Alaska Airlines’ Acquisition of Hawaiian Airlines Advances After DOJ Clears Deal

Alaska Airlines’ acquisition of Hawaiian Airlines has moved a step closer to completion after the U.S. Justice Department’s review period ended without filing a lawsuit to block the $1.9 billion merger. This approval allows the airlines to proceed with seeking final authorization from the U.S. Transportation Department.

The merger, which was announced in December 2023, would mark the largest U.S. airline merger since Alaska’s 2016 acquisition of Virgin America. With the DOJ’s review period concluded, Alaska Airlines and Hawaiian Airlines now await the Transportation Department’s approval, which will determine if the deal is in the public interest.

Hawaiian Airlines has faced significant challenges, including the Maui wildfires, heightened competition from Southwest Airlines, and a slow recovery of Asian travel post-Covid-19. Despite these hurdles, Hawaiian’s stock has surged over 11% since the announcement and nearly doubled in the past year, outpacing its competitors.

The merger would combine Alaska and Hawaiian Airlines into a fleet of over 360 aircraft serving more than 130 destinations, while maintaining each airline’s brand.

The Transportation Department is currently reviewing the merger application.

Sources: AirGuide Business airguide.info, bing.com, cnbc.com