The merger between Alaska Airlines and Hawaiian Airlines has received approval from the Department of Justice (DOJ) and now awaits a decision from the Department of Transportation (DOT).
Editor Thenews24.net
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On June 21, 2023, planes from Alaska Airlines and Hawaiian Airlines took off simultaneously from San Francisco International Airport. Alaska Airlines recently announced that its acquisition of Hawaiian Airlines has passed the U.S. Justice Department’s scrutiny, as the antitrust review period concluded without any legal challenges. This development comes eight months after the two airlines revealed their $1.9 billion merger plan.
The next step for the merger is to obtain approval from the U.S. Transportation Department, though the timeline for this process remains uncertain. If successful, this merger would be the largest in the U.S. airline industry since Alaska Airlines merged with Virgin America in 2016, according to Mergermarket.
Alaska Airlines highlighted the expiration of the Justice Department’s review period under the Hart-Scott-Rodino Antitrust Improvements Act as a crucial milestone. This news follows the Justice Department’s recent legal victories, including blocking JetBlue Airways’ acquisition of Spirit Airlines and dissolving a partnership between JetBlue and American Airlines in the Northeast.
Hawaiian Airlines has faced numerous challenges leading up to the merger announcement last December, such as the Maui wildfires, increased competition from Southwest Airlines, and a slower recovery in travel to and from Asia post-COVID-19. Despite these hurdles, Hawaiian Airlines has seen an improvement in booking trends, although it has reported net losses in all but one quarter since 2020. Following Alaska Airlines’ announcement, Hawaiian’s stock surged over 11% and has nearly doubled in the past year, contrasting with declines in competitors’ shares.
The merger plan includes maintaining each airline’s brand while operating on a unified platform, resulting in a combined fleet of over 360 aircraft serving more than 130 destinations. The U.S. Transportation Department stated it is reviewing the application and will approve the transfer only if it serves the public interest. The Justice Department has not commented on the matter.