A key milestone was achieved, and the next step awaits DOT approval.
Alaska Airlines and Hawaiian Airlines have moved closer to merging after the U.S. Justice Department concluded its antitrust investigation without filing a lawsuit to block the $1.9 billion agreement. However, the two airlines still need approval from the U.S. Department of Transportation (DOT) to finalize the merger, creating one of the most significant airline combinations since Alaska’s merger with Virgin America in 2016.
A Milestone in the Process
Alaska Airlines expressed satisfaction with the progress, stating, “The time for the U.S. Department of Justice to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines under the Hart-Scott-Rodino Antitrust Improvements Act has expired. This is a significant milestone in the process of joining our airlines.” With the DOJ stepping aside, attention now shifts to the DOT, which will evaluate if the merger aligns with the public interest.
Challenges Faced by Hawaiian Airlines
Hawaiian Airlines, in particular, has encountered several hurdles over the past few years, including increased competition from Southwest Airlines, a slower rebound in travel to and from Asia, and the devastating impact of the Maui wildfires. Despite these challenges, Hawaiian Airlines’ fortunes appear to be improving, with its stock surging more than 11% after Alaska’s recent announcement. As Hawaiian Airlines continues to recover, the merger with Alaska promises to strengthen both carriers.
What the Merger Could Mean
If approved, the merger will combine two iconic brands while retaining their identities. The new entity will boast a fleet of over 360 aircraft, covering more than 130 destinations, enhancing the reach and service of both airlines. The proposed combination is expected to be the biggest U.S. airline merger in recent years, with far-reaching impacts on the domestic airline industry.
Awaiting Final Approval
The DOT’s approval remains the final barrier before the deal can be completed. A spokesperson for the Transportation Department said, “We are reviewing the application and can only approve a transfer if it is in the public interest.” With the regulatory investigation behind them, Alaska and Hawaiian Airlines are optimistic about the final stages of the merger process.
As the industry watches closely, the successful completion of this merger could reshape the U.S. airline landscape, enhancing competition and potentially offering more choices for travelers.
In the meantime, follow this developing story as both airlines await the DOT’s final decision.
