Alaska Airlines’ proposed acquisition of Hawaiian Airlines has successfully passed antitrust review by the Department of Justice. The merger, valued at $1.9 billion, has been given the green light by regulators, allowing the two airlines to proceed with the deal.
While the DOJ’s approval is a significant milestone, Alaska Airlines and Hawaiian Airlines still need to navigate through other regulatory hurdles before finalizing the acquisition. Interim approval from the Transportation Department is required for the airlines to operate under common ownership, and for Hawaiian to transfer its international route authorities to Alaska.
Alaska Airlines plans to uphold the Hawaiian Airlines brand and local jobs under the merger arrangement. Despite the integration of operations into a single operating certificate, Alaska will maintain the distinct brand identity of Hawaiian Airlines. Centralized scheduling, a unified loyalty program, and interchangeable aircraft will be key features of the merged airline.
Under the Biden administration, the Department of Justice has taken a critical approach to airline mergers, as seen in the case of JetBlue’s failed acquisition of Spirit Airlines. However, the Alaska-Hawaiian merger received support from the Hawaiian government due to limited network overlap and potential consumer benefits.
Hawaii Governor Josh Green has expressed optimism about the merger, highlighting the expanded travel opportunities for Hawaii residents. The merger is expected to enhance connectivity to destinations in North America and around the world, while preserving the value of HawaiianMiles for customers.
Overall, the antitrust approval of Alaska Airlines’ acquisition of Hawaiian Airlines marks a significant step towards the completion of the deal. With continued regulatory compliance and a focus on consumer benefits, the merged airline aims to strengthen its position in the market while preserving the unique brand identities of both carriers.
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