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

Alaska Airlines recently announced that its plan to acquire Hawaiian Airlines has successfully cleared the U.S. Justice Department. This milestone comes after a thorough investigation of the deal, which did not result in any legal action to block the acquisition. The $1.9 billion agreement to combine the two carriers was announced eight months ago, marking a significant step towards creating the largest merger of U.S. carriers since Alaska merged with Virgin America.

While the U.S. Justice Department has completed its regulatory investigation, Alaska Airlines and Hawaiian Airlines are now awaiting approval from the U.S. Transportation Department in order for the deal to close. The timeline for this process remains uncertain, and it is essential for both carriers to secure this final approval before proceeding with the merger plan. Upon completion of this regulatory step, Alaska Airlines and Hawaiian Airlines will be one step closer to joining forces.

Leading up to the acquisition announcement, Hawaiian Airlines encountered several challenges that impacted its operations. Factors 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 contributed to Hawaiian Airlines facing net losses in most quarters since the beginning of 2020. Despite these obstacles, the executives at Hawaiian Airlines have expressed optimism regarding improving booking trends and the overall performance of the airline.

Once the acquisition is finalized, Alaska Airlines and Hawaiian Airlines plan to maintain each carrier’s brand identity while operating under a unified platform. The merger will result in a combined fleet of more than 360 airplanes, serving over 130 destinations. This strategic move aims to strengthen the market presence of both airlines and enhance their capacity to cater to a wider range of customers.

The successful clearance of the acquisition by the U.S. Justice Department signifies a significant milestone for both Alaska Airlines and Hawaiian Airlines. By overcoming regulatory hurdles and navigating through industry challenges, these two carriers are poised to collaborate and create a stronger, more competitive aviation entity in the U.S. market.