DOJ Investigates Alaska Airlines and Hawaiian Airlines Merger Further

The Department of Justice’s Antitrust Division is intensifying its examination of the proposed merger between Alaska Airlines and Hawaiian Airlines, a strategic move first announced in December 2023. On February 7, 2024, both airlines acknowledged the DOJ’s demand for more information and documents, expressing their willingness to respond swiftly and cooperate fully with the ongoing review of their planned merger.

This merger, valued at approximately $1.9 billion, was agreed upon by Alaska Air Group, which is set to acquire Hawaiian Airlines from Hawaiian Holdings. The deal includes taking on $900 million of Hawaiian Airlines’ net debt. Despite the merger, the companies plan to maintain their individual brand identities and operations.

The combined fleet of the merged entity would boast 349 aircraft, encompassing a diverse mix of Airbus and Boeing models, as well as Embraer E175s operated by Alaska’s subsidiary, Horizon Air. This extensive fleet underscores the complementary nature of the two airlines’ operations and their significant market presence.

The scrutiny by the DOJ comes in the wake of the blocked merger between JetBlue Airways and Spirit Airlines, raising concerns about potential impacts on competition and consumer choice. However, Alaska Air Group’s CEO, Ben Minicucci, emphasized the distinctiveness of the Alaska-Hawaiian merger, citing minimal route overlaps and a bolstered competitive landscape as key benefits.

Peter Ingram, CEO of Hawaiian Airlines and Hawaiian Holdings, also expressed confidence in the merger’s consumer and community benefits, while remaining open to alternative acquisition proposals should the current deal encounter regulatory obstacles.

As the review process unfolds, the airlines’ commitment to transparency and cooperation with the DOJ highlights their determination to realize a merger that promises to enhance service offerings, operational efficiency, and competitive dynamics in the aviation sector.