The Acquisition of Hawaiian Airlines by Alaska Airlines Gets U.S. Justice Department Approval

Alaska Airlines has successfully navigated through the regulatory process of acquiring Hawaiian Airlines, as the U.S. Justice Department has given its clearance for the deal to move forward. This milestone comes after eight months of negotiations since the announcement of the $1.9 billion agreement to combine the two carriers. The completion of the U.S. Department of Justice’s investigation under the Hart-Scott-Rodino Antitrust Improvements Act signals a significant step towards the consolidation of the airlines.

Leading up to the acquisition, Hawaiian Airlines faced various challenges such as the Maui wildfires, heightened competition from Southwest Airlines, and the slower recovery of travel to and from Asia due to the Covid-19 pandemic. Despite the difficulties, Hawaiian’s executives have expressed optimism about improving booking trends with the potential benefits of the merger with Alaska Airlines. The stock market has also responded positively to Hawaiian’s potential partnership, with shares up nearly 12% this quarter compared to other airline companies.

While the U.S. Justice Department has given its clearance, the two airlines still need approval from the U.S. Transportation Department before the deal can be finalized. Although the timeline for this approval process remains uncertain, the completion of the regulatory investigation is a crucial step towards uniting the over 360-airplane fleet of both airlines and expanding their reach to more than 130 destinations. The plan to keep both carriers’ brand identities while operating under a single platform demonstrates a strategic approach to maximizing strengths and resources under the merged entity.

The acquisition of Hawaiian Airlines by Alaska Airlines marks a significant development in the airline industry, particularly in the context of recent mergers and regulatory hurdles faced by other carriers. The successful clearance by the U.S. Justice Department sets the stage for a new era of collaboration and growth for both airlines, positioning them to better navigate the challenges and opportunities in the post-pandemic travel landscape. As the final approvals are awaited from the U.S. Transportation Department, the future looks promising for Alaska Airlines and Hawaiian Airlines as they embark on this transformative journey together.