The Pair Exit the Review Period Without Further Obstacles

Alaska Airlines announced on August 19 that their merger with Hawaiian Airlines had completed its regulatory review period with the U.S. Department of Justice. This propels the $1.9 billion deal closer to completion.

The two carriers’ proposed merger was announced in December 2023. In the deal, Alaska Airlines agreed to purchase Hawaiian Airlines. Both brands will still be maintained; their platforms will just be integrated into one. This widens the range of flights available through Alaska Airlines in the Americas, Asia, Australia, and islands in the South Pacific.

"This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawaii travelers," commented Alaska Airlines CEO Ben Minicucci.

On May 7, the DoJ requested more information on the merger plan. The airlines complied with this, marking the start of a 90-day review period. Then, Alaska Airlines allowed two additional extensions to the deadline, the latest being approved just last week.

"Today,” Hawaii Governor Josh Green explained, “the proposed merger of Alaska Airlines and Hawaiian Airlines cleared an important milestone. The regulatory review period for the U.S. Department of Justice has ended.”

The DoJ meticulously inspects merger and acquisition deals in the industry. Earlier this year, the $3.8 billion acquisition of Spirit Airlines by JetBlue was blocked in court. This decision was made because the transaction “violated the core principle of antitrust law” by hiking up prices of a known low-cost carrier, the Department said.

In Alaska/Hawaiian Airlines’ case, no regulatory issues or lawsuits were brought forward during the official review period. This brings the couple one step closer to finalizing their merger.

The carriers now await approval from the Department of Transportation.

FMI: www.justice.gov