Alaska Airlines Acquiring Hawaiian Airlines Receives U.S. Justice Department Approval

Alaska Airlines has received clearance from the U.S. Justice Department for its plan to acquire Hawaiian Airlines. This comes after the antitrust regulators concluded their investigation without filing a lawsuit to block the $1.9 billion deal. The next step is to seek approval from the U.S. Transportation Department before the deal can be finalized. The timeline for this process remains uncertain at this time.

The expiration of the period for the U.S. Department of Justice to complete its regulatory investigation is being hailed as a significant milestone in the merger process for Alaska Airlines and Hawaiian Airlines. This merger would mark the largest consolidation of U.S. carriers since Alaska’s merger with Virgin America eight years ago. Both airlines have expressed optimism about the benefits of joining forces.

In the lead-up to the deal, Hawaiian Airlines encountered various challenges such as the Maui wildfires, heightened competition from Southwest Airlines, and slower travel recovery from Asia due to the Covid-19 pandemic. Despite experiencing net losses in most quarters since the beginning of 2020, Hawaiian Airlines has seen positive momentum in booking trends recently. This has been reflected in the increase in the company’s shares, contrasting with the decline in shares of other airlines.

When the merger was announced in December, both Alaska and Hawaiian Airlines stated that they would maintain each carrier’s brand identity while operating under a unified platform. The combined fleet of over 360 aircraft will serve more than 130 destinations. This strategic move is expected to enhance the overall competitiveness and reach of both airlines in the highly competitive aviation industry.

The clearance from the U.S. Justice Department represents a significant step towards the completion of the acquisition of Hawaiian Airlines by Alaska Airlines. Both companies are looking forward to leveraging their synergies to create a stronger presence in the market and provide enhanced services to customers. The successful merger would further solidify Alaska Airlines’ position as a key player in the U.S. aviation sector.