Alaska Airlines’ Acquisition of Hawaiian Airlines Clears U.S. Justice Department

Alaska Airlines has successfully navigated the U.S. Justice Department’s regulatory investigation process regarding its acquisition of Hawaiian Airlines. The period for antitrust regulators to review the $1.9 billion agreement between the two carriers has ended without any legal obstacles hindering the deal from moving forward.

Despite clearing the U.S. Justice Department phase, Alaska Airlines and Hawaiian Airlines must now seek approval from the U.S. Transportation Department before finalizing the merger. The timeline for this approval process remains uncertain at this time.

Historical Significance

If the deal between Alaska Airlines and Hawaiian Airlines goes through, it will mark the largest merger of U.S. carriers since Alaska’s merger with Virgin America eight years ago. The consolidation of the two airlines would reshape the aviation industry landscape and potentially lead to a more robust network of routes and services.

Prior to the acquisition announcement, Hawaiian Airlines endured a series of challenges that impacted its financial performance. Factors such as the Maui wildfires, heightened competition from Southwest Airlines, and slower travel recovery from Asia post-Covid-19 pandemic contributed to Hawaiian Airlines experiencing net losses in multiple quarters. However, recent booking trends show signs of improvement, indicating a potential turnaround for the airline.

Despite the turbulent operating environment, Hawaiian Airlines’ shares surged by nearly 12% in the current quarter, contrasting with the downward trajectory seen in most other airlines’ stock prices. The market appears optimistic about the future prospects of Hawaiian Airlines under the umbrella of Alaska Airlines.

Upon announcing the deal in December, Alaska Airlines and Hawaiian Airlines outlined their intentions to maintain both carriers’ individual brands while operating under a unified platform. This integration would result in a combined fleet of more than 360 aircraft serving over 130 destinations, enhancing the overall value proposition for customers of both airlines.

Overall, Alaska Airlines’ successful clearance of the U.S. Justice Department review represents a significant milestone in the journey towards finalizing the acquisition of Hawaiian Airlines. The potential synergies and strategic advantages that could arise from this merger promise to reshape the competitive landscape of the U.S. aviation industry in the coming years.