Alaska-Hawaiian Merger Advances as DOJ Greenlights $1.9B Deal
Alaska Airlines' plan to acquire Hawaiian Airlines has taken a significant step forward, as the U.S. Justice Department has cleared the merger. This allowed the antitrust investigation period to conclude without any legal challenges. This development marks an important milestone in the $1.9 billion deal announced eight months ago.
The merger now awaits approval from the U.S. Transportation Department, a process whose duration remains uncertain. If successful, it will be the largest in the U.S. airline industry since 2016.
"The time period for the U.S. Department of Justice to complete its regulatory investigation...has expired," Alaska Airlines stated, highlighting the importance of this milestone.
Hawaiian Airlines has faced several challenges, including the Maui wildfires and tough competition from Southwest Airlines. The slower travel recovery to and from Asia after COVID-19 also added to their struggles. Despite this, Hawaiian's stock surged over 11% after the news. The stock has nearly doubled over the past year, bucking the trend of declining shares among rivals.
The two airlines plan to keep their individual brands but will operate on a unified platform. This will expand their fleet to over 360 aircraft, serving more than 130 destinations. The final decision now lies with the Transportation Department, which is currently reviewing the application to ensure it aligns with the public interest.
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