In a significant step forward for the aviation industry, Alaska Airlines’ proposed USD 1.9 billion merger with Hawaiian Airlines has successfully navigated a crucial regulatory hurdle. The US Department of Justice (DOJ) has completed its review of the merger, according to a statement released by Alaska Airlines on Monday. The review period, extended last week, has now expired, clearing the path for the next phase of the approval process with the US Department of Transportation (DOT).
The news had an immediate impact on the stock market. Shares of Hawaiian Airlines surged nearly 9% in premarket trading on Tuesday, while Alaska Airlines’ stock remained relatively stable. This development marks a significant milestone for the merger, which was first announced last year.
Hawaii’s Governor, Josh Green, hailed the progress as a major benefit for the state’s residents. “Today, the proposed merger of Alaska Airlines and Hawaiian Airlines cleared an important milestone,” said Governor Green. “This merger will vastly expand the number of nonstop and one-stop destinations available to Hawai‘i residents and enhance the value of HawaiianMiles members’ rewards by offering access to more global destinations.”
The merger is anticipated to bring substantial benefits to travelers, including increased connectivity and improved service options across North America and beyond. The deal will potentially reshape the competitive landscape of the aviation industry, offering new routes and enhanced service for passengers.
However, the path to merger approval is fraught with challenges. The aviation sector has seen heightened scrutiny of such deals. Earlier this year, a federal judge blocked JetBlue Airways’ USD 3.8 billion acquisition of Spirit Airlines, highlighting the rigorous oversight of industry consolidations.
With the DOJ review now concluded, Alaska Airlines and Hawaiian Airlines await further regulatory approvals from the DOT. If successful, the merger will represent one of the largest consolidations in the airline industry in recent years.