Alaska Airlines has reached a significant milestone in its plan to acquire Hawaiian Airlines, as the U.S. Justice Department has cleared the deal after the completion of an antitrust investigation. The $1.9 billion agreement for the merger of the two carriers was announced eight months ago, and now they await approval from the U.S. Transportation Department before finalizing the deal.
After the expiration of the period for the U.S. Department of Justice to complete its investigation under the Hart-Scott-Rodino Antitrust Improvements Act, Alaska Airlines confirmed that no lawsuit was filed to block the acquisition. This marks a crucial step forward in the process for the airlines to join forces and create the largest merger of U.S. carriers since Alaska merged with Virgin America.
Leading up to the deal, Hawaiian Airlines encountered various obstacles, including the Maui wildfires, heightened competition from Southwest Airlines, and slower travel recovery from Asia due to the Covid-19 pandemic. Despite facing net losses in most quarters since the beginning of 2020, Hawaiian Airlines executives have expressed optimism about improving booking trends. This optimism is reflected in the almost 12% increase in Hawaiian’s shares this quarter, contrasting with the decline in shares of other airlines.
In December, both Alaska Airlines and Hawaiian Airlines announced that they intend to maintain each carrier’s brand while operating under a unified platform. The merger will result in a fleet of over 360 airplanes serving more than 130 destinations. The successful acquisition would further solidify Alaska Airlines’ position in the industry and expand its reach in the airline market.
Overall, the approval from the U.S. Justice Department signifies a significant step forward for Alaska Airlines in acquiring Hawaiian Airlines. The completion of the deal remains subject to approval from the U.S. Transportation Department, with the timeline for this process still unclear. However, the successful merger would create a powerhouse in the airline industry, offering customers an extensive network of flights and enhancing the competitiveness of both carriers in the market.