Alaska Airlines achieved a significant milestone in its pursuit of acquiring Hawaiian Airlines when antitrust regulators agreed that the merger was not anticompetitive. The Department of Justice made the decision not to challenge the merger, and did not require any specific conditions, such as divesting gates or ensuring certain levels of interisland service in Hawaii. This lack of intervention from the DOJ was a positive development for the Alaska-Hawaiian merger, giving them a green light to proceed with the next steps.
Despite the positive feedback from antitrust regulators, the merger is not yet finalized. Alaska and Hawaiian still need approval from the Department of Transportation (DOT) to operate under common ownership. Additionally, they are awaiting final approval for Hawaiian to transfer its international route authorities to Alaska. The integration of operations into a single operating certificate is also on the agenda. Even though the DOJ has been strict with similar cases in the past, its decision not to intervene in the $1.9 billion Alaska-Hawaiian deal bodes well for the airlines’ future.
In a statement released after the DOJ’s review period expired, Alaska Airlines highlighted its commitment to maintaining the Hawaiian Airlines brand, local jobs, and high-quality service to and from the Hawaiian Islands. The plan is to keep the Hawaiian Airlines brand intact while combining the two carriers into a merged airline. This would involve centralized scheduling, a single loyalty program, and interchangeable aircraft. The support of the state government of Hawaii played a significant role in securing the DOJ’s approval, according to legal experts.
The Alaska-Hawaiian merger differs significantly from past cases that the DOJ has handled, such as JetBlue’s planned acquisition of Spirit. The limited route overlap between Alaska and Hawaiian, as well as their full-service carrier status, set them apart from other scenarios. The combined airlines serve approximately 140 destinations, with only 12 overlapping routes, three of which are exclusive to both carriers. This contrasted with situations where overlapping routes were more prevalent, as in the case of JetBlue and Spirit.
The decision of the DOJ to approve the merger without imposing any conditions surprised many observers. Despite multiple extensions of the review period, no specific requirements were set for the Alaska-Hawaiian deal. Speculation had arisen about potential stipulations on interisland Hawaii flying, but these did not materialize. The regulatory journey of the airlines is not yet complete, as the DOT still has the authority to impose conditions on the merger. While the process typically takes two to three months, the possibility of additional stipulations remains.
Overall, the approval of the Alaska-Hawaiian merger by antitrust regulators signifies a positive step for both airlines. The successful completion of the merger process, including DOT approval and integration of operations, will pave the way for a strong and competitive presence in the airline industry. With a focus on maintaining brand integrity, preserving local jobs, and delivering exceptional service, Alaska Airlines and Hawaiian Airlines are poised for a successful partnership in the future.