Antitrust regulators at the Department of Justice have given their approval for Alaska Airlines’ acquisition of Hawaiian Airlines, deeming it not anticompetitive. This decision comes after the merger review period ended without any action taken, allowing the $1.9 billion deal to move forward. Alaska Airlines expressed its satisfaction with the DOJ’s decision, stating that it is a significant milestone in the process of joining the two airlines together.
Although the DOJ has given its approval, there are still other regulatory hurdles and closing conditions that Alaska and Hawaiian Airlines must navigate before finalizing the deal. Interim approval from the Transportation Department is required for the airlines to operate under common ownership while they wait for final approval to transfer Hawaiian’s international route authorities to Alaska. Additionally, the airlines will need to integrate their operations into a single operating certificate, a process that will take time and careful planning.
Once the merger is complete, Alaska Airlines plans to keep the Hawaiian Airlines brand distinct, recognizing its strong presence in Hawaii. However, the two carriers will otherwise operate as a merged airline, with centralized scheduling, a single loyalty program, and interchangeable aircraft. Alaska will acquire Hawaiian for $18 per share, totaling $1.9 billion including the assumption of $900 million in Hawaiian Airlines debt.
Under the Biden administration, the Department of Justice has taken a cautious approach to airline mergers, as evidenced by its actions against JetBlue’s attempted acquisition of Spirit Airlines. However, the Alaska-Hawaiian merger received support from the Hawaiian government and was seen as beneficial due to the limited overlap between the airlines’ networks. With only 12 markets where they directly compete, the merger was viewed favorably by regulators.
Hawaii Governor Josh Green has expressed optimism about the merger, citing the numerous benefits it will bring to consumers, employees, and the community at large. He highlighted the expansion of nonstop and one-stop destinations for Hawaii residents, as well as the increased access to global destinations for HawaiianMiles members. Green’s support underscores the positive impact that the merger is expected to have on Hawaii’s economy and tourism industry.
While the road to finalizing the Alaska-Hawaiian merger is not without challenges, the approval from the DOJ and the support from key stakeholders bode well for the successful integration of the two airlines. As the process moves forward, stakeholders will be keeping a close eye on how the merger unfolds and the impact it has on both the airlines and the broader aviation industry.