Alaska Airlines has successfully passed the U.S. Justice Department’s scrutiny in its plan to acquire Hawaiian Airlines. This comes after the two carriers announced a $1.9 billion agreement to combine, marking a significant milestone in the process. The deal, which would become the largest merger of U.S. carriers since Alaska merged with Virgin America eight years ago, now awaits approval from the U.S. Transportation Department before it can be finalized.
The U.S. Department of Justice’s investigation under the Hart-Scott-Rodino Antitrust Improvements Act has concluded without any legal action to block the merger. This is a positive development for both airlines as they move forward with the integration process. The timeline for approval from the U.S. Transportation Department remains unclear, but both Alaska Airlines and Hawaiian Airlines are hopeful that it will be a smooth process.
Leading up to the deal, Hawaiian Airlines encountered various challenges, including the Maui wildfires, increased competition from Southwest Airlines, and the slower recovery of travel to and from Asia due to the Covid-19 pandemic. Despite facing net losses in all but one quarter since the beginning of 2020, Hawaiian Airlines has seen improvements in booking trends according to executives. This positive trend is reflected in the almost 12% increase in Hawaiian’s shares this quarter, contrasting with the decline in most other airlines’ shares.
As part of the acquisition agreement, Alaska Airlines and Hawaiian Airlines plan to retain each carrier’s brand identity while operating under a single platform. The combined fleet of more than 360 airplanes will serve over 130 destinations, enhancing the overall reach and capabilities of the airlines. This strategic partnership aims to create synergies and efficiencies that will benefit both airlines and their customers in the long run.
Alaska Airlines’ successful clearance by the U.S. Department of Justice is a positive step towards finalizing the acquisition of Hawaiian Airlines. With regulatory hurdles behind them, both airlines can now focus on the next steps of the integration process. Despite the challenges faced by Hawaiian Airlines, the future looks promising as they work towards building a stronger and more competitive combined entity in the airline industry.