Hawaiian Airlines’ planned tie-up with Japan Airlines got a tentative nod from the US transportation department but is short of what the airlines were hoping for.
The Trump Administration rejected the airlines’ bid for antitrust immunity.
They will be able to sell each other’s flights and partner on marketing and frequent-flyer programs but are not permitted to coordinate pricing and flight schedules.
Hawaiian Airlines said it was disappointed with the decision and indicated it plans to appeal it.
"It overlooks the importance of antitrust immunity that major global airline alliances already enjoy, harming a small US carrier like Hawaiian by preventing it from being able to compete," the airline said.
The transportation department said the airlines don’t need antitrust immunity for their partnership to work.
If the US DOT gives final approval the airlines can jointly market routes and cross-sell flights between Hawaii and Japan and from Hawaii to 10 other Asian countries via a transit in Japan.
