The Biden administration has approved Alaska Airlines' $1 billion acquisition of Hawaiian Airlines, marking a notable shift in the government's approach to airline mergers after previously blocking similar deals. The Department of Transportation (DOT) stipulated that both airlines must adhere to several conditions for six years, including maintaining current service levels on routes between Hawaii and the mainland U.S. where competition is limited. Transportation Secretary Pete Buttigieg emphasized commitments to consumer protections, such as upholding frequent-flyer rewards and ensuring families can sit together without additional fees. While the Justice Department could still challenge the merger, such action appears unlikely. Alaska Airlines plans to finalize the deal shortly, despite a slight drop in its stock price, while Hawaiian Holdings experienced a modest increase. This decision contrasts sharply with the administration's past opposition to airline consolidations, indicating a more lenient stance moving forward.