subsidized flights to remote communities in Alaska and Hawaii.

The airlines must also maintain the value of frequent-flyer rewards when the two loyalty programs are integrated.

Alaska Airlines says it expects to close the airline merger “in the coming days”.

The Transportation Department has to now formally approve the airline merger.

Alaska Air is the dominant partner in the deal, but said it plans to preserve the Hawaiian Airlines name.