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Alaska Air Extends Review for $1.9 Billion Hawaiian Airlines Deal Amid Antitrust Concerns

By  |  July 31, 2024

Alaska Air Group has agreed to extend the review period for its proposed $1.9 billion acquisition of Hawaiian Airlines. This decision comes amid ongoing antitrust scrutiny from the U.S. Department of Justice (DOJ). The extension was confirmed in a filing by Alaska Air Group on Tuesday.

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    “Our airlines have mutually agreed with the DOJ on a brief extension of the formal review period until August 15,” the company stated.

    The acquisition, which was announced last year, has been under intense antitrust review. Both Alaska Air and Hawaiian Airlines disclosed in March that they have been cooperating with the DOJ throughout the review process and intend to continue this cooperative approach.

    Related: Alaska Airlines and Hawaiian Airlines Enter Timing Agreement with DOJ

    The U.S. airline industry has been facing shortages of new planes, jet engines and pilots, prompting companies to seek growth through acquisitions. This strategy, however, has drawn the attention of antitrust regulators who are generally cautious about mergers between smaller airlines.

    The proposed acquisition would significantly boost Alaska Air’s market presence, giving it control of over 50% of the market for flights to Hawaii, a highly sought-after holiday destination. This market dominance is a key point of concern for antitrust regulators.

    In March, the airlines entered a timing agreement with the DOJ, committing not to finalize the deal within 90 days after providing antitrust-related information. The extension until August 15 allows additional time for the DOJ to review the details of the acquisition.

    Source: Reuters